Risks of buying a house in far off areas

For investors, two things are important—return on investment and ease of exiting. “In the present scenario, most suburbs or far flung areas have inventories for 40-60 months. So, chances of capital appreciation are very low,” said Divakar Vijayasarathy, co-founder, MeetUrPro.com, an online professional services provider.

Moreover, typically most of the price appreciation in a project takes place once it is closer to completion. But considering the fact that gestation period for many projects can go beyond 4-5 years, selling a house at a good price is a distant event. If you have funded your purchase through a home loan and if the project gets delayed, the gestation period can increase further.