They say that investment is a wise man’s game, and it indeed is. Those who have no or just a faint idea about investment should avoid taking risks with their hard-earned money. Firstly, the pandemic has made it imperative that we have a ‘Plan-B’. If there arises another situation of a lockdown or the fourth wave hits us, there might be a strong possibility of the financial markets getting hit. So, if you have made some investments in the stock market, you might be thinking of investing someplace else. Why not invest in the real estate market? Are they a better option than the stock market? The choice completely depends on a personal level. If the individual is willing to take high risks, depending on their financial situation, and so on. The article would give you a brief idea about the real estate market and areas where you can invest for good returns.
Real Estate Market For Beginners
The stock market might be the traditional way to invest, but the real estate market is where your investment can find the potential for high appreciation value. When you buy stock, you own a piece of the company’s property. In this case, you can make money in two ways – value appreciation and dividends. When you own real estate property, you acquire physical property. In most cases, the investors make money by collecting rent (which is meant to provide a secure income). The property value goes up via value appreciation.
Another important thing that you can make a note of is that you can invest in real estate property just like in the stock market through Real Estate Investment Trusts (REIT). You can buy or sell stocks in the real estate company you’ve invested in.
Here are a few things that you need to consider before investing in the real estate market.
Keep an eye on those returns
Every stock market commercial comes with the fine text of – investments are subject to market risks… which seems like a rap song these days instead of a serious disclaimer. Stock markets are volatile and tend to fluctuate based on various factors like socio-economical, socio-political, geographical & natural calamities, and many more. Investing in stock markets independently can be unpredictable and the RoI is often lower than expected. When you link your investments with benefits to boost your returns, that percentage of RoI may get higher.
Comparing the RoI of stock markets to real estate might be on two different yardsticks, but the factors that affect the real estate markets can be the property price, percentage of appreciation and returns, but both, real estate and stock markets take a big blow if the economy is hit.
Taking risks is a different ballgame in both places
Comparing real estate to stock markets, they both have their own levels of risks. Stock markets, during economic meltdowns, have led to the global crisis. The real estate market, on the other hand, requires a lot of research. It’s not advisable to simply buy a property and expect immediate returns or results. Real estate, unlike stocks, is not easily liquidated or cannot be cashed in instantly.
There are some hard pros and cons that need to be considered while investing in either stock markets or the real estate markets. You need to keep a track of your risks & returns and chalk them out with great calculations.
At Pyramid Lifestyle, you get to invest in properties that are residential or commercial. Whether you want to invest for your personal or professional gain, these properties are located in prime destinations and returns are potentially appreciated. If you wish to know more about who we are and what kind of project we build, please visit www.pyramidlifestyle.com