I have some savings pooled in and also access to some good loan options. Which city/town can provide the maximum appreciation on real estate capital in the coming years?
Isn’t the Real Estate market basically a black market with actual prices way above the legal prices? It basically means converting your clean money into black money if you want to get profit. Please correct me if I am wrong.
So according to you, real estate is not an asset ?
Of course not, real estate is an asset, but it might not be the best instrument for investment unless you are ready for a very long term commitment, then I can see it being profitable. Just my opinion.
Its like buying Nifty 50000 CE (Dec 2042) series today.
I know that’s a flawed analogy.
This will end ITM
If you were to sell this what would you charge as premium?
It also means making good use of undisclosed income. Also look around you how many people have become rich by investing in real estate vs stock market. Obviously stock market is more sophistacated product but at same time it’s suited for very less people.
If it was available, I’d buy it.
If you already have black money then it’s not a problem. Obviously I was referring to profit within the bounds of the white market where everything is accounted for.
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Real estate is too over bought. But I would encourage the general populace to actively buy real estate because they move the bank nifty paying interests and we investors/traders/ hedge funds/ corporations/pension fund make money. The blatant truth IMO
Frankly it’s too much of hassle. The time frames are way longer with insane risks . Unless you are big baron , ganster type or someone in politics whom the locos fear you dont go into real estate. It’s not a problem if you live in the house you bought.
Dad bought flat for 5 lakhs in chennai posh area with railway station 150m with all market place nearby in 2000. 2022 price is around 20 lakhs to 25 at max but since building is damaged and depreciated not much of buyer and it’s empty mostly. This is the story or gonna be story of many flats.
Dad bought a land in banglore 4kms away krishnajapuram station. It’s a great area. 1990 price was 10 lakhs or so I think. (Used most of his PF from his govt job) I don’t remember but its stuck in court litigation and returns aren’t great too. Around 40 to 50 lakhs now In value.
Overall my dad is pretty broke due to above decisions and post retirement lives in my rented house because they can’t live in his trashy flat of his so called own place. And we had to live a very middle class life because he had to pay EMI’s , I was saying them if they only held onto nifty 50 index they would have gotten way better returns than real estate till date and better life even though living in rented house.
Choice is yours
Exactly. Might as well become a medieval Daimyo buying all those Rice Farms and start digging ditches by hand lol. I will not listen to him. When its rice age, stock rice, When its ice age, stock ice. When it’s Value and Equity age, hmmm. Unless… He wasn’t talking about Real Estate at all. But I Put on anyway so …
@DividendCollector there is a graph in zerodha varsity in the personal finance section which shows HNI’s portfolio. They only have 28% of real estate and 68% of stocks and bonds with just 4% of gold.
There is one way real estate absolutely works. It’s the safest and most straightforward way. You can buy a land and construct a big hotel and let it out to treebo or Oyo or any new hotel bussiness. This absolutely works fantastic. I think this the right way HNI’s approach the real estate. It gives consistent cash flow. If you have fully paid your land and the infrastructure to support the entire operation provided it’s a posh area near by railway station where travellers can easily find your hotel then it’s no problem. (If you have that much cash bro you are probably min 2 cr worth)
If you do above with debt , well life will be pretty hard. There are so many many people that defaulted during pandemic especially hospitality sector was smashed. There was a craze here too prior to 2019 where most of the NRI’s bought lands for Oyo all in debt. After 2020 that has completely changed.