The answer to this question may vary with individual, hence, coming straight on a conclusion is definitely not good. One’s bad experience with the real estate investment does not mean that it’s a bad option for all other investors too.

Real estate is an asset class just like equity, debt, gold etc. Few characteristics of real estate, makes it a unique investment like tax benefit, it can give a passive source of income, a fixed asset which you can pass over to next generation, more control over affecting factors and it also gives you a mental peace (with a status) that you possess a solid asset base for future.

Real estate investment is always a hot topic of debate and also a dilemma for most of us. But it’s important to understand that it belongs to an asset classes & serves differently to different individuals. Therefore, the decision should be based on individual situation, location of property, liquidity needs, goal, amount & duration available for investment and few other factors.

Investing in real estate could be a scary experience for one while it could be a boon for few others.

Following are few reasons due to which people prefer to invest in real estate:

1. Ownership control, which you do not get in other asset classes, especially in equity/stocks
2. There are no sudden fluctuations or market up/downs
3. Gives investors power while making decision about- deciding about property as per budget, location, personal preferences, expenses, deciding rent amount in case renting, tenant selection etc.
4. Provides mental satisfaction and emotionally rewarding
5. Provides feeling of stability and security
6. Other major benefits of property include:

• Tax Benefit
• Value Appreciation
• Availability of financing option for long term
• Can provide passive income source

People will always always need a safe place to live/relax/spend time due to various reasons like job change, shifting, transfer, education, career, holiday etc. People might stop investing in stocks or mutual funds when it comes to buying a home and that may be a reason, property will always be in demand. What require is to take ‘investing in real estate’ decision wisely and after evaluating:

• Your current financial situation,
• Location,
• Real estate market in your city Or place where you are looking to invest,
• Liquidity needs and
• Other factors like taxation

Do not get biased towards any asset class based on your  or others previous experiences. Take your decision wisely.

Note: Above article is based on one of Fund-Matters Quora Answer.