“Buy land, they’re not making it anymore,” quoted Mark Twain once. And he couldn’t have been wrong. With those amazing stories we have been listening to about flats/plots bought in mere thousand rupees in the ‘50s and sold off for crores – this kind of stuff keeps the real estate investment market alive and kicking.
Similar has been the story in Jaipur. People who bought land for a couple of thousands sold off their asset at the right time to secure crores of rupees for themselves. But the point to be noted here is that, that amount was a big investment in those times. So if we were to break down the increase in value per year, the answer won’t make us really happy.
The point to understand here is that real estate is a long term investment unless you know the market really well.
Let’s first define “real estate investment” for you.
Buying an under-construction property is not real estate investment for sure. You are lending money to the developer so that he/she builds it on time and you get your own property at the earliest. Return follows risk. Know what you are getting into after studying the market, the developer’s portfolio and doing a background check on them. You will be surprised to see the number of cases pending in the consumer court in respect to developers not delivering promised flats on time.
Again, buying a flat to stay in is not real estate investment in true words. Yes, if you plan to sell it after 10 years with a good return on investment, then you can surely call it one. But, this is again a long term investment. Though it is safe bet as it brings you financial stability and a sense of security but is not investing in “real estate.” After all, you won’t sell off this flat until it is a matter of life and death OR you wish to move in a bigger house.
Plus as we said earlier, it is not easy to liquidate a real estate investment unless you are an active investor who knows the by-lanes of real estate sector. Lack of easy liquidity leads to ‘law of large numbers’ where large investment leads to decent compounded returns over long period of time resulting in large profits.
Real estate in true terms is the property (mostly residential) that you buy as an “investment” only.
Why invest in Jaipur? Play a safe bet
Jaipur unlike many other Tier-2 cities has been a witness to substantial growth given the amount of business communities residing here. In terms of overall development of a city, it almost has every luxury a man needs and will see a rise in it as time passes. Educational institutions, malls, flyovers, MNC’s flocking in, and many other worthy factors compel anyone to think about investing here. These factors have given a rise to immigration which ensured the city grows in all directions and bring new areas to develop and invest in.
And with the slash in lower interest rates by the Reserve Bank of India, along with the State’s own policies that prove to be an encouraging factor, Jaipur has seen a rise in infrastructural investment. Properties are being developed with modern amenities and can be considered for “rental real estate investment” as well.
Though there are many factors that look lucrative enough for anyone to invest in Jaipur, as a part of asset allocation exercise, one should definitely invest in real estate. The pink city offers a chance to grow into modern India yet stays close to its roots and traditions. The perfect combination we would like our children to be brought up in.
Evaluate all your options and take a wise decision that brings you a good return in the years to come.
