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Real Estate Investments vs. Gold Investments

It is important to remember while investing a hefty capital amount, the focus must lie on higher future returns. Gold is an extremely liquid asset that may be withdrawn at any moment and without any formalities. With real estate, your family's financial security will be guaranteed for many years to come by creating an asset that will provide income in the future for the next generation.
October 25, 2023

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Is It Real Estate Or Gold Investments? 

For long-term investments; gold, real estate, and stock market investments are preferred. Our previous blogs have detailed comparisons between investing in a stock market and real estate. 

Investing In Real Estate 

If done correctly, Real Estate investment can be a secure and financially feasible option to generate high rates of return on your investment. It can produce a steady income flow while enhancing your portfolios. Real estate has its attributes involving tax advantages, diversification, and a less risk.

You can consult a Cube Wealth Coach or download the Cube Wealth App.

Investing In Gold 

When celebrating a happy occasion, Indians naturally buy something expensive, and Gold has always been the preferred choice. Indians who are knowledgeable about investing today are challenging traditional wisdom and selecting assets that are more in accordance with their short- and long-term financial goals.

Value Of Gold has remained constant or rather accelerated over the years. Hence, investing in gold would potentially offer high future returns. 

One thing is certain; both real estate and gold are “secured long-term investment assets.”

Advantages Of Investing In Gold 

  1. There is no limit to your investment. Starting from 1 gm to 100 gms of gold or even more, you can buy as much gold as you want. 
  2. It is a flexible mode of investment. 
  3. It is one such asset that can be easily passed over from one generation to another. 
  4. The reselling of gold is easy. 
  5. It is easy to liquidate. 
  6. It does not need much maintenance and additional costs. 

Usually, there are zero deductions in the case of gold biscuits and gold coins. Both of them return the same value as it was at the time of purchase.     

Disadvantages Of Investing In Gold 

  1. The investor may have to bear some deductions in the original prices depending upon the jewellery state, current market prices, making charges, etc.
  1. Gold is highly volatile. Its price may keep fluctuating depending upon the current market condition. Also, it is a risky commodity that can be easily stolen

Advantages Of Investing In Real Estate  

  1. A real estate investment has no deductions at the time of selling the property.
  2. The price usually goes much higher than the original purchase price.
  3. It can be profitable and a safe investment for future aspects. Be it any housing property or a commercial property, both feed the investor with regular rental incomes. 
  4. Real estate investment has tax benefits as well. 
  5. It is a less risky investment choice.
  6. Investing in real estate helps in the diversification of the investor’s portfolio. You can consult a Cube Wealth Coach or download the Cube Wealth App.

Disadvantages Of Investing In Real Estate 

  1.  The maintenance and upkeep of the property annually or quarterly add up to a lot of expenses. 
  2. At the time of property purchase, the investor must bear stamp duty and registration money.
  3. Housing tax is another additional expense to it.
  4. The investments here are not flexible enough.
  5. They aren’t easy to liquidate at any given point.
  6. Large sums of money are the top priority before making investment decisions. Therefore, large sums of money are required. 

Summing Up

Be it real estate or gold, both of them have their own merits and demerits. Both of them possess distinct investment values. 

  • Gold is a smart investment choice and easy to maintain. 
  • While real estate has the potential to generate regular cash and a good capital investment from a future point of view. However,  investment in a gold commodity does not offer the same. 
  • Moreover, real estate is not volatile, unlike gold. 

Therefore, as per personal preferences and expectations of returns, one should opt for the desired mode of investment. 

Frequently Asked Questions - 

1. Is gold a better investment than investment in properties?

Real estate investments are thought to be very steady and low risk. On the other hand, as gold is a commodity, its volatility and danger of theft are higher.

2. What type of investment is superior to gold?

Silver often costs less per ounce than gold, which makes it more affordable for small retail investors who want to possess the precious metals as tangible assets.

3. Is it a smart idea to invest in stocks and gold?

Stock investments will produce better returns than gold investments. Long-term gains from stocks can range between 14 and 16%. Investments in equities produce dividends and capital gains. Gold is among the safest options, and even its long-term worth demonstrates that it has remained desirable and reliable throughout time. When there is a recession, gold's value swiftly increases. As a result, it makes sense to invest in both stocks and gold.

4. What kind of investment is preferable to real estate?

Mutual funds and Stocks have outperformed other investment options like bonds and real estate over the long haul.

Conclusion 

When deciding between real estate and gold, consider your financial goals. Real estate may be preferable for those seeking long-term wealth accumulation and rental income, while gold is suitable for those looking to hedge against economic uncertainty or diversify their investment portfolio. Both asset classes have their unique advantages, and combining them in a diversified portfolio may be an effective strategy. It's essential to consult with a financial advisor to create an investment plan that aligns with your individual objectives and risk tolerance. Ultimately, the choice between real estate and gold investments should reflect your broader financial strategy and desired outcomes. You can consult a Cube Wealth Coach or download the Cube Wealth App.

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