Gold or property: Where to invest?

Article Credit : Neeti Jayachander / http://femina.in/

Image Credit : http://femina.in/

Want to invest some of your hard-earned money, and are unable to choose between some gold jewellery and a piece of land? Here are six points to keep in mind before you make that investment.

- Gold is more easily disposed, if you’re looking at a short-term investment. With real estate, the process is a little more long-drawn, and ideal if you’re looking at long-term appreciation.

- While gold jewellery can be used, you also lose money in resale and exchange. The best way to purchase gold as an investment is in bullion or gold coins.

- When it comes to real estate, apartments are easy to maintain, and rental income/savings on rent are a major pro when opposed to a piece of land which doesn’t serve much purpose, unless you’re willing to spend more on building! However, the appreciation value of land is much more than that of an apartment.

- There are no tax saving advantages while buying jewellery, as opposed to tremendous benefits with investing in property.

- Jewellery is a low-risk investment, as it has steadily increased over the years, and any depreciation in the market value has been negligible. It is lesser volatile and easy to trade in the market. Real Estate is a bit more challenging as an investment to trade.

- When investing in property, study the rules and regulations, make sure the paperwork is in order and compare multiple properties before finalizing on one. Also avail professional help, especially in the case of your legal affairs. Lastly, make sure you can afford the down payment and EMIs before you seal the deal!