2017- How Much Amount
One Needs To Invest In Flats In India?
Unlike other
investment instruments which are volatile, real estate is one that asset which
is stable and tangible. Investors around the world have chosen real estate to
park their extra money to earn consistent returns that can at least beat
inflation. Not just the serial investors but even the first-timers are prudent
enough to reap benefits of real estate cycles.
But often people get confused
with how much money should they invest and what are the different options
available in their budget. Here is a brief analysis of different property
options available in a varied price range:-
·
Affordable options
Properties below Rs 30
lakh is a modest amount to invest in Indian real estate and you can
prioritise your investment on the basis of the returns they will fetch you. For
instance, cities like Noida, Greater Noida, Lucknow, or Jaipur can offer you
small commercial office in main IT hubs, where rental income would be the main
source of returns.
Other than this, plotted
developments are also available in Tier II or Tier III cities or in the
extended-suburban areas of metro cities.
These can fetch you some capital appreciation,
provided the infrastructure development is done in time and growth drivers are
in place.
For instance, areas like Raigad near Navi Mumbai can be a good option
to own a land parcel as the town is set to get urbanised in next few years and
can offer decent returns. Religious towns of Vrindavan and Mathura are other
destinations where there is a continuous flow of tourists and a large share of
this group considers retirement options in these towns.
If an apartment is
your preferred choice, it would be wiser to invest in the big cities as the
rental returns would be assured. Suburbs of Bengaluru, Hyderabad, and Chennai
can offer 1 BHK options on the outskirts and can attract sufficient rentals to
pay off home loan EMIs.
·
Mid-sized investment
Investing in
properties ranging between Rs. 30 and Rs. 80 lakh can be a wise option as this is
the most in-demand category in the Indian real estate. Property options
available within this range can vary from a big home in a small city to a small
home in a big city.
Decide how long you would like to stay invested in that
asset. If you are a long-term investor, owning a property which can fetch you
rental returns along with attractive price appreciation is the best option.
Factoring in the rental demand in metro cities for family homes, make a
purchase in the location which is close to office areas and have good rental
appeal to it. Areas like Nerul, Airoli in Navi Mumbai, Noida Expressway, a few
pockets in Gurgaon in Delhi NCR, Sarjapur Road, Bannerghatta, Hebbal in
Bengaluru, Madhapur, Uppal, Gachibowli, Kukkatpally in Hyderabad are a few
areas which can offer you both benefits at the cost of one.
Find properties with
best rental returns
If you move up a
little in the budget range, there are several options available in the
semi-luxury and luxury category.
However, appreciation can be a challenge here;
most of the investors investing in these properties make such an investment as
their second home. Since renting out a luxury property can come with its own
set of concerns, here is what you should know before taking a step ahead.
Portfolio investment
is another kind of investment which is the most optimal way of using funds in
different kind of assets. For investors who have a bigger budget to park in
real estate do so by investing a decent amount in varied options than putting
the entire sum in just one asset.
Such investors also act as funding channels
for developers as the amount of returns they get comes from the profit making
of the specific project. There is lesser risk involved in this kind of
investment along with better returns.
·
Asset class investment
There are investors
who like to invest in real estate as an asset class. Such properties are
basically the signature version of reputed developers who like to target the
elite investors through branded residences, theme-based and super-luxury
housing. While the minimum investment required for this kind of investment is
Rs. 5 crore, there is no end to this budget range.
There is a
sub-category in this segment which is 'trophy property', which means the
area / building has some historical or architectural value associated with it.
These assets are worth billions and are more about prestige and status than
capital appreciation.
One such trophy asset is Homi Bhabha’s iconic bungalow
which was sold for Rs 372 crore in 2014.
Other such examples are the deal of a
bungalow in Delhi's Lutyens' zone for Rs. 435 crore by DLF's Renuka Talwar,
Subhash Chandra-promoted Essel Group’s 2.8-acre property on Bhagwan Dass Road
for Rs. 304 crore, Rajiv Rattan, co-founder of Indiabulls Group, purchase of
2,920 square yard bungalow on Amrita Shergill Marg for Rs. 220 crore.
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