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Investment Options: Gated Communities, Chennai

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Investment Options: Gated Communities, Chennai

Last updated: January 9 2018
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  • Investment Options: Gated Communities, Chennai

    Hello,
    Could anyone suggest me the opinion about investment in Chennai?

    Shall I buy Gated community home or land?

    Which is the best place for investment?

    Thanks in advance for your suggestion.
  • #2

    #2

    Re : Investment Options: Gated Communities, Chennai

    If you want decent response, you have to provide more information such as budget, preferred area (North, Outer South, GST, OMR, etc), type of property etc.

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    • #3

      #3

      Re : Investment Options: Gated Communities, Chennai

      Originally posted by nagabalan View Post
      Hello,
      Could anyone suggest me the opinion about investment in Chennai?

      Shall I buy Gated community home or land?

      Which is the best place for investment?

      Thanks in advance for your suggestion.
      Investment in chennai is good. Invest on land or a individual home. whats ur budget and ur preferred location?

      Comment

      • #4

        #4

        Re : Investment Options: Gated Communities, Chennai

        My preferred location is Tambaram or Vandalur.
        Is it rite location?

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        • #5

          #5

          Re : Investment Options: Gated Communities, Chennai

          Originally posted by nagabalan View Post
          My preferred location is Tambaram or Vandalur.
          Is it rite location?
          I think this location is better priced then hyped ecr Omr belt...... However investment return would be around 7-10% pa or even lower for next 7 to 10 years in short term 1 to 3 years return could be nil or negative IMO.... Also the way the budget has been a bad for RE the news is government banks and RBi wants a big correction that is reason thighs rule on Black money more power to banks to deal with bad debts
          Last edited March 3 2015, 09:31 PM.
          RE overpriced still fancy then 4% yield is must anything less is overpriced

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          • #6

            #6

            Re : Investment Options: Gated Communities, Chennai

            Originally posted by Septaa View Post
            I think this location is better priced then hyped ecr Omr belt...... However investment return would be around 7-10% pa or even lower for next 7 to 10 years in short term 1 to 3 years return could be nil or negative IMO.... Also the way the budget has been a bad for RE the news is government banks and RBi wants a big correction that is reason thighs rule on Black money more power to banks to deal with bad debts
            My take of your post:

            1. Thambaram Vandalur belt is value for money (better priced)

            2. 1-3 years Nil/ Negative return - Therfore do not invest there now. Invest in FD at over 9% for 30 months and then buy the property after 30 months for the same price quoted today.

            3. Even better, invest in FD for 5 years and then buy the property in that area for a small sum more than what is quoted today ( given your views of 1-3 years = 0 return followed by 4th & 5th years 7% pa respectively)

            To put it simple, are you saying "don't invest in RE in Thambaram- Vandalur for at least 5 years" ?
            Last edited March 4 2015, 03:41 AM.

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            • #7

              #7

              Re : Investment Options: Gated Communities, Chennai

              Here is how I interpreted Septaa's post

              (1) Relatively better priced: Relative out performance going forward in reference to the other. Absolute performance can be anything including negative performance. If one falls 5% and other falls 3%, latter is a out performer.

              (2) Expect future returns (7-10) years to be muted and expects flattish market for the near term.

              While it is hard to predict the expected return % on (2), I tend to concur on the direction, relative under performance from the past averages. I do not subscribe to the notion that inflation is always incremental to the current prices. Sometimes, prices digest the past anomalies and hence not guarantee inflation protection as is the conventional wisdom.

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              • #8

                #8

                Re : Investment Options: Gated Communities, Chennai

                FD is better

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                • #9

                  #9

                  Re : Investment Options: Gated Communities, Chennai

                  Thank you all for your suggestion.
                  How's the land market in South tamilnadu?

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                  • #10

                    #10

                    Re : Investment Options: Gated Communities, Chennai

                    Originally posted by nagabalan View Post
                    Thank you all for your suggestion.
                    How's the land market in South tamilnadu?
                    Any place outside Chennai and suburbs has pure functional value with little speculation. In fact some places might be risky to hold due to political influence on forced sale.

                    If you want to make money, investment and development might be good. It is not easy and comes with some risks. You may need a good partner who has building experience. If you just invest in land, you take some risk and the returns need to be more than the risk free rate. If we consider FD as risk free rate, I feel you may need at least 12% annual growth to make good returns. I don't see this growth rate for next 1 or 2 years. So you may want to keep it in FD.

                    If you want to develop properties, the returns are much higher than 15%. The risk is also higher and you need to decide if it is ideal for you. I am an investor too and I do more than just buying land. I usually pick the right land and develop it. You can PM me to discuss further if you are interested.

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