Here is the scenario: you have some nest-egg saved up and you want to invest it and gain great returns. And that’s where the problem lies….finding a secure way of investing your hard-earned money. There are three main ways in which the money can be safely invested…. in the stock market, the real estate industry or in jewelry.
If you were to follow the traditional ways, you would end up with jewelry. And then there is the stock market. With every investor having an appetite to take some risks and gamble, investments can sometimes lead to rash and untimely decisions that lead to huge losses. So that leaves investment in jewelry vs. investment in property… To weigh the pros and cons, take a look at each separately before taking a decision.
The glimmer of gold has gotten Indians hooked since time immemorial, making it a status symbol of financial well-being. However with the recent fluctuations in prices, one needs to think twice. While investing in gold is easy and doesn’t require any extensive paperwork, it’s also useful for availing gold loans in times of hardships. Aside from this, it can be used for personal use while still remaining an investment.
The drawbacks to investing in gold include less transparency in transactions, with no tax cuts advantages for investing. The cost of storing gold is also high and security is always a risk factor chewing away at the back of your mind. Aside from this, gold prices are coupled with several macro-economic factors, so anything could happen to the value of your investment. You also won’t be getting any regular income in the form of dividends or rent from this investment. And now you are having second thoughts about gold…
This seems to be the best form of long-term investment and is great for the growth of the country’s economy too. There is very little volatility in this sector with prices always climbing steadily due to greater stability. You also get to avail of structured tax benefits. And not only that, you can even earn a secondary income from the property in the form of monthly rents! In times of trouble, you could take a loan against the property, serving as a source of security.
The only drawback to properties is that a large capital is required, but then, that’s why we have home loans!
Overall, experts believe that real estate makes for better investments.