What Makes Real Estate Investment a Good Option over Other Options?

  • Added:
    Jan 23, 2014
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SHRI, SHRI Radha Florence
SHRI, SHRI Radha Florence
Photo by SHRI Group.

The basic purpose of any investment is to earn profitable returns from it. And, when the question of investment comes then most of the people go for option that is not only profitable but comparatively more secure and safe. The decision of investment is taken by considering all the potential investment options including real estate, stock market and fixed deposit. Which of the options is a better investment option is definitely a very crucial choice as all the options have their individual benefits as well as drawbacks.

But, if we think about real estate investment then it is definitely something that stands out from all the conventional as well as contemporary investment opportunities such as fixed deposit and stock market. And if you want to know why then here are the reasons.

What Makes Real Estate Investment a Good Option over Other Investment Options?

  • Stability- Stock market is an unpredictable world where at one point of time one can earn the double of its investment as well as loose all at some other time. So, those who are ready to take the risks to earn profits can go for it. Real estate investment is much stable comparatively as the profits are sure without much risk of any losses. As compared to the fluctuating values of shares and commodities, property investment offers the security of ‘bricks and mortar’.

  • Liquidity- Fixed deposit is a good option of investment for those who have a low risk appetite. But if looked at it in terms of liquidity then it becomes a bad choice as it cannot be withdrawn until the time it expires. On the other hand, if one invests in real estate then the investor always has this option of selling the property whenever he or she thinks is the right time.

  • Capital growth– Depositing money in the bank or investing in other fixed interest products such as fixed deposits will not provide any capital growth as the real estate investment would. After buying a property, its price will increase over the time owing to the capital growth.

  • Degree of control- This is definitely one of the crucial reasons to invest in real estate property as the investor has a greater control over the asset as compared to the other options like fixed deposits and shares. For example, if one wants to earn higher rent then one can upgrade the property. If one wants to increase its value then one can renovate or landscape it. However, one can also add rebuilt it, add new sections and do many other things. This flexibility is otherwise not available in other options.

So, looking at the reasons above one can simply make out that investing in real estate property is definitely a good choice over fixed deposits.

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