Should you buy gold over property this Akshaya Tritiya?

May 03 2014, 08:33 IST
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Gold has always been a hot favourite during Akshaya Tritiya but property has emerged as one of the stronger alternatives this year. (Reuters) Gold has always been a hot favourite during Akshaya Tritiya but property has emerged as one of the stronger alternatives this year. (Reuters)
SummaryGold has always been a hot favourite during Akshaya Tritiya but this year scenario is different.

in the long term. If you consider the real rate of return, benefits from investing in property exceed those from gold. The property investor has an edge over gold buyers in the current market scenario. Property investors can leverage their finances by taking a loan for funding at a cheap rate. For a margin of 10-15%, funds are easily available.On the other hand, investors need to use their own funds to invest in gold.

Property developers and financiers come up with discounts to attract buyers during Akshaya Tritiya, but gold can be purchased only at the actual market rate. The extra discount in the property market due to elections makes it a hot choice this Akshaya Tritiya.

Thorough due diligence and precautions are required while investing in property. It is important to check the background of the developer, clearances by local authority and tie- ups with financial institutions. There is no doubt that returns from investment in property have been phenomenal, and they are expected to perform even better, but investors must take extra care to ensure they have chosen the right property.

- Adhil Shetty

(The writer is CEO, BankBazaar.com)

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