Real Estate Today
Currently Real Estate companies and Builders are affected very much due to high interest rates, high inflation, increased input cost, unavailability of funds from banks, due to RBI prioritization. Lower commodity prices, lower home loan rates should help the Real estate sector to get the life line back.
For the investor the key is to invest before there is a turnaround in the industry and not after seeing one. If you are planning any real estate purchase, do it without delay. This is nice time to negotiate and get a good deal from builders and sellers.
It may be wise to invest in a finished product than the project just announced. There is not a big price difference in last 2 years; considering the cost of money, you might come out good compared to someone who invested 2-3 years back and still waiting for that apartment completion. There is a risk of project not completing on time, when you are investing with new projects.
Please check Indianrealestateboard.com. You will find complaints about all most all major projects.
Many investors make mistake thinking they are buying a project cheaper at the launch. This is wrong. A project at launch 3 years back might cost you Rs.2500 and today Rs. 2800. It is steel to buy at Rs.2800 today compared to someone who booked it at Rs.2500 and paid all money still waiting for the completion. You are paying Rs.100/year appreciation on Rs.2500 project – just 4%/year.
We just completed a group purchase of about 20 plots in Coimbatore. And we are working in next deal in Sriperumbudur, plots are priced below 300/sqft. Check plot prices in your favorite city and pick few. For investments, land is better investment than apartments.