E.g. Capital Outlay $600,000, Holding Terms 5 Yrs
| Real Estate | Stock | Fixed Deposit | |
| Initial Cost | Buy Property at $2m 25% = $500k Stamp Duty = $69,500 Initial Cost = $569,500 | Buy Stock at $600k | FD $600k for 5 Years |
| Maintenance Fee ( 3 Years) | $350 * 12 * 3 = $12,600 | ||
| Property Tax (10%) ( 3 Years) | $4000 * 3 = $12,000 | ||
| Total Cost ( 5 Years) | $569,000 + 12, 600 + 12,000 – $593,600 | $600,000 | $600,000 |
| Revenue | |||
| Assume Capital Gain by 15% $2m * 15% = $300,000 | Dividend at 5% = $600,000 * 5% * 5 Years = $150000 | Interest Rate at 1.5% = $600,000 * 1.5% * 5 Years = $45,000 | |
| Rental for 3 Years at $4k $4000 * 12 * 3 = $144,000 | |||
| Total Profit = $300,000 + $144,000 = $444,000 | |||
| ROI | 444,000 / 593,600 = 74% | 150,000 / 600,000 = 25% | 45,000 / 600,000 = 7.5% |
Comparision between Real Estate, Stock and Fixed Deposit
| Real Estate | Stock | Fixed Deposit | |
| Leverage? | Yes | No | No |
| Volatility | No | Yes (Can lose all capital) | No |
| Liquidity? | Can sell after 3/4 years | Yes | No (normally fixed throughout the term) |
| In Control? | Yes | No | No |