Real Estate – The Oldest & The Smartest Mode Of Investment

Real Estate is the oldest and the safest mode of Investment. But how does it hold against the other instruments of investment? Does it have the same vitality as the shares and debentures? Does it have high liquidity as mutual funds? Has gold emerged as an alternative to real estate? One confronts many questions when the new investment instruments are pitted against the old (Real estate).

Let’s analyze and see what stands where.

Investment in real estate if done carefully, will always bring you rich dividends. One of the prime reasons of real estate being a popular investment instrument is that its extremely easy to comprehend the real estate market. Unlike share market, one needn’t keep the day-to-day track of all the happenings in the concerned market. Though it is advisable that real estate investors keep a tab on the developments which directly affect their investment. But it is safe to say that the method of operation in real estate is easy and hassle free, which explains its wide popularity.

Gold, like real estate, is a conventional form of investment. And like real estate, it is the safest mode of investment. But, there are some points that have to be considered before you put your money on gold. It’s true you will not lose money in gold but you might not earn a lot of money either. That defies the objective of investment – it’s good only if your returns are at par with the inflation rate of  time.

Gold has enjoyed immense volatility in the last decade, and those who saw it coming made plenty of money in the shift of pendulum. But at present, it seems, the yellow metal has lost its sheen considerably. The sale of gold hasn’t reduced, but its value and potency in terms of investment has dropped heavily.

So, ultimately it boils down to the oldest and seemingly wisest mode of investment – Real Estate. It has been observed that those who invest in real estate have earned handsome returns over the years on their investment. The debate can be fittingly summed up by the famous words of the celebrated real estate investment expert Louis Glickman – “The best investment on earth is earth”.

A little research and a little foresight will bring you a good fortune for sure.