What type of investment is better in India, land or gold? (2024)

FAQs

What type of investment is better in India, land or gold? ›

There is no definitive answer as to whether land or gold is a better investment in India, as both have their own advantages and disadvantages. Land can offer long-term capital appreciation and potential rental income, while gold can serve as a hedge against inflation and currency fluctuations.

Compared to gold, real estate is a more reliable investment option while considering volatility. It's because real estate is less volatile while gold prices fluctuate almost daily. Real estate is a great long-term investment and will appreciate in value over time, with higher future interest rates.

Typically, we see that the appreciation rate or the return on the investment on plots is generally higher than apartments as the plots' supply is limited compared to apartments. Moreover, the value of apartments tends to depreciate over time due to normal wear and tear.

Gold is an excellent hedge against inflation and other unfavourable economic conditions. The precious metal is known to retain its worth in times of uncertainties and so is a wise investment choice. Gold is one of the few rarer and precious commodities known to man.

Gold is a relatively safe investment in the long term, but its short-term value can fluctuate considerably. But because gold requires a lower upfront cost than real estate, and you don't need to worry about unexpected maintenance costs, many investors consider gold safer than real estate.

Gold prices are known to be more volatile compared to real estate. The precious metal can experience rapid fluctuations in value, driven by geopolitical events and changes in supply and demand. Real estate, on the other hand, tends to be more stable over the long term.

The top 10 investment options in India are Stocks, Fixed deposit, Mutual funds, Senior citizen Savings Scheme, Public Provident Fund, National Pension Scheme (NPS), Real estate, Gold Bonds, REITS, Government bond.

A: Absolutely! Real estate can be a great investment option in India, as it offers appreciation potential, rental income, tax benefits, and diversification.

Is it difficult to buy land in India? ›

Buying land is never easy in India; it involves a web of various procedures, each seemingly more complex than the last. However, you will be relieved to know that it is no rocket science in reality! Here's simplifying the process to purchase your dream plot of land in the country.

Land investment in India can be quite profitable over the long term since you can monetize this precious asset in diverse ways. It is low-maintenance, less susceptible to market fluctuations, can appreciate substantially in the future, and requires a low initial investment.

The return of gold as an investment reached almost 25 percent in 2020, and the annual average price of gold increased overall since 2015. The rate of return was 4.09 percent in 2023.

Gold had given positive returns in 2018 (7.3 per cent), 2019 (21.3 per cent), 2020 (28 per cent), and 2022 (10.8 per cent). Year-to-date (YTD) in 2023, gold has already gained 3.3 per cent taking the return till 2022 to 11 per cent compounded annualised growth rate (CAGR), the study said.

The return from gold from 20 years has been 12%, whereas, in 15 and 10 years, it has been 10.3% and 7.5% respectively. Interestingly, in one year, Gold has outperformed all asset classes with 14.2% returns compared to 12.9% from Indian equities and 9.5% from US equities.

Land investment in India can be quite profitable over the long term since you can monetize this precious asset in diverse ways. It is low-maintenance, less susceptible to market fluctuations, can appreciate substantially in the future, and requires a low initial investment.

The end customer does not pay any custom duty when they purchase gold jewelry online from a business registered in USA. However, even after factoring in the customs duty, buying Indian gold jewelry in the USA can be at least 12.5% cheaper compared to purchasing in India due to the higher custom duty levied in India.

Avoid making investments in the physical metal and you can minimize your capital gains taxes to the ordinary long-term capital gains rate. And when possible, hold on to your gold investments for at least one year before selling to avoid higher income tax rates.