How would you invest your hard earned savings and/or inheritance? I did a general comparison between real estate and stock investments in the previous post but many of you guys are still unsure if there is a stark difference between both yields. After all, many people see real estate investment as prestigious, stable, and to a large extent high yield investment option. On the other hand, stock investment has been viewed in general as a risky investment. Therefore, in this post, we will compare both types of investments over 10 years, and hopefully, we can gain additional clarity.

To make this a fair comparison we will state the following assumptions

• $400,000 SGD capital vested
• Real Estate Loan ($600,000)
• 10 years time horizon (STI ETF from $2.8 to $3.32)

Real Estate Yield over 10 years

Estimated Rent collected from 1mil property There are plenty of estimations made, for example, we assumed that the unit will be rent consistently and the rent would increase by $50 every 2 years....