Real Estate Investment. Why it could be preferred over stocks or gold?

With decreasing interest rates in the savings account and Fixed Deposit, more and more profit-seekers are making their minds to invest in something which is more lucrative as well as long term.

There’s a lot of good, actionable information about real estate investing that you can find online for free. 

But to be fair, sometimes it can seem like there’s just a little bit too much information, which prompts the question, “Can you really learn about real estate investment from a blog?”

The answer is “Yes,” provided you know what to look for and where. We all know that in real estate investing, time is money. 

So, with that in mind, here’s our list of the best real estate investing blogs of 2020 and why you should consider reading them in the first place.

Commom Investment Plan

Three such things come to mind in case of the thought process mentioned. They are

  1. Everybody’s favourite, GOLD
  2. Not Everybody’s favourite, STOCKS
  3. And the asset of mixed emotions, REAL ESTATE

Although, each of them has its own advantages and disadvantages. In this post, we will only talk about the advantages of Real Estate Investment over the other two options.

Real estate investment groups (REIGs)

They are ideal for people who want to own rental real estate without the hassles of running it. Investing in REIGs requires a capital cushion and access to financing.

REIGs are like small mutual funds that invest in rental properties. In a typical real estate investment group, a company buys or builds a set of apartment blocks or condos, then allows investors to purchase them through the company, thereby joining the group.

A single investor can own one or multiple units of self-contained living space, but the company operating the investment group collectively manages all of the units, handling maintenance, advertising vacancies, and interviewing tenants. In exchange for conducting these management tasks, the company takes a percentage of the monthly rent.

A standard real estate investment group lease is in the investor’s name, and all of the units pool a portion of the rent to guard against occasional vacancies. To this end, you’ll receive some income even if your unit is empty. As long as the vacancy rate for the pooled units doesn’t spike too high, there should be enough to cover costs.

Why Real Estate Investment over Gold?

This is a good question given the ease of liquidity in the case of gold. But still, Real Estate has some benefits over holding physical gold as an investment.

First, Physical gold won’t give you regular income like house or shop rent. The physical keeping of gold as a future investment plan will not reap you any benefit until you sell it. Unlike this, real estate could be put on rent/lease in order to get a cyclic income which could add a portion to your side or passive income.

Why Real Estate Investment over Stocks?

Because you can’t use your stocks like a physical asset. For eg- Your house or shop could be used by you, in case of any of your own residential or commercial infrastructure needs.

Also, real estate properties are much more acceptable as collateral in case of loan requirements.

Moving to Real Estate for ‘investment purposes is a capital savvy task and is not for everyone.

We sincerely hope, the post has helped you in learning more about the topic mentioned in the title. And if you want any help in making real estate investments, you may reach out to us.

We would be glad to help you.

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Image Credits- Forbes

FAQ

Do banks accept real estate property more readily than stocks for giving a loan?

Most of the time, Yes. It also depends on the area your property is in, and the stock you are offering.


Why is gold less lucrative than real estate investment?

“Physical gold’ requires the hassle of storage and sometimes charges too if you are using bank lockers. Whereas real investment could give you regular rentals making a passive income possible.

Is real investment completely risk-free?

If you are investing to live in it, then no. But if your motive is to solely make an ‘investment’ out of it, then many factors like demand, the market scenario is applicable.

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