Majority of the countries all over the globe sees real estate as a great way to come in contact with unknown riches. All you have to do is pay the down payment requires, live in the property for a number of decades, pay the remaining mortgage and then you can consider yourself rich.
There is lot of riches that can be found when venturing with real estate. In majority of the markets though, many people recognize that stock market is much more profitable.
It does not mean that it is not recommended to buy your own house because a place to live in is a staple and it is better than renting in most parts of the world.
Many people are attracted to buying a property because of various factors such as rental income, tax incentives as well as a low interest rate. When thinking about the long term, there is a smaller chance that real estate will be able to outdo the stocks market.
There is a recently published comparison chart of real estate and stock markets in three countries – United States, Singapore and Hong Kong. The data is from the year 1975 which shows a nominal return from real estate while stock markets exclude the dividends.
When it comes to stock markets, it performs better in both Hong Kong and United States compared to real estate and the difference is quite huge. In Singapore, however, real estate market is more dominant compared to stocks in the long term data recorded. The S&P 500 of Singapore is quite hard to outperform.
Ever since the year 1975, the stock market is faring better compared to the residential real estate market in the United States and it is evident in every decade recorded thereafter.
In Singapore, the returns for the real estate are at an average of 6.4 per cent while the stock market is only averaging at 5.2 per cent each year.
If you are in Thailand and looking for a new property to invest in, check out Find Thai Property for a comprehensive list.