There has been a longstanding and heated debate since time immemorial over what is a better investment, real estate or gold. While there is no doubt that both of these are extremely profitable investment options, investment in real estate has a definite edge over investment in gold and there are a few very pertinent reasons behind this. The first reason is security. When you invest in gold, you have to keep it in a bank locker as it is not safe to be kept at home. However, how safe is your gold in a locker? According to available data, across 51 banks in India, burglary and theft of bank lockers accounted for a loss of 1.80 billion rupees. And even if you do complain to the police, the chances of you getting your gold back are slim to non-existent. This is not the case with real estate. Even if someone stakes a claim to your property, there are legal means available to get it back. The second advantage real estate has over gold is that real estate can be used to generate passive income through lease or rental, whereas investing in gold is just an expenditure. You can lease out your property or construct apartments on it and give them out on rent, generating passive income every month. Another advantage real estate has over gold is tax benefits. Investments in real estate are perfect for receiving tax benefits. Tax deductions are one of the biggest benefits of investing in real estate. The repairs conducted on the property, depreciation, maintenance, mortgage tax deductions, all contribute to a reduction in taxes paid. Land is a tangible asset that appreciates with time, especially if you indulge in maintenance of the land and bring in utilities such as water and electricity to the property. As land cannot be easily stolen or lost, real estate is definitely a better investment to make than gold.
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