Why do so many people invest in real estate even though stocks have higher returns in the long-term, are cheaper to buy and require no maintenance costs?

Your assumption if flawed. Stocks have higher returns for 20 percents of those who wins. Those who bought stocks that went bust. the 80 percents losers left the scene and are not in your radar. Properties owners -- winners and losers all remain at home. there are few losers,

Ability to leverage

I guess it depends on what stage of life the person is at. If one is a high-income earner and is also a family man/woman, real estate is a compelling choice for them, because it's where they can preserve wealth (and compound it albeit at a slower rate) not just for themselves but for their next generation.

However, if it's someone who's starting out in the workforce or even for those who have been in the workforce for a while but they're not a high-income earner, then capital growth is more attractive because the person needs to grow wealth with a bit more risk.

And then, of course, there're those who are high-income earners AND also invest & hold stocks of great companies that could compound for decades. Normally, high-income earners don't have time to DIY invest but when they do...

Boom! You have these twin-income engines that go parabolic. 🚀

A property is something physical which you can stay in and besides being able to rent it out, you can also sell it if needed. To some, having something in bricks and mortar is more assuring. Also, in SG property prices have been on the rise because of the space sarcity and if you have a property with a good location, you can be sure that it will fetch a good price.

Stocks on the other hand could be very volatile and you have to pick the right stocks to profit in the long run. Different investment methods appeal to different people depending on what they are comfortable with.

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