Is real estate an ideal investment asset class when compared to gold, equities, MFs, etc? We tell you why, despite its erratic performance, it is still a prized asset
Dilkhush Shah, an interior decorator had only Rs 25 lakh to invest. She was advised to opt for mutual funds and gold rather than real estate. However, her research made her realise that real estate stands as an ideal asset class beyond the emotional urge to just own a home. The statistics clearly indicated how no other asset class had given the CAGR (Compounded Annual Growth Rate) as high as property, despite the short-term drop in sentiments.
“I chose to invest in property since it is a time-tested investment globally. Yes, with such a small amount, I could only afford a property on the outskirts of a metropolitan.Keeping the area’s development in mind, I feel this is the best investment bet,“ says Shah.
The statistics of the ROI, over a long period of investment, have always been in favour of real estate. In the cyclic ups and downs, other asset classes like gold or equity may look more attractive, yet cannot match property.
“I had invested in some stocks that fell from Rs 300 to Rs 45. Since the said company is on a downslide, there is absolutely no hope of recovering my losses. With property, there can be cyclical ups and downs but if you are determined to stay invested, you will not only recover, but also make gains in the process,“ says Anupam Agarwal, a home-buyer who has also invested in a commercial shop.
Source : The Times of Group (Bangalore)