Here is an email I received from a reader of The Safal Niveshak Post some time back.
I am an NRI living in the Gulf, with no plans to return to India in the near future. Now the problem is that, my wife and all her relatives are insisting that I invest in real estate in Chennai. They feel that it is the real “solid” investment, all the rest is in paper. They keep giving me examples of other people, especially relatives, who have seen terrific returns by investing in real estate.
But, when I see the current prices when compared to the rental yield and the risk and hassle which we take upon ourselves when we invest in real estate, it makes me hesitate. Also when I went to the OMR (Old Mahabalipuram Road) I saw at least 15,000 to 20,000 new units coming up…including Hiranandani, Purvankara and the others. Most of the purchasers there are investors who are planning to rent them out.
Will it not create a glut of housing in the near future and bring down the rents even more?
I already have an own house in Chennai, so, even when I come to India, I have a place to stay.
Because I’m an NRI, all my money is white and I feel that the high prices in Chennai or anywhere in India, are due to a large extent due to the black money involved.