Hi

The interest rates for FD have been reduced to 7% by the India's largest lender SBI (from Sept 1) and the news says that its an indication that the rates will fall more. FD's have always been considered as a safe and steady income option specially for the retired people. So now with the reducing rates and increasing inflation, what else is the next best investment option that we can look at?

http://www.livemint.com/Money/89WFPIl4K9ZDCgLZ7QOl4H/7-the-interest-rate-on-State-Bank-of-India-fixed-deposits.html

 


Life is really simple, but we insist on making it complicated - Confucius

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This hurts the Common man. if inflation is 10 percent, and you are earning 9 percent on your fixed deposits, you are actually losing money putting in the Bank.

If we have some money so the best option for investment to buy small plot in any area and save it some time and shell  it again you repeat this procedure many times,  because day by day plot rates will be high and your interest rates high also.

Vikram Sharma wrote:

If we have some money so the best option for investment to buy small plot in any area and save it some time and shell  it again you repeat this procedure many times,  because day by day plot rates will be high and your interest rates high also.

I agree investing in real estate is another good option, however one must be knowledgable in this field. There is always a risk involved. however it is still worth a try. I have seen many people getting rich by investing in properties and selling them after few years, it fetches lot of money.. 

Investing in Real estate is profitable. Construction boom in India is growing fast now . The Government has decided to build Smart cities in many states . It can produce a huge cash flow on monthly basis. the cash generated is much higher

But is buying a plot requires more funds.  Not everyone vl have that much and also property rates are increasing only in the city and it's outskirts or places whr sme construction r going on.... Other than that it's not varying much.


Life is really simple, but we insist on making it complicated - Confucius

An individual or a group of persons,can form a group. Bank loans are available. Over a period.,  the amount  of interest you pay to the Banks will be much less than the profits you  earn through Real estate  Business.

rambabu wrote:

An individual or a group of persons,can form a group. Bank loans are available. Over a period.,  the amount  of interest you pay to the Banks will be much less than the profits you  earn through Real estate  Business.

Cant agree with you in this regard at all. For one its very diffiicult for people to group together for buying a property because there are n  number of disputes that are likely come up when it comes to ownership share inheritance etc etc. Secondly, taking bank loans for a property you are buying for investment would be a risk you are taking. If the prices do not increase then you would actually be in a loss paying the interest to the banks.


Life is really simple, but we insist on making it complicated - Confucius

The essential criteria for Real Estate is forming a group. Because of their common interest, Profits.Real estate consultants are there in AP. The question of disputes will Never arise. I myself live in a Flat built by a Real Estate group . The Builder lives in the Same lat. Even after construction is completed, the Builder attends to all the problems related Power Supply, Water problems etc.

rambabu wrote:

The essential criteria for Real Estate is forming a group. Because of their common interest, Profits.Real estate consultants are there in AP. The question of disputes will Never arise. I myself live in a Flat built by a Real Estate group . The Builder lives in the Same lat. Even after construction is completed, the Builder attends to all the problems related Power Supply, Water problems etc.

You are forgetting the point of discussion. I am not talking about builders or real estate agents etc. The discussion is about a common man. Please do keep the focus of the topic of discussion. Else you can start a separate thread topic you wish to discuss


Life is really simple, but we insist on making it complicated - Confucius

Even the common man too will be benefited. A Real Estate has to  include a plumber, a Carpenter and a Care taker or watch man and  a laundry. Of course, the monetary benefits will vary. Another advantage  for the Common man is, he gets a Job.

There is no necessity of starting a separate thread. Because, My Builder lives in the same flat, where I live. He and a separate  group, known as 'House Committee ' discuss flat related problems periodically. I'm a member in the House committee.

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