Property V/S Gold: What is the Right Investment for You?

Which one to buy- gold or property? If you are savvy enough, it may seem like comparing apples to oranges. And somewhere, it is.

It is a fact to consider that investment in real estate is a golden saving, even if investing in gold is a long haul. Well, you may be confused here, but investing should always be wise and remain profitable for all times.

To a certain point, there are some features that both gold and real estate hold in common. Both types of investment share at least three features. One is durability, second is a rarity, and the last one is scarcity. It may not be easy to decide while considering these similar characteristics. However, it is nobler to know the differences between the two before you step ahead for gold only.

Size of Investment

Without any doubt, the property has a huge size investment. The land as a limited resource has an increasing demand coming with exponential prices. Investing in the property needs a lump sum amount to pay as a down payment, including debt financing. On the other hand, the size of investment for gold relies on your investment appetite. Buying gold as low as 1 gram is beneficial; it may be subject to additional charges.

Gaining Potential

Think of the commercial properties where you can set up your office and boost your business! Property is the most elegant way to produce a daily monthly income. Even if a business owner prefers luxury office space, the revenues still enhance. However, it cannot be said for the gold because market prices fluctuate. If the gold price drops, the investment value also goes down.

Tenure

Buying property remains fruitful as it is ideal for long-term investment. But, gold has short and long-term tenure, out of which, long-term investment is beneficial.

Volatility

Property is subjected to low volatility as compared to gold. The value of gold varies almost every day, but real estate’s value comes out with occasion and season.

Liquidity

Though the property has less liquidity as compared to gold, selling off your property requires several days or months to sell. Buying and selling gold is simple, but its selling rate is not as remarkable as the property’s price when sold.

Tax Benefits

The structured tax benefits of the property include mortgage tax deduction, depreciation, and maintenance of services while calculating the tax. Gold attracts a tax of capital gains.

Affluent Transparency in Prices

Due to the unavailability of past data, sometimes, while dealing with property, the prices may not be as transparent as the gold. However, the active trading of gold in the market keeps its prices transparent.

Investing in a thing that generates revenue is always helpful. And for this, real estate has vital results because it is not only a long-term investment to sell later, but also generates the high revenue as the real estate sector has a high-profit scale, especially in India. Thus, be wise to your investment; after all, you need to secure your future.