Investment: Gold vs Real Estate

While each option has pros and cons the best choice for you to rely upon the time scale of investment and the risks you are willing to take.

Gold Investment

Gold has withstood the test of time remaining a valuable asset for thousands of years. It has long been a dependable investment and holds value in the most difficult of times, it has never completely lost its value. Holding gold also creates a diverse investment portfolio and there are no maintenance and carrying costs to consider.

Real Estate Investment

Although it may have potential risks the need for housing and property will also be required. The right knowledge is required for this market and if the right deal is made investment return can be high. Real Estate is able to provide a substantial return, in the long run, creating regular cash flow.

Time scale

Real estate is ideal for long term investment. Gold is slightly more versatile providing the option of short- and long-term investment, however, it is more likely to receive a higher return in the long term.

Earnings

Real Estate is one of the best ways to receive a regular cash flow, especially when renting properties with a portion of income being used to pay off a mortgage. With Gold returns can fluctuate, prices can drop and so can value but this also means it can rise a great deal as well.

Liquidity

In Real Estate it can be difficult to gain instant liquidity as properties may take weeks or months to sell off and for cash to be received. Gold, on the other hand, is a liquid asset that can be cashed at any time with no requirement of paperwork and lengthy procedures.

Volatility

The income of the real estate is stable and provides regular cash flow, only in situations such as property market crashes can issues arise. Although gold has maintained value for thousands of years the exact value of gold can change on a daily basis creating more of a volatile return.

Tax

Real estate has structured tax, mortgage tax reduction, cost of repairs and maintenance and legal services should be factored in when calculating tax. When it comes to gold any profit made from gold deposits are fully exempt from tax.

In recent news according to Mark Mobius gold is the way to go.

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