Which is a Better Investment For You? Gold or Real Estate?

By : 360 Realtors

23 April, 2018

If you are interested in making an investment, you might be in a state of dilemma, regarding where to invest. People invest in gold and real estate to get good results. Here, you will come to know the advantages of each of these investments. Investing in gold is a symbol of high economic status. However, you need to focus on the long-term returns, when you make the investment. People are increasingly investing in real estate, as the industry delivers impressive returns to the investors in the long run.

 Here is a comparison between investments in gold and real estate that will help you to make a better decision.

Capital available

One of the basic factors influencing the type of investment is the capital available at your disposal. You need to decide how much you are going to invest. When you invest in land, the investment amount has to be higher. In general, people pay the down payment of 20% of the total price and seek a home loan for the remaining amount. Even when you purchase a small home, the investment turns out to be big. However, if you want to limit your investment to a small amount, you can invest in gold.


 In case you invest in gold, the returns will take a long time to come. Besides, the amount of return is not fixed. It will depend on the market conditions. Therefore, you will not be able to obtain a fixed return, when you invest in gold. However, when you invest in Property in India, the returns start coming in quickly. You can simply rent off the property and get the returns instantly. Besides, when you rent your home, you can fix the amount to be paid as rent. This makes real estate investment much more goal-oriented.

Nature of your investment

One of the key factors to be considered while investing is the volatility in the market. Gold is more volatile than real estate, and the prices can greatly fluctuate. If you are looking for a safe investment, real estate is a better option for you.

Investment horizon

 In case you are looking for a long-term investment, you can go for real estate. Over a period of time, the prices of property keep on increasing. It can provide you with better returns in the long term. If you are interested in investing for a short term, you can invest in gold.


 When you make an investment, you need to consider the liquidity factor. The liquidity of gold is higher than real estate. You can easily liquidate it when necessary. On the other hand, liquidating real estate may need some time, as it involves lengthy documentation processes.

 Tax benefits

One of the key benefits of investing in real estate is that, you can get a lot of rebates on tax. Gold, on the other hand, has capital gains tax associated with it. If you are willing to curtail tax, investing in real estate is a better option for you.

Influence on the economy

Gold has to be imported from other countries. When you import currencies from other countries, it reduces the value of the Indian rupee. As a result, it leads to a rise in the prices of commodities, like capital goods and fuel. Therefore, investing in gold is considered to be detrimental to the Indian economy.

Considering these aspects, it is wiser to invest in real estate in india.