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Real Estate Investment Vs other investments

Real Estate Investment Vs other investments - Vraj Tiara


There are multiple options to make investments to grow your money. Although each has its pros and cons. In this article, we give you reasons to consider real estate to be a better choice of investment in comparison to stocks and businesses.

Surveys have revealed that post the pandemic after the surge in demand for affordable housing, the next priority would be facilities for a healthy lifestyle within the housing complex. Most of the experienced developers have already upgraded their projects according to the changing demands of home buyers.

Most home buyers are now preferring a quality lifestyle through lifestyle apartments. Some real estate investments that are lucrative are the sea-facing apartments in south Mumbai. There is a surge in demand for 3 BHK flats and 4 BHK flats in Worli particularly ones with unobstructed sea view. Residential towers like Vraj Tiara, Worli, have lifestyle amenities such as a dedicated floor to gym and fitness, jogging track; observation deck; kids play area; barbecue pit and mini-golf for its residents. The unobstructed 270-degree sea view from every apartment and connectivity through Bandra Worli sea link, upcoming Coastal Road and Sewri- Worli elevated corridor are some highlights of this stand-alone luxury tower.

While one plans the investment strategy in real estate, here are a few factors to consider.


Return on Investment

Investments in real estate are popular because the returns it offers is larger than other investments. Since the real estate investments are ownership investments. When you hold a real estate for a long time, especially in sea-facing flats in south Mumbai, the value of the property will increase over time owing to the infrastructure development in and around the location. This means that real estate assets not only provide returns at the end of the investment period but can also generate income.

The investments usually grow by 8 – 10% annually. REIT or Real Estate Investment Trusts are publicly traded companies that invest in income-producing real estate such as an apartment complex, office complex, commercial complex.

Risk

Like every investment, real estate prices fluctuate. But these prices do not suffer as much as the ones invested in the stock market. Real estate properties can sometimes fall by 10 – 20% in value but the best way to minimise your risk is to buy and hold properties for 7 – 10 years.

Liquidity

Liquidity is the cost and ease of selling your investment and getting hold of the capital invested. There is a general notion that real estate is illiquid which means it takes much more time to sell the asset compared to selling stocks. However, this is also a strength. Considering you hold the property for 7 to 10 years or beyond, it minimizes risks and proves to be providing better returns. In comparison to stock markets. The high liquidity would also mean selling investments early thereby breaking even or incurring a loss. Similar to stocks, the longer you hold, the better the returns.

This proves that real estate is more valuable than most investments.

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