Real Estate v/s Fixed Deposit: The Better Investment?

Hello investors! Do you as an individual have some doubts regarding where you should invest? I mean it is only normal to have some doubts. There are a plethora of options when it comes to investing like stocks, fixed deposits, real estate, SIPs and many more. One of the most common investment tools is fixed deposit but isn’t real estate a great investment option as well? There are a lot of reasons as to why you should invest in real estate. So, in today’s blog we will compare real estate and fixed deposits and see which is the better investment for your money to grow! So, let’s get into it!


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The most important aspect of any investment is the rate of returns. And higher the return the more we LOVE the investment. I believe we all can agree on that! But, now the main question is which investment among real estate and fixed deposit gives you higher returns? When it comes to fixed deposits, the rate of interest is fixed on the other hand real estate gives you higher returns. Usually, the rate of return increases as the time passes. 

So, real estate takes the win when it comes to higher returns. Let’s check the next point out! 


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Diversification is a very important aspect when it comes to investing in general. Now, what does diversification mean? Diversification is basically spreading your investment around so that you are not limited to only one type of investment. This basically reduces the volatility of your portfolio! Now that the meaning of diversification is clear lets see which investment helps with diversification of assets!

In general, real estate helps a lot with diversification of assets as there are a lot of different types of real estate. Some of those types are commercial, residential, agricultural and many more!

But on the other hand you do not have the same amount of options when it comes to fixed deposits. Fixed deposits have a certain type of pattern and they do not support the diversification of assets. 


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One of the greatest advantages of investing in real estate is the tangible nature of the assets. It’s like having something you can see, touch, and feel – a physical presence that brings a sense of security and comfort. When you invest in real estate, you can walk through your property, envision its potential, and know that it’s a solid, tangible asset that holds value. It’s like building a fortress of financial stability around you.

On the flip side, fixed deposits are quite the opposite. They don’t offer that tangible aspect we crave. You can’t physically hold a fixed deposit in your hands or marvel at its existence. It’s more like an abstract concept, floating in the digital realm of numbers and paperwork. And as a result, it doesn’t quite provide that same sense of security and peace of mind as real estate does.


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Real estate investments come with a superpower called leverage! It’s like having a financial sidekick that lets you use borrowed funds, like mortgages, to buy properties. With leverage, you can unlock the potential to control a more valuable asset than what you could with just your own money. It’s like a real estate adventure where you get to multiply your investment and embark on a journey to greater returns! 

Sadly, that is not the case with fixed deposits. No such concept of leverage exists in the world of fixed deposits!


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Liquidity is a main problem when it comes to both real estate and fixed deposits. Basically, your money in fixed deposits are fixed for a certain period of time. And in case during an emergency you need money but if your fixed deposit is not over then you would not get your complete interest. And in some cases institutions even charge a penalty fee for taking money out before the maturity period. 

So when we compare real estate and fixed deposit on the liquidity factor then real estate again takes the win. This is because even if it takes some time to sell your property at least you won’t face any loss!


Picture Source: treasuryandrisk

The best part of investing in real estate is that you can earn extra income from it. All you have to do is convert your property into a co-living space and then you can expect returns up to 7%. ‘Xtra Income Homes’ is the best company when it comes to this. They have an experience of 8 years and the properties offered by them are handpicked after considering a lot of factors! 

On the contrary when it comes to fixed deposits there is no way to earn extra income. 

After diving into all these points, it’s crystal clear that real estate investment is the real deal, leaving fixed deposits in the dust! So, my investor amigo, buckle up and embark on a wild investment ride, considering every aspect before putting your hard-earned money in one place. Explore the thrilling world of investment opportunities and unleash your inner financial wizard to choose the perfect investment that sets your wealth on fire! Remember, fortune favors the bold, so jump into the investment game with gusto and paint your financial future with vibrant colors of success!

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