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  • Category: Miscellaneous

    Why do people think investing in real estate as real investment?

    I have seen many people who gauge others by seeing their properties which are visible. They won't consider a person as rich even if he has crores of rupees in shares or fixed deposits but does not have any real estate property outside. Why do people think investing in real estate as the real investment? Is it because they don't have any idea about other investments except investment in real estate?
  • #614035
    Real estate investment is the real investment why because the unmoveable property cannot be taken away or stolen by someone very easily. It remains in one place and its value increases. Whereas other investments are risky investments in this world filled with cheats and frauds. The gold may not be original. The chit fund company may be of cheaters. Stock market cannot be trusted and believed. Loan takers might not return it but threaten to face consequences.

    But in this present day, investing in real estate is not worth as there are no much takers. It remains as a dead property with good value in the books and records only.

    No life without Sun

  • #614196
    The amount that is invested in real estate business gets increased very fast. This is the real feeling of people and hence they think it is the best investment. Yes as opined by the author it is not a wise thinking. There are many businesses where your money will get doubled very easily. Of course, don't talk about the safety of the investment. Morning you give 900 rupees to a dabbawala and night you get 1000 rupees from him. around 11% increase in a day. That means you 1000 will become 2000 in ten days. Many people are doing this business in Hyderabad. But you should have the ability to recover the money every day. After demonetization, the real estate business is also not that well. It has not attained the old glory still. There are many other businesses like shares wherein you have good returns but the risk is there. These days even real estate business is also not that safe. There are double registration and dummy papers and wrong registrations are there.
    always confident

  • #614201
    The great Indian dream is incomplete if you do not have an house or a plot of vacant land in your name.The life of a married man is complete if he has some property to show that yes he has made it. In India traditionally bank fixed deposits, physical gold and land were the common tools of investment. Now we are gradually moving away from the traditional ones to shares, mutual funds and e gold.

    Real estate was very good ( good appreciation ) until the slow down hit many cities, currently its good if the location of the property is perfect in terms of amenities and future development. One has to be careful about squatters and the land mafia.
    Most of us do not have a formal financial planner or an impartial advise from such experts. We all follow what our father/brother did, what our friends do, or what the known bank employee or insurance agent says.Most of our investments are not balanced well, this along with our bias towards land makes real estate still popular.

  • #614205
    Bhuvan Bhai,
    Real estate investments are comparatively risk free. The value of your building is decreasing but UDS is appreciating. Here, catch is the UDS.
    So, check the UDS value before buying a house.
    For stock market investment, you need to use your brain and time.

  • #614210
    Investing in real estate property is always safe as well as it's value is increasing.
    Other investments like mutual funds,bonds,share market,etc are subject to market risks.
    Therefore everyone invests more in real estate property.

  • #614221
    Mr.Akshay, investing in real estate also has it's risks, fro example empty land has risks of losing it in legal hassles, risk of somebody else claiming it as theirs and people encroaching onto your property. Investing in apartments or builtup land is also exposed to the market sentiments. This is felt only when someone who is desperate for cash, and he tries to sell it.

  • #614230
    I do not consider investing in real estate as the real investment. We need some kind of liquid cash in our hand. If we have a lot of property and suddenly we are in need of money and we decided to sell off one plot. People will know our situation and will start to bargain. Investment in real estate is required but too much of anything does more harm than good.
    "Do not give up, things might not favour you always"

  • #614234
    I don't attach any importance on real-estate investment. The rate of return is not very high (contrary to our belief). Furthermore, the real-estate may not be very convenient for ordinary investors. The rules are different in different states and the criminal-politician nexus in real-estate is well-known. The investment experts also advise us against heavy investment in real-estate.
    Beware! I question everything and everybody.

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