Monday, November 28, 2011

Go for Profit Booking in Pune Real Estate Market

NRIs & Investors, Right Time to Sell Your Properties in Pune and Earn Handsome Profits before Over Heated Pune Real Estate Market Goes Down!:


Amit Parnerkar, Minneapolis, Minnesota, USA at The Times Property Showcase '11 - at Le Meridiean, on 27th November 2011
Amit, Minneapolis, Minnesota, USA at The Times Property Showcase '11 - at Le Meridien, on 27th November 2011


Amit has settled down at Minneapolis, Minnesota, USA. On vacation, Amit has come down to Pune. To be with his parents, meet relatives & friends. And to make important decisions about his real estate investments in Pune.

When Mr. Amit met me at Times Property Showcase at Le Meridien on 27th November, my real estate salesperson friend, working with one of the 'reputed' builders in Pune, and I were making sarcastic comments about each and every visitor in the property exhibition.

At first glance, i thought that Amit must have just comeback from 'the site'. Because of the Dollars earned at the site, he must be 'on high'. Curious to know who was the lucky builder in Pune who got this 'Bakara', i asked Amit, "Did you find your dream home in this exhibition?"

"Good exhibition! I had a plan to invest in Pune real estate. This property exhibition helped me to decide. Now, I am not going to buy property. But, sell!," Amit said.

"Surprising! I haven't heard anyone from US talking about selling his property in Pune!!," i said.

"Ravi, these are the smart people who read between the lines on your blog! Those who call you to ask about buying are poor fellows who have missed the bus and are repenting for not investing before 2007!," Amit said.

"Yes! I completely agree with you!! Those who can read between the lines are the smartest Pune real estate investors! But, i don't suggest they sell. In fact, i ask - where will you reinvest if you sell at this point of time? So, even i want to know why one should sell now!," I said.

"We, those who live in US and Europe, know that the world economy is in trouble. Even the finance minister of India has also accepted that the financial crises in these economies may - seriously - affect India. But, home buyers in Pune who are suffering - 'awareness lag' - still haven't realized that the situation is - risky. But builders in Pune are aware about the - impending danger - and are trying to make as much as they can before the market - goes down - property buyers stop booking completely. That's why they are advertising and participating in these exhibitions. So, it's a signal - an alarm - for the investors to sell their properties and en-cash the profit!," Amit said.

"I completely agree with you! That's why i urge all home buyers to stop booking a flat in an under construction or recently launched projects in Pune real estate market. And, if it's - urgent and important - to buy a home - at this point of time, please, go for the ready possession or a resale flat. But, why investors should not hold on? Don't you think that - if you hold 'now' - you can reap more appreciation when the market will come out of the danger - bounce back - like the last time?," i asked Amit.

"How can you hold on the property for a couple of years more - which has become 'unmarketable' - not worth buying - today itself? You know? About 5 year old properties in Pune - which look like "रद्दी" - old newspapers today - may become "भंगार" - junk - in the next 3 - 5 years - you know? - even most of the properties in the recently launched projects in Pune - i visited in this vacation - 2 BHK for 60 and 70 lakhs - or 3 BHK for 1.3 Cr - may not be able to hold their prices - so - point is - home buyers can afford but the investors can't afford to ignore the actual worth of the property - so - investors sell your properties now!," Amit said.

"Yes, you retire the horse with a broken leg. We know that 'doping' athletes and 'match fixing' cricketers vanish. I agree with you about selling investment properties in Pune. And, not investing in the recently launched projects at the irrational property prices. But, Amit, tell me - What are you going to do? - Where my NRI investor readers should invest?," i asked.

"I am going to invest in USA! I am going to get a loan at 4 per cent and invest in a 150 Thousand Dollar Property - around 77 lakhs rupees - which will give me rental income of around 60,000 rupees - 1150 US Dollars - per month! Can i get that much income from your 77 lakh 3 BHK Flat in Wakad or Kharadi in Pune? If not - then - why should i remain invested in Pune real estate market?," Amit said.

