Since time immemorial, gold has been viewed as a status symbol in the society. The yellow sheen metal is irresistible to many in the country. We were often told to save and invest in gold as it was considered prudent at one point in time. However, with the market embracing other asset classes for investment, today, there are a plethora of options for investment. And one of the stable investment options is real estate.
While real estate is a popular choice for investment, it is often considered an unfamiliar investment vehicle among women. But that should not stop young, working women from investing in this fruitful vehicle at an early stage in their life. An avenue to generate substantial returns, real estate investment is both profitable and reliable. Besides creating regular income flow, investing in real estate also provides exceptional benefits like tax savings, portfolio diversification, sense of security, and much more.
Now, let’s have a look at five reasons why women should invest in real estate over gold.
Low volatility
While gold is a good investment option, real estate is a stable investment. Instead of paying high rent amount, you can pay EMIs. Ensuring a secure future, real estate is less volatile investment compared to that of gold, which often fluctuates.
Structured tax benefits
Unlike gold, real estate comes with structured tax benefits for investors. It also promises a prospect of gradual yet definite capital appreciation. A home loan to purchase that dream home of yours will help in claiming a tax deduction on both principal and interest payments of the loan.
Generate regular monthly income through rent
As an investment, gold does not generate cash flow. Real estate, on the other hand, earns instalments of rent. With inflation, rents usually increase, but the loan payments of the property remain stable.
Good for the growth of the economy
Gold, like other precious metal, has a direct impact on the valuation of Indian rupee as it is imported from other countries. It often leads to a spike in prices of commodities such as capital goods and fuel. The fluctuating prices of currency and valuation of gold make it detrimental for Indian economy while real estate investment helps in facilitating the growth of the economy.
Ideal for long term investment and returns
Gold cannot be ruled out as an impactful investment option in India. However, it should be viewed as a short-term investment that helps once achieve immediate financial goals. On the other hand, real estate yields return over longer periods.
This article is contributed by P Bhavani, Executive Director, Navin’s.
The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor.
Very interesting article and I agree that both gold and real estate are are good investment options however real estate has upper hand when it comes to investment or even self use. Real estate happens to be a more stable investment as there are structured tax benefits, one can reap benefits from real estate in the form of rent hence giving regular income, it is a long and does appreciate as per time and not SO volatile as compared to gold.