As more and more women are emerging as financially independent in India, their share in investments is growing at a rapid pace. While gold has historically been the favourite asset for investment, the trend differs today with plenty of other options as well. These include mutual funds, bonds and even real estate investments.
Typically, investing in gold is viewed as a woman’s job and investing in a home is viewed as a man’s job. However, there has been a gradual shift in this attitude of late and real estate is fast catching the interest of the present-day women.
Here are some reasons why women should invest in real estate over gold.
Excellent returns and advantages:
While gold is a good investment option, it is viewed as a short-term investment that helps one achieve immediate financial goals. Real estate on the other hand is a stable investment that yields return over longer periods. Real estate provides better returns than the stock market because the real estate sector grows over time. In any given situation, investing in the real estate sector is always the best option.
Real estate investment provides room for tax benefits in the form of deductions in terms of repairs, maintenance costs, depreciation, mortgage payments, and legal services while gold will attract capital gains tax. Depositing in gold deposit certificate is fully exempt from taxation.
Incentive by Government:
Banks have launched a number of initiatives in order to encourage more female real estate investors. Many Indian banks offer lower interest rates on home loans to women buyers than to men buyers. Even the government has taken action by providing stamp duty exemptions for any type of property registration made in the name of a female.
Boosts Economic Growth:
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. Gold often leads to a spike in prices of commodities such as capital goods and fuel.
(By Ankit Aggarwal, Managing Director, Devika Group)
Disclaimer: This is the author’s personal opinion. Readers are advised to consult their financial planner before making any investment.