Analysts suggest investors to remain judicious on realty stocks and purchase where there are credible promoter backings and revenue visibility.
Progressive economic recovery has paced up and resulted in attractive home prices. According to the analysts, it is a great time for investment in stocks of real estate companies.
For investors with spare funds looking for the right place to invest, buying residential property now can be a good option from a long term perspective. However, the return expectations of investors should be realistic too. Especially, from the stock market perspective, given the sharp run-up in these counters since their March 2020 low.
Pointers to be kept in mind while investing:
- The decision to invest in real estate or stocks purely depends on your financial situation, risk tolerance, goals, and investment style.
- Both Real estate and stocks have different risks and opportunities.
- Real estate is not as flexible as stocks and requires more time and money. Although it provides a passive income pipeline and the potential for substantial appreciation.
- Stocks are subject to economic, market, and inflationary risks, but don’t acquire a big cash injection, and they generally can be easily bought and sold.
Pros and Cons: Real State
|– Passive income||– More work than buying stocks|
|– Tax advantages||– Expensive and illiquid|
|– Hedge against inflation||– High transaction costs|
|– Ability to leverage||– Appreciation isn’t guaranteed|
Pros and Cons: Stocks
|– Highly liquid||– More volatile than real estate|
|– Easy to diversify||– Selling stocks can trigger big taxes|
|– Low transaction fees||– Some stocks move sideways for years|
|– Easy to add to tax-advantaged retirement accounts||– Potential for emotion-driven investing|
So purchase wisely, think twice and invest as per your bandwidth!