Published at: September 14, 2023
“Don’t think of saving money as a punishment. Think of saving money as a lifestyle change and a means to freedom.”- Emily G. Stroud
When it comes to investing, the first thought that sinks in is Gold. Though there are numerous options for wealth creation today, real estate investment is still hand-picked by HNIs, NRIs, and commonality.
Tried-and-True
You must be aware that banks are not held culpable for robberies of riches in lockers. With the increase in crime rate, chain snatching has become a regular affair. So, where do we keep our expensive gold safe? However, in the case of real estate investment, no one can steal your property. Even if someone claims your property as their own, you can legally get it back.
Market Price Volatility
Price of gold depends on demand and supply, import duty, currency fluctuations, investor sentiments, interest rates, and government reserves. Here, fortunes can change overnight like the stock market. On the other hand, property prices are not so volatile in nature. There is steady and constant growth. All you need is foresightedness and patience.
Tax Benefits
Real estate investment is low on liquidity. Buying and flipping of property requires time and efforts. Nonetheless, it offers various tax benefits like cost of utilities, services and upkeep, depreciation, deferral of capital gains via exchange and legal services. On the contrary, you need to pay tax for any capital appreciation earned by disposing off your gold.
Inflation
It is impossible to ignore the power of inflation to corrode the value of money. The biggest aim of an investment is beating inflation. Real estate has beat inflation by 11% since 1979. Return from gold have been only 0.8% above inflation since 1979.
Earning potential
We run out of money if we live too long or save too much money if we die to soon. So, it is important to buy properties to secure our future. Real estate investment fetches regular monthly income with rental arrangement. It is sensible to invest in pre- launch or soft- launch property for higher capital appreciation. It is also easier to mortgage your property as collateral. One can’t lease gold.
Government policies
Government is making it possible for everyone to invest in real estate sector through hassle- free loans on minimum down payment. Land laws and ownership policies are also being made more favourable for the masses.
Reap the long term, low risk and stable benefits of the returns assured by the real estate segment. Be financially literate and plan your future wisely!
