Announcement

Collapse
No announcement yet.

Is it a Good Time to invest in Chennai Real Estate?

Collapse
X
Collapse

Is it a Good Time to invest in Chennai Real Estate?

Last updated: 1 week ago
34 | Posts
5641 | Views
  • Time
  • Show
Clear All
new posts

  • Is it a Good Time to invest in Chennai Real Estate?

    Dear Friends,
    Me and my wife are working for an Indian IT company and we are returning back to India next month as my wife is Pregnant. We are planning to be in Chennai for another 3 to 4 years for Child Birth and Parenting. We have about Rs. 1.1 crore (Mostly in Short Term FD). Please suggest us if it is better to invest in Chennai RE now or wait for some more time. Also let me know any better suggestions for alternate investment. We are a bit conservative in Financial matters and we want to have a minimum risk.

    Thanks,
    Chennai Lover
  • #2

    #2

    Re : Is it a Good Time to invest in Chennai Real Estate?

    There is always a level of uncertainty in RE, but the dip cannot be more than 10-15%, as history tells us. It could more probably be an extended period of stagnation. One thing is for sure, you FD returns can never keep up with inflation or RE escalation, so RE is any day better than FD. With full cash, you should be able to ask for good discounts. If you'd still like to sit on the fence, I suggest shifting from FD to gold, which is equally secure, liquid and has given better returns.


    PS: In case you go for gold, buy parts in your, your wife's or someone else's name to avoid wealth tax.

    Comment

    • #3

      #3

      Re : Is it a Good Time to invest in Chennai Real Estate?

      Thanks

      Dear Murugesh,
      Thanks for your suggestion. I have kept the money in FD, as I was focussing more on my work and couldn't manage a portfolio on my own. I will explore the options of investing in Gold ETFs.

      Thanks,
      Chennailover

      Comment

      • #4

        #4

        Re : Is it a Good Time to invest in Chennai Real Estate?

        Just curious to know, how many years you to take to accumulate this amount ?...

        I'm also NRI for past 6 years and can't see more than 15 lacs in my bank account so far...


        Originally posted by Chennailover View Post
        Dear Murugesh,
        Thanks for your suggestion. I have kept the money in FD, as I was focussing more on my work and couldn't manage a portfolio on my own. I will explore the options of investing in Gold ETFs.

        Thanks,
        Chennailover

        Comment

        • #5

          #5

          Re : Is it a Good Time to invest in Chennai Real Estate?

          Exactly! Even I got the same question after reading chennailovers' post

          Originally posted by meetsridhar View Post
          Just curious to know, how many years you to take to accumulate this amount ?...

          I'm also NRI for past 6 years and can't see more than 15 lacs in my bank account so far...

          Comment

          • #6

            #6

            Re : Is it a Good Time to invest in Chennai Real Estate?

            I guess depends on what the occupation is and where(country and company) one works. Also depends on educational qualification and how much one progresses in a company. For eg, not all software engineers are equal. I've seen wide range of salaries(1x to 2x) at same level of experience and education. Then, imagine the range with varying educational levels and experience. Lot of people also get lucky with stock options and such.

            This has always baffled me too. In my pervious company, my colleague(whose profile, career progression and financial background is very similar to mine) had his net asset at least 4x as mine. He was very smart investor - tried lots of things, unlike me who just put it in his checking account let alone FDs(stupid move!). Good lesson to learn, at the end of the day, what matters is your net asset and not salary(though we tend to think higher salary equates to higher assets). It's not how much you earn, but how much you make from how much you earn.

            A software engineer working in US for 10 years can save 1.5-2Cr Rs(assuming just FD returns every year). I'm just basing my figure based on what I see - so just anecdotal evidence, so take this for what it's worth.

            Comment

            • #7

              #7

              Re : Is it a Good Time to invest in Chennai Real Estate?

              If you don't already own a house in Chennai , You can buy a decent independent house in Kottivakkam or Velcahery for 1.5C .It is a good bet in the long run. If you already own a house to live , then this is not the right time to enter into chennai RE .Keep the cash in FD for next 2 to 3 years until all the dust settles down .RE won't go anywhere in next 3 years .You can also convert 10% of your cash in to Phisical Gold .


              Originally posted by Chennailover View Post
              Dear Friends,
              Me and my wife are working for an Indian IT company and we are returning back to India next month as my wife is Pregnant. We are planning to be in Chennai for another 3 to 4 years for Child Birth and Parenting. We have about Rs. 1.1 crore (Mostly in Short Term FD). Please suggest us if it is better to invest in Chennai RE now or wait for some more time. Also let me know any better suggestions for alternate investment. We are a bit conservative in Financial matters and we want to have a minimum risk.

              Thanks,
              Chennai Lover

              Comment

              • #8

                #8

                Re : Is it a Good Time to invest in Chennai Real Estate?

                Originally posted by randomguy View Post
                A software engineer working in US for 10 years can save 1.5-2Cr Rs(assuming just FD returns every year). I'm just basing my figure based on what I see - so just anecdotal evidence, so take this for what it's worth.
                I know people in India who have not passed out of college, made more than what you quoted in half the time.

                India is developing country, becoming rich is much easier here.
                High risk, high returns.

                Comment

                • #9

                  #9

                  Re : Is it a Good Time to invest in Chennai Real Estate?

                  Yeah, absolutely. But I was just quoting an average as outliers are there everywhere.

                  Originally posted by k11 View Post
                  I know people in India who have not passed out of college, made more than what you quoted in half the time.

                  India is developing country, becoming rich is much easier here.
                  High risk, high returns.

                  Comment

                  • #10

                    #10

                    Re : Is it a Good Time to invest in Chennai Real Estate?

                    Originally posted by Chennailover View Post
                    Dear Friends,
                    Me and my wife are working for an Indian IT company and we are returning back to India next month as my wife is Pregnant. We are planning to be in Chennai for another 3 to 4 years for Child Birth and Parenting. We have about Rs. 1.1 crore (Mostly in Short Term FD). Please suggest us if it is better to invest in Chennai RE now or wait for some more time. Also let me know any better suggestions for alternate investment. We are a bit conservative in Financial matters and we want to have a minimum risk.

                    Thanks,
                    Chennai Lover
                    Agree with @Srinidhi's comments.

                    However I do not like Kottivakkam. It is a CRZ II area. Low FSI. Only for beach villas. Try not to go beyond Thiruvanmayur.

                    @ChennaiLover,

                    Since you would be spending lot of time in Chennai, look for a resale unit.
                    Invest 60-70L in RE purchase, keep rest in FD.
                    Use home loan for rest - because of tax savings, check up with your auditor.

                    You should look at a 3-bhk for around 1.5C in Besant Nagar/Adyar (if you like beach) or Egmore/Kilpauk/Mylapore/CBD for a 10-15 yr old building
                    or
                    Buy a small old 2-bhk in Velachery/Anna Nagar for 50-60L and also buy a small plot in extended suburb.

                    Comment

                    Have any questions or thoughts about this?
                    Working...
                    X