Gold or real estate

Gold or real estate; Which is the best long term investment

Gold or real estate; Which is the best long term investment, Real estate is a very stable investment option that is characterized by low risk. Along with this, real estate also provides a way to get fixed income with additional tax benefits. Whether it is a residential property or a commercial building, real estate investors can earn income through monthly rent.

Based on the current rising rents, the real estate sector can expect a return of up to 15 percent per annum. As the market and economy grow, so will the value of the land. Real estate investment requires a large sum of money. But the existence of many sectors depends on real estate.

gold

gold

Gold on the other hand is a commodity that is traded in the market. Because of this, there is a possibility of high price volatility. Gold is the best hedge against inflation. This is why gold shows strength when the currency is performing poorly. Another risk when investing in gold is the possibility of theft. Along with this, investment in gold cannot generate fixed income like monthly income. A digital investor can reduce the risk of theft.

performance

performance

Looking at the performance of gold and real estate sector in the last 10 years, gold has recorded a return of 70.12 percent and Nifty Realty has recorded a growth of 61.21 percent. It can be said that both the investments have given almost the same return.

According to Amit Khare, AVP-Research Commodities, long-term investors should keep 60 per cent of their total funds in gold and 40 per cent in real estate. He predicts that gold will likely outperform real estate in 2023.

Both are excellent

Both are excellent

The quick convertibility of cash when there is an urgent need for cash is what motivates ordinary investors to buy gold. Along with this, gold can also provide decent returns that beat inflation in the long run. Sebi-registered tax and investment expert Jitendra PS Solanki says real estate’s biggest downside is that even though real estate rates are growing, they are not useful for immediate cash needs.

High capital

Real estate requires high capital to invest. If there is a crash in the real estate sector, it will last for a long time. He points out that real estate offers higher returns than gold over the long term, but the main challenge is that it takes time to convert into cash.

Leave a Reply

Your email address will not be published. Required fields are marked *

close button