Tuesday, 29 April 2014

Property versus Stock

Since I have time on my hands, I tend to frequent the libraries and the bookstores quite a bit. I have often seen investments books which advocate property buying or stock buying.

Some of them say that property is the way to go, while others say that stock is the way to be rich. I am sometimes rather confused as to whether I should focus on property or stocks. Let me attempt to dissect which is more suitable for you as an investor.

  • Able to get loans from banks
  • Many rich people are in it
  • Able to renovate to improve value
  • Easy to complete a transaction
  • Small capital required 
  • Big capital required
  • 3 months to complete transaction
  • Need to find tenant (if you are renting out)
  • Not able to get a loan from banks
  • Prices change quickly
  • Unable to renovate to improve value

With the advantages and disadvantages mentioned above, which will you choose or should we be greedy and choose both?



  1. If opportunity knocks compellingly for both property and stocks I would go for property because I deemed it as less volatile and the return assuming leverage is used is much more. To be honest it is very unlikely that I will choose to use leverage for stocks in my life.

  2. Hi B,

    What is considered compelling for you? The thing about leverage is that its a double edged sword. It can help and hurt you too. I will also not use leverage for stocks.

    1. Hi PIB

      I will find it a good buy for property if they are within the 10% range from the price the developer pays for the land. Similar to stocks, once you monitored it for years, think you would get an idea what constitutes a good price.