Thread by @PranjalKamra

Real Estate Gives Better Returns than Stocks !

A thread 🧵 👇

In the last 40 years,

Sensex - 14 % CAGR
Real estate - 11-12% CAGR (estimates)

But why did I say Real Estate is Better then ?

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1) Lock in
It’s easier to take out money from stocks & MF & hence we don’t stay Invested.

Real estate is comparatively less liquid & more time consuming to sell, so we stick with it & it compounds

Higher returns of stocks don’t count if we can’t stay invested

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2) Capital

If we have Rs 1 crore, very few of us feel confident to invest a meaningful amount in stocks/MF.

Most of us remain parked in FDs.

If u are one of those who cannot allocate meaningful capital to stocks/MF, it’s better to atleast go with gold/Real estate.

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Discipline

When buying real estate, we keep our expectations in Check. We don’t expect our property to Double in 6 months

But a major chunk of investors/traders in stocks tend to gamble, trade excessively and destroy capital in the process of want of higher returns.

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So theoretically & mathematically, stocks snd MF are better because of -
- Higher historical returns
- Low ticket size
- less legal hassles
- Negligible Maintenance cost

But if we also consider the biases, fears and mindset of an average investor, Real estate wins !

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And if you think real estate is unaffordable and expensive, here is a shocking video on why property prices are rising and what you can do a about it -



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