Top 4 Reasons Why Real Estate Investment Is Better Than Gold Investment?

Why Gold was considered the best investment?

Gold is a matter of pride and complete showoff. We Indians are always inclined towards Gold and believe that it symbolizes high economic status in society. At one time it was considered judicious to invest in gold and looking into the history people tend to mean gold the best investment. The shine of gold is attractive to us and it passes from one generation to another and being flexible in quantity it becomes the first choice for any investor to buy gold.

Why the scenario of gold investment changed?

Going with the stats, we could see recent fluctuations in the prices of gold.  The gold investment gives results or appreciations that beat inflation. Over a period of time, the returns from the investment of gold equalize the inflation rate.  Looking at the dull side when the value of gold appreciates, there is devaluation in paper currency. And in that case, returns become minimal that ultimately the scenario of gold investment changed. People who want to invest in gold changed their minds as it became just a matter of a piece of yellow metal that has to be kept within high security. 

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Why real estate investment is growing?

Real estate has a lot of pros when we talk about investing in it. It is observed that on average the return from real estate fluctuates between 8%-15% or even more. Despite the investment growth, the rentals vary from 7%-9% or even it can be self-used. The rentals increase by a certain percentage annually making it a worthwhile investment.  That’s why people are moving towards investing in real estate rather than in any other investment.

Gold Vs Real Estate

Why believe in Gold investment?

It is no wonder that the investors believe in hallowed yellow metal still a good choice. There are numerous reasons why we Indians prefer gold over any other investment. Gold is an asset that is treasured for the upcoming generation. The top reason for investing in gold is very flexible where you can purchase from 1 gram quantity to any amount of gold depending on your need and budget you have to invest. So, in simple words considering your investment budget, you can start from a few thousand to Lakhs and even more…

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Why believe in Real Estate investment?

If you look at the real estate investment, it can reap out high benefits in terms of regular monthly income. In the long run, it is expected that property value appreciates and gives out better returns. When the economy gets stronger, the value of the property to moves with it.

It is wise to consider real estate as a part of your overall wealth portfolio creation strategy. It is reliable and benefits in tax advantage, diversification, and a secure investment choice.

Have a look at the top 4 reasons why real estate investment is better than gold investment?

1. Rental Yield

Real Estate has a high earning potential which can generate regular monthly income through rental yields.

Gold has a lower ability to earn and returns from fluctuated with the market condition and it is neither fixed nor regular. 

2. Tenure/ Time period

Real Estate investment is ideal for a long-term investment so as to get appreciation and good return on investment.

Gold is meant for short term along with long-term. However, in short term investment of gold, it may not give good returns but in long-term it can give a higher rate of return.

3. Volatility/ Price Fluctuations

Real Estate investment is subjected to less volatility as the prices do not fluctuate really soon and remain stable for a time frame.

Gold is much more volatile than real estate as the value of gold changes almost every day with a slight or major change.

4. Lease Out And Earn

Real Estate investment can be leased out when it is not used personally and rental income can be earned. Letting you have an extra source of income.

Gold cannot be leased out, in fact, it has to be kept safely in bank lockers where you have to pay a lump sum amount annually, which is an additional expenditure. 

No wonder both the investment options are good on their part but real estate holds an upper hand and wins the battle of Gold versus Real estate.