Forecast on ROI on purchase of a Flat in this project
Q: What is the forecast on ROI on purchase of a Flat in this project, after 3Y? What size of the flat will fetch better return? Is it worth residing for future ...far off from the business hub of Kolkata? Pl. advice.
Is real estate the best investment vehicle compared to gold or equity shares or fixed deposits? please make me suitable understand regarding investment in real estate?
Hi Priya, I think real estate investment is more profitable if you are yound or in the age group of 30 to 40. concept play "Higher risk, Higher return". This investment option provide you value for your money. In India property is always fruitful in any case..
Buying an under-construction flat is not real estate investment. You are actually lending money to a developer with the hope that he will deliver a flat to you in the not-so-distant future. You better make a good return when you buy an under-construction flat. Return follows risk, and in the Indian context, the risks of buying an under-construction flat are so high that developers have to provide a price that gives you good returns.
Calculation of ROI should be measures the profitability of a property or real estate investment. It is used for calculating the approximate annual yield on the amount invested at an initial time. When reliable data is available, this ROI calculator efficiently compares the past and current returns on the property investment. Factors to be considered for evaluating a ROI are amount invested, year-on-year investment, property type and location.
After recovering the initial cost of the investment and one has to take into consideration the following:
• The purchase price.
• Amount of the loan.
• Terms of the loan agreement.
• Rate of capital appreciation.
• Income generated from the investment such as rental income.
• Expenses incurred to maintain the investment – property taxes and insurance.