INDIA NEWS
Apr 1-15, 2022 - Vol 2, Issue 18
SPECIAL FEATURE
Why real estate is a better option than gold by Annuj Goel
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old has always been a favourite investment vehicle of Indian households as many people transfer the yellow metal from one generation to another. The biggest advantage of gold is that one can be flexible with investment size or the amount. Whether you have to put in Rs 1,000 or Rs 1 crore +, gold is accessible to everyone to buy. Also, gold is highly liquid. Real estate also scores high for investment purposes but in comparison to gold, real estate requires bigger funds and the buyer needs to have long holding power. Well, real estate can be an attractive long-term investment option where the property value increases over time. So, if approached in the right way, real estate can deliver you incredible profits. The one thing that is common between gold and real estate is that both have a strong sentimental value for the Indian
investors, with strong reliability and sustained nature. So how do you choose where to spend your money if you have a sizable amount to invest? Well, I would recommend real estate any day as there are various reasons because of which real estate scores over gold. Let’s have a look at them: Passive income Real-estate has the potential to create regular income with additional tax benefits.Whether residential or commercial, real estate has the potential to generate passive income for the investors in form of monthly rentals in cash, which gold investments cannot do. Rate of return History suggests that real estate can give up to 15 per cent of annual return, thanks to rising rentals. The value of property improves with the market and economy. On the other hand, gold is used to hedge against
inflation, which means that the return from gold is in line with the inflation, which is aimed low by all governments. Also, gold shines when your paper currency is depreciated, making the return nominal. Volatility and risk Real Estate is a highly stable investment option, which comes with low risk. Property brings mental satisfaction due to it securing your future. On the other hand, gold is a commodity, which is traded on the bourses. It comes with higher volatility and risks of being stolen. Expenses add to the value One may argue that property incurs the cost of maintenance and renovations, unlike gold which is altered at will. However, this cost not only appreciates your asset, but also allows you to take taxation benefits. Long-term value creation It is a no-brainer that the value of real estate increases, the longer
you hold it. It is simply because you can not create land and with rising population, the demand increases, which ultimately leads to price rise. On the other hand, gold can be purchased in digital form as well. This might reduce the risk of being stolen, but still it is just an intangible asset. Aids the economy Real estate might require large funds, but survival of a lot of sectors depends upon it. From debt servicing, cement, housing finance, building materials and various others, everything depends upon real estate at large. It also creates a large number of informal and indirect employment opportunities, serving the economy at large. Tax Benefits The investment in real estate comes with numerous tax benefits such as tax deduction on mortgage interest, operating expenses and legal costs, property taxes and depreciation.
The real estate investment is not only a safe investment but can generate better returns over a period of time while you are still earning a regular income if you are using it as a rental property. It is a great investment option for many reasons such as a fantastic tax advantage, and you can leverage it to build wealth and assets. (Annuj Goel is Chairman & MD Goel Ganga Developments)
India abstains 6th, 7th time on Ukraine resolution; UNGA throttles S Africa resolution
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eeping up its streak of abstentions on Ukrainerelated resolutions at the UN, India on March 24 abstained in rapid succession for the sixth and seventh time at the General Assembly which confronted duelling resolutions. The Assembly approved a resolution on the humanitarian crisis in Ukraine proposed by that country criticising Russia’s role, but it throttled another put forward by South Africa that did not mention Moscow. India’s Permanent Representative T.S. Tirumurti said at the Assembly’s emergency session that New Delhi abstained on the resolution proposed by Ukraine because it “did not fully reflect” India’s expected focus on “cessation of hostilities and urgent humanitarian assistance”. The resolution squarely blaming Russia for the humanitarian crisis that was proposed by Ukraine with the backing of about 90 countries passed with 140 votes, with five against and 37 abstentions. It had more than the required two-thirds majority to pass. On a procedural matter raised by Ukraine, the Assembly voted not to take up South Africa’s resolution, effectively killing it. It called for humanitarian aid, ceasefire and safe corridors for refugees and assistance, but without criticising Russia. As many as 65 countries were against taking up South Africa’s
