What to buy this Akshaya Tritiya – Gold or Property?
May 12, 2021
Akshaya Tritiya also celebrated as Parshuram Jayanti is considered to be one of the most auspicious days in Hinduism. It is one of the good days to invest.
So, what to buy on Akshaya Tritiya? In the present scenario of COVID-19, there has been an observable change in our demand trends and style of living, wherein ‘Stay Home, Stay Safe’ has become the mantra for our survival. Are you confused between gold or property? Think wisely and act intelligently by buying the one which is most important for your family.
Also, let’s check out these economic factors of both gold and property.
- Income generation
Property has numerous ways to generate monthly income. One of them is renting out the property. However, gold cannot do that for you. It is just another item added to your bank locker.
- Tax benefits
Buying gold does not give you any tax benefit. But in real estate, you have numerous tax benefits. Under Section 24, the annual interest paid on the home loan is deductible up to Rs. 2 Lakhs, and the principal repayment of the loan comes under Section 80C where you can claim a total deduction annually of Rs. 1.5 Lakhs. The government also gives a subsidy of up to Rs. 2.67 Lakhs when availing of a home loan thus bringing down the interest burden.
- Long-term gains
The value of Gold in 2011 was around Rs. 26,400 and now is hovering around Rs. 49,000. In investment terms, that is a yearly rate of 6.4%, it would have been more beneficial for someone to invest in an FD in 2011 for 10 years and he would have gotten better returns. Now think of any property that you or someone close to you have purchased a while back, what is the present value of that? Properties give an average annual return of around 20%, way higher than what you can make with Gold. Plus, Gold is a luxury commodity susceptible to price swings while property being an essential need will always be in demand.
- Effect of share market
As elucidated above, gold being a luxury commodity is the first to be sold off during economic difficulties. When the share market plunges, the investors sell off their gold holdings because of their volatile prices, and this sell-off triggers a downward spiral for gold prices. Whereas property holdings are local and personal, thus they do not drop down suddenly when the economy goes down. Even during COVID-19, property values were the sole product that had a stable price.
- Adding expense means adding value
The resale value of a property depends on the facilities provided in it, the more a person spends to add features to his property, the more its value increases. The resale value of gold however is strictly dependent on the amount and carat of gold in the particular piece, any additional work is not counted while determining its present value.
Most banks now offer home insurances against all the disasters, whether natural or whether man-made at nominal prices. Hence an owner can rest assured that he will not lose out on his money if something happens. However, in gold banks locker are the only form of security and the banks are not liable to pay the gold owners anything if they are stolen. In terms of security, property wins out.
- Social security
When you live in your own home you are free from paying monthly rent and problems faced in shifting homes frequently. It gives mental and emotional satisfaction that you are an owner of your own home and not living as per your land owner’swhims. Whereas, buying gold jewellery is just an addition to your stock which you may wear occasionally.People invest in gold thinking of future financial security. But now, Real estate has proven itself as one of the best assets when it comes to financial security.As per the need of the hour, residential societies of Shubhashray Housing are safe and secure as the societies are not densely populated, are situated in a non-populated area with large open green space. Almost all the societies of Shubhashray:-
People invest in gold thinking of future financial security. But now, Real estate has proven itself as one of the best assets when it comes to financial security.
As per the need of the hour, residential societies of Shubhashray Housing are safe and secure as the societies are not densely populated, are situated in a non-populated area with large open green space. Almost all the societies of Shubhashray:-
- Are G+1 and G+2 storied buildings with different entrances to all the floors with a minimum touching point.
- Are 24X7 secured gated societies with a single entry-exit gate. No stranger is allowed and all deliveries are received at the main gate only.
- Are clean and maintained societies with dedicated parks and green areas for clean & fresh air circulation.
- Follow COVID protocols like compulsory mask wearing for entering the society, society sanitization by the company, hand wash facility at the main gate, etc.
So, Celebrate Akshaya Tritiya with us for a better investment for your future & health, and do your auspicious Graha Pravesh in our societies.
Stay Safe! Stay Secure! With Shubhashray Housing India…