Thanks for your feedback. We have different point of view , I disagree but dont dis-respect
My views below:
“Well, residential real estate has different equation. Residential rental return is expected to be low with relatively higher capital appreciation”
Probably, this is precisely the hypothesis based on which residential real estate is bought. However, I fail to understand how capital appreciation can be high without healthy rental appreciation as both are very much co-related in long run.
Residential real estate moved 10 to 20 X in most part of india between 2000-2010. In fact, as kids we knew buying home as most prudent decision of our parents .
Probably that bull run is embedded in our psyche (me included), but if you look at 10 year period (2012 to 2022), residential real estate prices moved nowhere in most tier 1 cities. Capital appreciation is in the hands of market, and difficult to predict.
Real estate is cyclical play, best time to buy is when rental yields are respectable, irrespective of residential or commercial.
Note that these are my personal views, may turn out to be wrong / foolish in future.
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