Fixed deposit vs Real estate? This question arose again after the recent crisis that resulted in the Central Bank of Egypt moving the pound’s price against the US dollar, coinciding with banks issuing investment certificates with an interest rate of up to 18%, which made customers confused about the optimal investment at the present time
This is what we will discuss in some detail in the next few paragraphs, as we will find out an answer to the question of which is better, Fixed deposit vs Real estate?, according to the opinions of a group of experts in the Egyptian financial and economic market
Which is better Fixed deposit vs Real estate?
There is no doubt that real estate is the safe vessel for preserving and investing the value of capital, but is it the ideal solution at the present time?
Small investors see their inability to purchase real estate investment with a high cost, so they resort to bank certificates with lower costs and quick procedures, so people still wonder which is better, Fixed deposit vs Real estate?
After the recent rise in the rate of inflation and the emergence of the most famous question at the time, which is: What is the best investment after the rise in the price of the dollar? Several limited options have appeared, but of course they are suitable for different categories of customers, such as real estate investment, investment in gold, digital currencies, the stock market, and others but we still wonder which is better, Fixed deposit vs Real estate?
Advantages of Real estate investment
To obtain a satisfactory answer to the question of which is better, Fixed deposit vs Real estate? we review the advantages of Real estate investment
- Capital guarantee in one of the assets
- Protecting funds from inflation risks
- Capital development with the increase in the value of the property
- The possibility of obtaining a monthly income by renting the unit
- When you own a property, you will not pay a high real estate tax, compared to other investment methods
- There are no possibilities of loss (except in the event of force majeure), due to the continuous rise in real estate prices
- The Egyptian real estate market is one of the strongest in the region, which means there is high demand with constant supply
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Disadvantages of Real Estate investment
we also review the disadvantages of Real estate investment to answer the question of which is better, Fixed deposit vs Real estate?
- The high cost of investment
- The demand for real estate was affected by the state of the local economy
- You may face difficulty in getting your money quickly if you want to sell, because the process of selling a property may take months or years
Advantages of Fixed deposit
Fixed deposit vs Real estate? In order to obtain a satisfactory answer to this question, we review the disadvantages and advantages of deposits as follows:
- Get your money back after the specified period
- Preserve your money but not over its value
- Possibility of depositing small amounts
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Disadvantages of Fixed deposits
as to answer the question of which is better, Fixed deposit vs Real estate? we review also the disadvantages of Fixed deposits
- Losing part of the value of your money as inflation rates rise
- The bankruptcy of the interest rate to meet the high inflation rate, due to its weak economic capabilities
- You can only get your capital after 6 months of deposit, with no interest
- There may be a change in the interest rate to a lower percentage, so that you have to invest in another field in the bank
The defects that we have reviewed are specific to the customer at the individual level only, in addition to the economic problems caused by Fixed deposits and investment certificates, which clearly affect them in general, such as the lack of local investments to freeze capital and not benefit from it
After discussing the advantages and disadvantages of each, then which is better, Fixed deposit vs Real estate?
Of course, Real Estate investment is the best in all aspects for the following reasons:
- Gains from real estate investment may reach 300% of the capital value
- When an economic crisis occurs, you become in a state of reassurance with your ownership of a property or a real estate unit, in contrast to your ownership of a Fixed deposit that becomes non-existent in facing crises
- Preserving and developing capital, unlike deposits that cause a loss of part of the value of your money, at a rate that may reach 4%
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After answering the question of Fixed deposit vs Real estate? It has become worthwhile for us to discuss how to invest in real estate, and is real estate investment suitable for everyone?
The right strategy for Real Estate investment
We have dealt with real estate investment strategies before, but they are not the subject of our discussion now, as we seek to offer some tips for a safe real estate investment:
- Investing in new cities is the ideal choice
- Commercial and administrative investment is better than residential
- Buying a property or unit in an old city preserves your capital with small increases in the price of the property
- If you want a safe investment with high returns, the new cities give you a great opportunity, as these cities are capable of continuous development and high marketing value, such as the new administrative capital, in which projects and landmarks appear from time to time, such as the iconic tower, which plays a role in raising the value of Real estate in the city in record time
- If you want quick returns within several months, cities such as Sheikh Zayed, Fifth Settlement, and 6th of October City provide you with ready-made properties with immediate delivery, with liquidity and vitality to achieve the investment feasibility of renting your property
Some small investors do not have sufficient capital to buy a property or invest in real estate, and here appears the role of the various types of real estate investment that provide an opportunity for all customers, with real estate investment strategies that enable the customer to choose the appropriate method for his financial capabilities, whether he has a small or large capital without getting to face the question of, Fixed deposit vs Real estate?
In the end, after a quick comparison to find out which is better, Fixed deposit vs Real estate?, we found out the feasibility and preference of Real estate investment over Fixed deposits in all aspects, which we do not recommend at all to preserve the value of your money and ensure the continuity of the local economic market even in times of crisis
Real estate transactions are one of the crucial decisions in an individual’s life, and with the spread of various real estate scams and unreliable companies, the real estate website korast sherot offers you a selection of the most important experts in the Egyptian real estate market, to help you make a proper purchase decision