Real estate news on Expert tips for real estate investment in India

Investors/ Investment proposal, Real Estate services, Investment Opportunitie in India
Posted on Aug 18, 2016
A real estate investment is generally one of the largest investments for most of us, a wrong decision can have a significant impact on our lives. Hence, it is extremely important to try and understand some underlying fundamentals of real estate investing.

First things, first. Why do you want to buy real estate. Are you buying a home where you can live or are you investing for future returns and have no plans of staying at the place you are buying.

Now if you are buying a home to stay, this article ends just here for all practical purposes. You can't put a price to the joy of owning an own house, you never try justifying their price vis-a-vis the features !! An “own house” is not an investment , its a feeling. Now if you are not a part of the “its a feeling” gang, the rest of the article is for you.

Common belief: Real estate always provides you great returns. Real estate price movements across different cities in the last 8 years (National Housing Bank RESIDEX tracks the movement in prices of residential properties on a quarterly basis. This is being done since 2007). The average annual returns across 26 cities being under 8% yearly.

Magicbricks National Property Index which again confirms the subdued returns from real estate in the last few years.

Real estate price crashes are pretty common across the world – Japan in 1990, US in 2007 etc. As seen in the above article even Indian real estate saw a sharp price decline during the 1996-2002 period.

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