9 Benefits of Investing in the Stock Market vs Property Investing

The 9 Things That Make Stock Investing Great for Aspiring Investors

Hello everyone and welcome back to my Investing series. In today’s blog, I’ll tell you why I think investing in stocks and shares is great for beginners. During the last two years, I’ve spent a lot of time on researching the UK’s investing scene and I’m writing this series to share my experience with all of you. Please keep in mind that everything written here is based on my personal experience and research. Despite how much time and effort I’ve dedicated to this, I’m not a financial expert nor am I a professional financial advisor. As always, I’d like to urge you to do your own research and consult with certified professionals before making any significant decisions.

Why Stock Market?

Even though I’m a big fan of property investing myself, I know that it’s not for everyone. If you want to invest in properties, you’ll need at least to either have some sort of starting capital or get help from someone (buy-to-let properties require a 25% deposit for example), which tends to turn people off . On top of that, property investment comes with the added hassle of tenant management and refurbishment. Stocks and shares, on the other hand, don’t have such a downside — you can invest as little as you want and work your way to the top from there! My aim with this blog is to explain the main differences between funds investing and properties and show you the benefits of stocks and shares.

This being said, mastering stock investing is not easy — if you truly want to succeed with it, you’ll need to put in a lot of time, effort and dedication!

The Benefits of Investing in the Stock Market #1 — Smaller Sums

With properties you need to have a decent sum of money on hand to start. That’s also why so many people suggest that young aspiring investors start with stocks & shares!

The Benefits of Investing in the Stock Market #2 — Home run

Property, on the other hand, can never grow at such a rate (and to this degree). Yes, the property market is also fluid, and yes, prices can go up by quite a bit, but you’ll never see returns in the likes of 1000% per year. That’s simply unheard of.

The Benefits of Investing in the Stock Market #3 — Truly passive

Whatever you do with your properties, however, they’ll never reach the state of nearly complete automation like stocks and shares.

The Benefits of Investing in the Stock Market #4 — Diversification

When you invest in stocks and funds, on the other hand, you can (for the most part) invest in virtually any company, no matter where it is located physically.

The Benefits of Investing in the Stock Market #5 — Monitor your exact market value

The Benefits of Investing in Stocks and Shares #6 — Liquidity

Property, on the other hand, is illiquid — it makes such maneuvers impossible.

The Benefits of Investing in the Stock Market #7 — Tax-free returns

With properties, you’ll need to deal with a whole lot of taxes. At the moment, property investors have to deal with taxes based on revenue instead of profit on property investing. This means that unless you’re using a company structure, you’re going to have a much harder time with your taxes, making it an especially rough start for new investors.

The Benefits of Investing in the Stock Market #8 — Short-selling Stocks

The Benefits of Investing in the Stock Market #9 — Government incentives

If you’ve found this interesting and you’d like to learn more about investing in stocks and shares or just the stock market in general, I highly recommend doing research on the side. Please keep in mind that the stock market is quite complex and fully understanding it can take quite a bit of time — it took me two years of research to get to where I am today (and I still can’t say that I’m a “pro”!). Below, I’ve listed a couple of books that I found really helpful in my studies. Check the resources at the end of the blog

Furthermore, if you’re really serious about getting into the investing game and you are afraid to do it by yourself, I’d also recommend that you look for some professional financial advice. Yes, financial advisors can cost you a pretty penny but a skilled advisor will help you avoid a ton of mistakes and help you navigate the market much easier, especially when you’re just starting out!

I just happen to know a very experienced financial advisor that can help you with your finances. Her name is Gemma Herbert, and I’ve had the pleasure of working with her on multiple occasions. I’ve also met Rebecca Harbrow — about a year ago — and can vouch for her expertise as well. If you happen to lack the time to research everything all by yourself, or if you’d just like a bit of guidance on your financial journey, you shouldn’t hesitate to give them a call!

Get in touch with Luke — luke.connell@sjpp.co.uk

Get in touch with Gemma — Gemma.Herbert@sjpp.co.uk

Get in touch with Rebecca Harbrow — rebecca.harbrow@liongatewealth.co.uk

But remember — no matter which path you choose to take, you shouldn’t delay! The sooner you get started with your investments, the sooner you’ll get to enjoy the benefits!

And what about you — have you tried investing in stocks and shares before? Do you think that I’ve captured the spirit of stocks and shares investing here or did I miss something? Please share your thoughts, ideas and experiences in the comments below — I always love hearing from you!

Until next time — Stay Green and Motivated!

Resources:

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