Mainly people avoid investing in real estate because they are not aware of the process. So, if you fall in the same category, you are doing wrong. Remember, real estate investment is beneficial in multiple ways if approached in a correct manner. Real estate investment is not only reliable but profitable at the same time. With the help of real estate investment, an individual is able to generate regular income. Moreover, you are able to enjoy tax benefits, diversification, and so on.

However, if we talk about gold, there are several reasons people invest in this medium. There are many who treasure gold and pass it on to the next generations. Moreover, investment in gold is quite flexible. You can purchase gold according to your budget. In simple words, the investment in gold starts from a few thousand and can get up to crores.

Major Difference Between Real Estate & Gold

The differences are a lot, about which you will learn further and then at the end, surely you will be able to decide what’s the best for you.

Investment Size

  • Real Estate

If we talk about real estate, the investment size here is huge. The demand for land is growing day by day. The prices for land are also exceptional. So, when the time comes to invest, you must have a good amount of savings in order to pay the down payment. Moreover, debt financing is also involved in the process.

  • Gold

Here the size of the investment you like to make solely depends on your budget. You can buy only 1 gram of gold or more as per liking. According to expert advice, it is good to invest in gold coins or bullion rather than jewelry. They say it because for the jewelry you have to pay extra charges for making it.

Earning Potential

  • Real Estate

From an earning point of view, real estate is the best way to generate monthly income. You can buy a house or commercial property in kings town Lahore for as long as you prefer. You can save the rent and spend a little for maintenance or pay monthly installments if left. 

  • Gold

The problem with gold is that here the returns increase or decrease with the market. For example, if the value of gold drops in the market, the investment value drops too.

Liquidity

  • Real Estate

If compared to gold, real estate offers less liquidity. You cannot sell the property in the market within a day or two. You have to wait for weeks or even months. The paperwork is involved in the process and so on.

  • Gold

The buying and selling process of gold is quite simple. Gold is a liquid asset. You can cash it whenever you like without any formalities.

Tax Benefits

  • Real Estate

Real estate is structured in a manner that offers tax benefits. There are several things that get under consideration when calculating a tax like mortgage interest payments, deduction, maintenance cost, and so on. 

  • Gold

If we talk about gold, it attracts the Capital Gains tax. Moreover, whatever profit you made from the gold deposit certificates is exempted from taxation.

Transparency in Cost

  • Real Estate

If we talk about real estate, here the prices are not as transparent as you may like. Also, the chance is fewer that you were able to get readily available data from the past when working in real estate.

  • Gold

The trading of Gold happens in the market quite actively. So, the prices are quite transparent. 

After reading the above points, you may feel like real estate is quite tough. But if we talk about history, the returns in real estate can begin from 8% to 15% or even more. An individual is even able to see the growth in rentals. You are able to generate monthly income that isn’t possible with gold investment.

Moreover, real estate is quite attractive if you are looking for long-term investment options, as the property value increases as time passes. Moreover, the returns in real estate are also better than gold. In case you are taking a back step because of less information related to the market, better hire a professional real estate agent. They know the market well and will surely make the entire process smooth for you.