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 | Make your investment of a lifetime | |
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Roti – Kapda – Aur Makaan. And well, some cash in hand too!
Real estate has been one of the best investment options and most industrial
groups in India who have made their crores over the past few years vouch by
that. Often considered a 25-30 year investment option, real estate as an
investment option was used primarily by business groups who had a long-term
view of their money.
Not any more. The rent paid by a dual income family could well translate
into a home of your own, and well, an investment for the future.
In India, historical evidence also shows that both real estate and shares
have given compounded return of over 20% p.a. over a 15-20 year holding
period.
Let us look at this against other forms of investment
| Fixed Deposits |
5-8% p.a |
| Investment in Gold |
5-7% p.a |
| Mutual Funds |
10-12% p.a |
| Stocks and Shares |
12-15% p.a |
Inflation rate 10% p.a
Given this scenario, one can consider the option of buying a house within
today’s budget (for example if you earn about Rs. 15,000 today, you could be
eligible for a loan of Rs. 5,00,000) .
If you choose your property wisely, you could be a Crorepati at 60-65.
Hence decide your location by the potential it has.
- Location with relevance to access to transport
- Location – central or outskirts
- Location – new developments
- Builder’s credentials
Going by the Compounded growth your investment will have, you could be
richer by several times, even considering higher costs and inflation.
Lets discuss this situation:
Priya is 30 years old today and invests in an apartment of her own for Rs. 5
lakhs. At a compounded growth rate of about 20%, she would have a property
worth Rs. 12 crores when she will be 60!
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