Making an investment can be a tricky affair. After all, how do we decide whether we should go for a long term investment or a short-term that will give us easy liquidity?
A long term generally means investment in the real estate while a short term could mean pumping in money in the
Stocks are any day a better option, if you want liquidity and ease in operating your investments. Stocks also offer great growth rates and are flexible over
“A crucial point to note here is that while stock prices can rise and fall, real estate investment almost always brings in more profits. In fact, the allocation towards real estate in most investors’ portfolios has steadily risen since the global financial crisis. This is because investors seek to take advantage of the low correlation between the asset class and equity market,” said
He added that real estate investment offer more stability when compared to stock market, which is volatile to the happenings of across the globe. On the other hand, real estate investments are also a stable income stream, which is one of its USPs. “The slow but steady correlation between the stock markets and real estate markets provides the important advantage of diversification in an investor’s portfolio,” said Pate.
Besides, increased inflation while adversely hampers the rupee value and often puts the stock market on a downslide. While property prices often go up, thus resulting in asset appreciation, unlike in stock market wherein an investor is confused whether to buy or sell a stock.
“Both assets offer long-term appreciation of value. However, if one is looking to create a strong portfolio and has the right kind of funds to invest, real estate will always be a safer and less stressful platform. After all, the demand for homes will never cease as long as we continue populating the planet – what can be a better source of assurance for an investor?” notes Pate.
Image Credit: www.mfxcenter.net