The Indian mentality is often known for its care towards spending of money and the focus on investments for a secure future.
While that is one side of it, the flip side is, most of them also have the sheep mentality of following a trend and they begin to cram the market or a product. We have seen that happening with the real estate sector.
Anyways, the big question now is, whether investing in real estate is a good idea? Or is there another suitable option?
Well, the market experts say there is one option- Gold. Not because it is a solid but because it has a solid credential.
On a comparative note, the land market has always been fluctuating and the trend has shown that while 40% of them tend to make it big, the impact is felt by the remaining 60%.
On the other hand the market of gold has always been steady and it has been on the rise only. Also, the concept of market sharing or causing an impact on others doesn’t arise. In a way, it is the buyer’s market. Those who have money can go ahead and purchase without affecting others.
Right now, cities are growing vertically and horizontal expansion has slowed down a great deal. Focus is more on staying in the centre and prime areas than in the suburbs. With traffic, poor infrastructure and lack of proper administration, it is a hell ride for many living in the outskirts to come to the city. Therefore, the market value of land has come down drastically. Such a parameter doesn’t exist for gold.
Even if lands are taken, there are the other headaches like dealing with the corrupt officials for getting permissions and clearances, then comes the tenant issues and above all that, protecting the land is a major hurdle. As for gold, purchasing it and storing it in lockers is sufficient (of course, it has to be done in various names). Overall, the picture looks shining for gold while land seems to have its implications. Just a thought….
Sarath Kumar, Hyderabad
