Why Buying a Property in an Indian Metro Like Gurugram Could Be a Huge Mistake
Owning a home in a metro city seems like a smart
move — but in reality, buying property in places like Gurugram, Mumbai, or Bengaluru today might actually hurt
your finances. Here’s why:
1. Sky-High
Prices for Small Spaces
Let’s look at land rates:
🏙️ Gurugram (2024)
·
Sectors near Golf Course Road: ₹25,000 – ₹40,000
per sq. ft.
·
Sector 57 / 51 / 42 etc. (residential): ₹18,000
– ₹25,000 per sq. ft.
🏡 USA (2024)
·
Texas / Georgia / Florida suburbs: $50 – $100
per sq. ft.
o ₹4,000
– ₹8,000 per sq. ft. (converted)
o And
that’s for independent plots, not
apartments.
👉 You're paying 2–3x more for land in India than in the U.S.,
where income is 20–30x higher and infrastructure is world-class.
2. Poor
Returns on Investment
Rental income from Indian property is just 1.5% to 2.5% yearly. Compare that to:
·
Fixed deposits: 6–7%
·
Mutual funds: 10–12%
·
U.S. rental income: 5–8%
So your ₹3 crore flat earns just ₹40–50K/month
in rent — and most of that goes into maintenance, taxes, and EMIs.
3. EMIs
Lock You Down
For a ₹2.5 crore flat, your EMI could be ₹1.5
lakh/month for 20 years. That’s money you could invest, save, or use for better
experiences.
4. Builder
Mafia & Fake Pricing
Land and apartment prices are artificially inflated by builders. Even
when demand drops, prices don’t. Why? Because builders hold unsold units
instead of reducing prices — creating a false “premium” market.
5. Poor
Quality, High Maintenance
Bad construction is common. On top of EMIs,
you pay ₹7–₹12 per sq. ft. monthly in maintenance fees. That’s ₹10,000–₹20,000
every month, often for poor service.
6. No
Flexibility
When you rent, you can move to a new job or
city easily. Owning means you’re stuck — and selling property in India takes
time and effort.
7. Legal
& Possession Risks
Many builders delay possession. Even with
RERA, legal cases drag on. Some buyers are waiting 5–10 years for homes they
paid for.
What You Can Do Instead
·
Rent
smartly, and live better.
·
Invest in mutual
funds, stocks, REITs, or even U.S. ETFs.
·
If you want real estate, look at Tier-2 or Tier-3 cities where land is
cheaper and growing.
Final Thought
Before you buy, ask yourself:
“Why am
I paying ₹25,000 per sq. ft. in a developing country when U.S. land costs less
and offers more?”
Sometimes, buying less gives you more freedom and wealth.
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