Is real estate investment a viable option?

The term investment refers to the Return on Investment. The traditional investment options like Gold investment, Fixed Deposit are replaced by Shares, Mutual Funds, and investments in Real Estate Market.

Investment Options	Capital	Risk	ROI
Mutual Fund	Low	Moderate	Moderate
Shares	Low	High	High
Real Estate Investment	High	Low	High
Gold Investment	Moderate	Low	Low
Fixed Deposit	Moderate	Low	Moderate

Real Estate is a booming investment option in India with returns of more than 15% pa. With Lowering Interest rates on Home Loans, the high capital requirement is very efficiently managed by various financial institutions. Rather just being a capital, it’s an asset to own.

With the high cost values in the Metros, people tend to move to Tier II & Satellite cities. Gurgaon, Bangalore, Pune are desired locations. When we talk about Pune, what comes in mind is Pleasant Climate, Good Education, MNCs, Manufacturing Giants and Numerous Job opportunities. The city has lot to offer to migrants flowing in from various parts of the Country. This makes the city an investor’s paradise.

As an investment, what all one should look at –

Project/Price/Location – 

With Major Brands, come the Trust, Reliability & Transparency. Explore the best options in an upcoming area promising an elegant lifestyle taking into consideration, the Current Accessibility and Future Government plans for Connectivity.

Place like Gurgaon & Bangalore has witnessed tremendous growth because of their Locations and so is Pune. The best offering of the IT city (Pune) is either in the East or the Western SEZ (Hinjewadi). Let’s see the merits and demerits of both East and West Pune with investment perspectives:-

Eastern Pune	Western SEZ
Kharadi & Magarpatta	Hinjewadi (Rajiv Gandhi Infotech Park)
Proximity to Airport and Nagar Highway	Closely located to Mumbai-Bangalore Highway
Hospitals and Malls	Upcoming Hospitals and Malls
Traffic & connectivity issue – One major Road	Five upcoming Roadway plans to connect all phases of the IT park
Irregular Electricity and water supplies	No issues of electricity and water
Cost of Living is High as the area is developed and ROI is relatively less	Cost of living is Low as IT park is still to witness the major development and one can expect higher ROIs

ROI(Return On Investment) – 

Look for the past 5 years trend. The IT sector for Pune is still in a growing stage, and with lucrative government policies to attract FDIs, the IT sector will see a change over in coming Years and so will the development in the infrastructure for the city.

Returns can be Long term (Appreciation of Asset), Short Term (Rental Value) with Add-ons of Tax benefits.

Plan Your Finances – 

One should have an insight for his income-expenditure statement. This helps to plan a systematic investment. Rental Value and Income Tax rebates are essential factors to be considered for Home Investments.

With RBI reducing Home Loan interest rates, it’s a right time to go for a Home. By cutting down the interest rates, the government is facilitating citizens to Own a Home. 

Considering the foresaid facts, Pune is a viable investment option and Pune East and West both stand out to offer some good ROIs and elegant Lifestyle.