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Gold vs. Real Estate: Which Investment Strategy Suits You Best?
Smart comparison to help you choose the right investment
SK
May 01, 2025
Hello,
Welcome to Paisa Monk → No non-sense finance content for middle class Indians!
This is article #6. Check out the previous posts here:
24k Gold has touched 1 lakh INR recently!
The rate at which gold is growing makes it a lucrative investment for many people.
On the other hand, there is real estate which is also the favorite for many!
Today, let’s talk about these traditional and most popular age-old investing paths- Gold and Real Estate (via Home Loans) and discuss which is the best option.
(Keeping middle-class Indian in mind, I’m considering home loan backed real estate)
Each comes with its own perks and pitfalls. So, how do you choose?
At PaisaMonk, I break it down for you- so you can make an informed choice based on your goals, risk appetite, and timeline.
Here’s what Atul Monga, CEO & Co-founder of BASIC Home Loan, had to say:
“The decision to invest in gold or purchase a home should be based on one’s financial goals, liquidity needs, and investment horizon.”
Let’s decode both options with 5 key decision-making factors:
🔑 1. Investment Horizon
Gold is ideal for short-term goals.
It’s liquid, inflation-resistant, and now easily accessible through Sovereign Gold Bonds (SGBs) and Gold ETFs.
Gold also has another form of investment- physical gold (ornaments, coins/biscuits). While ornamental gold attracts additional charges like making charge, VA; gold coins on the other hand doesn’t carry those charges.
But, it is worth nothing that securing physical gold is a herculean task in itself.
Real estate, on the other hand, is a long-term game- offering capital appreciation and rental income.
With home loans available from ₹25L-₹50L+, backed by RBI guidelines, it’s become more approachable- if you have the creditworthiness (based on CIBIL score)
💧 2. Liquidity & Flexibility
Gold wins here- you can buy, sell, or trade it easily, especially in digital form or SGBs listed on exchanges.
Property? Not so much. It’s illiquid, involves heavy transaction costs, and often requires months to sell.
💰 3. Affordability & Scalability
Gold is budget-friendly- you can start investing with just a few thousand rupees. Ideal for small to mid-level investors.
Real Estate/ Home loans, while powerful wealth builders, demand serious commitment- think down payments, EMIs, registration costs, and long-term stability! In case you want to rent it out, think about rental yields too!