Invest in realty, secure your future

Noted journalist and writer, late V S Upadhyay, who played a key role in acquiring land from DDA for Delhi-based journalists in Gulmohar Park and was also responsible for enrolling many journalists as members of a cooperative society which built this posh area in South Delhi, used to tell his junior colleagues that they must purchase a house before reaching the age of 40. And if possible, they should buy another house before they retire!

While giving this sage advice, he also used to say that those who do not get any pension after retirement must buy another property before retirement as it would give them social security in the later stage of their life.

The thinking behind this advice was that if you have more than one property, you could rent out one and earn a good amount. Naturally, those who invest in property cannot be losers and it is advisable to invest in realty. This is especially true for all those who do not get pension benefits.

Samir Jasuja, CMD of PropEquity, says that property can be a great source of income for your retired life, or in case you loose your job, as many people have done last year. There is no question that property would not help if your investment were made at the right time. “Those who invest in realty should have a longer period of time to enjoy benefits of appreciation as it is a long-term game. One should not expect miracles in a short span. It wouldn’t make any sense for a 60-yearold to invest in a property to earn rental income as real rate of return would not be profitable”, says Jasuja.

There is also an opinion that if you are thinking of a second property, you
should not have any hang ups in investing on the outskirts of your city. With the passage of time, even outskirts become part of a city. You can meet many people in various trans-Yamuna colonies, who will tell you that they came to that part of the city when it was bereft of any worthwhile facilities. After facing hard times for a couple of years, development commenced. And with development, values of their properties went up multifold. That has changed the class character of a large
number of people. As rates have really gone up in main parts of the city, one should not mind investing in outer or little unknown areas.

Vijay Jindal, MD of SVP Developers, says that among buyers of his flats in various projects, the number of those who already own properties are pretty high. That is an indication that the present generation knows for sure that investment in property would help their cause when the chips are down.

Anil Makhijani, a realty expert, strongly feels that land can be another option for those looking for a second property with a specific goal. Between land and constructed property, the former is a lucrative option as it is much easier to sell it and the rate of appreciation is also higher. If you live in Delhi, then you should not think twice in buying land in any part of NCR. That would ensure for you enough returns in future.

Realty experts say that those dependent on loans for buying a second or third property should focus on it early in life. For example, one should start thinking on lines of buying a second property before reaching the age of 50. In that case, you would get enough time to shed all loan liabilities before reaching the retirement age. Discussing the purchase of a second or third property, Avinash Aggarwal, director marketing of Orange County, says that if one were to look back at the situation of 15-20 years ago, one would realize that, earlier, people were satisfied after buying one property. “As salaries have gone up over the years, there has been a paradigm shift in the attitude of people in terms of investing in realty. If investors settle for one property earlier, the later generations have been investing in multiple properties,” says Avinash. He is spot on. Now, people are investing in realty with clear-cut thinking that their investment in property would be their source of income in post-retirement life. With higher disposable incomes and more loan options, this thinking is being adopted by a larger number of families.

While there is nothing wrong in investing in properties, realtors caution prospective buyers of properties that they should invest carefully. They must invest in only those projects which are handled by realtors with a proven track record.

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