If you’re looking to invest your money in a reliable and profitable investment vehicle, you may want to consider opting for real estate. Real estate investment offers several benefits that make it an attractive investment opportunity. One of the biggest reasons people prefer investing in real estate is that it offers tax benefits. You can offset the gains from your real estate investments by getting them refinanced. The downside of this approach is that you won’t be able to increase your wealth directly but will have to wait until you actually sell your property in order to benefit from your capital gains from the sale.
On the other side of the spectrum is gold which has been a trusted investment option for several decades. When it comes to real estate vs gold investment in India, the scenario is identical to the debate taking place in your head right now. In this article, you’ll be able to weigh the major pros and cons of each investment and make a more educated decision.
- TENURE
An investment in gold is a relatively safe investment since the value of gold has been on a constant rise over the years. So you can invest in it for both the short term and long term. It is not very risky since it is easy to sell at any time. Investing in gold can be done by buying physical gold or by investing in various gold-related financial instruments.
Investment in real estate is ideal for long-term investment and can give a very high rate of return. So if you invest in real estate you won’t need to stay up to date with metrics like today gold rate in bhimavaram or the district you are from. However, it is difficult to liquidate, and there are several charges levied such as income tax, transfer fee, etc. when the property is sold.
- Earnings
Real estate is a finite resource. As the population grows, there will always be a growing demand for real estate which means that the value of the property will increase with time. It is also a tangible asset that can help produce a monthly income in cash. You can buy real estate to live in or you can invest in a rental property and collect rent each month. If your mortgage payment is less than the rent, you will have extra cash flow each month. Also, if it is done right, there is a tax benefit associated with this investment option.
Gold investment may appear beneficial but has its own drawbacks. The gold’s price fluctuates with market conditions and there could be times when it loses all its value overnight. This means there is a risk associated with this investment option and you need to be careful while investing money in gold.
- Volatility
Gold is not the safe haven people believe it to be. Instead, it is highly volatile. If you have gold, you have to ask yourself what would happen if something happened to gold. . On the other hand in real estate as an investor, you will experience very low volatility. Therefore strictly because of volatility gold is a good investment only when other investments are doing poorly, which makes it a negative investment in good times. You can confirm the stability of gold market simply by keeping track of gold rate today Jabalpur or any other city for a few days.
Price Transparency
The price of gold is a fairly transparent number. You can look it up easily on the Internet or in a newspaper. The price of real estate is also a fairly transparent number, but it may not be available as easily as the price of gold. Many states make their land sales prices public, but others don’t. Also, some states don’t keep track of sales prices at all, while others only track sales at particular times such as once a year.
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