There is always a raging debate as to which is the best asset class for long term investment for a period of lets say 10, 15 20 years or even more. So which investment is best for long term – gold, stocks or real estate?
While Gold is not a very attractive asset class over a long period, it does find favor with small investors for whom liquidity and ease of selling is paramount. For HNI , both stocks and real estate has been putting them in dilemma of investment choice. Plethora of statistical data are rolled out to justify investment in both type of assets.
Considering the investment is planned efficiently in both stock and real estate, in long term, stocks definitely provide better returns but investment in real estate provide extreme sense of financial and social security which has tremendous weight in decision making from long term prospective. So from asset class allocation point of view, the investor must balance investment in both shares and real estate without ignoring each other.
When it comes to investment in property from long term perspective, Spacio advises pre-launch and under construction projects because they come at least 20-30% cheaper than the market value of ready-t0-move in flats in India. Investment in under-construction property, if held for more than 3 years, will also be eligible for long term capital gain benefits as per Income Tax Law in India. But the firm advises not to go solely by the builder’s reputation when selecting upcoming project for investment purpose. Of course good reputation of builder assures that the project will complete and the property buyer will get possession of the place, but there are other parameters to consider like the potential of the location for appreciation, how that property fits in the overall investment portfolio of the client, etc.