Detailed Analysis
Comparing rental property with FDs reveals different investment philosophies.
Rental property generates 2-4% gross yield in Indian metros — low compared to FD rates. But capital appreciation of 6-10% makes total returns competitive. The catch: property requires large upfront investment, ongoing maintenance, tenant management, and property taxes.
FDs offer predictable 6-7.5% returns with zero hassle. No tenants, no maintenance, no vacancy risk. But no capital appreciation either — your money doesn't grow beyond the interest.