33.19 Stock Investing vs Real Estate Investing

The notion of investing varies a lot between generations.

1. Returns:

Equity Markets (Nifty as an example) gives around 11-12% CAGR over a 10-20 year period.

Now if you look at Real Estate Markets over a long period it gives relatively lower returns (~3-4%).
Does this make real estate a bad investment?


2. There is also a concept of Re-investment risk, which is lesser in Real Estate

3. All Asset classes go through cycles.

But what's important here is that if you are diversified, you get to make good decisions at bad times.
A smart investor will understand and explore both asset classes, and maintain a diversified portfolio.

What you need to do is take time out to learn and apply.

The biggest issue is the Opaqueness in the Real Estate Market.


Thoughts 🤔 by Soumendra Kumar Sahoo is licensed under CC BY 4.0