I think taking real estate and stocks at the same pedestal is misleading.The risks involved are different. An important risk which might take my point home, is that in case of investing in stocks we need to have faith in the management discourse. We need to believe that the management is utilising the assets of the firm for the benefit of the investors. And there is no way of negating this risk until and unless you are a part of the management or the board.

But in case of real estate, the assets are in our hands. We can manage the asset as per our investment philosophy. In case of stocks, we often act as mere spectators looking at the price movements helplessly. But in case of real estate, even if the value of the asset goes southward’s, at least we can change our investment philosophy and make the asset sweat in some different way.

Thanks