"You know? Amit you sound like Bhushan, my cousin in Sydney Australia. He says - Ravi, you write about Pune real estate market but invest in Sydney!," i said.

"Follow his advice! In fact, every Punekar who has a relative or a friend - should sell his investment properties in Pune and invest in US or in any developed economy!," Amit said.

Dear NRI readers, you always comment about getting better property in your country at the same price builders in Pune demand.

Now, please, share your comments on Amit's views! Is it the right time to sell your properties in Pune and invest in US or in your city in Europe and Australia?

I don't know whether investing in US is more profitable or not. But, i know well that this is the right time to sell your investment properties in Pune.

Dear, NRI readers, please, keep in mind that Pune property buyers are ready to buy your property in the known areas of Pune - than going for the under construction projects - in odd locations or - in the fringe villages - which will be delayed in the uncertain economical and political 2012 - 13!

Related Stories:


1) WEDNESDAY, AUGUST 17, 2011

Buy a ready possession flat until there is no real estate regulator!

2) FRIDAY, AUGUST 19, 2011

Why do we borrow at high interest rates and offer interest free funds to builders?

3) MONDAY, AUGUST 29, 2011

An Agreement to be a Slave of a Builder

4) FRIDAY, SEPTEMBER 9, 2011

High Property Prices - Why does Government give a free hand?

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50 comments:

  1. Right time to sell...its too much boiled tea...better to drink it before it becomes sour.
    I visited the property exhibition..On many stalls sales persons asked me are you looking for investment?.. I guess no one buying here to really use the property apart from me.... Exhibition location was good but as mentioned there were no 300 projects neither projects were of all ranges...many big builders captured bigger halls and were waiting for investors...

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  2. Sorry, I don't agree. The reasons why NRI's invest in properties in India differ from person to person but the most common reason is the 'uncertainty in residential status' or the possibility of returning (not necessarily by choice). In such a case the 'investment' acts just like the strong net does for circus artists who do stunts, 'agar gir gaye toh!' yeh soch ke invest karna padta hai. It is easier to keep money aside for an investment in India while earning dollars or dirhams than to do so while earning in Indian Rupees. For 'well-settled NRI's' (whatever that means!)like the one you met, its a different ball game! and the question is, how many such people are there? Also keep in mind, that the maintainence of a $150K property in United States is also high since it comes with all possible amenities. Logo ko sirf idhar kamaye hue dollar dikhte hai par sara kharcha bhi dollar main karna padta hai yeh samajta nahi hai.

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  3. I disagree with Amit. There are huge costs of maintaining a house in US. It can sometimes become a liability. And real estate in US is not an investment anymore for a budget like Amit's.

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  4. I disagree, it all depends on how you are buying the property i.e. cash or loan. If you are buying with cash then the price fall does not matter. it's a vicious circle, people stop buying the rent goes up, when the rent goes up, the interest rates fall, when interest rates fall renters realize they can affor a house in the rent they are paying and the sales go up.

    Bottom line is if you are buying in Pune with cash, then you are building long term equity and you get decent rental income (which will go up in years to come). If you are taking loan to buy investment property then you should not.

    In India we have no other investment option then buying property and gold. So if you have cash then buy property. Remember the market will recover faster in India compared to US. 150 K property in US will be like buying a house in a tier 3 city. No good property in good school district is available in 150K in US

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  5. I agree with Amit. It's worth buying a property here in US for the price that builders in Pune now quote for a non-spacious 2BHK and 3BHK flats-- the walls of which cracks up after 4-5 years, paint peels off, with no closets, no cabinets, no backyard and the price of which depreciates over the time in the long run.. However, having said that, there are lot of factors, that comes in before one can decide on buying a house in US.

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  6. 150k for house in US? where/which place?

    Minneapolis, Minnesota ? hows weather thre ?

    Rent Rs 66k - what abt Maintenance? property tax ? city tax? community taxes? Water/Electrictiy Bills? what abt NIL appriciation ? Selling headache?

