Real estate is a good investment option, but not by taking leverage because returns will remain low when compared to cost of funding. Traditionally, there has been a high affinity among Indians for physical assets such as precious metals, jewellery and real estate. This trend has been changing over the past decade. The reasons are varied. One important factor playing a role here has been the increased penetration of financial instruments tapping populations living even in remote villages. The result has been that the ‘only store of value’ feature offered by physical assets is fast disappearing.
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