When it comes to investing money people are generally confused due to lack of information about investment opportunities. Usually banks are considered safest when it comes to saving or investing money.
Banks usually give profit on money saved in saving accounts or return on money invested in other businesses the bank does. Saving accounts give 6-8% appreciation whereas investing in businesses and mutual funds pays off to 10-12%.
Customer has the option of receiving returns monthly, quarterly or annually. Banks are considered to be safe and non volatile but do not promise high returns rather fixed returns over a specific period of time. Funds invested by the banks are subject to market volatility and inflation which can result in loss in return on investment.
Real estate in modern times has risen as a promising investment opportunity with high returns. Returns range from 17-22% on average and in some cases can even climb higher than the said profit.
Real estate is considered a safe and stable investment as it is a physical asset. People tend to put their trust and money in assets which are physical in nature plus their buying and selling is relatively easier.
Real estate is a stable source of rental income supported by the appreciation of property value over time. It is also resists the impact of inflation whereas other investments i.e commodity businesses and stock markets suffer.
A simple example can be taken of the sector D-12, one kanal plot was valued at 35 million rupees in 2018 and in 2021 that same plot costs 60 million rupees, a whopping 23% appreciation annually.