Certainly, purchasing gold is an age-old tradition people follow on Akshaya Tritiya. To put in simple words, it is an auspicious day for the people in India. In addition to this, it is the day of new beginnings. Accordingly, people often go for investing in gold, electronics, cars while some go for various real estate. But no matter what it is, “Gold or real estate, people invest in Akshaya Tritiya”. Most importantly, both the investments mean prosperity and good luck. You need to subsequently, make the choice wisely whether it is gold or real estate.
In short, prices of gold principally depends on macro-economic factors while property appreciations depend on local financial factors.
Gold or Real Estate: Where to Investment
Undoubtedly, there are various investment options available in India. But the most hit ones are gold and real estate. Indeed, you need to decide where to invest money.
- In the first place, if we talk about the size of the investment, evidently, the sum is very less in case of gold and it is high for real estate. However, the size of the investment depends upon your pocket. In the meantime, not to overlook that usually a higher level of investment means more returns. Accordingly, people prefer investing in real estate.
- Most importantly, it is the thought process. While we talk about investment in gold, according to the Indian frame of mind, gold equals to dowry. Conversely, the same amount of investment in real estate is considered as a status symbol. Moreover, you can flaunt the house for as long as you want to.
- Another important factor is the earning scope. Certainly, investment in real estate guarantees you a huge chunk of income every month. While, for the gold ornaments, all you can do is wear them and parade around. However, you can also use this to manage your mortgages.
Gold or Real Estate: Pros and Cons
Pros of investing in gold
- Gold has a global market
- Serves as the best hedge against inflation
- It is a highly liquid asset. You can sell it easily in any part of the world and get cash
- There is a worldwide demand for gold
Cons of investing in gold
- Usually, short term investment and advantage is next to zero
- Long term return is also less if compared to other assets
- Does not generate any secondary income like real estate
Now that we have talked about our first asset class, let us have a look at the second one, i.e., real estate.
Pros and Cons of Investing in Real Estate
Pros
- A lifelong asset is created
- Yields high returns every month
- Generates cash flows and is regarded as passive income
- Most importantly, real estate investments have end number of tax benefits like, mortgage interest, property taxes, and operational expenses.
Cons
- You must have ample knowledge about this segment if you want to generate a steady income.
- Besides, you would have to spend money on managing your property which will be an add on liability.
- Payment to the broker is another headache when it comes to these investments.
Above all, Akshaya Tritiya is the opportune time to invest. As far as investing in property is concerned, property prices are normally low this time. To put in simple words, builders (developers) offer courtesy discounts, declare lucrative schemes and deals.
To Summarize
Of course, Akshaya Tritiya is an auspicious occasion associated with wealth and prosperity. Surely, having a good house is way more important and beneficial for your future than investing in gold. Yet, consider your situation, requirement and decide property or gold investment what to select.
All in all, this blog intends to notify that in the time of recent fluctuations in gold and real estate prices which one is the most lucrative investment option.
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