Estate vs. stocks is a never-ending debate. People always remain confused between these two when it comes to investment. Most of people focus on real estate because of its tangible nature. You will also find that some people do a bit of both. But when it comes to picking up one, then it is wise to know the pros and cons of both.
Tangibility is a primary reason why real estate is still considered a more reliable investment over stocks by conventional investors. But there is more to the Real Estate Vs Stocks debate than physical security alone.
Many aspects of investing like transaction fee, closing cost, etc., in both fields, remain alien to the general public. In this blog, we dissect both the investment option so that you can make an informed decision when you have to choose between the two.
Price Appreciation
As far as price appreciation goes, Real Estate like Gold comes with some degree of assurance.
The same cannot be said with an equal amount of conviction for stocks. The external factors that
affect stock prices are far too many and winning in stocks requires in-depth knowledge of the
share market.
On the other hand, Real Estate prices are dependent on a handful of factors such as demand and
supply, the reputation of the real-estate developer, infrastructure in and around the Real Estate,
and home loan rates. In fact, reputed real estate developers have started providing apartment
buildings in an affordable budget range. One of the recent developments of our company that
you can check is Nav Nilay. It is much easier for the common man to understand these factors
and make a wise buying decision.
Investment Frequency
Unless you are a broker, you won’t buy a piece of Real Estate and put it up for sale immediately. Real Estate is like fishing; you must wait to catch big returns. Moreover, real estate is familiar territory for most and hence easier to avoid fraud.
The rules, however, are completely different for stocks. It is a risky investment; you have to keep
an eye on the market trends, plan accordingly and diversify as much as possible. More often than
not, you might have to sell and buy stocks more than once during trading hours. This is no less
than space science for a normal person. If you are investing in stocks, the best advice would be to
invest via a stock consultant.
Flexibility
Real Estate investment is non-liquid. You cannot sell a piece of Real Estate immediately after
purchase. In most cases, people wait for years to gain maximum return on investment.
On the other hand, stocks are very liquid and designed for an easy sell. But liquidity is a double-
edged sword. You can sell well-performing stocks for instant gains, but liquidity can also cause
stock prices to change drastically. Indeed, stock investment offers greater flexibility in terms of
trading, but it does come with risks attached.
Risks Involved
The risk factors multiply by manifold in stock investment. Especially, if the company whose
stock you own ends up being bankrupt, your entire investment will be dissolved in a matter of
seconds. And a company can go bankrupt within a matter of days.
Real estate investment is not pegged to sentimental market behaviour. There are few surprises,
and the market remains stable more often than not. Even if there is instability in the market like
in the times of pandemic, the value of the property will only rise post instability situation.
Investment with Debt
You can invest in a new property like Nav Nilay by KGK realty or others with a 20% down payment or less and finance the rest of the cost. Also, owning a tangible asset can make you feel more in control of your investment.
However, in the case of stock market, margin trading can prove to be risky. Only experienced traders should go for margin trading.
Tax Advantages
If you have opted for loans from the banks for purchasing properties that are registered like Nav
Nilay, you will be eligible for tax advantages. This is certainly not the case with the stock
market. You will have to pay some amount as tax from short term gains obtained from the stock
market.
So all things considered, stocks are no doubt attractive, but real estate is still an investment for all ages. It never gives you sleepless nights as stocks do. Plus you can always put some capital and turn your property into a source of good passive income till the time you are ready to sell it. We, at KGK Realty, bring you attractive real estate investment options and Affordable and Best Flats in Jaipur at prime locations. KGK Realty is a trusted name for tax-efficient, safe and hassle-free Real Estate investment. Please visit the link to know more about the property.
