Why Most real-estate Investments Fail: The Shocking Truth About Buying in the Wrong Location let’s break this down. In the name of “safe investment,” thousands of people buy flats in the most developed and premium areas of cities like Pune—only to discover years later that their investment barely grew, or worse, led to losses. by realestatebuy.in
Why does this happen?
Because they bought where it’s already perfect—not where it’s about to become perfect.
Let’s break down this costly mistake and how to avoid it.
Two Purposes. Two Mindsets.
Buying a flat to live in is completely different from buying one to invest.
✅ If you’re buying to live:
Choose a fully developed area.
Look for comfort, commute, education, and lifestyle.
🚫 But if you’re buying to invest:
Avoid areas that are already premium.
Instead, target emerging zones—places where infrastructure is just taking off.
People selling property after 5/10 years of investment
Why Most People Still Do This
Because they believe:
“If the area is already premium, my money is safe.”
But that mindset kills your returns.
You’re entering when the market has already peaked. There’s little room left for appreciation. instead, those who had invested in beginning they take you money and book their profits. Now let’s know how they do it
Then where the Real Growth Happend?
Now compare the above with an investment in Undri, Kondhwa-Shirur Road, Tathawade or Punawale—fast-rising areas on Pune’s outskirts.
Here, your property is located in a transforming area—new roads, metro access, tech parks, and upcoming schools. These factors fuel both rental demand and capital appreciation.
“Our mission is provide that investment power to common people.”
Let’s see a few examples of what happened to those who invested in different locations in last 5 year
We will take pune as an example
1)📍 Kothrud, Pune (2020–2025)
🔹 Property Details:
- Purchase Price (2020): ₹9,500/sq.ft → ₹95,00,000
- Selling Price (2025): ₹11,128/sq.ft → ₹1,11,28,000
- Capital Appreciation: ₹16,28,000
🔹 Rental Income:
- Average Monthly Rent: ₹25,000
- Total Rental Income (5 years): ₹25,000 × 60 = ₹15,00,000
🔹 Expenses:
- Home Loan Interest (approx. over 5 years): ₹10,00,000
- Capital Gains Tax (approx.): ₹3,00,000
- Other Costs (registration, maintenance, etc.): ₹2,00,000
- Total Expenses: ₹15,00,000
🔹 Net Profit:
- Capital Gain: ₹16,28,000
- Rental Income: ₹15,00,000
- Total Income: ₹31,28,000
- Net Profit: ₹31,28,000 – ₹15,00,000 = ₹16,28,000
🔹 ROI:
- Total Investment: ₹95,00,000
- Net Profit: ₹16,28,000
- ROI over 5 years: (₹16,28,000 / ₹95,00,000) × 100 ≈ 17.14%
Annualized ROI: Approximately 3.43% per annum
2)📍 Kharadi, Pune (2020–2025)
🔹 Property Details:
- Purchase Price (2020): ₹7,500/sq.ft → ₹75,00,000
- Selling Price (2025): ₹10,350/sq.ft → ₹1,03,50,000
- Capital Appreciation: ₹28,50,000
🔹 Rental Income:
- Average Monthly Rent: ₹22,000
- Total Rental Income (5 years): ₹22,000 × 60 = ₹13,20,000
🔹 Expenses:
- Home Loan Interest (approx. over 5 years): ₹9,00,000
- Capital Gains Tax (approx.): ₹4,00,000
- Other Costs (registration, maintenance, etc.): ₹2,00,000
- Total Expenses: ₹15,00,000
🔹 Net Profit:
- Capital Gain: ₹28,50,000
- Rental Income: ₹13,20,000
- Total Income: ₹41,70,000
- Net Profit: ₹41,70,000 – ₹15,00,000 = ₹26,70,000
🔹 ROI:
- Total Investment: ₹75,00,000
- Net Profit: ₹26,70,000
- ROI over 5 years: (₹26,70,000 / ₹75,00,000) × 100 ≈ 35.6%
Annualized ROI: Approximately 7.12% per annum
3)📍 Punawale, Pune (2020–2025)
🔹 Property Details:
Purchase Price (2020): ₹4,500/sq.ft → ₹45,00,000
Selling Price (2025): ₹6,520/sq.ft → ₹65,20,000
Capital Appreciation: ₹20,20,000
🔹 Rental Income:
Average Monthly Rent: ₹15,000
Total Rental Income (5 years): ₹15,000 × 60 = ₹9,00,000
🔹 Expenses:
Home Loan Interest (approx. over 5 years): ₹7,00,000
Capital Gains Tax (approx.): ₹2,50,000
Other Costs (registration, maintenance, etc.): ₹1,50,000
Total Expenses: ₹11,00,000
🔹 Net Profit:
Capital Gain: ₹20,20,000
Rental Income: ₹9,00,000
Total Income: ₹29,20,000
Net Profit: ₹29,20,000 – ₹11,00,000 = ₹18,20,000
🔹 ROI:
Total Investment: ₹45,00,000
Net Profit: ₹18,20,000
ROI over 5 years: (₹18,20,000 / ₹45,00,000) × 100 ≈ 40.44%
Annualized ROI: Approximately 8.09% per annum
4) 📍 Hinjewadi Phase 2, Pune (2020–2025)
🔹 Property Details:
- Purchase Price (2020): ₹4,000/sq.ft → ₹40,00,000
- Selling Price (2025): ₹7,573/sq.ft → ₹75,73,000
- Capital Appreciation: ₹35,73,000
🔹 Rental Income:
- Average Monthly Rent: ₹18,000
- Total Rental Income (5 years): ₹18,000 × 60 = ₹10,80,000
🔹 Expenses:
- Home Loan Interest (approx. over 5 years): ₹6,50,000
- Capital Gains Tax (approx.): ₹3,00,000
- Other Costs (registration, maintenance, etc.): ₹1,50,000
- Total Expenses: ₹11,00,000
🔹 Net Profit:
- Capital Gain: ₹35,73,000
- Rental Income: ₹10,80,000
- Total Income: ₹46,53,000
- Net Profit: ₹46,53,000 – ₹11,00,000 = ₹35,53,000
🔹 ROI:
- Total Investment: ₹40,00,000
- Net Profit: ₹35,53,000
- ROI over 5 years: (₹35,53,000 / ₹40,00,000) × 100 ≈ 88.83%
- Annualized ROI: Approximately 17.77% per annum
What Smart Investors Do Differently
✅ They Track:
- Upcoming Metro and Highway Projects
- IT Park Developments
- Government Zoning Approvals
✅ They Focus On:
- Price per Square Foot Growth
- Rental Demand Trends
- Job Market Expansion in the Area
Conclusion: Think Like a Developer, Not a Buyer
Don’t chase the areas that are already shining.
Chase the next sun-rise point—where growth is just starting.
“Don’t buy where it’s perfect today. Buy where it will be perfect tomorrow.”
And if you are still confused or want more knowledge about investment please contact us