Investing in gold or real estate in India in 2025? Compare tax benefits, liquidity and returns to decide
According to Atul Monga, CEO and Co-founder of BASIC Home Loan, 'The decision to invest in gold or purchase a home should be based on one's financial goals, liquidity needs, and investment horizon.'
'Gold has surged to record highs, driven by global economic uncertainties and rising demand for safer investment options. For many Indians, gold is a crucial asset that acts as a reliable hedge against inflation. Moreover, the accessibility of digital gold & gold ETFs has further democratised this asset class.
'Real estate, on the other hand, offers long-term capital appreciation and rental income benefits. While the initial investment in real estate can be substantially higher than investing in gold, it is a tangible asset that can be used as a financial investment and a practical utility. Ultimately, the best investment strategy is the one that aligns with an individual's overall financial goals and risk tolerance,' he added.
Let us hence discuss five key factors to help you in deciding wisely:
Gold is generally ideal for your short term goals. It acts as a hedge against inflation and is more liquid than real estate in nature. Options such as Sovereign Gold Bonds (SGBs) can provide capital appreciation with the added benefit of annual interest.
Home loans on the other hand provide for support in the long run. Real estate can provide rental income and appreciation in the long term. According to RBI guidelines home loans are available on favourable terms through various financial institutions.
These loans are provided in the range of ₹ 10 lakhs to 25 lakhs or even higher by leading financial institutions, banks and NBFCS, depending on the creditworthiness, credit score, repayment capacity and past history of the borrower and his potential to convince the lender of the same. For complete clarity on this, consider reaching out to your respective lender.
Gold is easy to buy, trade, or sell, so it is a clear winner in this department when compared with real estate, especially with digital gold and SGBs listed on stock exchanges.
Property, though lucrative, lacks easy selling ability and liquidity. Selling of property units generally takes time, and it comes with higher transaction costs and associated complications. RBI also follows a strict Loan to value ratio (LTV) to ensure borrower equity.
Gold is an investment idea that is both scalable and affordable. You can begin with just a gram in SGBs, thus making it fairly suitable for small and medium-level investors.
Home loans on the other hand need a larger upfront investment, sincere commitment, down payment, registration, EMIs etc., and are considered best for those with long term financial stability.
Home loans provide for significant tax deductions under Section 80c on principal and Section 24(b) on interest. Gold, while reasonably profitable, lacks such deductions. Still, capital gains on SGBs are tax-exempt on redemption for individual investors.
Therefore, on a balanced level, gold has delivered solid returns and still remains a reliable protection, i.e., a hedge against inflation. SGBs offer extra interest income, boosting the total yield.
Real estate on its part can provide for rental income, capital growth in the long run and now a broader access through REITs, thanks to SEBI's investor friendly changes and reforms.
Gold is a strong contender for short-term liquidity and inflation protection. Home loan-backed real estate is better for long-term wealth and income. A diversified investment strategy combining both can offer stability and growth.
Hence, to conclude, gold can be a better choice for short-term liquidity and inflation protection. For long-term wealth, income generation, and rental yield, home loan-backed real estate can be a viable option. A strategically diversified investment strategy that combines both can offer stability and growth simultaneously.
For complete clarity on the same, it will be prudent for you to consult a certified financial advisor and take any investment decision only after considering factors such as proper research, individual financial capacity, credit worthiness, credit scores, EMI repayment potential, current financial health, pros and cons of both investment ideas among other associated issues.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Readers are advised to consult a certified financial advisor before making any investment decisions.
First Published: 30 Apr 2025, 05:57 PM IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Gazette
21 minutes ago
- India Gazette
Goa's booming aviation and infra growth attracts real estate players; Sattva launches Water's Edge II
New Delhi [India], July 6 (ANI): Rapidly growing aviation infrastructure in Goa continues to attract major real estate players, as Sattva Group has launched Water's Edge II, expanding its Goa coastal portfolio in a strategic move. The move reinforces the tremendous residential market potential of the state, highlighting how improved connectivity and infrastructure development. The company said in a release that the launch underscores a broader transformation in India's residential market, where enhanced connectivity and shifting lifestyle aspirations have turned coastal properties into primary residences for a diverse and affluent demographic, including Non-Resident Indians, senior professionals planning retirement, and high-net-worth individuals seeking curated lifestyle experiences. The second phase of construction builds on the success of the initial Water's Edge project, demonstrating Goa's expanding high-end residential landscape. The rapid growth in Goa's aviation infrastructure, with the operational Dabolim International Airport and the new Manohar International Airport at Mopa, has significantly enhanced the region's accessibility. The new project leverages the advantage of proximity with Dabolim at a time when remote work enables professionals to operate from any location, including coastal areas. 'The fundamental shift we're witnessing isn't just about where affluent Indians choose to live; it's about how they're redefining the concept of home itself,' said Karishmah Siingh, President - Sales, Marketing & CRM, Sattva Group. The firm said that the market fundamentals of the state have supported the new project launches, strengthening confidence for further projects. Goa is emerging as one of India's hottest real estate investment destinations, with residential property prices skyrocketing by 66.3 per cent year-on-year, according to Magicbricks. This surge is cementing Goa's reputation as a go-to destination for vacation homes, retirement properties, and long-term rental investments. The launch comes at a time when leading developers are increasingly exploring coastal regions as viable alternatives to saturated urban markets. Industry analysts note that infrastructure-led growth in these areas could redefine residential choices for India's professional class, with ripple effects on workforce movement and regional economic development. With increased interest from major real estate players, Goa is steadily evolving from a holiday hotspot into a thriving residential and investment hub. The firm with over three decades of expertise is headquartered in Bengaluru, India; it is also a well-known name in Hyderabad, Kolkata, Pune, Coimbatore and Goa. (ANI)
