Rs.12 lakhs is all you need, to get started with real estate investments in India, today.

With a plethora of options available to you from leading builders across key cities of India, you can get started with as less as just Rs.12 lakhs (or $18,500) in your pocket.

Unlike before, when buying real estate was an expensive affair, many young Indians are making their first property investment at the age of just 28 to 30!

This 3 STEP Quick Start Guide will help you identify where, how and with which asset you can get started in India – based on your purpose of investment, your method of financing the investment and how long you are willing to stay invested.

The Smarter Way to Invest

Always keep in mind the following aspects while evaluating investment opportunities in Indian real estate:

Start Early, even if it is in a small way
Today, you can get started with as low as Rs.12 lakhs and hence you don’t have to wait for years until you accumulate a large corpus to get started.

Stick to the Top Builders
Always invest with top branded builders to ensure safety of your money, completion of projects on time and certain minimum assured returns.

Take Advantage of Pre-Launch Prices
By investing in pre-launch offers, you will enjoy immediate & virtually guaranteed gains of 15% to 20% with a few months of your investment – giving you an early mover advantage over common public.

Invest using a Home Loan
This is a smarter & more affordable way of creating tremendous wealth as the money you borrow at 8% to 9% per annum, gets invested in an asset that grows at 15% to 20% per annum – literally creating money out of thin air!

Step 1

What is your Purpose of Investment ?

Do you want to multiply your money (i.e. earn capital gains) or do you want to earn monthly / rental income ?

While it is possible to achieve both from a single property investment, you must decide what your primary motive is, as this will help you decide on what type of property to invest in – as each type of property excels in one particular area and no single property type can give you the best of both rental yields and capital appreciation – except serviced hotel apartments, that CAN give you both high rental income + long term capital appreciation.

You want Capital Gains?

Invest in residential assets (apartments & villas) under pre-launch as they can appreciate by as much as 15% to 20% per annum. However, these are NOT good for rental income as their rental returns are a piddly 1.5% to 3% per annum. Invest in these, only with an intention to resell them in a few years for capital gains.

Look at :

Pre-Launch Offers
(Apartments & Villas)

Invest in new / under-construction projects of leading builders of India at a discounted rate before the project is launched to public at a higher rate – giving you instant & virtually assured price advantage. You can resell the property in 3 to 4 years for atleast 75% to 100% ROI.

Legally Guaranteed Capital Gains
(Buyback Offer)

Earn legally assured returns of 60% in 3 years via a buyback offer from the builder. Right at the time of investment, you know exactly HOW MUCH you will earn and BY WHEN you will earn the same – making this one of the most stress-free ways of multiplying your wealth.

You want Monthly Income?

Invest in Serviced hotel apartments (micro-commercial assets) as they give rental returns of 8% to 12% per annum. This is almost 3 to 4 times greater than what you can earn by renting out regular apartments or villas, but without any of the typical hassles associated with managing assets on your own.

Look at :

High Monthly Rental Income
Serviced Hotel Apartments

These assets help you earn a steady stream of high monthly income of Rs.20,000 to 80,000 per month, on an investment of just Rs.24 to 90 lakhs – giving you an annual ROI of 10% to 12% p.a, which is 4 times greater than what you can earn from regular apartments.

Step 2

Will you invest using your OWN FUNDS
or by taking a HOME LOAN?

Investing using a home loan is a better way to create long term wealth as you pay only 20% to 40% of property cost from your pocket but you enjoy appreciation on the entire 100% of property value.

That is, the money that you borrow at 10% to 12% interest rate will be invested in assets that grow at 15% to 20% per annum, giving you tremendous return on investment.

However at times, you may have surplus funds that you want to deploy immediately or you may have exhausted your loan eligibility, in which case, you can use your own funds to pay the entire investment / property cost.

Using HOME LOAN

If you can get a loan, you need to pay only 20% to 40% of property cost from your pocket and the rest is funded by the bank. In this case, you can look at :

High Monthly Rental Income
Serviced Hotel Apartments

You have to invest only 40% of unit cost as balance is funded by loans (we will help you with the entire loan process in India). This means that for a unit costing Rs.30 lakhs, you need only 40% of Rs.30 lakhs = Rs.12 lakhs (approx $18,500) to get started. And income will be greater than the loan EMI – making these self sustaining assets that pay for themselves.

Pre-Launch Offers
(Apartments & Villas)

Invest in new / under-construction projects by paying just 20% of unit cost as balance 80% is funded through a home loan on which you only pay simple interest (not the full fledged EMI). By the time of completion in 3 to 4 years, prices would have gone up atleast 50%, giving you ROI of over 100% to 150% as a result – as you invested only 20% of unit cost, but enjoyed appreciation on the entire 100%!

