- About Coverfox
There are quite a few differences between real estate and stock market investments.
The salient features of real estate investment are as follows:
Salient features of stock investments are:
|Parameters||Real Estate in India||Stock Market in India|
|Long term investment||A long term investment that you need to hold till the market price rises to its potential.||It is a long term investment though maybe not as long as real estate investment.|
|Ease of investment||Time consuming as it requires thorough research for making the right choice, followed by legal paperwork to complete the process.||All you need to invest in stocks is to find a reliable stock broker, open demat & trading account, link it to your bank account - all of which can be done online.|
|Market conditions||Exposed to market risks, but holding it till the market prices rise generates high returns.||Exposed to market volatility, but usually generates higher returns over the long term than real estate. However, misleading market trends often make investors take impulsive buying and selling decisions.|
|Liquidity||You have to wait for the right market conditions, find the best buyer and sell the property to liquidate your investment.||You can exit your stock investments anytime during market hours. You can also liquidate your equity investments partially to meet your needs.|
|Portfolio diversification||No option for diversification.||You can diversify your investments with a nominal amount and also invest in equities and stocks of various companies.|
How do I start investing in real estate with little money?
Investment in real estate requires large sums of money. However, you can invest in mutual fund schemes of real estate companies with a small amount.
How much money do I need to start stock trading?
There is no minimum limit on the amount with which you can start investing in stocks. However, there are a couple of thumb rules that you must follow. Also, if you are young, consider investing 80% of your entire net worth in stocks.
Is buying a house the best investment?
Investment decisions vary between individuals because all of us have different financial objectives. Hence, what might be a good investment for you might not be the same for another person. The following are the pros and cons of investing in real estate:
Is investing in stock worth it?
Here are some reasons why you should consider stock trading:
What can you invest in besides stock and real estate?
There are a wide range of investment options available. You can invest in them as per your risk retention capacity and investment objectives.
What is average return on rental property?
Returns on real estate investment are much lower in India as opposed to global standards. According to 2014 records, returns were recorded at 2%.
What is a better investment- stocks or bonds?
A robust investment strategy ideally comprises of a mix of stocks and bonds, as per your unique investment objective, risk appetite and age, you can make a choice.
What is the average rate of return on real estate investments?
Average rate of returns on real estate investments are much lower in India as compared to global standards. As per 2014 records, returns were recorded at 2%.