3 ms·
In 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
by drieddust 9y ago
In 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.