There are several reasons why most investors are attracted to real estate compared to other assets like stocks, gold, securities, and bonds. The benefits of investing in real estate include, but are not limited to, consistent cash flows, high tax benefits, a solid rate of return, and the tangible nature of the asset.
While comparing real estate and stocks, real estate assets offer more stability as the return on investment (ROI) of stocks are more volatile compared to real estate. Most risk-averse investors avoid this kind of investment, making real estate a stable asset in comparison.
Bonds and other fixed-rate vehicles offer lower-risk and lower-return for investors who want to preserve their wealth and protect it against inflation. However, investing in real estate proves more stable and with a significantly higher range of returns, making it a more attractive investment option than bonds.
Lastly, a common asset for investors in the South Asian market is gold. Although, this historical asset offers a higher liquidity rate as it allows buyers to invest based on their appetite. However, compared with real estate, the value of gold is more volatile, and the returns fluctuate with the market.
