Investments can give you maximum returns when you choose the right option and invest accordingly. Although there is no such thing as this option is best. It all depends on the need, purpose, and not to forget the risks you are willing to take. If we talk about long-term investments, people have their preferences in gold and real estate.
Gold has always been a favourite investment for Indian households as many people transfer the yellow metal from one generation to another. Gold has its own advantage that one can be flexible over investment size or the amount. Also, gold is highly liquid.
Real estate also scores high for investment purposes. However, if approached in the right way, real estate can deliver you superb profits.
Real estate is a highly stable investment option, which comes with low risk. On the other hand, gold is a commodity, which comes with higher volatility and risks of being stolen. “Property brings mental satisfaction due to it securing your future. On the other hand, gold is a commodity, which is traded on the bourses. It comes with higher volatility and risks of being stolen. Also, Real estate has the potential to create regular income with additional tax benefits. Whether residential or commercial, real estate has the potential to generate passive income for investors in form of monthly rentals in cash, which gold investments cannot do,” said Nakul Mathur, MD, Avanta India.
Suren Goyal, Partner, RPS Group said that the returns from the yellow metal are nominal. “Real estate sector can yield up to 15 per cent of yearly return, on account of rising rentals. The worth of property improves with the market and economy. Gold is utilized to support against expansion, and that implies that the return from gold is in accordance with the expansion, which is pointed low by all states. Additionally, gold sparkles, when your paper money is devalued, making the return nominal,”he said.
Real estate has the potential to create regular income with additional tax benefits. “Real estate might require large funds, but the survival of a lot of sectors depend upon it. From debt servicing, cement, housing finance, building materials and various others depend upon real estate at large. It also creates a large number of informal and indirect employment opportunities, serving the economy at large. Thus, the real estate investment is not only a safe investment but can also generate better returns over a period of time while you are still earning a regular income if you are using it as a rental property,” said Annuj Goel, MD, Goel Ganga Developments.
Though, one thing that is common between gold and real estate is that both have a strong sentimental value for Indian investors.
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