Gold or real estate...which is better for investment currently?

Hani Milad Gaid, Head of the General Division for Gold and Gold Jewelry at the General Federation of Chambers of Commerce, said that the current time is a “golden time for gold,” pointing out that the price of an ounce of gold globally has risen to an unprecedented number, reaching more than $2,000.

Milad added, during a phone call to the “Aqar Misr” program on “Sada El Balad” channel, today, Friday, that there are many advantages to investing in gold without entering into a comparison with investing in real estate.

Gold or real estate? Which is better to invest currently?

He explained that gold preserves the value of cash as a savings tool and is essentially a long-term investment even if it achieves profits for a short period, noting that it is possible to purchase savings items for a very small value, unlike real estate.

The head of the General Gold Division stated that gold can be liquefied into “cash” amounts at any time, unlike dealing with residential units, which take a longer time to sell (liquefy).

He pointed out that from his personal point of view, investing in gold is currently superior to investing in real estate, due to the advantages he mentioned previously.

Investing in real estate

On the other hand, investing in real estate is considered somewhat similar to investing in stocks, as achieving profits from real estate investment is based on determining the value of the properties that you intend to buy and then making a good guess to know the amount of profit resulting from these investments, whether through rent or sale (Ownership).

But investing in real estate requires a relatively long period of time and the provision of large capital. Therefore, expected profits must be proportional to the amount invested and the required time period.

Here are the 9 most important basics to ensure successful real estate investment

Investment evaluation

Determine the expected future return from real estate investment, as this step gives you a clear vision of the feasibility of this investment based on current and future information about the real estate market and then analyzing it to estimate the required capital and the required time period.

Market movement

The real estate market, like any other market, is subject to continuous changes accompanied by price fluctuations. Therefore, market movement and current conditions are considered the main factor that affects investment decisions in terms of increasing or decreasing real estate prices. Here, it is preferable to buy real estate when its price is low and then sell it when demand for it increases.

Study of the residential area

If you want to make a successful real estate investment, you must be fully aware of the residential area in which you want to buy in terms of services provided, prices, and population census. Some people recommend investing in where you work or live, because you will be more familiar with the pros and cons of the area.

Buying at below market price

When buying and selling a property within a short period, you should not buy the property at the market price. Successful investment lies in purchasing the property at a price lower than the market price so that you can resell it at a higher price to achieve the required profits.

Choose the property

One of the most important factors that contribute to the success of the real estate investment experience is choosing a property that can generate profits continuously during the expected period. Purchasing a specific property that may not be suitable for renting or ownership during a certain period makes the period of not benefiting from the property long and thus does not achieve profits. So, make sure that the property can be used for rent or ownership within a short period.

Determine operating costs and expenses

These are the expenses that you incur during the first steps of real estate investment, such as the interest rate and fees associated with real estate financing, real estate evaluation and consulting fees, in addition to the fees that you pay after receiving the property, such as insurance premiums, administrative fees, maintenance fees, and facilities maintenance costs. All of these costs reduce the resulting net profits. of investment.

Seizing the opportunities of new regions

Investing in new or under construction residential areas is a good opportunity, because you may make profits when this area prospers and the demand for it increases, as the cost of purchasing will be lower and then selling it at high prices.

Experienced advice

Do not forget to consult contractors and those with experience in the market, as you always need their services and advice, provided that you ensure the accuracy of the information and the quality of service to obtain the best investment results at the lowest possible price.

Rental prices decline

If you intend to buy a property and then collect profits from rent, you must evaluate this investment objectively based on the lowest expected rental price so that you do not reach a stage where rental income decreases and then net profits decrease unexpectedly.