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resolution, while 49 wanted it voted upon and 33 abstained. Tirumurti said that humanitarian assistance should be based on humanity, neutrality, impartiality and independence and “should not be politicised”. “We firmly believe efforts at the United Nations should contribute to de-escalation of the conflict, facilitate immediate cessation of hostilities to promote dialogue and diplomacy and bring together parties to find an immediate end to the suffering of the people,” he said. Speaking to reporters after the vote, US Permanent Representative Linda ThomasGreenfield said: “What I say, and what I said, to the countries who abstained previously, is that there’s no neutral ground here. We’re watching every day what is happening in Ukraine. And we have to stand with the Ukrainian people.” But on March 23, India had joined the US in abstaining at the Security Council on a resolution submitted by Russia on the humanitarian situation in Ukraine, which failed because only China joined in voting for it while all the other 13 countries abstained, depriving it of the required nine votes to pass. India did not speak at the Council on its abstention. India had earlier abstained on an Assembly resolution that was carried condemning Russia’s invasion, and in the Council on two procedural votes related
to Ukraine and on a resolution censuring Moscow’s invasion that was vetoed by Russia. Russia had withdrawn its request for a vote on its Council resolution on March 18, but suddenly called for a vote on it on March 23 in a failed attempt to upstage the Assembly vote. Russia’s resolution made several proposals to deal with the humanitarian situation but, of course, did not refer to its invasion, which is the reason for the abstention by the US and its allies. Vetoing the resolution would have opened it up to propaganda campaigns ignoring the context. The resolution proposed by South Africa at the Assembly called for a cessation of hostilities and for a comprehensive humanitarian response, but it also would not have named Russia. In calling for a vote against taking it up, Ukraine’s Permanent Representative Sergiy Kyslytsya denounced it as a “twin brother” of Russia’s Council resolution. South Africa’s Permanent Representative Mathu Joyini said: “While we should not ignore the context that gave rise to this crisis, and nor should we ignore any violations of the UN Charter and international law, that should not ever divert our focus from the fact we ought to be immediately doing.” South Africa resisted tremendous pressure from the US and its allies to drop its resolution.
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US Secretary of State Antony Blinken called South Africa’s Foreign Minister Naledi Pandor on March 23 to dissuade Pretoria from going ahead with the resolution saying that there should be a unified international response to Russia’s invasion. Joyini said that there should be no attempt to “muzzle” countries seeking independently to find solutions. “The vast majority of countries in this assembly have never invaded or colonised other countries, yet have suffered the consequences. There are a few powerful countries that have been parties to most of these conflicts, often in the form of proxy wars in other countries or regions,” she said. “In Iraq for example, over 2.4 million people are reported to have died since 2003”, the year of the US-led invasion, she asserted, Beijing cosponsored, South Africa’s resolution and China’s Permanent Representative Zhang Jun said that developing countries were not parties to the Ukraine conflict and should not be drawn into it and forced to pick a side as “friend or foe”. Several countries, including Brazil, Malaysia and Indonesia, which voted for Ukraine’s resolution, said that they did not see a contradiction between it and South Africa’s for which they would have also voted. India’s Foreign Secretary Harsh Vardhan Shringla, who had come to New York on March 22 in the midst of heated diplomatic
activity, left for India on March 23 ahead of the Assembly votes. Tirumurti said at the Assembly: “India continues to remain deeply concerned at the ongoing situation which has rapidly been deteriorating since the beginning of the hostilities.” “We have constantly called for cessation of hostilities. The humanitarian situation continues to worsen particularly in the conflict zones in urban areas. Women, children and elderly are disproportionately affected by the prolonging of this conflict,” he said. “We hope the international community will continue to respond positively to the humanitarian needs of Ukraine,” he said. India has already sent over 90 tons of humanitarian supplies, including medicines and essential supplies, to Ukraine and its neighbours and will provide more, he added.
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