Chennai Real Estates : The Best Investment

Skyrocketing!! Thats the word frequently used to describe this business. The investment thats going to make an Aandi-Arasan tranformation..So can you just blindly jump into this sea without knowing its depths..Definitely a big Nooo!!

First of all, it depends on what kind of portfolio you are looking out for. Are you going to buy Stones or Mud..If you are settling for stones, are you looking for a new one or a resale. And moreover, is it going to be a flat in a 10-floor apartment, a semi-independent or an independent duplex house. Oops!! Lot to think about..

Lets take the case of buying a Land. I would state some figures that are currently prevalent in the market.(Disclaimer:Prices quoted here by experience of author. Can be used just as reference values but should reconsider while taking individual decisions).

S No	Chennai’s Hot Areas	Price per ground(2400 sq.ft) in lakhs
1	T Nagar, Nungambakkam, Mylapore, Adyar	100-300
2	Velachery	45-125
3	Mahindra City near (SP Koil, Guduvanchery, Maraimalai nagar, Urapakkam)	6-17
4	Sriperambadur(near Nokia and Saint Gobain)	4-9
5	Pallikaranai, Medavakkam, Chitlapakkam, Ponmar	4-40

My Take: For investments anywhere between 2-12L, places from Perungalathur till Chengalpet like SP Koil, Guduvanchery, Urapakkam, Maraimalai Nagar is a very good buy. Its sure to appreciate very good. Between 10-35L, places like East Tambaram, Palikaranai, or acres near Mahindra city and Sriperambadur is a good option. Above 35L(not sure how many will go for this), you have lots to choose. Its your choice :-).

Now before buying a plot or a house, think hard and evaluate all its alternatives. Remember, this is a life time investment. First, have a look at the area, the surroundings, the situation there whenever there is rain(if you are ready to hire a boat, then its fine), the legal issues, abutting roads, CMDA/MMDA approval, processed patta, the history of the seller, the price-differences in that area and value-for-money(near road corner plots are good) investments. Moreover, for legal issues, double check with good lawyers, and get clarified for anything weird that may happen. If you going for a private seller rather than a reputed real estate agent, be careful about double-dealings also(heard that there are lots happening in areas like Pallikaranai).

Now after you buy a plot(if u building a house, then no problem), maintenance is very very important. You may think I buy a plot, leave it alone for 2 years, and then sell it off at double/triple the rate. Uhh!! Big mistake!! After 2 years, you return to your plot and see a whole colony living there. Regular maintenance of your land is really essential. Once a month, just have a view of your land, fence it just after your buy and have a local person in chennai to constantly monitor. That would bring down the risk of your investment.

But the other side(i would not say this as a disadvantage for the retuns you get) of investment in land, you get Zero Tax Benefit which is not the case when you buy a new house/get a resale flat. So the decision to invest in this business should be highly planned and executed, and I am sure you will reap tremendous benefits for the little risks you take. So my 2 paisa for Investments at Chennai!!