stocks vs real estate

Stock Markets VS Real Estate Investments: What’s Better To Choose For A Beginning Investor?

Have you ever wondered why the property is called real estate? Not only because it’s something you can tangibly palpate with your fingers but also because it has been and still remains one of the asset types, which provide real profitability in most countries.

Real estate at a glance

People may change, epochs may go, empires rise and fall. Even stars may collide to blaze as supernovas. But property built on the land of Earth remains for decades and centuries. Some even for thousands of years! While an array of other assets is prone to fluctuations even if nothing, basically, happens, real estate most probably grows, despite falls and ups of the markets. It also compensates for the inflation, growing on par or even outperforming it.

Speaking about income-generating real estate, like the one you let for rent, the costs of rent also rise as inflation takes its stride. It might leap here and there during a year but when speaking long-term, it usually rises. We don’t know any developed/developing market (that’s not covered with war or international sanctions), which wouldn’t demonstrate growth for a decade and especially through a century. Thus, immovable property of all kinds is exactly an asset that attracts seasoned investors in all generations striving to create lifelong profit centers.

We are comparing the profitability of the stock market vs real estate in this article to give you a better understanding of investing.

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Investing in real estate vs stocks: approach

Stocks vs real estate are an often comparison – at least, in those countries and blocs, which have both of them developed well. Such markets are mainly the Americas, Australia, and the EU. In other continents, blocs, and countries, either both markets are underdeveloped or at least one of them is such. So, we’re making the comparison only for those markets, where both provide sheer access and many tools to investors.

Let’s look at the general characteristics of real estate and stocks.

  • Using borrowed money.

Buying real estate, people often use bank loans or borrowed capital from other places (including a pooled financing). This is an understandable practice and thus, it bears the same understandable risks of not meeting expected cash flows. Thus, if so, there are various consultants, managers, and expert companies on the market, which could quickly bring you back to rails.

In the market of equities or stocks, the risks of operating with borrowed money as leverage are seriously higher. That’s because of equity market fluctuations – you never know when and if a storm happens. Even professional traders don’t know that (yes, we’re super honest in it). What they do is play with money for luck. Thus, the stock market has seen many gloomy days (mildly speaking), causing billions of dollars of losses. Although there are many brokers, dealers, and other stock trade participants, a very few of them would be able to bring you back to rails (and those who do will not be available for assisting, as they are the birds who fly too high).

  • Inflation.

Real estate adjusts for inflation – lagging behind or leading it. Equity trade never gives a damn about inflation if being completely honest. Thus, comparing stocks vs real estate, you find out that even passively owning a property, you earn over years. In the stock trade, however, you only earn if you buy low and sell high.

  • Real estate stocks investments.

Although this is a sort of real estate investing, it is still a game with stocks. And you only win on such if a company-developer that released those stocks performs terribly well. Otherwise, there is no ground to presume you’re earning more than by trading regular equities.

  • Solidity.

Real estate is a solid thing – it stands for a century or so. Even after completely dilapidated, there is still land, on which it stood. So you could build a new object or sell the land to someone.

Stocks, unlike real estate, are not a solid thing. At all. Companies that release those stocks very rarely live through decades, not even speaking of centuries. Some burn bright but fast, similarly to some people who live fast and die young. Thus, buying a share of a company today, you never know if it exists tomorrow and so your share turns into dust. While you can pass real estate through generations, you will highly doubtfully do so with stocks.

  • Workload.

For those people who just can’t sit by a computer all trade sessions long to monitor, buy, and sell, real estate is a much more alluring type of investment. Surely, it naturally dilapidates, weakens from tenants, and gets dirty. But fixing, renovating, or cleaning is something that most people understand on a subconscious level while only a handful of them are the same knowledgeable about equity trade and its pitfalls.

Conclusion on stocks vs real estate

If you’re having doubts or would like to receive further professional consultation or help, contact the team of DGY. The company is ready to facilitate the process for you and will gladly assist with all the chores connected to buying a property, which suits your investment vision. Alternatively, we can offer you various other tools to invest your money into.


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More about DGY

DGY is a real estate investment and property management company. Our experts have an impressive experience in turning businessmen into smart real estate investors. We collect limitless opportunities throughout the world’s best real estate markets and help our clients implement the best deals. We take care of all due diligence and customize documentation while your income grows. We also provide you with property management services so you can forget about the tiresome maintenance of several objects and entrust this process to professionals.

Investment advice and recommendations

DGY is an investment company that takes care of every client and helps them become successful investors. With the help of an investment experience and a well-thought plan, we will help you examine the market, choose a strategy specifically for you or your business, and calculate future costs to start making money with real estate investment.

Property management

In order to invest in real estate, you should consider how you will run your management in Ukraine. DGY will help you eliminate all possible pitfalls at an early stage as a personal project manager will be assigned to your case. They will assist you in choosing the project according to all required objectives.

Property Renovation

DGY Investments takes care not only of purchasing property but also renovating an existing one. With the help of a thorough plan and estimating, we will thoroughly prepare a property for sale. Our professionals evaluate an investment property and create a strategy that includes the costs for renovation, possible taxes, fluctuations on the market, etc. Therefore, our clients are able to resell the renovated properties in Ukraine with more than 15-20% profit from the initial price.


Before our clients decide to deal with real estate investing, they consult with our experts concerning details such as the necessary documents needed to purchase a property and successfully run all the processes connected to it.
Therefore, if you are eager to invest in Ukraine, it’s essential to have all the paperwork done correctly, and that’s the moment when our team of experts takes care of this step. DGY Investments helps investors buy real estate property, manage the paperwork, start preparing relevant documents for purchasing realty in Ukraine, and close the deal successfully.

Real estate investment opportunities in Ukraine

When an investor decides to invest in real estate in Ukraine, the most affordable way to attain stable passive income is through buying residential real estate. Investors can expect to receive a regular monthly payment from their tenants at a fixed monthly amount, unaffected by inflation or other unforeseen circumstances. The amount of rental income will vary depending on the size, type of property and location. For example, buying an apartment in Ukraine’s capital Kyiv is beneficial to investors due to offering a large working population, central location and affordable prices. Hence, the minimum price of renting a decent one-bedroom apartment in Shevchenkivskyi District will be around $1000 per month in 2021, followed by Pecherskyi District with a cost of $850 per month. Besides, investing in real estate in Ukraine annually brings clever investors up to 15% of yield, attracting many business people every year.

Properties for investments in Ukraine

Ukraine has a giant sector for real estate investing. Businessmen who come there all over the world often choose between investing in residential and commercial properties. The main advantage of buying property in Ukraine is the affordability of prices on the houses and apartments. For instance, if you invest in real estate in a historical district, a luxurious apartment will cost you around $85k only.

How to invest in Ukrainian Real Estate

In order to invest in Ukrainian real estate, you should take into account a list of crucial factors. The first one is to choose what kind of realty you are going to invest in: residential or commercial. It is vital as it should comply with Ukrainian real estate law. The second tip is to identify the purpose of purchase in order to make a strategy for the property. For instance, you may purchase the property for your own use or buy it for lease. The next step is to calculate the taxes and what kinds of taxes are payable during the purchase, owning, or selling. Also, to invest in real estate properly, you should keep in mind currency control rules in Ukraine to sell a property and get a higher profit.