Investing is a very important part of security and financial planning. However, when it comes to deciding which is the best investment option for you, this can be quite a difficult decision. The question that often comes up is whether you should invest in property or gold? It is important for you to consider all the factors before you invest in any of these.

This blog will help you dive into gold and property investments and will help you compare their benefits, returns and risks. We will also help you understand, what steps you should take to maximize your returns. If you have this knowledge, you will be able to make an informed decision regarding which is a better investment option for you.

Both Real Estate and Gold have a very strong sentimental value in India. Therefore, people here invest in both of these as per their needs, budgets and purpose. The risk taking capabilities as well as the tenure of investment play a very important role in any investment. The question that however, comes up here is where should you invest?

Gold has always been a primary investment option for the Indian households because of its religious importance and also because of its tradition to wear in the crucial family functions. On the other hand, even real estate ranks high as an investment option as it brings financial security as well as higher returns apart from the fact that it gives you a solid roof over your head. By investing in Real Estate one is also able to enjoy the price appreciation apart from getting the tax benefits and the rental income irrespective of whether it is a commercial or a residential property.

Real Estate VS Gold- Which is a better option for you?

We have discussed below certain points that will help you understand whether Real Estate or Gold is a better option for Investment:

1. Investment Size

The demand for the Real Estate Properties is always rising. This has increased all the more in the big cities like, Delhi NCR, Kolkata, Mumbai and Chennai. It is for this reason why it is believed that investing in Real Estate requires a big budget. On the other hand, in case of gold, you can invest in 1 gram, 5 grams or 10 grams gold or any other amount depending on the investment capacity.

2. Tenure of Investment

Real Estate is very good for long term investments as the value of the property increases over a certain period of time. This gives you a higher rate of interest in the future. On the other hand, as far as gold is concerned, you have the option of holding gold for long term as well as short term.

3. Earning Potential

Real Estate Investment is the best if you want to generate a monthly regular income. This is something that Gold Investment does not offer. When you buy a property, you will be able to earn monthly rental incomes and you can use a part of this for paying your loan instalments. With the domestic and the International Market Conditions the market price of Gold tends to fluctuate. Therefore one needs to wait for the appropriate time to sell gold and earn maximum profit.

4. Rate of Return

According to the economy and market, the value of the property increases at a constant pace. The pace of value appreciation depends on the development activities of the Government as well as the announcement of the future development projects. In all cases, it gives a higher rate of interest in comparison to investment in Gold.

5. Risks and Market Volatility

Real Estate Investment is highly stable and secured in comparison to gold and the other investment options. Property brings financial stability in the future. Gold on the other hand is more volatile in comparison to Real Estate.

Why is Real Estate Investment a more profitable option than Gold?

Real Estate is a much safer and a more profitable option in comparison to Gold. Owning a property secures your future and also offers you a great return on investments. As many as 90% of the millionaires have created their wealth by investing in the Real Estate. Real Estate grows consistently over time that ensures that you get maximum return on investments. It is also affected by less frequent market fluctuations in comparison to gold. If we analyse the records, that suggests that real estate has always given more than 8% return. This is expected to rise by 15% in the coming years. It is therefore a wise decision to invest in Real Estate. It is however important that you go through a reputed real estate company like Grrow Property Management.