What’s more feasible? To invest in properties or SIP?
The real estate market in Mumbai is really vulnerable and it can bubble anytime if any major government policies comes which is not favorable or if there are shocking election results. The year of 2008-2017 has already witnessed a rise of 110% in the real estate prices. The property which was bought for 20lakh in Mumbai in 2003 today approximately costs around 1.5 to 2crores.
Hence it won’t be an overstatement to say that the Real Estate market of Mumbai has been overpriced since the last 2year. In fact if you want to invest in properties the best bets would be satellite towns like Dombivli, Panvel or even thane. These places will give you good returns due to upcoming international airport and business districts. Also, places like this are booming as they were untouched till 2010. The real estate market is at the growing stage in these districts and hence it’s the right time to invest there rather than the western line of Mumbai especially from Borivali to Churchgate as the growth may be stagnant or very slow if you invest in the B TO C western line. Chances are it may even witness a 10 to 15% fall in 2018 and may depend a lot on the new election results. Hence, it is advisable to wait if you are planning to invest in the western line of Mumbai especially Borivali to churchgate.
Certain developing areas of Pune are also worth investing like the VTP Urban Life Talegaon, Pune and VTP Bhagyasthan, Talegaon, Pune where completely new localities are being developed with modern day amenities at a throwaway price.
But this was all about properties, there is also one more option where you can safely invest your money and get to see good returns. It’s the SIP- Systematic Investment Planning where in atleast you know what you will be getting after a certain period of time. The risks are eliminated and the future is in safe hands as far as SIP is concerned. It is usally the best form of investment if you have a consistent and stable income as you have to invest a certain amount every month till its maturity date. It’s basically for those who believe in long term investment planning. SIP is a compromise between investing at random and timing the market. Most researches indicate investing at random, if your time horizon is long, is the good way to invest.
10 Steps that you need to follow to start your SIP are :
1. Set Your Finance Goals.
2. Measure Your Risk Appetite.
3. Plan Your Investment Horizon.
4. Invest Online/Offline.
5. Invest Directly/Through Financial Advisors.t
6. Application form.
7. KYC Compliance.
8. Decide Date and Amount of SIP.
9. Decide Mode of payment.
10. Select Fund Type.
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