Guys/Gals,

Trying to get a reading on folks looking at real-estate in Gurgaon for investment. Do you think an apartment we buy today for 50 Lacs will be worth 1.5 cr in 3 to 5 years?

What do you think the returns are going to be? What type of return should one reasonably hope to achieve?

Curious to hear what other investors out there are anticipating.
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  • Doesn't anyone have an opinion out there. Come on folks instead of just wasting time and talking about which project to put in money let's think about what type of returns we can expect over the short run and long run.

    Any serious investors out there?
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  • Probably the worst time to invest. Prices have already risen by 25% in last 4 months.

    Gurgaon is a pure speculative market. I personally feel that the market will see some correct -25% in the coming months.

    As far as your investment goes, it all depends where you invest your money. Reputation of builder, project completion and other related factors matter.

    If you can stay in the market for 5 years, your 50L investment/apt might appreciate by 30/50/100 % but don't expect anything in the short term.
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  • As a retail investor in real-estate all one can do is buy and hold and hope that the property has appreciated enough over the investment period to make some profit. Sucks but it is true.
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  • If you book for 3 Lakhs and sell booking for 6 Lakhs in 6 months time, you have made 100% return = 200% annualised return. Same thing in 3 months = 400% return

    Thats what people are doing.

    Long term hold will make you inflation related returns over 15 years.

    Short term hold of 3-5 years - probably values will remain same, loss of opportunity with your money - even FD will give make your 50L into 75 L in this time.

    On completion of booking, you will probably earn a 30% construction premium.

    Agree with Abhi - prices are already up. Risk is greater than rewards
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  • Venky can you confirm how is this possible with an e.g. please....
    And any potential projects whr some mny can be earned by doing this ?

    Originally Posted by Venkytalks
    If you book for 3 Lakhs and sell booking for 6 Lakhs in 6 months time, you have made 100% return = 200% annualised return. Same thing in 3 months = 400% return

    Thats what people are doing.

    Long term hold will make you inflation related returns over 15 years.

    Short term hold of 3-5 years - probably values will remain same, loss of opportunity with your money - even FD will give make your 50L into 75 L in this time.

    On completion of booking, you will probably earn a 30% construction premium.

    Agree with Abhi - prices are already up. Risk is greater than rewards
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  • Problem is that most of this is being done by underwriters and so called channel partners. That is why phases get sold out within hours of launch. They then dump the units in the market 3 to 6 months later at higher price points. Most of these guys are hand and gloves with the developer. The little guy will certainly get screwed in this scenario.

    Just my two cents...
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  • Why not ask Rashmi_sweet? she is probably the best person to ask for this
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  • who is Rashmi_sweet?
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  • Regarding ur wish only thing I want to say is AMEN

    But if all the apartments of 50 Lacs will move to 1.5 Cr in 3~5 years, then consider price of petrol at Rs 150 and a bottle of mineral water( 1 L) at Rs 50.

    I will be more than happy to have CAGR of 12 percent over next three years on any of my purchases.




    Originally Posted by savvy_investor
    Guys/Gals,

    Trying to get a reading on folks looking at real-estate in Gurgaon for investment. Do you think an apartment we buy today for 50 Lacs will be worth 1.5 cr in 3 to 5 years?

    What do you think the returns are going to be? What type of return should one reasonably hope to achieve?

    Curious to hear what other investors out there are anticipating.
    CommentQuote
  • Originally Posted by savvy_investor
    Guys/Gals,

    Trying to get a reading on folks looking at real-estate in Gurgaon for investment. Do you think an apartment we buy today for 50 Lacs will be worth 1.5 cr in 3 to 5 years?

    What do you think the returns are going to be? What type of return should one reasonably hope to achieve?

    Curious to hear what other investors out there are anticipating.


    Hi am pasting a post which i wrote sometime back on another thread ************
    Analogy- 10 years back Value of Rs. 100000 was equal to Rs. 375000. At similar calculation, 10 years hence would be Rs. 30000.
    Land appreciation somehow appears more evident than Depreciation of Rupee, Inflation and increasing costs, however the impact of latter is more severe than former in long term.

    Hence in RE if your flat value has risen from 25 Lacs to 1cr today, its real value is same or less than what it was 10 years back. Same holds true for what may happen 10 years hence
    __________________
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  • Digvijay and Munish,

    I concur with you 100%! That is exactly the point I am trying to drive with folks (investors) out there. The only person making a 300% return is the developer. Wouldn't it be great if we could share the same profits as the developer!?!?!

    Regards,
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  • What are ur plans regarding sharing builder's profit ??
    We would also like to ride with you:)
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  • Plans are quite straight forward. Help create and promote opportunities that benefit the investor community. I personally have come across one such opportunity and curious to share and hear what others have to say about it.

    Regards,
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  • The only people making money in RE today are the builders.
    You can see them driving their Q7s, Cayennes and BMWs :)
    Poor starry eyed investors are seemingly biting off much more than they possibly can chew.
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  • Agreed. But what if there was an investment vehicle in which you could participate at the developer level?!?! What if???
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