Property or Stock? A look at the Classic Investment Conundrum
Monday, January 27, 2014, 1:00 PM | Leave Comment
Individuals these days seem to be asking whether it is more prudent to invest in gold or in real estate. Organizations are now investing in gold in a manner which may show gold to be going out of style but the choice between gold and real estate is one which is old and one which is still valid.
Governments these days have increased the physical printing of money. Excessive printing of money will lead to serious increments in inflation and inflation causes the price of gold to increase.
Gold is also a commodity that never goes out of fashion and for the past five thousand years, since gold was discovered, man has always been charmed by the yellow allure of gold. However, man has also be charmed by land and its tangible existence and many uses.
Gold is now used in currency, in investments and in many other purposes and in the near future, it will be the preferred method of payment.
Currencies become worth next to nothing as inflation starts to go on the incline and anyone who is involved with investing in gold knows that over the next coming years the price of gold and its value is going to increase. The question is how much? Will it give the same dividends as say, investing or buying a residential property in Malad?
You could buy gold right now but it’s generally sold at five or six percent more than the actual value of gold. This is generally due to dealer costs and charges.
Gold also has very little discounts and the only way money can be made through gold is through the increase in its value Real estate is more viable in that sense as wholesalers need to put a minimum amount of money down and can stand to make a considerable amount of profit at the time contracts are assigned.
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Real Estate – Steady Cash Flow Options
Lease options are also available and these options require individuals to not put any money down. Investing in rental properties or buying residential properties in places such as Malad can guarantee steady cash flows.
Gold is generally considered as dead weight with no dynamic and steady cash flows. Its income and expense is only at sale and purchase. Gold and real estate both being tangible, their values increase during inflation, traditionally. This means that you get the same advantage from real estate as you would from gold.
By investing in rental properties, you can get a monthly inflow of cash which will provide usable income. Gold gives profit as well, however, it is a more long term investment. However, the true dividends from real estate can only be realized after a certain amount of time, hence in that aspect, real estate too is a long term investment.
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Gold – Steadfast Profit and Long Term Value
Gold never suffers from depreciation and provides for a better long term option for investment. There are risks involved with all forms of investment.
In order to make the best bet, you need to be fully aware of the market and see what the trends are and where values are going to go. Know what your own personal goals for investment are and make sure you have them clarified.
Never be afraid to take additional advice but do not be too late in making investments too. Both of these options can provide for excellent returns. The actual returns can only be decided by the amount of money that will be invested into the option.
Author Bio
Connor Leads is a real estate agent who has been affiliated to some of Mumbai and Delhi’s largest properties. Connor’s expertise on the real estate market as well as his extensive research in gold has made his opinion a valuable commodity while choosing between investment options. He recommends investments such as buying residential properties in Malad or buying gold bars and coins.
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