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- Originally Posted by bkoustavHi
However does it make sense to take 10-15 yr bank loan and make such investments? Will the return on investment be good if you consider loan+interest? How much are the price increase in actual i.e. if you want to resell at prevailing market price do you get buyers?
Perhaps the calculator loaded here can help in answering the questions related to bank-loan and investments..
However, this calculator will be true for one time investments. If you are buying an under-construction property the situation may be a little better. That is the Maths part.
To answer your other question...in general, whenever a new city gets developed, a good percentage invest because they are investors. A lesser number of people who want something for their personal stay usually want to take that risk. In case of Rajarhat most of the early settlers are the people who worked in Sector-V. As the city settles in, some of the investors turn settlers, others cash out and more settlers come in. IMHO, in the long run, the Rajarhat investment will yield good results. Rajarhat/Newtown will be become the new commercial hub of Kolkata in future. For the immediate short term, well...I guess there is more supply than demand.CommentQuote1Flag
- My friend, whether it is Stock,Bond,Gold or RE, all are investor driven market. US is printing hell lots of $, and all the emerging market are boosted with Investor, so when this FII takes out the money the effect can be seen in Stock market and Exchange rates.
Coming to your point, you are correct that Rajarhat/New Town has lots of investors but where you don't have, go for any project in South or North Kolkata, you will surprise to see the price rise. Kolkata people has very few investment options, so RE seems to be a profitable one still now.
Salary has not increased much, but that the problem with Govt, they should be blamed, for few job creation, apart from that, RE price in rajarhat/New Town has been stagnant for a year now. It will trigger again once the election is over.CommentQuote0Flag
- The affordability has increased because now we have more double income family than before. Also people are selling their first home and moving to more expensive home. These factors enabled end users to afford higher price home compared to their salary. For large complex type project the investor will be more as it will be easier to sale. At NT the percentage is higher but if you look at the capital appreciation , return from NT is lower compared to many places of Kolkata, if you consider 2010 as base. Depending on the view either one may see this as an opportunity for above average appreciation in the future or a oversupply trend that will intensity in the future making appreciation moderate.
For an end user, none of this should matter - if one can think they can live there then go ahead.CommentQuote0Flag