Real Estate or Stocks – Which is the Better Investment Option?
It’s a matter of fact that everyone seeks better investment options and lucrative financial returns. And at present, the market seems to be flooded with opportunities claiming to be the best investment plans with high returns. That is why thorough research becomes all the more important before you make a decision.
An age-old debate is the option to choose amongst Real Estate or Stocks, when it comes to investments. Frankly, it is a personal choice that depends on your financial situation, risk tolerance, goals, and investment style. Having said that, you should always put your money into something that provides you with the opportunity to create wealth for the future.
Let’s dive deeper and see why real estate is the better option:
Get Better Returns
When you choose to invest in the stock market, the chances of you making a profit depends on the ongoing market fluctuations. You will get a good return on your investment only when the company you’ve invested in makes a profit. In real estate investment, on the other hand, the ROI rate is comparatively higher. In the current scenario, the real estate market in India is experiencing a huge boom. As per a report, 77% of the total assets of an average Indian household are real estate [source].
A Better Hedge against Inflation
There is no denying the fact that the demand for homes will never go down, regardless of the economic scenario. In fact, property values rise with inflation, which is not the case with the stock market. Another good thing is that real estate properties also provide constant income through rents and leases. It is considered to be the best one-time investment plan with high returns, so it is always a win-win situation.
India’s real estate market is forecasted to grow to US$ 1 trillion by 2030, up from US$ 200 billion in 2021, and contribute 13% of the country’s GDP by 2025.
A Safer Option
Since every investment option comes with its own risk factors, real estate and the stock market are no exception. However, being a tangible asset, real estate property gives you a sense of security. You can invest in a new property with a 20% down payment or less and finance the rest of the property’s cost. If you take the same route for stock market investment, which is also known as margin trading, things can get extremely risky. This is something that requires a high level of market knowledge and experience. So, from this point of view, real estate is undoubtedly a much better option.
The Key Takeaway
All in all, real estate and the stock market are both traditional and trusted investment options, each one having its own benefits. You can make some good profit through a real estate investment, given you choose the right property and the timing of purchase and sale is right. There is no denying the fact that you need to do an ample amount of research to choose a profitable real estate investment plan.
Advance India Projects Limited (AIPL), the most trusted name in the real estate industry, is dedicated to offering high-quality real estate developments that are characterised by innovation and excellence. We offer a wide range of residential, commercial, and retail properties in premium locations across the country. With each project, we try to exceed your expectations while surpassing our previous successes.