| The stock markets have crashed and recovered | | | | made the Indian real estate market a little |
| and then crashed again. Similarly for | | | | volatile at this point. But a country with a |
| commodities like silver and gold. The overall | | | | billion people and still growing will always |
| trend for silver and gold is positive though | | | | have a housing issue, and any investment in |
| . Also stock market indices too over the | | | | the housing market can never go wrong. Real |
| years look positive. But that's an index, | | | | estate; whether land or houses will always |
| only if you buy the right stocks do you get | | | | sell at a premium. For most people who live |
| the benefit. Essentially the risks, with an | | | | in 3 storeyed apartments that are over 20 |
| investment like stocks, are huge. Moreover | | | | years old, builders have offered schemes |
| less risky instruments like Mutual Funds have | | | | where current apartment owners sell the land |
| huge entry and exit fees.Real Estate is the | | | | and building to the builder, in return for a |
| one investment from which you can get a | | | | bigger apartment. The builder constructs a |
| steady income, and at the same time enjoy a | | | | high rise there and recovers his cost from |
| steady appreciation. This specially holds | | | | the fact that in a building where there were |
| good if you buy apartments close to IT parks, | | | | 12 apartments, there are now 60. This is a |
| railways/metro stations in any big city, | | | | win-win situation. Builders get prime land in |
| close to any place of commercial or | | | | the city and the apartment owners get an |
| industrial activity. A rental income is an | | | | upgraded apartment that has a lot more market |
| assured monthly income with little hassles, | | | | value. |
| all things going right. It's also a usable | | | | |
| investment. You can feel it, touch it, live | | | | Rents too have been on the increase. |
| in it, rent it out.Currently real estate | | | | Apartments close to work places or |
| prices are increasing literally on a daily | | | | transportation hubs rent well. Since most |
| basis. This is definitely not a trend that is | | | | tenants are professionals, owners need not |
| sustainable. If you plan to realistically | | | | worry about tenants staying for long periods |
| invest in the real estate market, please | | | | and then refusing to vacate. |
| ensure that you have a timeframe of a few | | | | |
| years. The current real estate increases are | | | | Interest rates in India are much much higher |
| hugely attributed to the buying power of IT | | | | than in the US. There it's about 6%, we're |
| professionals and their willingness to pay a | | | | close to 9%. Realistically you can expect |
| premium for any piece of property. Places | | | | property to appreciate between 10-15% every |
| like Kerala too have show steep escalations | | | | year. Holds true more for land. For housing |
| and the main reason is the money flowing in | | | | the property price increase usually depends |
| from the Middle East. Even though Keralites | | | | on increase in costs of raw material like |
| believe that the land prices there are now | | | | steel and cement. |
| higher than what they should be, on comparing | | | | |
| to cities like Bangalore, Kerala is still | | | | Do not always look at real estate just as an |
| very under priced. Similarly for Pune. Land | | | | investment. A house is always a great place |
| prices in Pune are seriously undervalued | | | | to live in. For first timers, do not look at |
| compared to Bangalore. In 2005 you could | | | | real estate as an investment, but a home to |
| purchase land in Kondhva for around 300 Rs | | | | go to.David Thomoson, an associated editor to |
| per sq feet and land in Bhugaon close to the | | | | , is a contributing author to the for |
| IT Park for 400 Rs per sq feet. The prices | | | | distinct article sites/journals. Please feel |
| have increased a 100% within a year. It's | | | | free to visit for more information on Real |
| still cheap compared to Bangalore !!High | | | | Estate, property and classified issues Or |
| incomes of IT employees, a bull run on the | | | | write to him AT Any comments and /or |
| stock market and foreign repatriations have | | | | suggestions will be highly appreciated. |