Mr. Siddharth Vasudevan Moorthy, MD, Vascon Engineers Ltd. in Latest Issue of Corporate Tycoons’s Magazine May 2019

Gold vs Property

There is an element of prosperity, good luck, new beginnings and auspiciousness attached to the purchases made around festive seasons in India and these elements make us want to buy electronics, cars, gold, book properties etc on such days.

Looking at the major developments taking place in the real estate sector and also considering how gold has held the position of asset creation since ages, it is natural for any investor to think seriously about where to put the money.

Buying a home is definitely a landmark achievement in all of our lives; this asset not only provides shelter, safety and mental security but helps reserve great returns to reap in the future.

Investment in Property is definitely a better option and listed below are some of the advantages that make investing in real estate sector a safe and a worthy bet –

Safer avenue

Affordable housing schemes like Pradhan Mantri Awaas Yojana and establishment of Real Estate Regulating Authority has made investments in real estate all the more safe as well as yielding. Also to add, these developments are going to bring transparency in dealings between builders and customers.

Property and the new beginnings

If we observe the trend in real estate pricing; first of all, it is not so directly affected by the international prices. The growth in real estate sector is the direct consequence of the continuous progress of our economy. Owing to the stable state of growth, the country is going to witness considerable growth in coming times and so is real estate.

Income tax exemption on home loan repayment –

The Indian government has always shown a great inclination to encourage citizens to invest in house. This is why a home loan is eligible for tax deduction under section 80C, Section 24/ Section 80 EE and when you buy a house on a home loan, it comes with multiple tax benefits too that significantly reduce your tax outgo.

Ideal for long-term investment, can generate regular income –

Property is considered one of the very best long-term investment options to generate monthly regular income in the form of rentals.

Rental income can be as assured as interest income from bank deposits. Elite investor portfolios are heavily loaded with real estate. As real estate is a tangible asset it is also psychologically soothing for investors to own one.

Also, rate of rise of rental income beats inflation. If property is located in a prime location, appreciation on rental income can be far better.

Also these days the concept of Co-living is gaining popularity wherein you can get in picture a leasing partner who can further push your property to the interested corporate/ parties where in you can gain greater income.

The growth in real estate sector is the direct consequence of the continuous progress of our economy. Owing to the stable state of growth, the country is going to witness considerable growth in coming times and so is real estate.

Comparative analysis of property vs. gold

While property contributes to wealth creation, gold simply offers easier option to hoard wealth in a paperless way. The gold buyers can get loan against gold deposits but ridiculously high interest rates may deter the people from doing so; loan against property is way affordable and offers sufficient liquidity to the investor. Also, buying gold on loan is not going to fetch you the tax benefits like property loan repayment that offers deduction on taxable income.

Gold Property
No Tax benefit Structure tax benefits, income tax exemption on home loan repayment
Nominal gains- returns fluctuate with market Ideal for long-term investment, can generate

regular income

Gold is more volatile than real estate. The value of gold changes almost every day. Real estate is subject to low volatility as compared to gold and other investment options.
Returns fluctuate with the market Can generate regular monthly income through rent

The real estate industry is witnessing some of the most phenomenal progress and positive changes in the coming times and what you lock in today is surely going to leave you with smile in the distant future. So, it would be much better if you decide on both the investment avenues after careful research. Be it investment in property/real estate sector or gold, since both are synonymous to bring prosperity and good luck, in true sense best investment is the one which best suits your life.

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