5 ms·
There is collusion between banking, real estate developers, agents and politicians in the western world too ... I actually I think we invented this stuff. PS:
by chvid 9y ago
There is collusion between banking, real estate developers, agents and politicians in the western world too ...
I actually I think we invented this stuff.
PS: 3% return p.a. for a real estate investment? Amazing; around here real estate investments return zero or below and investors count on property price appreciation, tax deductables or maybe rent increase.
- nikanj 9y agoReal estate investment is the new Swiss bank account. It's acceptable to take some losses every year, if it means you get to keep your hoard.
- drieddust 9y agoIn Indian context, it's below inflation. Cost of management and maintenance is also need to be added so effective it will be between 1 and 2 percent. Not great for developing country where inflation swings anywhere between 5 to 9 percent. Depositing same money in bank will give more than twice the return.
- mnm2 9y agoThe property (the house) is "inflation free/resistant": Money is subject to inflation, because houses (and other goods) rise in price / money is watered down. So: You may have no gain, but your savings are protected from dropping 5 to 9 percent each year, if "you have it invested in real estate". Sounds good to me.
- drieddust 9y agoWell I may be wrong but you will be true only if I can't sell it at a price significantly higher than inflation. I do not not see that happening because price correction have already started if you are an individual seller. For politically connected developers, game is different.
- legolas2412 9y agoIn India inflation is like 4% and growth rate is 7%. I think anything less than 15% p.a. return is not worth the risk at all.
- Retric 9y agoIf inflation is >4% then rental income and costs should also grow around that fast.