NDTV
an hour ago
- NDTV
Reserve Bank of India Hiring Liaison Officers With Salary Up To Rs 2.73 Lakh Per Month
RBI Recruitment 2025: The Reserve Bank of India (RBI) has opened applications for the post of Liaison Officer. This recruitment drive is aimed at onboarding experienced professionals who can serve as key communication links between the central bank's top leadership and various government and law enforcement agencies. Interested candidates must submit a hard copy of their application through post, courier, or hand delivery to the RBI Services Board, Mumbai. Additionally, a soft copy of the same, along with all supporting documents, should be emailed to documentsrbisb@ The last date to apply is July 14, 2025 (by 6 PM) RBI Recruitment 2025: Total Vacancies RBI has notified four vacancies for the post of Liaison Officer. RBI Recruitment 2025: Eligibility Criteria Nationality: Applicants must be Indian citizens. Citizens of Nepal, Bhutan, Tibetan refugees (who came to India before January 1, 1962), and individuals of Indian origin who migrated from specified countries are also eligible under certain conditions. Age Limit: Candidates must be between 50 and 63 years as on July 1, 2025. Educational Qualification: A Bachelor's degree from a recognized university is mandatory. Experience: Prior experience in liaison or protocol duties in a public sector bank or with the Reserve Bank of India is essential. Job Responsibilities The role of Liaison Officer involves: Acting as a single point of contact for top management at the RBI. Coordinating liaison activities with law enforcement and government agencies. Managing protocol duties and supporting the central bank's leadership with external engagements. Terms of Appointment The initial contract period is 3 years, which may be extended by up to 5 years based on performance. Salary And Benefits The monthly salary will range from Rs 1,64,800 to Rs 2,73,500, depending on experience and location (inclusive of housing expenses). Annual increments will be based on inflation-adjusted revision. • Additional benefits include: • Travel and housing allowances (TA/HA) • Mobile phone facility • Sodexo meal card Selection Procedure Candidates will be shortlisted through preliminary screening, followed by document verification and a personal interview. For more details and to download the official notification, visit the RBI's official website.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
'Out-of-touch claim': Congress slams NDA govt on income equality data
The Congress on Sunday dismissed the central government's claim that India is among the world's most equal societies, calling it a "staggeringly out-of-touch" interpretation of World Bank data. The rebuttal came a day after a government release cited India's Gini Index score of 25.5—ranking it fourth globally in income equality. In a statement dated July 6, Congress General Secretary Jairam Ramesh accused the Bharatiya Janata Party-led government of data manipulation and misleading narratives. 'No country that has a poverty rate of 28.1 per cent can make a justifiable claim to being one of the most equal societies in the world,' the statement read. Referring to the World Bank's Poverty and Equity Brief released in April, the Congress listed several concerns. It highlighted that income inequality in India is likely underreported due to sampling and data limitations in government surveys. 'Wage disparity in India is high, with the top 10 per cent earning 13 times more than the bottom 10 per cent in 2023–24,' the party noted. It added that the adoption of a newer purchasing power parity (PPP) benchmark in 2021 likely inflates the sense of progress on poverty reduction. The party also flagged methodological changes in the Household Consumption Expenditure Survey 2022–23, warning that comparisons with earlier data may not be reliable. It recalled that the previous 2017–18 survey was scrapped by the Centre after it showed declining rural consumption. Poverty rate far higher under new benchmark: Congress Using the benchmark of $3.65/day for lower-middle-income countries, the Congress cited the 2022 poverty rate as significantly higher at 28.1 per cent—contradicting the Centre's assertion that only 5.3 per cent of Indians remain poor under the revised $3/day standard. According to the Congress, this discrepancy underscores the lack of updated poverty lines and consistent data. 'The government has not updated the poverty line since the Rangarajan Committee Report of 2014,' the Congress said, demanding immediate action. Inequality is structural: Congress Congress said inequality is now 'firmly embedded' in India's economic growth trajectory under the Narendra Modi-led government. It urged reforms to the Goods and Services Tax (GST) to reduce its regressive impact, end 'tax terrorism', and address rising corporate concentration. 'There is a compelling need to support households directly and promote savings and consumption among the most vulnerable,' it said, criticising what it described as 'brazen corporate favouritism'. Govt cites flagship schemes to defend record Earlier, the Ministry of Information and Broadcasting had claimed that India's Gini Index score reflects sustained economic growth and effective poverty-alleviation measures. According to a PIB release, India's poverty rate fell from 16.2 per cent in 2011–12 to 2.3 per cent in 2022–23 under the $2.15/day threshold. It credited schemes such as PM Jan Dhan Yojana, Aadhaar, Difect Bank Transfer, Ayushman Bharat, Stand-Up India, PM Garib Kalyan Anna Yojana, and PM Vishwakarma Yojana for expanding welfare, financial access, and entrepreneurship.