    You need at least $250k for proper house at least prefer area.

    Just remember its india. People still buy petrol of Rs 76/- Is number of vehicles came down after such hike in prices? So just like petrol house is necessity.

    Again you should go with quality builder and underdevlope area like Kharadi , Wakad.

    Property ka rate to DIN BA DIN BADTA HI JAYEGA. Abhi to adha mumbai pune aana baki hai.

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  7. All above comments makes sense to me... I don't have any other specific area to emphasis but rather look at them altogether..
    If you know the method to solve such complex problems using all above true facts- "Fishbone" diagram might lead to a better conclusion...
    Pavan547

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  8. My view is applicable to only "peripheral areas of pune"

    As Ravi said people will still go for known builders and good locations such as KP, Aundh and pockets of other suburbs etc. but the peripheral areas (Its not Mumbai where u have a sea in one side restricting the space) certainly deserves profit booking because there is ample space available for new construction over there.

    Being said that I think most of big Pune Builders have piles of cash to hold the market in peripheral areas but how many individual buyers like u and me will have that capacity or any non IT salaried person who is already stretched in all directions from inflation.

    Common man is suffering here and its not too difficult to see when you connect with local people. When these many people are suffering that means something somewhere needs a correction.

    ReplyDelete
  9. Why buy a house on Loan??

    I have shortlisted a property in Kothrud which is 1000 sq.ft @ Rs. 6000 per sq.ft i'm paying Rs. 60,00,000 in all. Im going for a loan for 20 year term so 80% of it is Rs.48,00,000 and @ 11% the yearly interest come to Rs 3,54,540.48.

    To my surprise a 1000 sq. ft 2 BHK flat in Kothrud on rent is @ Rs.12K per month which yearly is Rs. 1,44,000/-.

    If I stay in a rented flat I save Rs.2,10,000 per year.

    So are the property prices in Pune going to crash down?

    Why are the rents not increasing when the property prices are increasing?

    May be my calculations are wrong, if no then I wonder what is going to happen with the property prices shooting up every day..!!

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  10. Just like sea is restricting the space in Mumbai, Pune has agricultural zone restricting further development. Pune is surrounded by Agricultural zone with only some land which is zoned as residential. Where one can't build anything. I know this because I have tried buying plots from various ads which claim they have N.A. status and are selling at high prices around Hinjewadi. Which are not actually Non Agricultural lands.
    Whereas Mumbai has MMRDA which allows development in all areas surrounding Mumbai. e.g there is development in Virar which is 85km from south Mumbai. Here in Pune even if one goes 10-15 km in the outskirts the prices fall a lot(because of the transport issues) Once the metro/local or any other viable transport system comes to pune which it might in next 5 yrs. The prices in the outskirts will shoot up. Even if the metro work starts the prices will go up.
    I am not advocating to buy in the outskirts. As current prices in the outskirts are already high but I don't see them coming down dramatically either. I agree with Ravi that it is a better bet to invest in the city or developed area. Or sell as he suggests.
    But the question remains that then what should one do with that money? Reinvesting in Pune real estate will be foolish and putting in FD is even worse.
    I have no idea about that option which Amit suggested of buying a place in US which many other disagreed with.

    I see a future in
    1. A ready possession flat,

    2. A flat in well developed urban area(prices may be high) but one can sell their current flat at profit and buy the with additional loan.

    3. just wait and watch till market collapses and "IF" the prices in Pune go down and in that small window try get a deal.
    I tried that 3rd option last time(2008-09) but I missed the boat in deciding(as I was more interested in buying the plot near hinjewadi and then found it was bogus i.e. didn't have residential status)
    So ended up buying a flat in baner area at similar price at the boom(as this time I went for a ready possession flat which cost me more but my mind was at peace)

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  11. Confusion hi confusion hai...my friends!! Ravi be a mentor to all our confused friends please..

