Dhruv Agarwala and Kartik Varma Should you buy a house only so you can move into it, or is real estate a good alternative investment to stocks and fixed deposits (FDs)? Either way, considering the course correction in real estate in India at present, investing in a property is a sure path to wealth creation.
Moving in vs investment
If you are looking to buy a house into which you can move in straightaway, there is never a wrong time. The bottom line is: You can never time the market. If you have zeroed in on a property that fits your budget, don’t delay signing on the dotted line. This is about as good a time as the interest rates are relatively low and home prices are 20-25% lower than what they were a year and a half ago.
If you are considering buying real estate as an alternative investment, be aware that this is a long-term asset. Don’t be unrealistic about your assumptions on being able to flip this asset at a profit over the next 12-18 months. It is unlikely that you would make any profit after taking into account all transaction costs, such as stamp duty and brokerage, that are typically associated with a real estate deal. While it is tempting, you should weigh other investment alternatives and factor in a realistic time horizon for a property as an investment buy before taking the plunge.
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