Real Estate vs Gold: Which is a better investment option?

It is always a smart choice to invest in gold, but real estate has the potential to generate passive income for investors in the form of monthly rentals in cash. 

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For investors, both gold and real estate are preferred due to their own investment value.

Real estate has always been considered an investment option that provides security to the investor. Real estate also has the potential to create regular income channels via rental yields, in addition to providing tax benefits.

On the other hand, gold has historically been used as a hedge against inflation, and it continues to be part of the investment portfolio of most to mitigate financial risks during inflation, economic, social and geopolitical crises. Experts say in comparison to other financial assets, gold offers a unique proposition – it tends to move higher when stocks are in steep decline.

Rajat Rastogi, Executive Director, Runwal Group says, “With real estate investment, one also enjoys price appreciation, especially when the property is of a reputed developer. It is a long-lasting asset that has multiple benefits and can be passed down generations.” 

Having said that, Shraddha Kedia-Agarwal, Director, Transcon Developers says, “For investors, both gold and real estate are preferred due to their own investment value.” 

Note that, you can get maximum returns when you choose the right options in investment. Experts say it is always a smart choice to invest in gold, but real estate has the potential to generate passive income for investors in the form of monthly rentals in cash. 

Having said that, one of the biggest advantages of gold is that one can be flexible with investment size or the amount. Agarwal point’s out, “Gold comes with the risk factor while real estate investment is not only a safe and secured investment, it can also generate better returns over a period of time.” 

Sachin Chopda – Managing Director, Pushpam Group explains, “The value of a property can increase in time and the owner can also get a high return on investment in the long term. It all depends on the purpose of the investment and how much risk the person is willing to take. If you have chosen the right property after the due diligence, you won’t ever regret your investment.”

However, considering long-term investments, people have their personal preferences, regarding investing in gold or real estate.

Rastogi points out, “Though gold has low volatility and is highly preferred in Indian households as it is considered auspicious, it lacks the numerous benefits associated with real estate.” 

Additionally, note that you can still earn a regular income if you use real estate as a rental property. So, if approached in the right way, Agarwal says “real estate can deliver some incredible profits to an individual irrespective of short or long term.”

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