Thursday, October 29, 2015

If a builder promises assured returns, ignore the offer

Beware of builders that promise guaranteed returns, especially in commercial property. It’s a false promise:


No such thing as assured returns in realty

Basic things to look at while investing in any avenue are — risk, returns, time horizon, and the exit route.

Though such schemes (guaranteed - assured returns) offer high returns,
but at the same time,
risk is higher,
investment tenor is longer and
exit is also difficult.

Moreover, an exit may mean paying a heavy penalty.

Real estate has always been an integral part of investment portfolios,
but to benefit from it, one needs to be careful.

Given the current market conditions, it is advisable to invest in completed projects, be it commercial or residential.

And if a builder promises assured returns, ignore the offer.

No such thing as assured returns in realty

Related Story:


1) What!? Is Landson Realty's 'Wood County' an Illegal 'Collective Investment Scheme'?

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