For a secure future, selecting the appropriate investment plans is critical. When you choose the proper alternative and meticulously organize your investments, you can achieve optimum returns. Although there is no single ideal solution for everyone, the decision will be influenced by several circumstances. So, before you choose an investing strategy, consider the following questions: 

1. What is the goal of your investment?
2. How much risk can you take?
3. Are you interested in making long-term investments or short-term investments?
4. What is the outcome of comparing your investment options based on several characteristics such as risks, tax benefits, volatility, and profit?

Let's use the example of two well-known investment possibilities, gold, and real estate, to demonstrate which is the best option.

Gold is the most popular investment option for families, particularly in India. Gold is prized by families and is passed down through the centuries as the most valuable asset. For example, depending on how much money you want to invest, you can buy gold in grams. It's also quite simple to sell gold if you want to recoup your investment. You can do so in a matter of hours, if not minutes.

Investing in real estate must be addressed correctly with good information on the market situation and the type of property you are investing in. 

If you are thinking to buy a home, you should be prepared to invest a large sum of money. It's a long-term investment, so if you pick the appropriate property, you can count on a constant stream of monthly income from rent. Although real estate investing is short on liquidity due to the difficulty of buying or selling a property, it does provide a variety of tax benefits such as maintenance and repair costs, depreciation, and legal services.

Facts to be taken under consideration while  investing in gold and real estate

• Size of the investment

Depending on the pricing of the property you choose, real estate necessitates a large investment. Depending on how much you want to invest, you can buy gold in modest amounts.

• Potential for financial gain

If you opt for rental arrangements, real estate investment might provide you with a consistent monthly income. You can also use it to keep track of your mortgage payments. The price of gold varies, and the value of your investment may decrease or increase depending on market conditions.

• Liquidity

Real estate investing has a lower level of liquidity. A property can be sold in a matter of days or months. The selling process is similarly lengthy and complicated, requiring a great deal of paperwork and documents. Purchasing and selling gold is a straightforward procedure that can be completed in a matter of minutes.

• Tax advantages

Tax benefits can be obtained from real estate investments in the form of deductions for repairs, maintenance costs, depreciation, mortgage payments, and legal services, whereas gold will be subject to capital gains tax. Depositing in a gold deposit certificate is completely tax-free.

Result

Which is a better investment option: gold or real estate? It depends on your situation and investing goals, as well as whether you are prepared to be trapped into a real estate property for a longer period for more returns or you would really like to enjoy the best returns by investing in gold.

  - SAHIL GOSAVI