Real estate is a good investment alternative to investment in gold and the fluctuations in gold prices have led many to re-invest gold into realty. The portfolio management experts at Ikia Consulting Services offers a few important tips here for the benefit of the investors.
1. Buying gold for reinvestment is now a popular practice among the higher segments of property priced in the range of Rs 70 lakh and above. To get the best rate for the gold, the source of gold needs to be either in the form bank coins, bullion bars or Gold Exchange Traded Funds(ETFs).
2.Investors need to evaluate the long term benefits of the two factors involved -gold and real estate. While gold is a volatile segment, realty is intrinsically low volatile and require a long waiting period. Hence one cannot expect to pledge gold, and hope to receive profits from real estate investment and then redeem the gold, within a short period of time.
3.Buyers of property who plans to leverage on the gold option need to identify reliable options before taking decision. Lenders will have marginal differences even in the rate of interest, processing fee, prepayment options etc. It is therefore important to read the fine print before signing.