Showing posts from January, 2015

Why we can not make money from buying that dream house

From my last posts on RE(Real Estate) investment in India, you can assume I am biased towards not buying a house as an investment and views are personal not to influence anyone for their RE investment decision. In continuation of the same, here is my observation on why you can not make profit on buying a house in current scenario.

Let us consider the scenario the process of how a flat is built and sold to an end customer like us(salaried people buying a house with 80% home loan).

First the Land: Most of the land in city outskirt or even prime locality(where the flats are constructed) belong to people who are either inherited agricultural/ancestral land or bought years back at very cheap price. Now the land cost is as good as a piece of gold so the owner sells only in case of urgent need of money or they do joint development. In either case the owners are either too reach to hunt for a buyer or not so smart to find one. Identifying the real owner of such land in a growing city and ex…