Two popular investment avenues, real estate and bitcoin, have been making waves in today’s market. When it comes to these opportunities, it can be difficult to discern which is the wiser investment choice for you. Both have benefits and, like all investments, carry risk.
Which investment comes out on top?
As you build out your investment portfolio, your best investment really depends on your personal financial background, your familiarity with the asset and how much you are willing to risk. Purchasing bitcoin is low-maintenance and high-risk with the potential for high reward, while real estate is a long-term investment that could end in a big payout down the road or provide steady income. So it’s ultimately up to what you can afford and what you can afford to lose.
Given the ongoing uncertainties in cryptocurrency, real estate is being viewed as one of the safest long-term investments. Here’s why
1. Real estate has tangible asset value. It is backed by actual land and constructed property.
2. The value of the real estate increases with inflation, providing you a good appreciation should you plan on selling the property after a few years.
3. There are several sections of the Income Tax Act of Pakistan that outline the tax reliefs available for real estate investors.
4. Since it has no direct correlation with other asset classes, real estate provides diversification of assets for investors.
5. Real estate investment can provide you with steady passive income if you are investing in rental properties.
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