Both stocks and real estates are good investment options and should be a part of your investment portfolio. Both these asset classes can yield good returns, provided you make informed choices. However, there are many reasons that make real estate a better investment avenue than the stock market.
To ensure good returns on real estate investment, the property’s location and reputation of the builder plays an important role. For instance, if you invest in a property such as Arihant Anaika, you can expect decent returns in the long run. On the other hand, the return on stock investment depends on the chosen stock, the time period of investment and your risk appetite.
The stock market is extremely unpredictable and volatile. Changes in the prices of stocks affect investors. While the highs in the stock market can be exhilarating, the lows can be equally devastating. However, the real estate market is comparatively stable and promises guaranteed return on investment.
When it comes to tax benefits, real estate investment gives you tax exemptions if you have purchased a property through a home loan. You can claim a deduction on both the principal and the interest for a certain time period. However, investing in the stock market does not offer any tax benefit.
Other advantages of investing in real estate include the option of putting your property to work immediately by giving it out on rent and getting the ownership of the property by paying a part of the whole value. All these factors combined, make property investments a lucrative option for the investors as compared to the stock markets.