Real Estate vs. Gold: Deciding Your Investment Path - Godrej Properties

by Godrej Properties Limited

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People invest in both real estate and gold, depending on their need, budget, and purpose. While real estate is a major investment choice among firms and entrepreneurs, gold has high emotional value in Indian households due to tradition and its religious significance. On the other hand, real estate, whether residential or commercial, is a very important investment opportunity with benefits like rental income and tax incentives. If you're still unsure about Real Estate VS Gold, here are some explanations to help you make the right decision.
 

Real Estate Vs Gold: The Key Decision Making Factors

Here are some crucial factors that influence the real estate vs gold investment choice:
 

Volatility

Compared to gold, real estate is a more reliable investment option while considering volatility. It’s because real estate is less volatile while gold prices fluctuate almost daily. 
 

Investment Tenure

Real estate is a great long-term investment and will appreciate in value over time, with higher future interest rates. As for gold, you can hold it both short and long term, but the return is minimal. 
 

Investment Size

When it comes to real estate, the investment amount is huge. Land prices are rising sharply due to increasing demand for finite resources. Buying a home requires a large amount of money, which requires home loans or debt financing. For gold, you can invest from 1 gram, 5 gram, 10 gram, or any amount depending on your investment capacity.
 

Tax Benefits

Capital gains tax is levied on gold. While on real estate, the tax calculation takes into account depreciation, mortgage tax deductions, maintenance and repairs, and legal fees.
 

Liquidity

The process of buying and selling gold is simple. Gold is a highly liquid asset and can be withdrawn as cash at any time without formalities. Compared to gold, real estate is less liquid. The process of selling real estate is lengthy and complicated due to the paperwork and stamp duty required.
 

Conclusion: Making the Right Investment Choice

Whether you are investing in property or gold, each has their own distinct benefits and drawbacks. When compared to real estate investments, which have the potential for appreciation, rental income, tangible assets, and tax advantages, investing in gold offers liquidity, portfolio diversity, and protection against inflation. The choice of which course to take will ultimately depend on an individual's investing goals, level of risk tolerance, and personal preferences. Prior to selecting a choice, one must do their research, understand all of the risks and benefits, and speak with a financial counsellor. 


FAQs

Q: Why are Indians compelled to invest in gold more?

A: When celebrating a happy occasion, Indians naturally buy something expensive, and gold has always been the preferred choice. Additionally, there is a strong bond with gold, such as the desire to leave a legacy for future generations.
 

Q: Based on the volatility of assets, is gold investment risky?

A: Gold is less predictable than real estate. The cost of gold changes almost every day.

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