Real Estate VS Fixed Deposit : Which is Better Option For Investment
FDs provide guaranteed returns that are not affected by market fluctuations. On the other hand, real estate is a high-yielding investment that can help you amass enormous wealth
FD vs Real Estate investment, the debate has been an ongoing one. Real estate and fixed deposits (FDs) both have been considered investment for long-term, each of these have their own perks As a result, a thorough understanding of all factors involved will help you in making the best investment decision. A fixed deposit (FD) is an appealing option. On the other hand, if you want to own an asset that will appreciate in value over time, you should consider investing in real estate. So which is better retirement investment option for millennials? What experts have to say on this.
Nakul Mathur, MD, Avanta India said FDs were the preferred investment option in the past. However, investors are beginning to recognise the importance of commercial real estate as a sophisticated asset class for generating high yields.
With the advent of REIT funds, investing in A-grade commercial real estate has become much easier and can be on the investment portfolio of an average middle-class family. There is a growing interest in office stocks, retail units, shops, and other properties that provide recurring rental income as well as attractive capital appreciation. Buyers and investors began to recognise how commercial Assets can outperform other investment strategies in terms of ROI. Commercial spaces provide a much higher return on investment than FD,” said Nakul.
“In the traditional sense, contracts for residential buildings can be set up that allow for a consistent increase in rental rates every year. Another advantage of commercial real estate is that it will never become obsolete. FDs provide guaranteed returns that are not affected by market fluctuations. Because the returns on an FD are guaranteed, you will be able to diversify your investment portfolio. Real estate is a high-yielding investment that can help you amass enormous wealth if you play your cards correctly. Investing in real estate provides numerous opportunities for profit,” said Suren Goyal, Partner, RPS Group.
