Why is Investment in Real Estate Better Compared to the Share Market?
A sensible investment decision is always necessary to reap the long-term benefits of the investments. Out of the different alternatives, share market and real estate have always been two favourite options for the millennials of Kolkata. While real estate is a long-term investment that helps build wealth and accumulate assets, stocks offer spot monetary profits.
If you can handle the property management part, then real estate generates a constant source of income. Get in touch with the top real estate company in Kolkata for a luxurious, spacious, and good-quality apartment in a feasible location. Although the investment choice is personal, depending on the financial situation, long-term and continuous returns, and risk tolerance capability, the investment decision must be made.
Real Estate vs. Stock – Where Should you Invest?
- Return Value
Did you buy an apartment in Salt Lake? Are you staying abroad? Then, you can easily rent it out to a potential tenant and get a continuous flow of money from the same. Again, you can sell it shortly and fetch high returns, provided you’ve bought the property in a feasible location in Kolkata. On the contrary, stock markets are unpredictable. You might invest a few bucks and get a huge amount back if the company’s stock price is surging. However, the stock prices are affected by simple market fluctuations, so the return rates are highly volatile.
- Level of Risk
Medical emergencies like COVID-19 have made investors aware of the fluctuations that can take place in the stock market. Moreover, the prices of the stock market depend on the changes in the economic conditions that are taking place in other countries. Hence, if you have the potential to undertake high risks as an investor, then the stock market is your call.
In the case of real estate, there are no such risks. You must manage a few maintenance expenses to keep the property in good condition. If there are financial, medical or social risks, you can sell the property later and fetch the value when the market conditions are favourable.
- Financial Leverage
Real estate investments leverage finances. If you’re planning to buy an apartment, depending on your income tax returns, the banks will sanction loans up to 80% of the property value. So, technically, your purchasing capability is increased when you plan on burying a real estate property. For first-time home buyers, this is a financial boon. Again, with the help of rental income, you can repay the loan within the stipulated time. This is not an option with the stock market. Hence, investors with ample cash can think of investing in the stock market.
- Appreciation and Depreciation Rates
The best part about investing in real estate is that it appreciates with time. For instance, buying a 3BHK flat in Madhyamgram will help you get more value in the coming ten years because of the development of connectivity with the airport and Sector 5. Hence, once you’ve invested in real estate, you can be sure of getting guaranteed returns. This is not the case with the stock market, though.
Are you thinking of investing in a spacious and luxurious property in Kolkata? Then contact Bhawani Group to find the property of your dreams. We offer spacious flats laden with innumerable facilities right in the middle and accessible locations of Kolkata. Get in touch for more details.