In today’s world, there are a ton of investment options out there, and you might be contemplating which one to invest in. Two of the most popular investment options are Stocks and Real Estate. Both of these come with their own set of pros and cons. It is important to thoroughly study your options and decide which would be the best choice for you at this stage in your life.
Why should you invest?
Investing in stocks, real estate, bonds, etc. allows your wealth to grow over time. It can help you create a retirement fund if you invest much early on. Then, at the time of retirement, your investment would be profitable enough for you to reap its benefits. It can help you reach your financial goals and provide you another source of income and security. This not only leads to living a more practical life but a comfortable one too. Bank savings don’t provide as great of a return as these other investments do. Investing works around the idea of your money working for you. When you invest in something, you are putting your money to work to make you more money. Investing increases your purchasing power and over the long term, helps beat inflation, year after year.
When should you invest?
Investment is a good choice, no matter what stage of your life. But of course, there are some things to consider while investing. It is important to map your financial route. Figure out your goals and the comfort level of the risks you will be willing to take. Take an honest look at your current financial situation and then evaluate what fits you the best at this stage. Once you have a clear idea of all that, then you will be in a position to weigh the pros and cons for yourself. There is no ‘one size fits all’ case when it comes to investing. It all depends on one’s unique circumstances.
Real Estate
Real Estate Investments has been a popular and trusted choice for decades now. It is a much more familiar investment option than stocks for most of the people.
Things to keep in mind while considering real estate investments:
- It is a tangible asset. You can feel and see it. Many experts believe that an investment in a tangible asset provides a lower risk factor than an investment in an intangible asset.
- You can use it for personal use. Unlike stocks, you can make use of this investment. It can serve you and your family important functions.
- Renting the property that you buy, provides a steady source of income. So, you don’t have to wait long term for this investment to start making you money.
- A property in a prime location will most probably fetch you good returns. A prime location will always be in demand. The value of such a property hardly ever decreases in the long term, making only a few exceptions.
- Consider the location at which you could purchase a property. An apartment in a residential area that has easy access to stores, schools, railway systems, and other cities would be an ideal location. For example, Mumbai suburbs like Mulund is a great residential location and a place that is only growing. You can get in touch with us at Group Integrated for further guidance.
- It involves putting in some time and effort like for maintenance purposes but overall is a safe investment.
Make sure you are clear about what you want to do with the property and what your budget is. Whether you plan on using it or renting it out, will play a significant role in giving you an idea of where to invest.
Stocks
Unlike savings, investing in stocks can be an intimidating process. It requires a lot of research and mindful control. It can get difficult to determine whether or not a stock is going to rise or fall, especially for beginners.
Things to keep in mind while considering to invest in stocks:
- As in the case of any investment, it is necessary to evaluate your current financial status to get an idea of your investment capabilities. The good thing about stocks is that you can start by investing a little amount of money depending on your comfort levels.
- You will need to develop an emergency fund before investing. This is important because of the volatile and unpredictable nature of the stock market. When compared to real estate, stock prices are highly unpredictable.
- Stocks are a liquid investment. So, you can convert these to cash almost instantly. During an emergency, these liquid assets can be convenient. Although, it might get detrimental when the market is down.
- A lot of time is spent on studying stocks. Investing in stocks requires trial and error and ample time goes into figuring it out. Before investing, you’ll need to thoroughly research different companies. You will also need to keep track of the market. This can be extremely time consuming and stressful.
- It is required for you to not be emotional about the stocks you invest in. The stock market keeps fluctuating and taking decisions related to stocks hastily is a common mistake and can cost you.
Stocks vs Real Estate
As quoted by one of the most influential financial authors of the book ‘Rich Dad Poor Dad’, Robert Kiyosaki, “Real Estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.”
Real estate investments will always be a safer bet. It is easy to understand, and as mentioned earlier, has been a popular investment choice for many years, all for a reason. The uncertainty with real estate as compared to stocks is much lower, making it a trusted option.
We would like to invite you to take a look at our projects at Group Integrated so that you can take your leap into real estate investments. We have an on-going project at Mulund, Mumbai called Integrated Kamal. You can contact us on +91-022-25018899 or visit us on www.groupintegrated.com