The best investment option in India during 2021: Real estate or gold?
Investing in real estate may not be very popular, but that doesn't mean it should be avoided. A real estate investment can be a profitable and reliable investment opportunity to generate substantial returns. It can create a regular income flow while supplementing your portfolio with exceptional benefits such as tax advantage, diversification, and a less risky investment choice. On the other side, there are numerous reasons why people, especially Indians, prefer gold as an investment vehicle. The top benefit of investing in gold is that your outlay is very flexible. You can purchase 1 gm, 5gm, 10 gm, or any other quantity depending on the amount of money you want to invest. So fundamentally, gold investment can range from a few thousand to lakhs and crores.
ADVANTAGES OF INVESTING IN GOLD IN 2021
- Flexibility in outlay.
- Investing in gold for the long term can give a higher rate of return.
- Gold is a liquid asset; therefore; you can encash it at any point in time with no formalities.
- Any profits made in the case of gold deposit certificates are fully exempted from taxation.
- The prices of gold coins and bullions are reasonably transparent.
ADVANTAGES OF INVESTING IN REAL ESTATE IN 2021
- Real estate investment is ideal for a long-term investment.
- To invest in real estate, you need a lump sum amount to pay as a down payment involving debt financing.
- Real estate is one of the best ways to produce a regular monthly income in the form of liquid cash. A rental property can get monthly rent, a part of which can be used to pay the mortgage.
- Real estate has structured tax benefits. Depreciation, mortgage tax deduction, cost of repairs and maintenance, and cost of legal services are considered while calculating the tax.
- Real estate is subject to low volatility as compared to gold.
- Real Estate vs. Gold
Gold investment is worthwhile as, over a period of time, returns fall in line with inflation rates. However, the downside to it is when gold appreciates; it is because of the devaluation of the paper currency. Hence, returns become nominal in the case of gold investment.
On the other hand, real estate starts from 8% returns and can go up to 15% or more.
It is also preferable since real estate can produce regular monthly income which a gold investment cannot. Real estate can be an attractive long-term investment option where the property value increases over time. Real estate provides better returns than gold without much volatility. Additionally, when the market improves, so does the value of your property.
A 2 BHK apartment in Malad, Goregaon & Borivali is a perfect destination for investment. Investing today in a ready-possession apartment at a suitable location in the Mumbai suburbs is a sensible & viable option. Invest now for a BETTER TOMORROW.
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