Are you new to the term Investment or have just started with your career and want to put your hard-earned money in some safe hand. You must be getting varied advice from friends, family members, and relatives that may have landed you into the dilemma that where to invest.
So, you are not new to this situation. Many of us may have faced this problem sometime in life. Some say to invest in Gold or real estate or in mutual funds or equity. But the main question is which among them offer higher ROI. According to few experts, Investment in Gold belongs to high-income group people, but if you want to earn impressive returns and long term profit, then no one can beat real estate. Why? Let’s understand:
While investing in Gold, you don’t need a bigger or higher capital. You can start saving from small and make it big in the later stages. On the other hand, when it comes to real estate, you need a bigger amount. For example, even if you have to purchase a small home, you have to pay 20% of the down payment on your own.
Return on Investment
Investing in Gold doesn’t offer a fixed return. Also, money growth is completely based on the market place that is not much flexible.
On the other hand, Investment in real estate may be residential or commercial offers you instant returns. It can be in the form of renting out the property or selling it after a few years of time. Therefore, investing in the property market offers a fixed and higher ROI.
Volatility and Liquidity
In the past few years, the gold rates have fluctuated a lot which has increased the volatility of the investment. The return can sometimes be more and sometimes very less. On the other hand, real estate market is less fluctuating and hence seeing from the long-term perspective, investing in the property market is much beneficial.
But considering the liquidity factor, going for gold investment is much beneficial as compared to real estate. The liquidation of any property involves a lengthy documentation process.
Term of Investment
If you are looking for long-term benefit, then investment in real estate is good. But for shorter-term benefits and returns; investing in gold in safe.
Benefits in Tax
Last but not the least; investing in real estate offers exemptions on tax. You can enjoy numerous benefits on home loan EMIs, Principal Amount, Tax benefits on Second home, Rent paid, etc. On the other hand, investing in Gold doesn’t offer any tax benefits.
So, both of these investments have their own pros and cons. However, investing in real estate can be considered as more fruitful. But in the end, you have to take the decision, after all, it’s about your hard-earn money.