As the equity markets continue to vacillate, NRI investors had become wary of the stock markets and fell back on gold, real estate and bank deposits because of

Which is a better investment idea? Real estate investment vs stock market

There is no straightforward answer to it as there are so many factors involved. But to aid you in making the decision, let’s discuss these investments on the basis of these major points.

  1. Ease of Trading
    Without doubt, stock market investing offers better ease. Why?

    • You can invest in stock market with an amount as little as Rs 500.
    • It can be done from the comfort of your home.
    • Selling of stocks is very easy
  2. With real estate
    • You have to go and survey the property, inquire about the locality etc.
    • And go through a whole process including Government regulation etc.
    • Selling real estate involves lots of regulations, taxes, and laws.
  3. Risk Reward
    Means the rewards expected and achieved in lieu of the risk taken by you.There is no clear winner in this. The risk of losing money is there in the market as well as real estate.

    When the prices slump to a low level

    • In real estate investors can still use their property to live, rent, or earn residual income.
    • Unless the business behind the stock rebounds, it will end up in loss for investors.

      *Real estate also gives the option of buying on loan.

  4. Investing Choices Available

    Real Estate

    • Choices are limited.
    • It can be either in land or building.
    • The building could be home or commercial property.
  5. Stock Market

    • Choices are more varied to investors with different risk profiles.
    • Investors can invest in individual securities of companies.
    • They can also invest in index funds which track index such as Sensex, Nifty, Nifty Junior, others.
    • They can invest in equity oriented mutual funds.
  6. Conclusion

    ->Both are great source of investment and building wealth in long term. ->Success in investing in these assets depends on the knowledge of the asset as well as inclination and attitude of individual investors.
    ->It is advisable to do more research to be able to judge the option more suited to the individual investing style.

    For more information, this link might prove helpful Stock market vs. Real estate investing