Rate of return on land ?

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third.i.fina...
  1. When did you buy the land in your place ? (2011 )
  2. What is the current price ? (for your land ) (20 lakhs )
  3. Bought at what price ? ( eg : 11 lakh for 1200 squre feet )
  4. What is the rate of return on your land ? also called xirr ? ( 6 percent )
  5. location pincode  ? bangalore pincode - 560024

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the same can be found in a google form ...

I am doing a research on land and its profitability . If you can answer 5 questions, pls do so. [https://docs.google.com/forms/d/e/1FAIpQLSecLh6.... Thankyou.

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I have observed few things - jab bhee bechtay hain, we feel arrey yaar bahut bekar sauda kiya, saste mein bech diya. When we buy, immediately afterwards we feel arrey yaar bahut costly rate pe liya. Speed of appreciation may be different, but it is my confirmed view that investment in land (best) or commercial shop (better) or apartment (good) is always a good thing to do provided you have the money in hand and think of it as retirement funding (means, buy and retain for min15 - 20 years). We are over populated, God and GoI cannot produce more new plots in a sector, hence demand supply rule states that it is bound to appreciate. Of course, buyer beware conditions apply (buy authorized plot/flat, buy from reputed builder only, bestest is to buy an authorized which can be registered and mutated tomorrow itself). Do your research on the ground, ask friends family, don't trust newspaper ads or hype (I lost 20L in Triveni Faridabad, worst part is I got my younger bro also into it and lost him 20L too). Flipside, I had a plot which yielded me 6 times value in about 15 years. Bottomline, i urge everyone to go in for real estate ownership with the safety caveats. 

Please don't start comparing everything with share bazaar, ohh, agar itna paisa Rs x ABC ke shares mein daaltey hain, toh woh toh 10X ho gaye hotey. Well, they could have become 0.1X also. A physical plot or house gives mental peace especially important for our desi wives. They always feel much more secure if living in own home (male thinks, 1.5 crore ka mutual fund each year min 12% dega, means 18L annum, and monthly rental for such home is only 25K (3L annum), so I can make extra 15L. Well, like I said, we cannot put financial calculation logic into every part of our life. Phir toh aapko shaadi aur wife bhee expensive proposition lagega. Think about it. And think of age 60. Apna ghar with no fear of being thrown out even if less income. A happy wife who will stick with us in those senior citizen years when we are sick (kids will be here there on account of job or marriage, can't expect them to be in the next door flat caring for you).....at the end, it is going to be just you and I. Aur koi nahi hoga.

Sorry, long philosophical lecture. But I feel it is important to make fellow dimers aware.

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As long as corrupted money is flowing into real estate sector the boom won't end. We will become like south Korea where the cost of living will be unimaginable high. 

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Deal Lieutenant Deal Lieutenant
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The floor that i didnt buy for 1.25cr in 2021 is worth 2cr now outside north delhi in haryana

Deal Lieutenant Deal Lieutenant
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image

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Deal Captain Deal Captain
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Kabhi kabhi lagta hain, third.i. is the third eye of IT department stuck_out_tongue

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Bro, sending officers to your place tomo ... vacate it now toungueout 😛
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Benevolent Benevolent
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..

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I have observed few things - jab bhee bechtay hain, we feel arrey yaar bahut bekar sauda kiya, saste mein bech diya. When we buy, immediately afterwards we feel arrey yaar bahut costly rate pe liya. Speed of appreciation may be different, but it is my confirmed view that investment in land (best) or commercial shop (better) or apartment (good) is always a good thing to do provided you have the money in hand and think of it as retirement funding (means, buy and retain for min15 - 20 years). We are over populated, God and GoI cannot produce more new plots in a sector, hence demand supply rule states that it is bound to appreciate. Of course, buyer beware conditions apply (buy authorized plot/flat, buy from reputed builder only, bestest is to buy an authorized which can be registered and mutated tomorrow itself). Do your research on the ground, ask friends family, don't trust newspaper ads or hype (I lost 20L in Triveni Faridabad, worst part is I got my younger bro also into it and lost him 20L too). Flipside, I had a plot which yielded me 6 times value in about 15 years. Bottomline, i urge everyone to go in for real estate ownership with the safety caveats. 

Please don't start comparing everything with share bazaar, ohh, agar itna paisa Rs x ABC ke shares mein daaltey hain, toh woh toh 10X ho gaye hotey. Well, they could have become 0.1X also. A physical plot or house gives mental peace especially important for our desi wives. They always feel much more secure if living in own home (male thinks, 1.5 crore ka mutual fund each year min 12% dega, means 18L annum, and monthly rental for such home is only 25K (3L annum), so I can make extra 15L. Well, like I said, we cannot put financial calculation logic into every part of our life. Phir toh aapko shaadi aur wife bhee expensive proposition lagega. Think about it. And think of age 60. Apna ghar with no fear of being thrown out even if less income. A happy wife who will stick with us in those senior citizen years when we are sick (kids will be here there on account of job or marriage, can't expect them to be in the next door flat caring for you).....at the end, it is going to be just you and I. Aur koi nahi hoga.

Sorry, long philosophical lecture. But I feel it is important to make fellow dimers aware.

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As long as corrupted money is flowing into real estate sector the boom won't end. We will become like south Korea where the cost of living will be unimaginable high. 

Generous Generous
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True. And tax needs to be cut down. Everything is taxed sky high now and there's no avenue to save your hard earned money while prices are always increasing anyway. 

Generous Generous
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Wth bro? Property prices have almost doubled in the last 4 years in Bengaluru core areas. 

Heck, even in the outskirts where I live, it's gone from 12l in 2018 to over 30l now. 

Benevolent Benevolent
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This is exactly what I noticed. In the new layouts, for the 1st 5 years or so this trend will be there after that it flattens.

I was tracking prices in Marathalli, it was 2K per sft in 2008, 4K in 2010, 6K in 2012, now its about 12K per sft. If you have bought in 2008, your RoI is 11.5%. From here on it is not even moving.

In all my analysis what I found, the vicious nexus of realtors, brokers hype it for the first 5 years and later leave it. Eventually you end up getting ~12% RoI. Had this been share market there is always a way to reinvest.

If you have your own home, thinking real estate for long term investment is disastrous. We are institionally brainwashed that real estate beats everything. Some far away villages did get 100x on their lands when an airport or SEZ came, that doesn't mean

we too will get it. Here in Bengaluru, in the name of Devanahalli SFT is sold at 6-8K, just couple of years back they were selling at 4K. Here no establishments are there, just with the hype of Peripheral ring road etc they are increasing.

On top of it, the liquidity issue, we can't sell or buy instantly. In dire needs one would buy at less than market rates.

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I wonder how brigade, century guys make money ... they overprice their plots as it is ... 
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