With the increasing investments in India, one finds both real estate as well as equities to be the most preferred means of wealth generation. But which one of the two is better for the investors?
In the words of Gunjan Goel, Director at Goel Ganga Developments, “The investors should concentrate on the emerging cities of Bengaluru, Hyderbad, and Pune, which always appreciate at much higher than average levels.” For instance, real estate comes with other advantages, including rent earned on properties.
An average rental return in residential properties in the metros of India is approximately 2-4%, while retail commercial spaces during peak seasons can provide a higher yield of around 6-8% average rental return across India.
Real estate is also able to avoid excessive taxation, as under the Income Tax Act provisions, a tax of almost ₹2 lakh on home loan interest may be deducted in Section 24. This explains why most people will choose real estate rather than any other investment option available to them in the market.
Although stocks allow for immediate cash conversion and a high rate of return, real estate gives physical assets that grow in value, and rents create aspects, making it a possible harbour for those seeking financial security in the long run.
Read More: Money-Wise | Real estate vs stocks: Which investment has more promising returns for you?
