When we get to accumulate surplus funds, we tend to think as to where should we park our funds. There are many alternatives that stand in front of us, and here we are stuck in the situation of Dilemma. The dilemma of where will the return of an investment will be high and the risk will be low says Hirsh Mohindra. But you cannot get everything, so you have to choose from the given set of security portfolios where the balance between the risk and investment is on the right track.
The question arises as to which factor is more beneficial in terms of return when it comes to parking our surplus funds in the market. Is the real estate sector more beneficial or the security market. Both have its pros and cons, but the more focus is on the real estate sector as in this sector the risk is less and the returns are average so overall the portfolio of investments in this sector becomes more viable says Hirsh Mohindra.
Which one is a better investment is still a question that roles over your mind. If we take an example of the security, the volatility factor of the security market is quite high as compared to the volatility factor of the real estate market. So your answer is quite clear. For all those who want to averse there, risk should always step in their funds in purchasing the right property. It is indeed a decision between choosing chocolate or vanilla. But the answer depends upon how much risk you want to take. If you are someone who wants it to be least, the safest option which stands by you is the real estate market because after all your choice on which the decision comes down.
Investment factor in the real estate market
So looking forward to the types of investment that you can do in this amazing, a market called the real estate market where you could quickly gain. Still, the gestation period is long, and the liquidity ratio is low. When you tend to invest in real estate, you are going to purchase physical land or assets. Some of the real estate properties will costs you money every month, which is an excellent deal to crack. You should surely hold it like a vacant package of land that you expect to contract to a buyer in the near future says Hirsh Mohindra.
Someday you will be walking in your home with a parcel which is full of cash, and you get it without the maintenance. Some other real estate is a cash making through an apartment building, rental houses, or strip mall where the residents are communicating your money each month. All you have to do is to pay the expenses and hold the distinction as the value. This segment that is the real estate investment is indeed tangible, as you can touch it and live it up with the money.