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Rental Property or Dividend Stocks?
By Singapore Man of Leisure  •  July 24, 2014
If you only have a million $ and you are allowed only 2 choices: 1) To buy a rental property to collect rent. 2) To invest in equity to collect dividends. Which one would you choose and why? My esteemed reader temperament asked this question and I think this can be a fun exercise to see what others think. I believe most people would say: a) It depends... b) How can buy either at current prices? c) Can choose half/half? d) And other "wu liao" (silly) questions... To make this exercise more interesting and clearer, let's imagine a genie pops up with a gift of a million $ to you. The condition is you have to make a decision right here right now in 1 minute - either buy a rental property or invest in dividend stocks. Failing with, the genie disappears with the million $. Clear enough? OK, own time own target.
Singapore Man of Leisure (welcome to my blog; just google it!)
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2 Comments

2 responses to “Rental Property or Dividend Stocks?”

  1. Lizardo says:

    I’d go with dividend income. Even in times of need, I would still have the option of selling off the shares in part if need be. The dividend income would keep me going in good times and little lesser perhaps when times are bad.

    With property, when things go south, I might not get any rental income. And worse, the property value will also degrade. It would probably be hard to sell off, and even then, there is no way to sell off in parts. Bad news tend to come at the same time – that’s quite a tsunami to deal with! After all, how many properties can I own with $1m? Probably just one. Unless we’re still in the year 1970.

  2. Lizardo says:

    Oh, and here’s a true story on property and rental income:

    http://lizardorealm.blogspot.sg/2011/06/cashflow-tale-of-stable-income.html

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