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A piece of land is Worth more than Gold?

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A piece of land is Worth more than Gold?

  • 13 May 2023

When you pick the best option and make the appropriate investments, investments may yield the highest returns. However, there is no such thing as the best alternative. Everything relies on the necessity, the goal, and, of course, the dangers you are ready to accept. When it comes to long-term investments, consumers tend to favour gold and real estate.

Indian households have always preferred gold as an investment since so many individuals pass the yellow metal down from one generation to the next. Gold has the benefit of allowing us flexibility in terms of investment size or volume. Gold is also quite liquid. Additionally, real estate is a great investment. However, real estate may bring you fantastic returns if you go about it the proper manner.

Real estate is a low-risk, extremely dependable investment opportunity.  Gold, on the other hand, is a commodity that has greater volatility and theft risk. "Having property makes you feel good mentally because it secures your future. Gold, on the other hand, is a commodity that is traded on the stock exchanges. Higher volatility and theft concerns come with it. Real estate also has the ability to generate consistent income with added tax advantages. Real estate, whether residential or commercial, has the ability to provide investors with passive income in the form of regular cash rents, something that gold investments cannot accomplish, according to Nakul Mathur, MD of Avanta India.

According to Suren Goyal, Partner, RPS Group, the profits from yellow metal are insignificant. Due to growing rents, the real estate industry might provide up to 15% of a yearly return. Property value increases as the market and economy grow. Because gold is used as a hedge against growth, its return is correlated with that growth, which is considered to be modest by all states. Additionally, gold shines, which reduces the return to a negligible amount, he added.

Regular income with additional tax advantages may be generated through real estate. Real estate may demand significant financial resources, but many industries rely on it to survive. Cement, housing financing, building materials, and many other things rely on real estate in general for debt payment. Additionally, it generates a substantial number of chances for unofficial and indirect employment that benefit the economy as a whole. As a result, investing in real estate is not only secure, but it also has the potential to provide higher profits over time if you use it as a rental property, according to Annuj Goel, MD of Goel Ganga Developments.

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