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  12. I agree with the views. Sell the property in pune and but in smaller cities conencted to pune like solapur,talegaon etc.
    Pune will always be good for IT only and nothing else. We already have too many projects in progress and going on. Wonder all those people invested here will stay in these flats or rent out.
    People have already started changing views of renting a flat rather buying it.

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  13. This comment has been removed by the author.

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  14. Thanks for making such a cool post which is really very well written.

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  15. I don't agree with "va" about buying properties in smaller cities like solapur etc.
    If pune has "ONLY IT" as he claims, then these other smaller cities don't even have that. One will observe that many people from solapur are coming to Pune. Even people whose native place is solapur or such other small city, they are buying flats in pune instead of their hometown.

    Renting vs buying: I will say that people who can't afford at all are the ones who are not buying. Renting is a waste of money however cheaper it might be over buying. But in the long run property prices increase much more than any FD or interest rates(lets say in 5-10 years). and then one wishes he should have bought the flat when the prices were just over the budget.
    If you wish to buy a flat for yourself buy where it is affordable for your budget, and builder is reputable(and not the Brandname). Check out his previous sites. Also, check the whole package that he is offering for the entire price(including whatever other misc costs) vs the carpet area he is offering. Don't get fooled by the PSF rate. Which has no meaning if the "other costs" are exorbitant and Carpet to salable ratio is high.

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  16. Prices are very high right now.There are more then required flats are available for rent. that's why rent is not going up.agree with amit that something is wrong in market.

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  17. One of my subscriber has send this mail to me. I am not posting his name because i don't know whether he would like or not.

    Every NRI investor, i believe, should give serious consideration to his questions:

    This is fine in theory.. but what about the practical issues:
    1) Short Term/Long Term Capital Gains issues.... ( selling in India and reinvesting abroad)
    2) Transfer of funds abroad.
    3) Was the original investment made from NRE funds? if not, then can not take the money out of the country.
    There is more complications and procedural hurdles this way.

    In any case RBI is liberal for investments abroad. One need not be NRI. You and me can also invest abroad. That is what a lot of Indians did in Dubai few years ago, and now repenting as the market there crashed. Same for USA. Those who invested in houses between 2003 and 2007 are sitting on 50% loss. You will be lucky to get a $ 1150/- p.m. rent for a $ 150,000/- property. Pl let me know which State and City of USA Amit is referring to where this is possible.
    I am a game.

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  18. I am a koop manduk of pune and uk and dont know much abt US. but amit is right and sorry that he got his numbers wrong. selling in india and investing in eu/us is better option. thats what the investors do. invest in struggling economy and take a punt(not in a bankrupt economy). in uk you can still buy a good flat 2 bhk (non-london area) for less than 120K (and the prices are falling still). the real problem is to find a buy to let mortgage (with different rates) and around 40% deposit to get better rate. still worth a punt if you have 40% deposit and the rates comes down to 4-4.5%. the rental market is still on high as the first time buyers are unable to gather the deposit amount. rent will be say £550 excluding bills (bare minimum rate for here) which would be around 130-150% of monthly repayment. this money would cover house maintanence (less if you are a DIY specialist) and letting and management fee (if you want hassle free letting).
    then comes a point of capital appreciation.
    At the moment none and it is still falling but by very less points.
    I was thinking of buying a property in pune but felt the same like amit and dropped the idea.

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  19. All the above suggestions abt investing in US/EU are basically based on common thought that realty mkt there wud revive soon..or sometime in future, say in 5/10/15 yrs..
    where as we all know for sure India is growing/developing next 30 yrs

    dont you think putting money in gone glory is lil risky ??

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  20. See what Mr. Dubai says in his email about investing in Pune real estate market:

    Dear Ravi,
    I am an NRI living in Dubai. I had even spoken with you over the phone couple of months back. I always keenly follow your blog. Aso. I echo the same sentiment as that of Amit Parnerkar.

