Hello again. In my opinion, these are two investment options that cannot be out-rightly compared. Let me explain. While evaluating such a diverse option, the study of the risk profile of the investor is a must. The reason is, irrespective of the return, the investor will not prefer the capital market option if he has a low risk appetite.
COMING to your question, while talking about the property, you have just counted the yield. You have NOT counted the appreciation (appreciation of the capital value because of anticipated increase in the price of the property). If you combine these two, you will arrive at a decent 40-45% appreciation.
SECOND POINT -- The above option has "certainty" of income. The option of stock market will give you much higher return but it will involve "uncertainty" to a great extent. Also, on need to discount volatility in the returns and they are never uniform.
So far as separating the interest from the 90% return, it is never done this way. While investing in a stock Markets, usually the dividends are reinvested. In the 7 year period, if you sell the stocks at higher price, you will reinvest the profits as well. So, the capital invested will increase by such actions over period of time.
So, the correct method would be to count and take into consideration the start capital of 200,000 and take annualized appreciation into consideration. Interest does not come into picture in any way.
So, a risk-averse or a moderate risk taker will opt for the Property investment option and person with higher risk appetite will opt for stocks.
I am sure this would help.
You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.