Content Analyst at Investors Clinic
To enjoy a relaxing post-retirement life, it is always advisable to invest in different asset classes. It can be mutual funds, gold, the stock market or real estate. While every platform plays a crucial role in monetary growth, the majority of individuals prefer to invest in real estate or the stock market, seeing their benefits and ROI.
Investing in real estate means you are buying a land or plot which is physical, on the other hand investing in the stock market means purchasing a share of any company that is non-physical. But as said, that every investment comes with a risk, so it is necessary to have close research and proper approach before entering into any investment procedure. The same is the case with real estate and stock market investment. With this blog, we will tell you about the pros and cons of investing in both the assets:
Benefits : Investing in real estate means you can touch and feel the growth of your asset. You can develop it accordingly and shift in there with your family members.
The implementation of stringent reform by the government like RERA, GST and bankruptcy code, today investment in realty market has become safer as compared to other assets. A buyer can easily check and verify the background of the developer as well as their projects.
Investing in real estate gives you a chance to earn higher returns on investment and as well as appreciation. You can also earn additional income by renting your property may be residential or commercial.
Real estate investment offers multiple tax benefits on a home loan, home renovation loan or loan against property.
A real estate investment requires a lot of research and paperwork. You have to do proper verification at every step to save yourself from fraudulent developers
The primary investment amount in real estate is quite high. Whether it is related to the down payment amount of your home or commercial space, you have to spend a lot. At the same time, in later stages i.e. after property buying, you have to save money for the maintenance, utilities, insurance, etc which have to be paid every month.
Benefits : Investing in stocks is considered as one of the greatest wealth creators among all the assets. The market can be at low but then at another moment, it can even break the older records helping you to earn unbelievable returns.
Stock market investment does not require much research work. There are many property managers and wealth managers who can easily guide on which company and product to invest.
Investing in stocks is much diversified that real estate.
Selling stocks and shares is much easier than real estate. Your home might take a week or month to sell but the shares of the company can be sold in a minute.
Because of less knowledge about the stock market, the majority of investors fail to garner the profits. And, if the market crashes, your profit will turn into a loss.
So, understanding the pros and cons of both the assets, it is advisable to conduct proper research before investing in any of them. Take healthy financial decisions and garner profits.
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