    The current property prices in Dubai are too tempting as an investor as compared to Pune. For roughly Rs. 80 lakhs you can get top quality 2 - 3 BHK apartment in Dubai with construction quality two jumps ahead of Pune.

    Add to it the world class infrastructure including Metro at your doorstep, 24 hour water supply, uninterrupted power, roads as smooth as cheeks of your favourite actress and most importantly rental yield of around 6% - 8%, I would prefer to invest in Dubai. Plus Dubai investments are 100% Tax Free, so no taxation problems.

    Although, I am "Haadacha Punekar" born and brought up in Shukrawar Peth, I feel the real estate bubble in Pune will implode. You have to come straight out of "Yerwada Mental Asylum" to be an investor in Pune real estate.

    I always feel that poor reality investors in Pune are like the sheep who are merrily dancing their way to the slaughterhouses of the salivating butchers (sorry builders) :-).

    I am deeply pained to see that our politicians haven't invested a dime in the crippling infrastructure of our once paradisal pune.

    Jai Hind, Jai Maharashtra

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  21. India and China are like young dynamic youths while Europe and America are now like old men who will now be dependant on these young turks.
    GDP growth if at all in Europe and US is between 1-2%. Middle East? Are you nuts? its right now the most potentially unstable and combustible area in the world due to the arab spring. It can veer towards anarchy anytime.
    As long as there is commercial activity to support housing, rental income and capital appreciation will be there in india.
    But one must weigh all pros and cons before deciding to buy property. Rental is the best option. Indians are conservative and so owning a house is a big emotional pull. But India is the palce to be in the next century even with all its problems of infrastructure and pollution and corruption.
    Idhar kuch ho raha hai. Activity hai.
    Europe aur america are run by China indirectly due to vast majority of goods being supplied by Chinese Companies. If China sells all US treasury bonds that it owns due to the trade deficit, america will be finished economicaly. The superiority of US in technology and research will also not last long.
    Before the industrial revolution, 50% of world GDP was contributed by india and china.
    Its going to happen again.
    Jai hind!!!!!!!

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  22. I m not too much satisfied from this post.why NRI people do investment here.Achitects Worcester

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  23. Ravi plz tell us what is your point of view. Don't just repost emails. We would love to know what you think.

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  24. Dear PoloKid, i have already posted my views in the blog:

    I don't know whether investing in US is more profitable or not. But, i know well that this is the right time to sell your investment properties in Pune.

    Dear, NRI readers, please, keep in mind that Pune property buyers are ready to buy your property in the known areas of Pune - than going for the under construction projects - in odd locations or - in the fringe villages - which will be delayed in the uncertain economical and political 2012 - 13!

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  25. Thats a bold statement Ravi but I understand the sentiments. but I would warn the NRI investors of repatriating the money (which I have no clue about) please dont do it in any sort of illegal way (I know... thats how our indian brain works first).
    and also beware that the exchange rates are too high at the moment so the repatriation value will be way too less than you would have expected it a year ago.
    I know i am hitting the wrong post but why there is no ombudsman to challenge, bringforth the culprits who does the price fixing in the RE (we all know its happening but no one to challenge). Ravi if this is violating your policies please remove as I dont want to get you in (more) trouble :)

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  26. INDIA
    - Any time is a good time to invest in real estate in Pune
    - No matter, how polluted it becomes, how corrupt the system is, people will still live there and do business
    - Even if people clear the outstanding loan, the first thing that comes to their mind is: Lets buy another flat or a plot
    - Even people from smaller towns "AIM" to own a flat/house in metro cities like Pune
    - If you can buy a property by paying 50 to 60% of the value upfront, then go ahead
    - Renting the flat will give poor returns, especially in subarbs, but one can a get a decent office space of 300 to 500 sq ft even in Deccan at approx 50 to 60 Lakh, whcih will fetch rental income of 30000 Rs. And, for prime locations, resale is not an issue
    - Conclusion: buy in Prime locations, good for rental income and good for resale.