Free Pre-EMI Schemes

You pay just 20% of unit cost from your pocket and nothing else until project is completed and handed over to you. The balance 80% is paid via a home loan on which builder pays the Pre-EMI / interest on your behalf, which means you pay nothing else apart from the initial 20% but you enjoy capital gains on entire 100% value of the property, giving you ROI of 100% to 150% in 3 to 5 years.

Using OWN FUNDS

If you plan to invest using your own funds only and do not prefer taking a loan, you should look at the following options that reward you for using your own funds :

Legally Guaranteed Capital Gains
(Buyback Offer)

This options gives you legally assured ROI of of 60% in 3 years via a buyback offer from the builder. The minimum investment required is just Rs.15 lakhs (approx $24,000) and your investment is protected via a PDC (post dated cheque) and an Indemnity Bond on stamp paper.Your returns are guaranteed irrespective of market prices and conditions and property status.

Residential Villa Plots or Farmland Plots

These traditional assets give you a slow but steady capital appreciation in the long run – as land is a scarce & depleting resource, but demand for it only keeps increasing day by day! As cities begin to saturate & property prices within city increase rapidly to exorbitant levels, farmlands on the outskirts of cities will see a sudden increased in demand due to their cheaper pricing.

High Monthly Rental Income
Serviced Hotel Apartments

Through these, you can earn Rs.20,000 to 80,000 per month, on an investment of just Rs.24 to 90 lakhs – giving you 10% to 12% ROI p.a, which is 4 times greater than what you can earn from regular apartments. Asset becomes FREE / pays-off for itself completely in just 8 to 9 years of operation and will also appreciate in value, in addition to giving you high rental income.

Step 3

How long can you Stay Invested?

The investment horizon or holding period (i.e. how long you hold on to the investment before exiting the same) will also play a big role in helping you select which asset type to invest in.

SHORT TERM (3 to 5 years)

In real estate, you should stay invested for atleast 3 years or more to earn good ROI – irrespective of what kind of asset you invest in. In this case, look at :

Pre-Launch Offers
(Apartments & Villas)

Invest in top properties at a pre-launch phase where you enjoy a 15% to 25% early mover price advantage over common public. By the time construction is completed in 3 to 4 years, prices would appreciated substantially, giving you tremendous capital gains of aleast 75% to 100% in just 3 to 4 years.

Legally Guaranteed Capital Gains
(Buyback Offers)

These ZERO RISK investments are extremely popular due to their short lock-in period of just 3 years and assured ROI of 60% in 3 years. There is no uncertainty of how long it will take to sell the asset & recover your investment as you simply encash the cheque to get your original investment + 60% profit at the end of 3 years.

LONG TERM (5 years & more)

If you are in no hurry to sell and can hold on to your investment for more than 5 years, look at :

High Monthly Rental Income
Serviced Hotel Apartments

These affordable and small ticket size investments of Rs.24 to 90 lakhs will generate high monthly income of Rs.20,000 to 80,000 per month respectively and should ideally be held for atleast 10 years or more to reap maximum ROI. As returns from FDs (Fixed Deposits), regular homes & other traditional monthly income assets keeps falling, these high rental income serviced apartments will be in greater demand, leading to long term capital appreciation as well.

Residential Villa Plots or Farmland Plots

These are very simple and straight-forward small ticket size investments that you can invest in and resell after holding it for atleast 5 years or more and in the process, expect to easily double your money – which is a healthy ROI of 20% per annum on average. Since land is in short supply but demand is only increasing every day, prices will only keep appreciating over time and hence you have nothing to loose here!

With a stable government and strong economic fundamentals, India is going to be a one way growth story and this is hence the right time to invest in Indian real estate.

You should start-off right away, even if it means in a small way, by investing in atleast one of the above options.

Now that you know how to get started, to learn more about each of the options mentioned above, take a look at our  Model Portfolio©a suggested mix of the above mentioned real estate assetsusing which you can create your own basket of investments for Rs.30 lakhs, Rs.50 lakhs, Rs.60 lakhs, Rs.80 lakhs or Rs.1 Crore and more by mixing and matching above mentioned investment opportunities.

Contact Us

If you want to discuss this further or create your personalised portfolio, please feel free to contact :

INDIA
Jhashank Roy Chowdary

+91 99001-23737
jhashank@gcglobal.in

USA
Divyendhu Roy Chowdary

+1 845 248 0012
adrc@gcglobal.in