Despite the surge in buyer sentiment, real estate is still not a good investment in most parts of the country. Property price are still very high and despite the recent interest rate cuts, the cost of borrowing has not come down significantly. For potential borrowers like Mehta, a 15 basis point will shave off Rs 800 from the EMI of a Rs 80 lakh loan for 20 years. Is that a big enough reason for them to make the largest financial commitment of their life?
This week's cover story sounds a note of caution for investors in real estate. In the following pages, we have raised 10 questions that a potential buyer needs to answer before he takes the plunge. Don't get us wrong. We don't want to shatter your dreams to own a house. We just want you to take a reality check. Your answers will tell whether you are in a position to buy and if real estate is indeed the best investment option for you. If most of them are answered in a 'no', take a step back and revisit your plans. You may decide to save more for a bigger down payment, buy a smaller house, invest in a cheaper city or not buy at all. Whichever option you choose, rest assured, you will not regret your decision.
Read the full story published in ET dt. 6th Jul 2015