40 lk to invest in property but where?

[jeetcp]

I would say somewhere on Yamuna expressway or GN side because that is near to you but that whole are looks more of a promise and less delivery to me. Location is good but there are too much speculation and current price does not justify.

2 Areas that I know which are 1) totally risk free 2) Ready to move and rent out tomorrow itself 3) Litigation and legal issues free 4) Cheaper then rest of Noida/Ghaziabad etc. 5) Justify the current price are:
A) Crossings republic
b) Raj Nagar Extn.

At both places, Good thing is that you can get registry done next day, and rent out ASAP. Prices for RTM Flats hover around Rs 3100-3600 PerSQfeet(ALL Inclusive). Mind it, this is not BSP, it is All inclusive.

These places specially Crossings is undervalued for what it offers as of Date. Visit the area once and you will know. PM me if you have questions.

Actually i put up at Mayur vihar-3,so anything near noida, gaziabad will be preferable but safer in terms of investment..
i was looing for chandigarh also because few relatives of mine stays there,who can help in looking and taking care of the property in our absence
but chandigarh would be last option will prefer near by......
any advice/help regarding this sir

 

[Big Daddy]

any ways what would be your advice for investment then sir.....[/SIZE][/FONT]

I would not ignore real-estate but only invest there via REITs. Unfortunately, that option is not available. I own a house where I live but as I said I am not a fan of real-estate unless it is REIT.

Once you own a house, it also restricts your career options. You will prefer to find jobs close to your home to avoid moving and probably work for less than what you can earn by moving elsewhere. Also, if you take mortgage on real-estate loan, you pay interest on it so technically a 30 lakh house may cost you 35 lakhs in 10 years and if you sell it for 45 lakhs then you don't really make a 50% profit but less (you have to add interest, property taxes paid over 10 years, insurance expenses etc. to 30 lakh and then adjust it for inflation). Don't listen to the chatter because you really have to workout the math yourself and each property, loan terms, location etc. will result in different results. For rental income, you will have to consider tax paid on rental income in your math. In some cases complications may arise when rental income puts you in higher tax bracket. You can read this article for some insights : The Great Real Estate Myth.

Also, don't read too much into people telling you that you can sell your property in 10 years and get 100% returns. This example is total nonsense because if you are living in a house and sell it to make 100% return then you also have to live somewhere else. This means that you end up buying another home at much higher price giving its seller a 100% returns over 10 years. In this sell high- buy high scenerio how much money remains in your hand? Probably not too much. When real-estate prices go up they go up for all homes so why would you sell one home and buy another? All these gains are really theoretical gains unless you can sell your home that you are living in and then live under a tree for the rest of your life.

For a winning real gain only your home price should go up and home price for everyone else in the neighborhood remain unchanged. Only then you can sell your home and move to a less expensive home and keep profits to yourself. This scenario will never happen though. So once you buy a home, selling it is an option that rarely gets exercised.

REITs are stocks that pay dividends (rent) and can be bought and sold with ease. When you compare real-estate as REITs with other stocks then you realize that real-estate is an OK investment. The advantage of REITs is high dividend payout with downside of high volatility. For the most part, REITs serve as diversification and income asset. Corporate stocks kick butt of REITs over time because corporations have flexibility in scaling its operations/workforce to maximize profits. REITs are highly dependent on rent and occupancies and do not have a lot of flexibility to improve profits.

 

[jeetcp]

Neuton's 7th Law: When you Buy RE for Investment, it appreciates very slow. But when you buy for self use and do not want to sell it, it usually appreciate very good. Irony.

 

[ANURAG NEGI]

I would say somewhere on Yamuna expressway or GN side because that is near to you but that whole are looks more of a promise and less delivery to me. Location is good but there are too much speculation and current price does not justify.

2 Areas that I know which are 1) totally risk free 2) Ready to move and rent out tomorrow itself 3) Litigation and legal issues free 4) Cheaper then rest of Noida/Ghaziabad etc. 5) Justify the current price are:
A) Crossings republic
b) Raj Nagar Extn.

At both places, Good thing is that you can get registry done next day, and rent out ASAP. Prices for RTM Flats hover around Rs 3100-3600 PerSQfeet(ALL Inclusive). Mind it, this is not BSP, it is All inclusive.

These places specially Crossings is undervalued for what it offers as of Date. Visit the area once and you will know. PM me if you have questions.

where is republic crossing????
i know rajnagar ext.and seen few projects superficially

 

[Big Daddy]

You may also look at this: Investing in 2013 ? Gold or Real Estate or Equities ??

And this one: http://www.jagoinvestor.com/2009/12/returns-of-real-estate-in-india.html

Video from previous URL (http://www.youtube.com/v/iIaEXxdLpnI&hl=en&fs=1&amp)

I think stocks appear risky because they are highly liquid (frequent buying and selling) and real-estate appears stable because lacks liquidity (less frequent buying and selling). In reality, most serious investors will always prefer higher stock allocation than real-estate. BTW S&P 500 index has returned approximately 16% in less than five months! I love stocks- REITs or corporates-- it is hassle free returns.

http://indianwallstreet.wordpress.com/2012/12/30/risk-and-volatility-stocks-vs-real-estate/

- - - Updated - - -

Here is a proof that real-estate is for suckers! A stock returning 10% per year is equal to buying a home and selling it 10 years later at 13.6% per year appreciation. Longer you hold stocks more inferior real-estate becomes. The problem is that most people don't realize that stock gains get reinvested every year and you get interest on interest; and most people don't understand math that well.

 

[ToughGuy]

I would also suggest you to invest in Greater Noida, you can consider any end of the said location based on your preferences. Greater Noida will be consider as most sought after destination in coming years due to it's planning, Job opportunity and connectivity with nearby places.

 

[turbohead]

Anurag I can offer some good projects and help you in safely investing in various real estate projects, which can offer you very good returns in Delhi/NCR.
However same would be considered as business and will be against forum rules, you may contact me via PM, if interested.

 

[ToughGuy]

If you require I too can PM you details of couple of projects in which I have invested in Greater Noida.

 

[zack2137]

Anurag I can offer some good projects and help you in safely investing in various real estate projects, which can offer you very good returns in Delhi/NCR.
However same would be considered as business and will be against forum rules, you may contact me via PM, if interested.

If you require I too can PM you details of couple of projects in which I have invested in Greater Noida.

As long as it is in line with the thread's subject and it doesn't involves a financial gain for you directly, I don't think it should be against forum rules. Rest, you may post it subject to mod's deletion, if found out of place!

- My 2 cents

And also, the reason being visiting this thread .. TG, Turbohead, Jeet, Any idea how is Indirapuram as a residential locality? I visited it once and found the area pretty nice and active. What is the average price there? (for purchase)

 

[ToughGuy]

And also, the reason being visiting this thread .. TG, Turbohead, Jeet, Any idea how is Indirapuram as a residential locality? I visited it once and found the area pretty nice and active. What is the average price there? (for purchase)

Nowadays I am not following IP market closely but I am sure you will get UC property upwards of 5500psf. A year back It was in range of 4500-5000psf but pace will slow down with inventories piling up in nearby areas.

If your time horizon is 4-5 years I suggest you to invest in NE property for better returns, even though there is a risk of delay but still worth in current situation. With 7-10 years of time frame you can select Yamuna Expressway for Plot (25-30K psy) and flat (2500-3000 psf) investments in respective order, reputed builders like Jaypee, ATS, Gaur, Oris are having township projects there.