BUY sell RENT Patna

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                Investing in Property in Patna 


 

Property in Patna is not looking great for investment right now. Long term investors looking to buy property in Patna for post retirement self use or for holding periods of over 5-10 years can enter in select locations and segments and look for bargains. 

                                              
Certain general rules for real estate investment Patna in a slowdown can be kept in mind while investing in Patna real estate.

1. In a bear market, one should select property in Patna in prime locations and not in peripheral locations, since prime locations will be the first to reverse price direction and will give the most sustained returns once the bull market returns in Real estate Patna. For example; buy an apartment in Boring road, now inPatna for great returns.


2. In a bear market, one should invest for the long term. For property in Patna, a time frame of 10 -5 years or more is ideal.


3. Short term flipping for quick gains on leverage in Patna property (agreement and deeds on margin; especially for land) should not be attempted in bear markets. This technique is reserved for bull markets.


4. The most depressed prices in Property in Patna in distress sales will be in luxury property in Patna and in plots where people have got agreements done on higher prices and are looking for buyers. These will rise the most when the market turns. Deep pocketed investors with the ability to pick up the distress sale and holding through the uncertainties of the bear market will reap the maximal rewards. Deep pockets and lack of leverage will amplify returns in bear markets – thus bear markets make the rich even richer because they alone can afford to buy and hold. This is in contrast to bull markets where short term holding and leverage amplifies returns and risk takers benefit rather than long term holders.


5. The safest investment for middle class investors in a bear real estate market Patna is already built ready to register flats in Patna in the affordable segment in the main central areas of Patna with existing infrastructure.

 

Luxury property in Patna as a whole is better avoided for the year 2014 in Patna. This is because prices are already high and it is better to wait for lower prices and for bargains to emerge. As the luxury flats in Patna booked by investors slowly get completed, investors will be ready to negotiate with bargain hunters. 

Plots in Patna are also avoidable because of the existing high property prices in Patna. The higher prices for construction of builder floors on plots have made them expensive and out of reach for many in Patna. Buyers also prefer to live in apartment in Patna complexes due to better security and amenities. As such, a changing preference of people over time makes it difficult to extrapolate previous price behavior of plots in the past 30 years in Patna. Waiting for better bargains but also actively looking for bargains would be prudent for property investors in Patna.

Property in the affordable range of 2500 to 3500 psf range will be the best segment for entry, for both end users and investors, due to limited downside.

The main requirement for a boom in property in Patna market is a recovery from the current industrial recession. Until the industrial revival generates better paying jobs, the real estate market in Patna cannot revive. The industrial revival is likely to happen in the next 2 years based on cyclical factors; however the strength of the industrial revival is crucially dependent on the general elections of 2014. A strong decisive pro-industry government will cause a dramatic improvement in the industrial climate and a sustained stock market performance followed by an equally sustained real estate market performance will follow. A fractured mandate will cause a weak revival but consequent turbulence in exchange rates can have unpredictable results on real estate price inflation. High imported inflation, escalation of raw material prices, escalation of capital cost etc can have paradoxical results in the real estate market by making the cost of new construction prohibitive. Existing property in Patna which is registered may therefore become more valuable while under construction projects might be abandoned.

The prudent real estate investment in Patna is therefore to buy only ready to move ready to register flats in Patna in the affordable range in central locations and having good infrastructure – or to wait for the general elections before making any fresh commitments into property market.


Despite property in Patna being in a bear market, it is a good hedge against Rupee depreciation in the long run and hence every person should have some exposure to property in Patna. Buying small ready to move in flat (I BHK or smaller if salary is inadequate) based on a small portion (<20%) of salary going towards EMI 


would always be a prudent investment in Patna and for such investment, question of timing does not arise and buying can be done at any time in real estate market in Patna.

  

 

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