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Why Buying Property in Gurugram or Indian Metros Might Be Your Worst Financial Decision

Why Buying a Property in an Indian Metro Like Gurugram Could Be a Huge Mistake

not buying gurugram property


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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