13% CAGR Through Real Estate

One of my collegue doesn't invest in the stock market, he is investing only in the real estate. He has around 2 plots and one house. And he has got around 13% returns in last 19 years which is quite good. He has invested 13 Lakhs in 2006 and as of today the price of thar land is 1.32 Crore.

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Now if someone will give 13% in any products people will take it any day. And with real estate getting this type of returns is insane. And it's not the end, he might get more also. By looking at him, no one can say that he has so much money. But he has more than 2.5 Crore in properties only. He doesn't invest in Stock market, he doesn't invest in any asset class. He keeps most of his money in savings or in FD and thus once he has sizable money, he invest in real estate.

His plan is simple, work and invest in real estate. As well as retire with the passive income he will get from the rent. I know it might not be the ideal passive income source and he doesn't get too much money from this way but still he is ok with it. Now if you ask all the new people they will invest only in Stock market thinking it will give good returns. But nothing is guaranteed and that's why diversifying is the best option to go with.

So if you are a new investor, invest in Stock market as well as real estate to get the best of both worlds and thus get good returns in the future run. I know the real estate is quite costly now and but we should look out for the availability of good real estate to buy.

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