Which is the better deal “Property” vs “Equity” For Investment?

Investments are something that people have started being aware of lately. But along with the rise in investment trends, there is also a dearth of knowledge that needs to be filled. Weighing out options, pros and cons becomes all the more important in this situation. It's based on different factors that make each one beneficial and also incur losses. If one considers all these factors and then chooses, any of these investments will prove the right choice.

The top builders in Telangana will also abide by the differentiating elements of both the choices, and hence it is crucial to consider them before investing.

What is Property Investment?

Property Investment involves buying and renting or selling properties. You decide to invest in property and consult top builders in Telangana. You search for premium apartments in Bachupally, Hyderabad, considering that the location is booming and the properties are good and will have an assured buy-back value. You buy one of the premium flats for sale in Bachupally and later decide to rent it. You are gaining money from the property you bought, and that is a form of property investment. This investment might turn in favor of you and give you big gains considering the location you have chosen and the property value. For property investments, some of the most significant factors to be looked out for are the location, the property value in terms of construction and other building standards, and the property's market value. Properties are not easily liquidated, and this makes it even more challenging to invest in.

If you plan to put your flat for sale in Kollur or a 3BHK flat for sale in Bahadurpally, both will have different returns on the investment. Kollur flats will have different buy-back amounts, and Bahadurpally ones will have a completely different value. The factor that decides the success of your investment is how much you had invested while buying the properties and how much you received in the given period. The investment outcome is also determined by the amount of profit received over a specific time.

If someone buys premium flats for sale in Bachupally with a lump sum amount from some top builders in Telangana and receives an 8% profit after a very long time that will not be considered a profitable investment because such or even more profit levels could have been earned in many different ways. But, if someone invests in 3 BHK flats for sale in Bahadurpally and ends up selling it at 40% more after 5 years, that will be considered a very successful investment.

Also read: Women Buyers in Real Estate

Thus, the sell/rent amount in a given period and the amount of investment are the two factors that can determine the success of one's investment. In addition, market value, cost of the property, and location should be considered before investing in properties.

Pros of investing in property

• You can precisely measure expected return on investment which will not be hugely different from the actual return on investment if the market is read properly.
• You do not need much assistance and can work on a pure understanding of property and market trends.

Cons of investing in property

• Low liquidity - Properties cannot be sold or rented out anytime and every time, one needs to wait for the market value of the property to go up and also find a proper buyer.
• Requires huge investment as the cost of properties are massive amounts that need to be paid a lump sum or in installments.

What is Equity Investment?

Investing in equity is nothing but buying and selling stocks. When one buys a stock, they buy a share of the company. As the shares grow, the value of the company grows and thus grows your investment. Stocks are very unpredictable, and guaranteed returns are not always possible. Sudden changes in the company's value, change in taxation and other governmental rules, and a significant impact on the country's or state's economic state are some factors that can change the value of the investment outcome.

The pros of investing in equity

• Liquidity - One can sell off stocks bought anytime they wish to based on the market.
• Flexible investment - It is not always necessary to invest a considerable amount in stocks.
• Takes lesser effort to invest as finding the right company to invest in will do the trick.

The cons of investing in equity

• It is highly unpredictable and fluctuates often.
• One needs proper assistance and guidance to understand and study the market.

So, investing in equity and property depends on the investors' planning and the idea of the factors determining the investment return. If the idea behind the investment is clear and the factors are adequately considered, any of these two investments can be turned into a profitable one. It's all a matter of market study and a clear idea of when and where to invest.

Also read: Investment in Residential Property