Real Estate: There are multiple ways of earnings in real estate. Investment in real estate can be long term and short term. It also ensures regular inflows by way of rentals. It can be used as collateral to secure a loan and to counterbalance taxable incomes. The profits earned from property resale are apparent.
But like any other investment option this too comes with a tag of risk. The real estate market is unpredictable and comes with no guarantee. Although a large number of investors have been successful and earned huge profits with real estate investing, there is no guarantee that it is going to be same for everyone. However, one can be and should be careful and aware. Take time to familiarize yourself with the real estate market, the market terminology and investment options and processes.
Investing is a crucial decision, it has money on stake. The risk factor is common. But knowledge, awareness and clarity of your own requirements are the keys to decide upon which investment to opt for. Both of the stated investments can offer lucrative returns. Choosing one of them as an investment option requires assessment of the money one can outlay and the objective of the investment. Understanding of the market is very important.
Friday, October 15, 2010
Real Estate Prices Dip Again
After DLF’s price correction in its Bannerghatta Road property, real estate major Sobha Developers dropped prices by a whopping 22%. Sobha was the first to effect a price drop of 8% to 10% three months ago. Now, some of its properties like Sobha Sunscape are selling at 22% lower than the price quoted three months ago.
According to a senior ICICI Home Search official, “The first round of price drops by developers didn’t create any market stir. Many are now looking at a second round that’s sure to create excitement among buyers.”
According to developers’ association CREDAI, Bangalore property prices have fallen by 15% to 20% as compared to the same period last year and a further drop is unlikely. A 2-bedroom, 1,200 sqft apartment at Sobha Sunscape is available for Rs 38 lakh, which includes car park, registration and stamp duty charges, VAT charges, as well as maintenance deposit and BWSSB and Bescom charges.
Except in two high-end villa projects, the company has dropped prices in all properties by 15%, though some rates may be available only during its ongoing property mela.
J C Sharma, MD, Sobha Developers, said though the real estate situation still remains challenging, “the current market situation allows us to pass on benefits to the consumer”. Interest rates have dropped to 8%, service tax is out, and stamp duty rate has fallen.
“After DLF dropped prices, there’s been tremendous excitement. Today, many project site visits are happening, something consumers had stopped for the past 4-5 months,” said a leading real estate agent who requested anonymity.
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