Written by Ambika | December 5, 2019
Real Estate and Stock Market both is a good investment tool; however, there is a lot of difference in these investments. Today we will talk about all those investment differences and then decide on which one is better.
The volume of investment basically means the lump-sum amount required for investment. The value of real estate properties is much higher in comparison to sharing market investment. When you want to invest in real estate you need a large sum of money to invest whereas in Share Market the investment size will be very low. So moral of this factor is you can invest in the share market easily because the investment can be started with a lower amount while real estate investment needs a higher amount so not everyone can afford this.
The risk of losing money is the most important factor of any investment, the risk of loss in Real Estate is very low as compared to the share market. Share market is more unpredictable and the chances of losing your money are very high. Moreover, if there is a slowdown in the real estate market you can hold your investment till the time prices of the property get higher again. But in share market investment; even it is not sure that your investment will grow. As the share market does not depend only on overall market performance but also the performance of the company you have invested in.
Real Estate investments usually take more time due to paperwork in comparison to sharing market investments. But still while investing in the share market you need to do a lot of research about the market about the company before making any investment decision. However, in real estate investment, the majority of things get clear once you explore the property. So, in this matter also, real estate investment will be better than share market investment.
Tenure of the investment is an important aspect while investing. Real Estate investment is a long-term investment where you need to hold your investment till the time there is a good rise in the market prices. When it comes to the sharing market as well the tenure is usually long reason being you need to wait for the correct time to exit out of your investment. However, the duration for the share market will be lesser than the real estate investment.
When it comes to liquidity here share market scores above over real estate investment. Where in the share market you can easily sell your shares online, on the other hand in real estate you have to find accurate buyers who have the capacity to afford such property. Although these days you get the option to list your property online, that will help you only finding a buyer not guarantee you about the sale.
Tax exemption is another benefit of investing in real estate. The government provides tax exemption up to Rs2 lakh per annum on interest on home loans under Section 24 of the Income Tax Act. There is another exemption also available on residential properties.
Basis the above discussion we can say that Real Estate has an edge overall in comparison to share market. So in long-run real estate will yield more returns in comparison to the sharing market where the risk is high.
Subscribe my Newsletter for new blog posts. Stay updated from your inbox!