Real estate investment is more profitable than any other field. As far as stocks and real estate is concerned one can look at following example.

Let the initial value for both real estate and stock be $100000.let us suppose that the investment in real estate is $5000 and $95000 is taken as loan. However in stock the full amount is submitted. The mortgage amount for real estate is $95000 and that for stock is 0.The mortgage rate for real estate is 6% and that for stock is 0%… the projected annual growth for real estate is 5% and that for stock is 8%. The projected profit for real estate is $155000 and that for stock is $ 200000. Hence the profit percentage for real estate ends up with 1100% where as for stock is just 100%.hence real estate has more ROI than stock. However there is some hidden cost with real estate. Anyhow the real estate is really profitable.

Once you buy a real estate you are free from all headaches. All the headaches are before you buy the real estate. Once you buy it you are free from all tensions. The only job remaining is the maintenance. However in stocks you have to look for the rise and fall in shares frequently. You are free from this headache as far as real estate is concerned.

Real estate investment is long term investment and one who is going to invest must be careful. The actual profit from real estate is calculated after taking out the hidden cost like:

1. The purchase price.
2. Amount of the loan.
3. Terms of the loans agreement.
4. Rate of capital appreciation.
5. Income generated from the investment such as rental income.
6. Property tax and insurance etc.

The main concept for earning more profit in real estate is to buy for less and sell for more. This is only possible if we do some homework. Proper inspection can reduce the buying cost to much extent. You should try to do detailed inspection of the property. You should also look for how much repairing is required in the property.

If you have guts you can also go for disputed properties. This will earn you lots of dollars but is risky. The seller is always ready to sell at lower price if some disputes are there with the property. You have to do some hard work to solve the dispute. However the fruit will be very sweet. The fruit will be sweeter if you follow all steps. The sweetness increases if you keeps yourself up to date and regularly pass various courses related to real estate. This will improve you skills and you will find yourself more effective.