bullboy

Has Indian property (Land) saturated or is there still space for growth. As an investor I am thinking cash in the bank, to be a better investment in the medium term, as returns on land are negligable compared to the interest element. Even 2nd or 3rd tier cities like, Visakhapatnam, Mysore, Coimbatore, Madurai, Kozhikode, Belgam amd Mangalore seem to be so expensive.

Sansei

RE has never been a good investment on basis of returns.

Except the jump these last three yrs basically on appreciation.

Stocks r the best in long term basis with some discipline.

FD's will be most attractive in Medium turn as rates r likely to go up in med term .

arin_12

I will suggest to go for a saving mode rather spending.

wiseman

Today's world is vastly different from my father's younger days. In those days opportunity to spend were few and earnings was less. Loans could not generally be had easily. So, they had to budget carefully and save as much as possible. Despite this (or maybe because of this), people were happier those days!!! They had more time for relationships and other people!!!

Today, by 20th of the month itself people start hitting the credit card(s). And money has become the sole aim in life for many people!

So, large assets take on a different meaning today. They force discipline and force people to save! You will notice that, when people take on home EMIs, they no longer splurge easily and they take their jobs much more seriously!

If RE gives us only 12% returns annually, and there are other ways to earn better returns, how many of us who are living on rent have equivalent cash savings of say 50L compared to people who are sitting on homes with that kind of value?

So, arak has a point. RE forces us to save and one day, it may save our lives! But it is important at what price and affordability one must buy. If you buy RE at high levels and at unaffordable prices, instead of it becoming a savior and a joy, it will only seem to be a curse!

I will give you a real-life example. Back in 1910 a rich man borrowed Rs.6000 from another rich man (in those days it was quite a fortune). When repayment time came, he could return only part of it. The difference was Rs.4000. So he offered to settle it by giving away a rather large plot of land (acres). The lender did not really want to buy, since he lived in Broadway (which was more central Chennai), but since this was the only way to recove rthe money, he took it and built a house and moved in. Land was sold then at 10 pice per SFt. Today (after 98 years), that land is 10-12000 per SFt. And people who had nothing to do with that decision are raking in the moolah!

Sometimes being forced to save is a good thing! Your descendants may praise you for it and hang a potrait of yours in their living room!!!

cheers

Sansei

Thats an enforced discipline.

But there r many avenues now to get that enforced discipline.

The new tax code has set the pigeons in Tax saving thro, house camp.

Expect them to dump those extra houses in the mkt and start looking for other avenues. After all 3lks is the limit with out house adage

panther

You haven't answered his question though Property or Cash?