Gold losing sheen as new-age investors bet big on real estate

Hyderabad: While traditional investors and old-timers have always been inclined towards investing in gold due to varied reasons, the recent trends show that the yellow metal is losing its sheen among the young and middle-aged investors. Whether it was to showcase their economic status or for its flexibility in terms of buying and selling, gold […]

Hyderabad: While traditional investors and old-timers have always been inclined towards investing in gold due to varied reasons, the recent trends show that the yellow metal is losing its sheen among the young and middle-aged investors. Whether it was to showcase their economic status or for its flexibility in terms of buying and selling, gold was always a preferred choice among many investors till about a few years ago, and this was true for both genders.

However, the current generation of investors, and especially women, are getting more inclined towards investing in real estate as they see it as a more long-term investment option and also due to the resilience that the industry has shown in the post-pandemic period. They are also viewing an investment in real estate as not only an asset class but also for better returns both regular and also after-sale value, which is higher when compared to gold.

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“When I was looking to invest in something substantial, my parents and elders suggested I go for gold. But, after a lot of research, I realised that it is like a dead investment for me as firstly it does not provide any regular income and also the value of the gold keeps fluctuating as it heavily depended on the international market movement. On the other hand, real estate is a better option for me as it provides me with land or apartment that I can call my own, and in future if I look at selling the property, the returns are much higher,” says Suman Ojha, 31, an IT professional who has recently purchased a 3BHK in Hyderabad.

A recent survey by Anarock consulting also showed that pan-India, almost 64 per cent of female investors are looking at real estate as the best asset class for investment amidst the Covid-19 outbreak and this number is higher for female investors in Hyderabad at about 66 per cent. In comparison, the female investors looking at gold is a meagre 10 per cent pan-India and 12 per cent for Hyderabadi women. Even the volatile stock market has more investors at 16 per cent pan-India women investors and 15 per cent investors from Hyderabad.

Return on investment

Although gold allows one to invest small amounts when compared to real estate which needs one to invest large amounts, the charm towards the yellow metal is slowly trickling down. Some of the reasons, according to experts, are the fluctuating returns which are heavily dependent on the market as India imports most of its gold. On the other hand, real estate has more stable returns. For example, if one has bought an apartment, then one can always give it on rent and get returns.
In terms of the debate of long-term vs short-term investment, the gold investment might be suitable for both types of investment but if one is looking at a long-term investment strategy, then real estate is the best bet.

Tax benefits

While investing in real estate, one can avail of home loans that directly provide the tax benefit to the salaried class and the investment in gold attracts capital gains tax although depositing in gold deposit certificate is fully exempted from taxation.

Even though gold is a safer and more flexible option to invest in, investment in real estate is more attractive with better returns in the long term. How much to invest and where to invest are options that depend on the investors’ income, choices, and lifestyle, and yet, many new investors are looking at real estate as their investment option.

For Info:

Which is the best asset class for investment amidst the outbreak of Covid-19 pandemic?

Asset Class Pan-India (Women) Hyderabad (Women)

Real Estate 64% 66%

Fixed Deposit 12% 7%
Gold 10% 12%

Stock Market 16% 15%
Budget for investment Pan-India (Women) Hyderabad (Women)
Rs 45 lakh – Rs 90 lakh 33% 38%

Rs 90 lakh – Rs 1.5 crore 34% 28%
Rs 1.5 crore – Rs 2.5 crore 11% 11%

>;Rs 2.5 crore 7% 9%
Advantages of investing in gold

· Flexible
· Can invest smaller amounts
· Can provide immediate liquidity
· Suitable for both short-term and long-term investment
Advantage of investing in real estate

· Regular monthly income

· Tax benefits

· Low volatility

· Good for investors having lump sum amount

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