Highlights of investing - Land | Equity

Highlights of investing - Land and Equity

Highlights of investing - Land and Equity

This is a very trendy topic in today's scenario as we have limited money with us and we have many investment options and everybody from us gives a different opinion on this because the money matters cannot be similar to any one of us.

Everybody has a different cash flow profile, different risk-taking capacity, and different investing goals and tenure of investment.

This is true that there are only these two investment tools available-Land and Equity, which can beat the inflation rate.

There are some of the key points highlighted below on which basis we can decide to validate that which would work better for you among Land and Equity:

Beneficial for Retailers

As retailers, you can start investing in the equity market with 1000 only while such small investment is not possible during Land Investment. Equity investing is most convenient among Land and Equity.

Hassle-free

Despite new cashless India investing in Land is covered with lots of paper formalities and manual jobs so buying a property is not possible from your place. On the other hand, equity investing is a totally hassle-free investing, paperless job, and can be bought and sold from any corner of the world.

Rules and Regulations

Equity investing is regulated by SEBI, the price fluctuations are totally run with transparency, and price manipulation is next to impossible nowadays. While acquiring the Land it is difficult to judge the price transparency and there is no such separate authority who safeguards the interest of buyers and sellers. In this case, the Equity investment works better.

Liquidity

The liquidity factor is very important as which investing tool does not provide enough liquidity is not considered by small investors or salaried people. Equity has a significant amount of liquidity while this cannot be possible in Land. Land cannot be bought or sold as per your time of requirement, this is the asset that cannot be converted into cash immediately which makes this asset as a non-liquid asset.

To Sum up 

Except for beating the inflation rate, we are not finding real estate a good mode of investment over equities in any manner. Further, if the above points are not of consideration and if you are ok with all of them as an investor then you can be welcomed your investment in Land among Land and Equity. Life is very uncertain and you cannot expect the good or bedtimes every time in your life so, in my opinion, it is good to diversify your investment with Land investment later but as a lower middle class or middle-class salaried section you should never start your investment with Land. 

The biggest mistake what people make that they buy their house to live and considered them as there investment. Suppose you bought your house at Rs 50 lakhs to live in and you have done interior decoration of Rs 10 lakhs and people think that they invested Rs 60 lakhs in Land. Do you really think that it is your real investment? If you get a good price of your house then would you sell that on the premium? No one can do that because it is your sweet home where your family lives and it cannot be treated as a trading wager. You required a house to live in and that can be bought as per your space and venue requirement but cannot be treated as an investment mode, on the other hand, if you are buying one another apartment apart from your house then yes it is for sure your investment can be sold.