Owning a Property or Investing in SIP – Which is good for long term ?

POSTED BY Mitra. A ON August 5, 2014 6:43 pm ONE COMMENT

Which one is better in terms of long term return? Owning a property ( real estate ) or invest the same amount of money through SIP to a well built portfolio.

Can anyone please help me to come out with a data points – which one will have high ROI.

I have considered the followings:

Real Estate :

1. Owning a  property will actually cost property tax, maintenance charges. Remember this is 2nd property.
2. I can’t sell a part of the property whenever I will like to.

3. Real estate property value shoots up in early years – but eventually flattens out down the line.

4. Take headaches on extra maintenance , care takers of 2nd property. Renting out may give cushion to my wallet, but again follow – ups, check-ups etc.

Fund Investment:

1. Regular investment, and ease of liquidity.

2. Surpass the average return of real-estate through a longer horizon of investment.

3. Tax savings. Not to bear other extra costs- such as property tax, or maintenance charges.

4. Don’t have headache to think of who is maintaining the 2nd property, how it is now?

Others, please let me know your views.

 

 

 

One reply on this article “Owning a Property or Investing in SIP – Which is good for long term ?”

  1. Sumit says:

    You already listed the pros and cons of both the sides.

    I prefer equity more than real estate any day.
    But since you are interested, I will say keep a balanced portfolio. lumpsum some portion in real estate, and rest in equity through SIP.

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