Which is Better Investment Option CRE or Stocks

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Which is Better Investment Option CRE OR STOCKS?
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Most often it is seen that there is considerable
dilemma among the various investors when it comes
to investing in commercial real estate or stocks.
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Here are the details about both the commercial
real estate and stocks.
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Commercial real estate
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The commercial real estate is something which can
be felt by everyone physically and thus feels
more secure for investment.
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Moreover, for decades investing in the commercial
real estate sector has generated a constant flow
of money and long-term appreciation for the
Millennials.
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Making money in the commercial real estate sector
requires some research into the types of
investments that best suits you.
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Advantages of CRE
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There are many advantages of investing in the
commercial properties and these include
depreciation, tax deductions and also you can
sell the property.
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While reselling the property, you don't have to
pay capital gains taxes as long as you invest
your money into a similar kind of property.
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Disadvantages of CRE
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It is known truth that like every other
investment businesses, investing in the
commercial properties has also got its own
drawbacks.
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Moreover, in order to realize the true potential
of a commercial property, you may have to hold
the property for several years.
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In addition to this, the closing cost of any
commercial property can add up to thousands of
dollars which include taxes, commissions and fees.
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Stocks
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Investing in the stock market means that you
receive ownership of a company which translates
to the fact that when the economy is in full
swing and is doing good, then you are going to
earn profits.
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However, during the times of economic challenges
and recession, your profit earning will also get
reduced as the income of the company also drops.
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Nevertheless, when investing in the stocks, you
must take a long-term approach and should be
balanced in many areas which will help in
building your net worth.
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Advantages of stocks
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The biggest advantage of stocks over commercial
real estate is that they are very liquid and easy
to sell.
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Consequently, they are also flexible and even can
be reallocated into a retirement account and it
is also tax-free until you start to use the money.
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Disadvantages of stocks
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The biggest disadvantage of investing in the
stocks is that they are very volatile especially
in times of economic downturn or when the company
is facing challenges.
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Many experts also consider stocks as emotional
investments and your decision within the market
can also be irrational.
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Consequently, there is also the fear of
bankruptcy in the mind of the stock investors as
your investments can be dissolved in an instance.
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