    In EUROPE
    - E.g. in Belgium/ Holland/ Germany, almost 15% to 21%of the property value goes for registration/taxes etc
    - Re-sale is not that easy, compared to Pune/Mumbai
    - Residential status issues might be a problem
    - Although good rental income, appreciation is absolute bullSH**

    Rahul (I live in Europe)

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  27. Dear Rahul, spot on about investing in office spaces. In fact, you have inspired me find out whether - reinvesting in commercial property in Pune could be an option for those who en-cash their residential properties in Pune!

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  28. some of the readers here claim that property in US has maintenance cost etc. etc. but isn't it true for india ?

    In addition to that construction quality of houses in US is much much superior compare to india...
    Recently my friend who is a NRI bought a 1 crore 3BHK apartment in Paranjape Schemes at race course road, pune. After 1 month of use couple of tiles of kitchen wall fall down...
    if this is the case after 1 month what can we expect after a year or so...

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  29. Ravi...I have read some of the blogs...and see that you highly discourage people from buying under construction project... lets not consider NRI here but if someone wants to work in pune for next 20 years...then what should one do? buy a flat/place...right? resale property might be a good option but all wont like it...do you always buy second hand cars?...and property rates might go up or they might come down...no one knows...but...people will continue to buy here...these kind of risks would always be there....in all sort of decisions/deals in life...

    I agree to MR.Rahul...for what he said in first part...

    @ All: In soem of the Blogs Ravi has advised about buying in perticular projects...and yes..I also see advertisements flashing accross his blogs...so be aware...this guy must be earning money from same builders for advertisements...

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  30. Folks, the key thing that comes out from this entire debate - most people are looking for "QUICK" gains. That is not how the realty investment game is played. If you want quick returns, invest in futures & options. If you are lucky, you will make money in a few months! (Yes, LUCK is needed- don't be fooled by any other argument about skill in the stock market!).

    But for realty investments, keep a horizon of at least 10 years.

    How many people on this forum, including Mr. Ravi Karandikar believe that the Pune (and Indian) realty market will stay depressed over 10 to 15 years?!! I don't see any hands going up!

    Yes, it will stay depressed over the next year or two. But surely you guys are not expecting to get handsome returns on realty investment in that period, right? Stay invested, and your realty investments will give a handsome return over 10 to 15 years. That is absolutely going to happen.

    Pay heed to Ravi. Only buy a GOOD project from a GOOD, COMMITTED builder. You need a builder who does not merely do one transaction with you. That builder has to be around for next few years as the project develops & creates value around its surroundings.

    And buy ONLY a COMPLETED flat. A lot of people think they don't get a flat/view of their "choice" if they don't book early. But that is a false option. Like Ravi says, don't "finance" the builder with your money!

    Buy a flat which is ready, which has the COMPLETION certificate from PMC. And don't buy out of PMC limits. Don't believe the builders tall tales about how that fringe village will merge in the PMC soon. There are no such plans, because the PMC has yet to complete the DP of the last merger done nearly 10 years ago! So the 1st priority PMC will give is to complete & execute the DP of those merged areas first.

    So in fact, the message is contrary to what you guys may think: don't save a few lakhs now and invest in the "booking" property, or in a "Fringe" village property. Spend more money, and buy a GOOD COMPLETED flat in the PMC limits.

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  31. The average real return for houses over long time periods might surprise you. It’s zero. Shares return 7% a year AFTER ADJUSTING FOR INFLATION(which is BIG) because that’s how fast companies tend to increase their profits.

    * In real estate you need to DEAL, not invest.*
    Big builders, lenders make money – there is no retail product which makes money
    Can someone please use an excel statement and SHOW GOOD returns in real estate returns over 30 years? compare with stock market and check who is the winner

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  32. Continued..

    though I am certainly agree with Amit except one point where he said that "Those who call you to ask about buying are poor fellows who have missed the bus and are repenting for not investing before 2007!,"
    I differ you on this point.

