Real Estate Or Stock Market Investment

Investing in any sector is a challenging job. If you know the pros and cons of every sector then it can help you to invest better. Real estate industry in India has witnessed staggering growth over the years. Another sector where investors make money is ‘stock market’. India has two major stock markets; National stock exchange (NSE) and Bombay stock exchange (BSE). One should look into both before investing. The word “Stock” has become quite popular these days.

Investing in Real Estate

Investing in real estate industry is buying a piece of land or property which can be commercial property like shop or showroom or residential property which can be a flat, bungalow, row-house, penthouse, plot etc. If you are looking for long-term investment, which is safe, then real estate is an ideal option for you.

If you invest in the real estate industry, you will have these benefits:

  1. You can have a monthly income from the tenant if you rent your built-up property after the purchase.

2. It’s an asset which fulfills your basic needs.

3. Tax advantage: Investing in real estate can give you several tax benefits. You can get annual tax deductions for depreciation of your property, a typical percentage of the value of your property.

4. A psychological advantage: Owning land or a property gives psychological security to the owner and encourages him/her to invest more.

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Though the real estate industry faces crisis sometimes, yet it is considered to be one of the safest forms of investments. It can become a regular source of income, a place for your business venture and doesn’t face the risk of unsteady value fluctuation which is an inevitable part of the stock market.  

Investing in Stocks

The stock market has been grabbing a lot of interest during last few years. It can give you maximum profit if you are willing to take extreme risk. The stock market full of unpredictability, but with some research and expert guidance, you can make a wise investment.

Here’s what will happen if you invest in stock market:

  1. Stocks are easy to buy. You can buy shares through the broker, financial planner, or even online.

2. Stocks are easy to sell. It is a quick option if you need immediate cash. You can sell your shares anytime.

3. It earns comparatively good returns. Although it is a risk sometimes, investing in stocks can give you greater returns in a short span of time.

4. Even if it sounds fancy, there some cons which one needs to understand. The market is extremely volatile, so prices go up and down and you may face loss. If a proper study is not done, you could end up losing a significant amount of money. On the psychological side, it can be an emotional roller-coaster.

The recent Sensex Crash after LTCG announcement in Budget 2018 is the most recent example of this.

Investing in the real estate industry may cost you hefty amount but unlike the stock market, it is a lot more stable and promising. If you buy the property from trusted developers at flourishing locations, you can be rest assured of quality construction and amenities, which as a package brings you satisfying results in case you rent out or sell your property. Flats are considered as the safest and easiest form of real estate investments to manage.

Each industry has its own advantages and disadvantages, however, if you invest wisely keeping an eye on the market, you will definitely receive its rewards. 

Author: Ruchi Adlakha

Head Marketing: VTP Group

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