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