An investor or Buyer must take into account all the costs incurred during ownership of the property such as
1. Stamp duty
2. Registration fee
3. Loan repayment
4. Interest on borrowed capital
5. Maintenance costs, and
6. Municipal taxes
@ Dhananjay,
Let us assume that you have bought an apartment in Hyderabad for Rs 50 lakh in 2010 and is now selling it for Rs 1 crore. While the value of the property has doubled in five years, this is not the actual ROI for the investor. This is because the various expenses incurred on the apartment during these five years have not been accounted for.Now I think you should understand the difference of ROI...
Hi Syed. Nowadays, trends are shifting to real estate investment from keeping his saving in account and FD. Usually fixed deposit will give regular fixed return year on year basic, but with some risk you can earn more return while investing in real estate. Real estate might seem to be a lucrative investment option these days.
Yes, You are right!! But investment in real estate is not an easy task, It involve lots of research and dedication for getting the higher return. Before taking the final decision, an investor needs to undertake thorough research and consider a number of factors that relate to the property and its neighbourhood.
Generally Real estate is recognize to be a highly profitable investment. In fact, many people believe that real estate investments cannot go wrong as property prices seem to be moving only upwards.Real estate is understood to carry a lot more profit than other assets such as fixed deposits, mutual funds, equity shares or gold.
Residential real estate investment is any day better than investing on commercial properties. You will get better returns in the former than later. Ultimately, at the end it is up to you. But don't be shy of moving beyond residential because you are intimidated by the thought of buying a commercial property.