India is a country where festivals drive markets. There is an element of auspiciousness attached to the purchases made during the arrival of festivals such as Akshaya Tritiya, Dhanteras, Eid etc. The elements of prosperity, good luck and new beginnings make Indians excited to start new ventures, book properties, buy cars, gold or electronic appliances. Looking at the major developments taking place in the real estate sector and also considering how gold participated in mitigating the effects of demonetization, it is natural for any investor to think seriously about where to put the money this Akshaya Tritiya. Home buying is definitely a landmark achievement in any average Indian’s life and this asset has not only provided shelter and safety, but has also reserved for the buyer the loads of profits to reap in future. There are a number of profit promoting aspects attached with real-estate, which makes this avenue outweigh the gold investment and hence it leads towards attracting the customers this festive season. With many exclusive deals and discounts on HousingMan, this festive season make the property purchase you have been waiting for!
Property Investment – undoubtedly the better avenue!
If we compare gold and property on the basis of ROI, or the returns they are expected to deliver in the long run, the latter is likely to emerge as a better option. Listed here are some of the advantages that make investing in real estate sector a safe and a worthy bet.
While calculating ROI on the real estate, one must know that the area and location of the property plays a major role in deciding the returns. Those properties that are available for purchase in the areas tagged as ‘up and coming areas of the city’ are likely to fetch better returns than the areas seeing the peak of development, or are known as developed or prime locations. So, if you are a first time buyer or have thought of investing the recently earned huge margin in the Real Estate Industry, then look out for the properties in areas that have lots of upcoming development projects, keeping in mind the importance of the infrastructural aspect in pipeline. Affordable houses are mostly found in the outskirts of the city and if there are projects promising better connectivity proposed in that area, your investment is likely to get ten-fold appreciation in a span of 10-15 years or so. The growth in property price is going to be constant and consistent, offering promising returns to the investors in the future.
Affordable housing schemes like Pradhan Mantri Awaas Yojana and establishment of Real Estate Regulating authority in every state is likely to make investments in real estate all the more safe as well as yielding. These developments are going to bring transparency in dealings and are likely to reduce the prices also, making it possible for the buyers to afford the property with added confidence. While investing in real estate, the buyer is not under obligation to sell out the property within a few years; in fact, if all the conditions and loan repayment schedule is adhered to religiously, the buyer (of the personal residence) is certainly acquiring an asset likely to stay with him for almost a lifetime. So, by investing in property for own, rental, and even if it is for commercial space, the buyer can rest assured of the money put in.
A very disturbing pattern in fluctuations has been observed in gold prices in the last few years. In fact, the gold prices are seen to have depreciated by 15-20% in the recent times causing the buyers to suffer a major setback. This volatility in price is also the result of the impact caused by international pricing structure and other factors like international economy, politics and much more. Thus, while buying gold, the number of factors to be considered is anytime higher; making it all the more difficult for the buyer to predict the final outcome. Concisely speaking, gold is not a safer investment anymore, but purely invested for matters best known to Indian values, traditions and customs. Property market has shown steady progress in the last decade, and with proposing of regulatory actions in this market, the growth is likely to continue in an upward direction. A buyer can safely peg the ROI at 20% while investing in real estate in exact contradiction to the situations prevalent in the gold market where prices have seen the downfall of up to 20% in the recent times.
ETFs, i.e., exchange traded funds are also interfering with the ROI pattern of gold. The investors may find ETF easier to deal with, but its influence on the price cannot be ignored. So, real estate is spilling profits from all sides while the investment in gold is filled with risks.
To encourage people to take part in infrastructural development projects, Indian Government has always supported the property buyers. There are loans made available on easy terms; and the buyers can derive the benefit in tax by repaying the loan too. The payments made in a single financial year towards interest and principal of the loan amount can be deducted from the taxable income providing big relief to the property buyers. They think paying EMI to be a better option than paying rent and try to strategize things in the direction of acquiring this valuable asset. With many affordable properties available in varying budgets, as per different customer requirements exclusively on HousingMan; why pay rent when you can possess your own home.
On the other hand, while buying gold, one does not find any such facility called loan per se. Though the size of investment is bigger in case of a property as compared to the gold, the far-fetching results of investing in these avenues are different and the property weighs out to be certainly the more profitable and the worthy one.
Future possibilities in gold not so promising
India is on the road to improved economic conditions. The economy is likely to move upwards driving the market to show bullion trends. Additionally, the gold is not showing any upward trend in international prices, and the rupee going stronger is likely to soften the price of the gold further. Also, it is proposed that import duties will be lowered in coming times in order to boost the sale of gold in overseas markets. This is going to lower the gold price in domestic market more conspicuously. Thus, if you choose to buy gold this Akshaya Tritiya, it is certainly not going to pay you the best of the returns in coming times.
Property and the new beginnings
If we observe the trend in real estate pricing; first of all, it is not so directly affected by the international prices. The growth in real estate sector is the direct consequence of the continuous progress in Indian economy. Owing to the stable state of the present government and its progress-friendly policies, the country is going to witness considerable growth in coming times.
Secondly, while increasing the buying power of the customers on one hand, the Government is introducing regulatory framework in the real estate industry that are likely to make the lands and houses more affordable for everyone. Thus, the buying sentiment is surely going to improve and the deals closed around this time are surely going to deliver unmatched profits in the future.
Also, the government is planning to grant ‘infrastructure’ status to real estate. This is directly going to enhance the cash flow in the sector and the players would get to enjoy better liquidity and easy availability of loans. Such ripe conditions are surely going to give rise to situations where the realtors would pass the benefits to the end buyers, thereby, slashing the rates of the property and offering more profits in the long run. With added discounts, offers and deals on many projects HousingMan should be your go to website.
Comparative analysis of property vs. gold
While property contributes to wealth creation, gold simply offers easier option to hoard wealth in a paperless way. The gold buyers can get loan against gold deposits but ridiculously high interest rates may deter the people from doing so; loan against property is way affordable and offers sufficient liquidity to the investor. Also, buying gold on loan is not going to fetch you the tax benefits like property loan repayment that offers deduction on taxable income.
The real estate industry is witnessing some of the most phenomenal progress and positive changes in the coming times and what you lock in today is surely going to leave you with smiles in the distant future. So, it would be much better if you decide on both the investment avenues after careful research this festive season. Be it investment in property/real estate sector or Gold since both are synonymous to prosperity and good luck, in true sense best investment is that which suits your life phase needs best.
It is advisable not to get carried away by the sentiments while dealing in money matters. So, buying gold or property mindlessly on the festive occasions is certainly not the wise way of celebrating the good moments, especially when you are looking for an avenue for a long-term investment. Though people may find investing in property a lot more cumbersome or a lengthy process as compared to buying gold, but the patience and all the hassles involved are certainly going to pay back way better than investing in the latter. With HousingMan and its team of expert sales and property advisors, investing in real estate is simplified and hassle-free. It may require a huge investment, but with the loan facility and fat chances of properties reaching the affordable range, what with attractive deals and discounts on properties on HousingMan, the potential buyers may think of real estate industry as the best possible option for locking the money for earning more profits.
To know more about property options, be it villas, flats, or plots, aspects and expert suggestions on where to invest, when to invest and how to invest in properties, log on to HousingMan today and find out more about how investing in real estate can change the course of your future.