Source: Money Control ( https://bit.ly/3S7aiQw )

Imagine you come across an opportunity to invest in an old building at a bargain price and with the potential of re-development. Such offers can be very tempting. As families grow, many residents feel the need to upgrade to a bigger house in a new building or desire better amenities and do not want to wait until redevelopment, which is uncertain. There are many such properties put on sale (even distress sale).

The waiting game

So, should you invest in such old real estate if you get a good deal? The biggest bet in taking an investment call on such old properties is that it would go for redevelopment, although the period is ambiguous. So, basically the inherent risk here is the waiting period, the duration for which a huge chunk of your money will be blocked in an old property. The longer the waiting period, the lower the possibility of returns.

Navigating the delays

I am not suggesting that any real estate investment in an old house is not a good deal. The point is if you are seeking capital appreciation on such properties, the basic premise is the speculation that it would go for redevelopment.

To Conclude
Buying real estate is alluring as it gives a sense of ownership. There is also this typical notion attached that property investment is always lucrative. One though needs to take stock of the personal situation and introspect on the questions above. Real estate investments when unplanned can prove to be expensive later on. After all, buying cheap does not always mean a good deal. Where the investment fits in your overall scheme of things eventually matters more.