    It is easy to have a sense of regret…"Oh, only if my father had bought one more flat…" It was available for Rs. 2 lakhs, now it is Rs. 80 lakhs….."
    My take is if people must feel regret about he/she or his/her dad not buying something it should be equity shares. His or her regret should be…"If my dad had just invested Rs. 10,000 (forget Rs. 200,000 maybe he did not have it in 1980) in Wipro (it would have appreciated to Rs. 300 crores), Ranbaxy, Cipla, Larsen And Toubro, Infosys (1992 listing), Sensex, .literally anything..it would have been worth at least about Rs. 2 crores – apart from the dividend with which one could have paid rent…

    thanks!

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  33. @amolow..

    Good points, but just one question: If TODAY you have 50 lakh spare cash that you have to invest, and if you have to invest ONLY in one of the options A) Real Estate B) Equity, which one will you choose?

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  34. Dear 13608d2a-1c62-11e1-b24a-000bcdcb5194,

    1) 1st thing 1st. I love your name!

    2) Yes, I discourage people from buying under construction project. Because, that's the root of all problems and suffering.

    3) Yes, I have advised about buying a particular projects. Total number is not more than 6 projects in the last 4 years. I have given my reasoning for it. Which were based on certain principals i believe in. Not because, i was paid for it.

    4) I earn from Google Adsense. I don't take direct ads from the builders. Which would have given me assured and lot more income.

    I used to blog ads in this blog. But, now, I have stopped. Mainly for the same misunderstanding it creates in minds of the people like you.

    Now, i have a separate blog where i cut paste Pune property ads. I do that because that's the only official communication from the builder about his project. Which is under scrutiny for the claims it makes.

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  35. Rahul,

    thanks for appreciation. The question you have asked that if someone has 50 lacs and he has two option like real estate or equity where it should be invested DOES NOT have one line answer. 50 lacs is BIG amount and I won't say put whole of it into real estate or stocks. You have to also answer couple of question like what is the duration for which u want to invest ? a financial adviser will check your existing financial position to guide you about ASSET ALLOCATION.
    Equity is always good for long term. Long term is always more than 10 years(at least 7). Real estate is not bad but at the same time it's not the only asset class where people are running for.
    I still insist that you should have real estate in your portfolio – but stop thinking of it as growth assets. They are not. They are Savings assets. You will see some steady appreciation – or a spike – but on a 10-15 year rolling basis you would have got about 1-2 % of "REAL" return. WHEN I SAY REAL RETURN IT'S RETURN ADJUSTED FOR INFLATION...IN INDIA LAST 30 YEAR AVG. INFLATION IS 8%
    Whowever thinks he / she has got good returns in real estate over say 30 years, please put it in an excel sheet..and see the IRR – very likely that you will get a number like 7 or 8% per annum. Not very impressive, no?

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  36. The article is really informative and useful.

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  37. very useful & applicable :) Wishing you the best of luck!

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  38. This comment has been removed by the author.

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  39. Great. Was thinking of buying a 2BHK for investment in Pune. Dropped the idea now. Thanks Ravi for saving my hard earned money.

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  40. Hello, your blog is full of interesting information. Thanks

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  41. what a great web blog. I usually spend hours on the net reading blogs on various subjects. And, I think its a fabulous article. I honestly believe there is a skill to writing articles that only very few posses. This is really informative and I will for sure refer my friends the same. Thanks.
    regards
    USA investment property

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  42. People are finding Real Estate more profitable and secure area to Invest..even NRI s also investing in India.Thanks for sharing it.
    Builders in Bhopal

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  43. Your blog is very useful and helpful for me. I have got complete knowledge about this field.

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  44. Thank to share.It feels nice to read you blog throughly...

    Regards:
    Shubhankar Durva.
    Visit at http://www.durvaa.co.in

    ReplyDelete
  45. Thank to share.It feels nice to read you blog throughly...

    Regards:
    Shubhankar Durva.
    Visit at http://www.durvaa.co.in

    ReplyDelete