Developing areas have good scope for appreciation
Answers queries on Home Buying, 2nd Homes and Property Investments
While it is desirable to own 2nd homes, there are few security concerns as compared to 1st homes. Is it possible to get these homes insured from theft or other hazards?
–Viren
Good second home projects are usually gated communities which come with 24/7 security. As far as insurance is concerned, second homes are insurable and there are insurers who write policies for second homes based on their risk perception which is the normal process.
Like in financial industry there are systematic investment plans available, is there any similar investment option in property market?
–Zubin
Systematic Investment Plans are presently offered by Mutual Funds registered with SEBI and the sums collected under such schemes are invested in the stock market by Mutual Funds as per set rules for the same. There are no SIP schemes in Real Estate per se, however there are monthly installment schemes offered by some plot developers whereby you pay a monthly installment over a period of time.
I have a budget of 70 lacs (including loan), and I am looking to invest in a property. I've checked options like a 1bhk at Goregaon/Malad and a 2bhk in Thane. Which of these would be a better investment option with a 5 year purview and pls also suggest if any other area could have better returns as compared to them.
–Sapna
From the return on investment point of view it will always be better to invest in developing areas as there will be scope for appreciation. Hence the outskirts of Mumbai and Navi Mumbai will hold greater scope for appreciation in absolute terms as compared to the already developed places which are quoting a high price today.
Why are 2nd home destinations in the outskirts of Mumbai appreciating at such fast pace as compared to the main city?
–Sagar
2nd home destinations are reasonably priced to begin with and are typically under developed as far as location is concerned. As time passes and the location gets developed, appreciation kicks in. Since the initial investment was done at very reasonable price the rate of appreciation is much higher. Some of the 2nd home destinations have the potential of being 1st home destinations in the near future; such destinations will fetch a much higher return.
Answers queries on Home Buying, 2nd Homes and Property Investments
While it is desirable to own 2nd homes, there are few security concerns as compared to 1st homes. Is it possible to get these homes insured from theft or other hazards?
–Viren
Good second home projects are usually gated communities which come with 24/7 security. As far as insurance is concerned, second homes are insurable and there are insurers who write policies for second homes based on their risk perception which is the normal process.
Like in financial industry there are systematic investment plans available, is there any similar investment option in property market?
–Zubin
Systematic Investment Plans are presently offered by Mutual Funds registered with SEBI and the sums collected under such schemes are invested in the stock market by Mutual Funds as per set rules for the same. There are no SIP schemes in Real Estate per se, however there are monthly installment schemes offered by some plot developers whereby you pay a monthly installment over a period of time.
I have a budget of 70 lacs (including loan), and I am looking to invest in a property. I've checked options like a 1bhk at Goregaon/Malad and a 2bhk in Thane. Which of these would be a better investment option with a 5 year purview and pls also suggest if any other area could have better returns as compared to them.
–Sapna
From the return on investment point of view it will always be better to invest in developing areas as there will be scope for appreciation. Hence the outskirts of Mumbai and Navi Mumbai will hold greater scope for appreciation in absolute terms as compared to the already developed places which are quoting a high price today.
Why are 2nd home destinations in the outskirts of Mumbai appreciating at such fast pace as compared to the main city?
–Sagar
2nd home destinations are reasonably priced to begin with and are typically under developed as far as location is concerned. As time passes and the location gets developed, appreciation kicks in. Since the initial investment was done at very reasonable price the rate of appreciation is much higher. Some of the 2nd home destinations have the potential of being 1st home destinations in the near future; such destinations will fetch a much higher return.
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