Advantages of Real Estate over Stocks

Real estate is a very profitable and reliable investment choice if done properly. Many people have doubts in their heads while doing an investment. Stocks may seem fast and easy to liquidate option but it has way too many risks when compared with real estate. The stock market keeps on changing every moment and this unpredictability makes it a safer choice. The real estate market is not only safe but also provides great returns on investment. Here, we are going to tell you about some of the key advantages of the real estate market.

• Consistent Returns: The stock market is known to provide quick returns but it lacks consistency. On the other hand, the real estate market is known to provide consistent returns depending on the nature of your investment. You can purchase a property and then sell it after some time and make a good profit. You can use the property for renting purposes and get consistent income. There are some things to keep in mind for the real estates investors like the location of the property, chances of future expansion around the property, and proximity to important roads and resources. If these things are kept in mind then you will get good and consistent returns for your investment unlike investing in stocks. It also provides protection against inflation. 

• Security: Real estate is indeed a very safe choice for investment because of its low volatile nature. It has minimum risks and provides amazing returns. The stock market is very uncertain and the chances of facing losses are very high. You get a consistent income through rent and you always have a hold of the property, unlike the stock market. The simplicity of the real estate investment also makes it a safe choice and with passing time, you can expect much higher returns for your investment. The ability to provide protection from inflation by the increase in rent and prices with respect to inflation. Equity building is also a huge benefit of investing in real estate.

• Taxation: While doing an investment, real estate investors can easily apply for loans unlike the stock market, and get an income tax deduction on home loan payments. Section 80C of the ITA allows you to get a tax deduction of a maximum of Rs 1.5 lakhs from the total taxable income on the payment of the principal amount of the home loan in that year. Also, Section 24b allows you to get a tax deduction on the payment of interest. These deductions vary depending on the nature and amount of your investment.

The real estate market is one of the oldest and most reliable markets in the world. It is the safest mode of investment and real estate investors make great profits on their investments. The stock market may provide big and fast returns but it is very unpredictable and this makes it unreliable. There are many advantages of real estate investment and because of the safety and consistent returns it provides, It is a far better choice than the stock market. Advantages of Real Estate over Stocks