The term Investment is quite crucial in everybody’s life as whenever you come across this term in your life you try to focus all your energy and effort to make the right decision for your investment. Investment involves a thorough research and the ability to take risks. Research can be done by anybody but Risk is the only thing that stands you apart from the crowd. It is not easy to decide between the stock market and the real estate market as both sectors have their unique set of advantages and risks, it depends on the individual’s taste, preference, ability, and skill that which one suits him well.
Overview on the mindset of people for real estate
Investment in the land has been done for ages and our older generation prefers that because they considered it a safer option as they do not need to worry about the fluctuation of rates and it also contributes to their asset. Now with modern times, people have started investing in another form of real estate that is Apartments which provides you with small returns as well like rent and maintenance.
It has been a trend in North India, especially in Gurgaon where Builders are offering flats for sale in Gurgaon to the investors and these investors are further giving these flats for lease to people thus forming a chain that is providing profits to every link of the chain. Apartments for sale in Gurgaon are the major attraction for investors nowadays.
Overview on Stock market and mindset of people towards stock market
The same condition is with the stock market, the ease of getting in and out of this sector is its major USP. All you need to do in investing in stocks is to find a reliable and skilled stockbroker, open your Demat & trading account, link it to your bank account to get the cash flow to happen smoothly, all of which can be done online by just sitting at your couch.
People have the mindset that investment in the stock market is very risky, have you ever thought of the reason WHY. The reason is very simple, profit in short term. People tend to believe that it is very uncertain and due to the short-term profit it is risky and cannot be trusted.
An in-depth comparison between the two sectors needs to be done to arrive at a final conclusion for which we need to focus on several parameters.
Parameters for comparison
Duration
Real estate is a long-term investment in which you have to wait for years to get a handsome return on your investment. Apartments have shortened this duration, especially in the NCR region, ready to move flats in Faridabad are delivering higher returns in a short span of time.
The stock market is not at all a long-term investment if we compare it with real estate, here you are not bound to wait and can generate instant returns.
Ease of investment
Real estate is a time-consuming process as it requires thorough research for making the right choice, followed by legal paperwork to complete the procedure.
You can invest quickly in the stock market just sitting at your home. Though it also requires rigorous research, the platform enables you to invest instantly.
Risks Associated with the market
The real estate market is having a very low risk that’s why people are more attracted towards investing in it. All you have to do is verify the builder and check for the authenticity of the project. Top builders in Bangalore are associated with RERA, proving their authenticity.
The stock market is volatile in nature and uncertainty will always prevail in the market. A person who is investing in the stock market always needs to be updated about the conditions of the market to avoid the loss or generating more profit.
Liquidity
In the real estate market, you have to wait for the right market conditions, look for the best buyer who can agree on your terms of selling, and then only you can sell the property to liquidate your investment. It sometimes becomes difficult and lengthy. This scenario is also changing with top builders in the market like MVN Infrastructure that is offering the best residential projects in Faridabad with OC certification which helps in faster liquidation of the property.
The stock market provides you with the ease to exit your stock investments anytime during market hours. You can also liquidate your equity investments partially to meet your needs, hence enabling you to get the control in your hand.
Limiting Fraud
In real estate, there are fewer chances of cheating and fraud as you can physically show up, inspect and verify your property, Perform a background check on the tenants, make sure that the building is physically there before you buy it, and do repairs and maintain the property yourself. Builders and developers in Bangalore are constantly improving their working styles to gain the trust of homebuyers.
With stocks, you do not have the charge in your hand and there are many cases of frauds which we see in the news due to which it becomes difficult for people to invest larger amounts of money. All the people have to trust the management and the auditors.
Conclusion
Both real estate and stocks can deliver the long-term financial gain, and both come with risks and benefits. When choosing the accurate investment strategy for you, the best way to girdle against that risk while taking advantage of the potential profits is to diversify as much as you are able to do. Start investing with your eyes open and keeping your mind focused.