What is a more stable investment option- real estate or stocks?

atock or real estate

In India, there are a few investment options that are as stable as a real estate investment. However, the stock market has attracted the imagination of many investors. Stock market trading involves buying stocks of publicly listed companies. These publicly listed companies are companies and businesses listed in the secondary market like the BSE, NSE, and NASDAQ. Whereas, real estate investment invests in physical and more tangible properties like land, homes, and commercial buildings – these tangible properties see considerable price hikes over time. Thus real estate investment offers investors a means to potential capital gains.

Here, are a few important points about each of the investments:

In stock market trading,

  • Buying and selling stocks is relatively easy as the stock market is highly liquid.
  • Stock marking trading is also highly volatile, as it is dependent on economic news, corporate earnings, and lot on investor sentiment.
  • All one needs is a Demat Account to start buying and selling in the stock market.
  • There is no guaranteed rise in the stock market, as the stock market trading is relatively risky.

In the real estate investment,

  • Real estate is a tangible commodity that can be used for personal and commercial purposes.
  • Real estate often requires a long-term investment horizon to see substantial results as in growth in investment.
  • Real estate is often considered a safe asset.
  • The Indian government offers tax benefits to real estate investors under the Income Tax Act of 1961- wherein one can have a reduction on interest paid on home loans, deductions on the reduction repayment on the home loans, as well as tax reductions on the capital gained tax on selling a property.

Real estate investment is much more stable and tangible if one closely compares the benefits that both these segments of investment offer their investors. Real estate is a physical commodity that appreciates over time offering substantial capital gains that are not dependent on the risks or the volatility of the stock market.

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