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RE as an investment...

Last updated: October 25 2014
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  • RE as an investment...

    Starting a thread for Real estate, INVESTMENT point of view...

    Guys, Can you pls post here where have you recently bought a flat/plot or any kind of RE around Pune for investment purposes?
    Location and reasons for buying?

    This thread can be very informative for investors looking for 2nd property...thanks
  • #2

    #2

    Re : RE as an investment...

    Flats are no longer a safe instrument for investments.
    Plots yes.but after stringent legal checks.
    N/A plots only are safe.

    Comment

    • #3

      #3

      Re : RE as an investment...

      RE is for long term investments (including flats) but if you are looking for some appreciation in few months then RE is not for you.
      Most of your initial appreciation gets eaten by govt taxes (cost of acquisition) in RE.

      Comment

      • #4

        #4

        Re : RE as an investment...

        Originally posted by vaibav123 View Post
        Flats are no longer a safe instrument for investments.
        Plots yes.but after stringent legal checks.
        N/A plots only are safe.
        Thanks guys...

        any reason why flats are not safe....I had heard Plots are not safer...mostly due to legal issues

        Comment

        • #5

          #5

          Re : RE as an investment...

          Flats do not appreciate in value that fast any more.
          Instruments like NF -equity give you almost similar returns-with far lesser pain.
          Flats- maintenance,tenants,agreement,society problems,purchase of flat is a legal exercise.
          Presently selling flats is also difficult exercise and at times will prove to be a iliquid instrument.
          Now after this-it becomes an individual perception.

          Comment

          • #6

            #6

            Re : RE as an investment...

            Can we first clear the definition of an investment first?

            Whenever I went to sales office for enquiry, first question from sales team would be is it investment or self use? But there was no difference in the price if I say investment or self use. So still confused what exactly does it meant by "flat for investment" ?

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            • #7

              #7

              Re : RE as an investment...

              sj2013,
              Let us put investment as a purchase/buy of a good/instrument with the hope that future returns will be higher.
              In Pune RE, it is simple-investor is one who buys with no intention of staying in the flat himself-purely for sale.
              Probably builder is maintaining some statistic for his use in pricing or working out demand.
              Also if it is for investment,agreement may not get registered as buyer may just sell it as it is about to get completed.

              Comment

              • #8

                #8

                Re : RE as an investment...

                But sales people never explain me about "agreement may not be registered" even if I say Investment purpose. They always say agreement has to be done within 2 weeks of the booking even for investment kind of transaction

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                • #9

                  #9

                  Re : RE as an investment...

                  Sj2013,
                  Tell them that you do not want agreement to be registered.
                  Otherwise you will pay government taxes and buyer from you also will again pay the taxes.

                  Comment

                  • #10

                    #10

                    Re : RE as an investment...

                    Originally posted by vaibav123 View Post
                    Sj2013,
                    Tell them that you do not want agreement to be registered.
                    Otherwise you will pay government taxes and buyer from you also will again pay the taxes.

                    What if builder sells the same flat to another investor like me? Does the only letter given by him enough to protect the investment? How about exit loads?

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