SHALL I STILL BUY A HOUSE

These days we are all witnessing the factors like increase in interest rates on home loans, skyrocketting property rates which are leading to fall in the phenomenol growth observed in the real state space. In places like Delhi, over last one year the property rates have actually fallen by 15-20% and the future looks bleak.

So for a new buyer the question is , shall i buy my house or not.

I feel that if we select and time our buying decision properly, even now there is good scope to get good profit from property.

Here are few suggestion which can be tried :-

a) In A class cities, due to very high cost of land, the rates are very high. But this phenomenon is diverting the money of especially medium class investors to tier III or small cities. There are still various pockets where we can get very good return even now. For example I have one friend who has purchased one 1200 sq feet duplex in Jabalpur with 1700 sq feet living space. First, it has costed him only 13.5 lakhs. Second, the rates have appreciated by 50% in 6 months. Such options may be available even if you look closely.

b) These days lots of road projects are coming. A visit to NHAI site will tell this. It is observed that the property prices are rising wherever these roads are passing. Hence we can try to find a good investment oppertunity by this method.

c) Thirdly, if you are on a transferable job in a PSU then you can buy a house, even a small one, lease it, live in it and then sell it when you are transferred after 3-4 years. You can use the appreciated returns of this property to buy another house in the city you are trandferred.

From the I wish to say that if you do your homework properly then even now there is very good scope of getting good returns in real state space.

AVI

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