Play it safe

Property segment forms a major part of the economy of every country these days. In fact, it has assumed large proportions in the last 15-20 years. All types of investors are interested in real estate. Bank loans came in handy after banks liberalised lending norms even for purchase of plots/sites. But the sudden slump in the property market has affected many. How to cope with this position? Here are some tips:

Don’t panic; a better day is sure to come as cyclical changes are a reality.

This is the right time to invest in property, both from the price angle and the loan cost angle, but be choosy about location and the developer/s.

If you have invested in flats/apartments under construction, be prepared for delayed delivery, but watch the progress and quality of construction.

Wherever registration has not been done, the opportunity of reduced stamp paper rates and registration charges can be utilised, as further cuts may not fructify.

Avoid speculative investments as the turn-around may take time.

Don’t be carried away by ads like “Buy one, take one/two free” unless the offers are fully vetted.

Evaluate offers of small-size houses from the angle of location, family requirement, facilities provided, maintenance cost/arrangements etc.

When the stock market picks up and the interest on bank deposits comes down, investment in property can be a good alternative, sans liquidity. Yet, a house is a must for living, but the second home is a luxury which needs to be purely on commercial considerations.

Have a budget based on dwindling income and rising prices. Plastic money should be only an emergency supplement. Review your finances before embarking on fresh investment journeys.

© Copyright 2000 - 2009 The Hindu