Given the depressive economic atmosphere a lot of people are in quandary of whether this is the right time to invest in property. Even a few months back, investing in real estate was a no brainer – no other investment, be it in mutual funds or in gold promised the kind of returns that a property in an upcoming location did.
With the dramatic fall of the rupee against the dollar, foreign investors packing up their bags, and the country’s temporary exit from the trillion dollars club – the situation on the face of it looks precarious.
However, these are but aberrations that have taken place purely due to some unbelievably poor policies enacted by the ruling party. Of course, had the 100% FDI in retail bill been passed as every real estate company in the India was hoping, things could have been dramatically different. But even then the conventional wisdom still holds true – no other investment has given their owners the kind of bang for the buck that real of estate has and has continued to do so for decades – irrespective of the economic market.
To help you out, we spoke to the experts and have come up five excellent tips to help you make the right investment:
For NRIs who are thinking about taking advantage of the current slowdown of the economy and the falling value of the rupee, our advice is to not play the currency fluctuation game. The Indian property market continues to offer excellent returns on investment and those who invest in it with a medium to long term horizon would reap the rewards. India’s growth story is intact and the present scenario would change in as less as four months as we approach the general elections.
For Indian citizens planning to purchase property for purely investment purposes can take the unconventional route and make a bee-line for a sleepy tier-2 or tier-3 city and associate with a new real estate companies with strong market credentials. Not only will you get an excellent deal but would enjoy healthy returns five to ten years down the line, when the city comes into its own. Rewrite your personal Gurgaon story, we say.
Avoid buying properties through a direct down payment plan. While discounts offered on direct down payments look very lucrative, real estate projects especially those undertaken by small time builders can drag on and take a lot of time to complete.
Have realistic expectations on the returns. It may take a good five years to get the kind of returns the property market was offering in the last decade.
Historically, associating with big names in the real estate market has proved to be beneficial in the past. Often their name alone commands a premium and if you have the budget, then we’d advice you to stick to the biggies.