Has anyone made tremendous money from real estate investing?
Invest in under construction property
Pay 10% - 20% as down payment (from your savings)
Take loan with holiday period during those 4 under construction years
Sell 6 months before handover via builder's resale office
Costs to be paid - interest, agent fees 2%, transfer charges, govt taxes 12.5% on gains
Eg. 1Cr property growing at 15% pa Down payment - 20L Interest - 8.6% Interest cost - 16L Transfer cost - 1.5L (1000 sqft flat, 150/sqft)
Selling cost - 1.74Cr Agent fees - 3.5Lakh Taxes - 9.4Lakh
Total costs - 30L
Net profit - 44L
Has anyone done something like this repeatedly?
Talking product sense with Ridhi
9 min AI interview5 questions
There are times when all deals will make exceptional money, as from 2021-24 and times when you won't even be able to resale for 3-5yrs.
You need very deep pockets to sustain during both times. And if you have that money, there are less risky even higher ROI businesses that you can play with.
Agreed bad times/good times.
Deep pockets - no i don't have.
Any suggestions related to leverages.
Very difficult to do repeatedly. Only seasoned property brokers can, because they know the market and deals that are happening very well.
Yeah, that's what I want to know how to identify such projects and micro markets.
There is so much good content on equity market on YouTube and other places
Why not so much for real estate
If we can use this leverage mindfully, it can do wonders
I was reached out by Sobha developers agents for investment in their upcoming project. By their logic it seems the appreciation will be there for sure, and by 50% in 2-3 yrs. I am not sure if the property is priced at 14k per sqft who will pay 21k per sqft after 3 yrs? The rate at which it will appreciate is way higher than than the normal hike across various companies in 2-3 yrs. Not sure who are those buyers. On additional note if 4 bhk is costing 4 cr, then after 3 yrs it will cost 6 cr as per their logic. So this seems way higher and people will only dream about getting to a 4bhk house