Property Investment vs Equity Investment – The best investment option.

By Abhay Harish Shah , Realty Quarter

Throughout the years, many people have opted to invest in Mutual fund and stocks whereas; in olden days everyone was considering property investment as one of the best investment schemes.

We’ve heard the contentions concerning which is the better investment: property investment or stocks. Both have their focal points and hindrances, and there are a few parts of every that make them extraordinary interests in their own particular manner. To profit with either venture necessitates that you comprehend the positives and negatives of both.

If you have a large amount of money to invest, then I would suggest diversifying your investment plan. As it can give a higher return as well as safety to your fund.

Let’s compare each investment to get some idea:

Investing in Property: When you are investing in Real estate, you are buying a physical land. You can plan to rent it or start your own business. People invest in Property to earn regular income through rent. You can build office space or a residential area which will fetch monthly income. Later, after certain years you can accept some appreciation on your property. Investing in property is considered less liquid investment as to sell-off your property you need a right buyer who can provide the asked price.

Getting regular income is not that easy and not that hard also, as the tenant would leave your premise if he is not earning well. And the hassle of getting a tenant, again and again, incurs an extra cost of advertising. There are some other factors which can generate good appreciation such as future development near to that property, tax schemes and government policies.

Investing in Stocks: Compared to property investment, this is much easy to buy and sell, i.e. highly liquid in nature. A person buying a share is actually buying a piece of that company, in which he enjoys nominal rights like the right to vote, right to get a bonus etc. Just like property investment in this also an investor will earn monthly income, but the amount of return equity shareholders get depends on the profit of that company. In real estate investment, you have the right to control your income, that means you can demand monthly rent as per market demand and as per your needs which will increase on a yearly basis. It is very important to select a proper sector of stocks which can fetch a long-term profit. There are different types of stock in which one can invest e.g. Shipping, Pharmaceuticals and health care, Mining, Information Technology, Petroleum, Infrastructure etc.

But in stocks, you don’t have any sought of control over the profits. Stocks tend to move as per market condition, government policies, sector growth etc.

To conclude I would say that if you are good enough to understand market trends and the growing sector than you can choose to invest in a stock. Also, if you want to stay away from the hassle of tenants then the stock market is the best option for you. If you are planning to start your own business, after investing in property which might gain a good profit in future, then you can select investing in Real-estate.