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Why Invest In India

posted Jun 23, 2010, 7:25 PM by Deepak M   [ updated Jan 30, 2017, 7:03 AM ]

Why Invest in India?

With a culture older than recorded history & the guided by the vision of a prosperous future, India is a truly an enchanted land of plenty.

As an Indian living abroad, the option of investing back home is more than about investment, but the promise of settling down next to near & dear ones. Investing in India has never looked better than it does now. With exceptional infrastructure & quality of life that can rival any in the developed world, Indian cities have finally come of age. The Mumbai region comprising Mumbai Metro & its satellite cities – Thane & New Mumbai, is truly a reflection of the unique blend of the ancient & modern that is India. The region has become the nerve center of the country & the chosen destination of those wishing to invest in an Indian future.

From the multitude of malls, arcades & plush residential complexes to the luscious greenery & spacious roads linking them, the lifestyle of these townships is truly a world-class one. Advanced construction methods & refined aesthetics are the hallmarks of every building, residential or commercial that springs up in this region. Uninterrupted power supply, club houses, community and health centers, swimming pools, and & multitude of other services all go into enhancing the quality of life of the population.

Property Investment in India, especially Thane, is today more than just a lifestyle choice; it’s the acquisition of a status symbol.


To create lasting wealth for the future, it is imperative to start with a can-do attitude. If you believe you can, you will put the effort and time into creating lasting wealth that will ensure that you actually do so.

"Home is where the heart is" - may have been true earlier but in the present age, it may rightly be said, "Home is where the cash flow is." Property investment in India has acquired an entirely new purpose in today's era. Investing in property, one can safely expect immediate and lucrative returns. According to a U.N. report, the Indian property market is on a roll.

Property in India is termed as the "next big thing" amongst seasoned international property investors. With the recent liberalization of property ownership laws, Indian property offers a winning blend of fantastic environment and great investment returns. The real estate sector in India has changed dramatically in the last couple of years.

Indian properties have performed well recently and the expectation is that this is just the start of Indian property rush. Indian real estate sector is booming. The returns at 10 to 13 percent per annum are almost 50 percent higher than those in the US and Europe and the current demand far outstrips availability in several metros like Delhi, Mumbai, Kolkata and Chennai. In fact Thane, Bangalore, Pune and Goa are also coming up as very attractive investment destinations.

As the real estate prices are touching the rooftop and costs of flats have gone up to Rs.50, 000 and Rs.70, 000 per square foot in Mumbai and Rs.1 lakh per square yard in Thane, the question arises whether there is a bubble building in the Indian property market. According to a U.N. report, even though the collapse of the speculative property market could be more devastating than a stock market crash, there is no bubble as yet in the Asia Pacific region.

The real estate prices, along with the runaway rise in the prices of gold and the stock market has somewhat made investors nervous. According to a real estate agent Mumbai, when a flat in Mumbai fetches a better price than a similar flat in New York, certain questions arise about sustaining the trend. It is also said that with the property prices softening in developed countries, investors are likely to look for profitable avenues in the Asia Pacific region.

In principle, there is nothing wrong in borrowing to buy real estate for investment rather than for owner occupation. The action can be regarded as rational profit-seeking behaviour as long as borrowers are able to sell at a profit. However, the buying becomes speculative when people begin to borrow, to buy, regardless of price or of their ability to service the debt, in the expectation of selling at an even higher price. Since prices cannot rise forever, some speculative buyers will inevitably take a loss. Losses on assets purchased with debt generate systemic risk that might affect the health of the financial system, and that is why real estate bubbles or potential bubbles have policy implications for Government and Central banks.

Property investment for beginners entails doing some research into the great world of real estate.

In order to know the best techniques for making property investments, you want to have a good understanding of the real estate market and know what constitutes a good property investment.

For example, one rule of property investment for beginning real estate moguls to be aware of is to start with buying property in your area. This allows you to see with your own eyes what property you are buying and to keep up with any maintenance. You can also keep a closer eye on the property management this way.

Property investing for beginners also entails learning good communication skills. You will be working with people from all walks of life, and you need to be able to both speak to them in their own language and establish a rapport with them that will allow you to negotiate.

This is especially true if you're dealing with owners and buyers directly. The better the rapport, the smoother any negotiations in the process will be likely to go.

Perhaps the most common property investment for beginning real estate investors is to purchase their own home. This allows you to see and work through the property investment process and make a worthwhile property investment right from the beginning.

By working with a professional property investor and getting the proper credentials, you'll be in a much better position to buy and sell property.

 

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