Our take on Real Estate:
1. No country's economy is dependent on Real Estate. It is miniscule part of the the total GDP.
2. Problem is the parallel economy, which runs through this, so called Real estate builders (mafia). The so called Black money. Nation does not lose anything. All happens in connivance. Does the nation lose by giving subsidies?
3. US faced sub prime, when the asset prices collapsed. China had its share of real estate crisis recently- Evergrande.
In India, builders have thrived by conning the gullible poor middle class.
So what to do?
1. Always Buy fully constructed property or 90% completed, nearing possession. You will have to pay little extra. That's fine.
2. Don't invest in real estate for pure returns. It is a very time consuming process and the minimum period required to get returns is 10 years. There are better alternatives for investment.
3. Buy property for end use only.
4. Go with reputed builders.
Finally, stock market is a better place to be IN.
