Dear Gents ;

I understand that the thumbrule for investment with a reputed builder in GGN could yield compounded annually investment returns of 15% pa which means the property costs actually double in around 5-6 years of time horison.

Some projects may offer higher returns but it comes at an unacceptable risk of investing with builders of unknown credentials.

Banks finance loans 10-11 % P/a compound interest

Inflation occurs at average between 9-11% pa compounded annually.

I understand that assuming investment return of 15% is absolutely wrong and misleading as effective / actual investment return should be (=15% -10% for inflation -10% for bank interest ie minus 5 percent ) All compounded annually.

Given this situation i can understand that a person in need of house buys a house but there is actually nothing at all in there for an investor except the risk of investing in an unregulated sector.

The original prices of builders upon booking itself are overpriced and leaving no margen of any investment business in reality sector for house buyer/s.The builders keep all the margens to themselves by selling overpriced projects in undeveloped areas charging in advance to the customer for the facilities / development which are likely to come in next 2 decades viz say metro connectivity / airport....

Now unable to find any buyers / investors at these inflated prices the over greedy developers launched subvention schemes as a means of pre assured returns from cash deficit customers ; at the subsequent risk and expense of buyer upon failure of the buyer to find resale customer at the rate mentioned by the developer.On account of unaffordability due to originally high base prices there is every likelihood of accumulation of non performing assets for banks ....

This means for any real gains for investors the Return on investment / real gain is something which is over and above bank lending rate ( 10%) plus inflation rate ( 10%).Now given the risks of investing in an unregulated sector full of liars and cheaters all around at least 10 % pa compounded annually premium on investmest must be there.This implies that an investor should opt a project only if it has 30% offer / rate of return compounded annually ; which implies the cost of property should double in miximum period of 3 years and not the 5 years period existing currently so as to make the investment really worthwhile.

To add to this the capital gains tax.....wonder how the gains are worked out ignoring the inflation of money and bank interest rates.

I understand that you might rid yourself of deflation of cash to some extent but in actual there are no gains over the original value of money / no effective returns...

Honestly i have been here on this forum for 2.5 years now but i did not come across any project with a reputed builder here which offers an annual rate of return of 30% (compound interest).My point is that whereas we may have accumulated sackfulls of currency but the mirrage is apparent only and not real due to inflation and bank interest.

Therefore i seek advice / opinion of members , seniors , experts and also to suggest Projects which really offer gud returns to an investor ....at least for a humble living .....
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