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  • Category: Miscellaneous

    How long real estate boom will exist in India?

    Once in the past the real estate investments and business considered as a safe haven for investments and returns but it is not so in the present days, what could be the reason?

    Now in metro cities it is a dream to have a piece of land to get a peace of mind, prices of land have been sky rocketed.

    People from middle class have reached a stage where they cannot even dream of having a piece of land in the city or around the place where they live.

    Being from Bangalore none have imagined investments on land would bring up such a huge return in the later part, those who have invested on land in thousands or lakhs around 20 years back become crorepatis now, it is read that no land is available in and around 25-35 kms around Bangalore now.

    Share your thoughts about real investment boom in your respective places.
  • #573401
    What I presume that the golden period of real estate was between 1980 and 1990. Those who have purchased a piece of land for a paltry amount has now reaped crore of rupees. In Hyderabad most of the rich and affluent people are those who have purchased land and building during those period and now they are reaping the profit through rents and appreciation of the land and property value. Land always brings in fortune and never ever it will let down. But in these days thinking of food itself has become challenging and owning the property has become a distant dream.
    K Mohan
    I consider myself as the learner everyday

  • #573407
    Let us encourage each other in sharing knowledge.

  • #573409
    There are many classes of the investors in real estate. The primary investors are those who remain in touch with the regulatory authorities and indirectly even the master plans are drafted in consultation with them. They foresee even up to 25 years in advance and share the profit booty with the politicians, bureaucrats, and others who matters and facilitate the acquisition of land at the price of dirt and sell it at phenomenal rates later.
    The secondary investors are those who buy the land in the initial stages at comparatively much cheaper rates developed by the primary investors. The secondary buyers are also generally investors only and don't require the property for their own use. The general buyers belong to the tertiary class who pay through their nose by taking home loans etc. from the banks to contribute to the profit margin of the secondary investors.
    The ratio of cost may be hundreds or even thousands of times more in the case of tertiary buyers compared to the primary buyers.

    Let us encourage each other in sharing knowledge.

  • #573494
    I am living in Guntur currently. After the division of Telangana and Andhra Pradesh, Guntur is claimed to be the capital of the newly formed Andhra Pradesh state. So, the prices of lands, houses etc,. rose to an extreme. Our house owner increased the rent by Rs. 2000. Opposite to our apartment, a new apartment is constructed in which each 3 bedroom flat is sold for Rs. 1 crore. I understood one thing then. It is better to own a land as its value is less likely to decrease.

    Let us continue learning.

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