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How do People Invest So Much in Properties?

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How do People Invest So Much in Properties?

Last updated: January 5 2013
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  • #21

    #21

    Re : How do People Invest So Much in Properties?

    Originally posted by donkeykong View Post
    yeah but i think indulging in real estate is better than equities, just my personal opinion no offense
    Yes to an extent but if someone wants to invest in real estate as of today i think you will agree that one needs 50 lacs minimum and also will require house loans ?? Whereas in equities one can even invest 10 lacs and lesser and still make decent money .. Ofcourse there is nothing to beat a fixed asset like a house but the rates are just going crazy ...

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    • #22

      #22

      Re : How do People Invest So Much in Properties?

      Originally posted by donkeykong View Post
      yeah but i think indulging in real estate is better than equities, just my personal opinion no offense
      Why, may I ask?

      For most ppl, this scare comes from seeing the equity going up and down everyday. Which they perceive as risk. But since real estate prices cant change similarly on a day-to-day basis, ppl perceive it as safe. As is also evident from Amit's post earlier, ppl often think stagnation for a few years is not really bad. However, the same stagnation in equity is seen as risk. Remember sensex is today where it was in 2007-08, but what scares ppl is that it fell and rose in the meantime and keeps doing so everyday. Funny, indeed.

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      • #23

        #23

        Re : How do People Invest So Much in Properties?

        Originally posted by amit001 View Post
        One cant just buy so much gold and keep it in house/bank

        Fd realyy with currency depreciation and yield of 8 percent is not attrative

        Equity is too volatile nad tough to track. So bacha sirf real estate
        Amit bhai.

        If FD has currency depreciation issue, isnt the same also true for ur real-estate investment??

        Equity is tough to track. So why not just invest in diversified funds? and real estate is easy business given all the shady things that go on in the sector and the way real-estate developers manipulate things at will or delay projects? R u kidding me?

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        • #24

          #24

          Re : How do People Invest So Much in Properties?

          traditionally ppl earn from equities or business and then put the money in land or house. so equities will always be first due to it's advantages of being liquid, most appreciable asset. ppl have to do research and invest wisely. indian equities have over the past 15 years given returns that no property can beat. it's just becoz of black money that re continues to appreciate in india and will continue to do so. also due to our mentality of preferring land and gold and equity market still not fully matured, this scenario will continue for a long time. but ppl have to get initiated into equities as many ppl's savings r getting real negative returns in today's times.

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          • #25

            #25

            Re : How do People Invest So Much in Properties?

            Originally posted by amit001 View Post
            I come from a middle class background. Both my parents were govt servants.

            I did my masters from a good university, followed it up by another professional degree from US.

            Got a taxfree lucartive job in middle east.

            In last 4 years have bought 4 properties in gurgaon on clp but with out any leverage.

            PS - if you have fire and passion to achieve anything. Nothing is impossible. Offcourse with some luck and right opportunities.
            amit,
            no bad intent, but everybody's both parents r not in govrnmnt jobs and all indians dont live in middle east.
            less than 0.0001% indians will fall in ur category.
            when the person created this thread and asked this question probably he had an average indian in his mind, not the lucky , privileged or extra-ordinary few. n prices of properties shud b in line with an average salaried guy not extra ordinary few. tmrw mark zuckerberg might say tht i started in middle class family but i purchased 1 billion dollar property in 3 year. these r not common or normal or average examples. when we talk of a country or real estate prices they shud reflect an average indian's (who is living n earning in india) case.
            secondly, and more importantly u can say that u had put ur money in 4 diffrnt investment but cant say that u have "bought" or "purchased" 4 properties in 4 years bec u havent paid for all the flats. i dont knw but am quite certain u might not hav paid even 25% for each of them, which means tht u might not hav paid for even 1 appartment.
            the prices in india r exorbitant to say the least !!

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            • #26

              #26

              Re : How do People Invest So Much in Properties?

              well said ruchika..

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              • #27

                #27

                Re : How do People Invest So Much in Properties?

                Buy property worth Rs 1.2 cr or more, get right to permanent residence in Spain - The Economic Times

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                • #28

                  #28

                  Re : How do People Invest So Much in Properties?

                  Originally posted by ruchika1 View Post
                  amit,
                  no bad intent, but everybody's both parents r not in govrnmnt jobs and all indians dont live in middle east.
                  less than 0.0001% indians will fall in ur category.
                  when the person created this thread and asked this question probably he had an average indian in his mind, not the lucky , privileged or extra-ordinary few. n prices of properties shud b in line with an average salaried guy not extra ordinary few. tmrw mark zuckerberg might say tht i started in middle class family but i purchased 1 billion dollar property in 3 year. these r not common or normal or average examples. when we talk of a country or real estate prices they shud reflect an average indian's (who is living n earning in india) case.
                  secondly, and more importantly u can say that u had put ur money in 4 diffrnt investment but cant say that u have "bought" or "purchased" 4 properties in 4 years bec u havent paid for all the flats. i dont knw but am quite certain u might not hav paid even 25% for each of them, which means tht u might not hav paid for even 1 appartment.
                  the prices in india r exorbitant to say the least !!
                  This is a highly inflated market based on fantasies that rates are going to double or triple in next 2- 3 years. People are investing whatever they have or have taken high loans to buy another plot/ apartment even if they don't need it.

                  Only change in society I can see is rise of middle income families with people getting 6 digital salaries ( that is 1 lac/ month) in last 10 years. These are the families who can afford apartment worth crores. If we include these high salaries jobs or business class people, the number should not exceed more than 2-3 lac families in Delhi.

                  Having said that It is the NRI s who are investing in huge amounts. On an average each NRI who is living in US/ Australia/ UK or other developed countries for last 5 years or more have on an average properties worth 2-5 crores in India.

                  Read this article to have an idea how much money was remitted to India by NRIs last year.....63 billion US dollars that is .....6300 crore US dollars..........or 300000 US crores.

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                  • #29

                    #29

                    Re : How do People Invest So Much in Properties?

                    Sorry forgot to attach the link.

                    Overseas remittances to India at record $63.6 bn: World Bank - NDTVProfit.com

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                    • #30

                      #30

                      Re : How do People Invest So Much in Properties?

                      Is there a statistic of how much supply there is in the market?

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