Thinking about investing your money in an asset that gives you a higher Return on Investment (ROI)? The first and foremost step is to decide whether you want to invest for the long-term or short-term and Gold Vs. Real Estate.
What are the best short-term and long-term investments?
Short term investments:
Short-term investments, anything from 7 days to less than 12 months can qualify as short-term, involve high risk and an average return on investment. Anyone planning to invest for the short term should be open to risks. For the short term, one could invest in the following:
- Debt mutual funds: The liquidity is high in these funds and units can be redeemed in quick time. However, the returns are not fixed. One can earn about 7 per cent per annum. For optimum results, one must match their investment horizon with the maturities of securities of these funds and then invest.
- Fixed Deposit: If one wants to save regularly for a short-term, say for 6, 9 or 12 months, a bank fixed deposit (FD) is the best choice. In FD, one has to invest at regular intervals for a fixed period and upon maturity will receive a lump sum amount.
Long term investments:
On the contrary, if someone is planning to invest their money for the long term, then they can either opt for parking their funds in gold or real estate.
Here’s a guide that could help you decide which investment is profitable for long-run:
Real estate: Investing in real estate can be quite profitable and a relatively reliable way to get significant returns.
- A profitable source of income: Investing in real estate is profitable as compared to investing in gold as owning land means that you have some definite property where you can either build a house and live, rent, or even sell it further.
- Ability to expand value: The value of the land is directly controlled by the landowner. A landowner can sell his land at higher prices if they amend or build a property according to the buyer’s needs. Whereas, there’s nothing that could be done directly to increase the value of gold.
- Potential for personal use and earning: Owning vacant land is better than gold because one can build a property to either live there or can use it for commercial purposes. Moreover, these properties could either be used for personal use or could be rented out.
Gold: Investing in gold could be slightly riskier, with the returns requiring some patience from the investors.
- High liquidity, fluctuation interest: Gold is very liquid, and that is the primary reason why many consider it as the safest kind of investment. Whenever in need, selling off gold is never an issue. However, the price at which one sells is what makes a difference. It is possible that either the selling price is more than what it was bought for, or it could be below as well. Thus, there’s a risk as the price of gold fluctuates constantly.
- A safe investment: Gold is a tangible item and a safe bet. Moreover, one could easily go to any local jewellery shop and purchase some gold without much hassle.
Despite many benefits, investing in real estate is better than investing in gold. The reasons for the same are mentioned below:
- Gold can be stolen, however, one can’t claim land without paperwork
- While selling gold, a percentage is deducted, whereas no such deductions are there when one is selling a land
- Vacant land doesn’t need maintenance, whereas gold requires maintenance such as polishing, or repairs.
- In the long run, real estate will give higher returns as compared to gold.
- In Gold vs real estate real estate gives historical returns
Therefore, when one is planning to invest for the long run, investing in real estate is more profitable than investing in gold. Get hands-on with the best land with Landsale4u and safeguard your money. For more information visit: https://landsale4u.com