8 reasons to never invest in real estate!

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For 8 reasons to never invest in real estate!

[pattufreefincal]

WATCH NEXT: Talking to my son about money

[makarandvaishnav]

I was 99% sure not to invest in real estate, you made me 100% sure.

[amitkanjilal]

100% agreed with you sir. I bought a house for self occupation and taken oath not to spend a single penny to buy another one in my entire life time.

[ajaysehg]

You are right Dear Pattu, I bought a real estate for investment in yr 2012, now I wanted to sell as I needed money, but now it's a loss of more than 30 percent at 2012 price, forget interest. Real estate is really not for investment.

[RamprasadSugumaran]

well said. hopefully youngsters in our country educate themselves on this. The average rental yield for non-commercial property is 2-3% and commercial property is 5 - 6 %

[jvolc]

0:53 2:19 3:31 4:14 5:25 6:39 7:49 8:25 10:04

[sriganesh]

One of the main reasons why real estate thrives in India is black money and money inherited. Very less percentage of people buy a second house on loan unless the interest on that is dead cheap.

[rupeshmandal]

What are your views on REIT and fractional investing in commercial real properties like industrial warehouses for monthly rental yield? Also to diversify your portfolio?

[annaviraman]

Thank you pattu kutty for the insight☺️

[RavindraJuyal]

Really an eyeopener! Thank you Pattu SIr.
We would also like your views on 'Commercial' Rental Income in some future video. I work from a rented office in city center. Compared to buy price, the rental is very very cheap but almost everyone advises that i buy !

[rajandargan]

What is your suggestion to those who have already committed a mistake by investing in a house by takin loan? Do they need to liquidate it?

[kingshukghosh]

Thank you, shared this video in my family Whatsapp groups as another attempt to convince (albeit temporary relief to nagging) and not succumb to family pressures to buy a house on loan as an "INVESTMENT"

[fazeelzubair]

Can Real estate be considered as debt fund considering that it never goes negative....
For a person who doesn't want to invest in a FD, RD or arbitrage fund?

[ThisIsDhruven]

Thank you for another insightful video. I agree with all your points. My take on this after careful considerations.

1. If you are buying for self-occupation on loan, government also has lot of tax benefits for the first home.
2. In India if you buy real estate and if you are salaried class then on Day 1 you are converting your 100% white money into 50% white and 50% black. I agree that it depends on city/state combination. This also applies while you are selling your property you can't expect buyer will provide 100% white money. It is detrimental to our country in a long term.
3. Like Pattu, I too am very soft-spoken, by the book person, for people like us it is really difficult to create value in opaque market of real estate in India.
4. Broker fees of 1% to 2% during a sale, changing tenants, etc. Also 90% of them are hustlers rather than creating a value for buyers and sellers. They are for themselves first. During buy and sell you have to pay opaque costs of registration and stamp duty which many people don't consider along with lawyer fees.
5. Peace of mind, stress-free, convenience, no-need to hire contractors to fix toilets, wiring, flooring, painting, etc.
6. Over long term, real-estate can't generate more returns than companies/businesses, if that were too happen, businesses will start investing in land and real-estate rather than re-investing in their businesses itself.
7. Single point of failure - floods, hurricane, earthquake but in order to generate really good value you need to know the local market.

[r.gururajan]

Yes. All the points are valid Pattu Sir

[SambathikaChinthakal]

There are lot of black money involved in real estate transactions. Even if we, as seller, requested to show actual amount in title, buyer may not agree for fear of additional stamp duty. Handling that black money may tend to be a big problem if we are old and have no big expenses.

[randomThoughts_]

Here is my comment,
1. You sir are blunt
2. You dare to call things bullshit and nonsense which are bullshit and nonsense
3. I had these thoughts in my mind too (referring your "long term no risk" mutual fund invesent and compounding in equity remark) but you said it.
4. I am doing tactical investment from long but I was in doubt now I am sure.
Keep up the good blunt !!!

[gauravchoudhary]

I had explored real estate but all I would say is this video is a summary to what I explored.

[dhyanesh.r]

You have expressed some very valid concerns against investing in real estate. However, if I were to mitigate these concerns/risks, can I invest in real estate? Let's say :
1. I invest with my own money(not loaned amount),
2. Good at haggling the price/deals or know what the current market price is for a given area.
3. Have experienced family members well-versed in the real-estate process(NOC, encumberence certificates etc)
4. All cash transactions

Do you think real estates are still bad/risky investments? or do you think I have my risks mitigated to a certain degree?

[pranoobsomanathan]

I do agree with Mr. Pattu. However, Capital appreciation is the key!
Ensure that one invests in a saleable property... Dont invest in high value properties, which r not liquid.
Population increases, not plot! Hence the capital appreciation