Real Estate in Vijayawada
Buying Real Estate Property in Vijayawada Buying real estate where prices haven't already appreciated - in tier 2 & 3 cities or on the outskirts of a metro - is like buying a small-cap stock hoping it becomes large-cap, according to Sai Pragathi Agency Vijayawada . While all this can mean good return on investment (ROI), it is a high-risk strategy and hence capital allocation should be lower, real estate is unlikely to beat inflation and interest costs in the long run. "The question to ask when investing in real estate: Is the property yield greater than inflation? If yield -ve, the price has to go up by at least 10% per yr to beat inflation, or the price has to double every 7 years," For the price of the property to double every seven years, the rents also have to go up as much which is not happening in most places in India, "For eg, if a flat costing Rs 1cr can be rented at Rs 20k/month. For the price to go to Rs 2 cr, ideally rent has to go to Rs ...