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Time of India

Real estate becoming the new wealth-building avenue? Moneydhan founder shares emerging investment trend

While most Indian investors chase double-digit gains through mutual funds, a growing segment is quietly building wealth through strategic real estate bets — earning internal rates of return (IRR) as high as 18–22%, according to Sujith SS, founder of Moneydhan. In a detailed LinkedIn post, Sujith highlighted how India's emerging affluent are increasingly turning to early-stage property investments to outperform traditional assets. 'While mutual fund investors cheer a 12% CAGR over a decade, someone like Riya is silently clocking 18–22% IRR by compounding in hard assets,' he wrote, sharing insights from a real client case study. Check full post here While mutual fund investors celebrate 12% CAGR over 10 years… by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Riya quietly crosses 18–22% IRR by compounding hard assets . This is how India's new-age rich play the long game. Read more 𝗧𝗵𝗲 𝗚𝗮𝗺𝗲 𝗕𝗲𝗴𝗶𝗻𝘀, 𝗬𝗲𝗮𝗿 𝟬 Live Events A new branded project launches in Gurgaon. On paper, it's 36 months to possession. On the ground, it's just a hoarding and a sales office. But someone, let's call her Riya, books two units. Not one. Why? •••• She's buying early due to 𝗽𝗿𝗶𝗰𝗲 𝗲𝗻𝘁𝗿𝘆 𝗱𝗶𝘀𝗰𝗼𝘂𝗻𝘁. At launch, the flat costs ₹1.2 crore. Similar "ready to move" flats nearby, are going for ₹1.5 crore. That's a 20% discount, right from Day 1. Riya books it with a staggered payment plan: 🔹10 % now 🔹30% 1st milestone 🔹30% 2nd milestone 🔹30% final payment. No EMI yet. No loan disbursement. Just early commitment. 𝗬𝗲𝗮𝗿 𝟮 ,𝗧𝗵𝗲 𝗕𝘂𝗶𝗹𝗱𝗨𝗽 The tower is halfway up. The price has inched to ₹1.4 crore. Demand is growing. NRIs and HNIs enquire with the builder. Rental brokers want to know, when handover will happen. Riya watches quietly. 𝗬𝗲𝗮𝗿 𝟯 - 𝗕𝗼𝗼𝗸 𝗽𝗿𝗼𝗳𝗶𝘁𝘀 𝗼𝗿 𝗛𝗼𝗹𝗱? Possession nears. The builder starts giving keys. The market value of her flat is now ₹1.75 crore!! She has two options 🔸Sell the unit and book a clean ₹50 lakh gain after all payments. 🔸Rent it out, earn 6% yield, and refinance against it at cheap rates. Guess what, She does both. Sells one, rents the other. ( she has 2 units remember) Money that came after selling is invested into a pre-leased commercial unit near NH8. That commercial unit starts giving her 8% annual returns from Day 1. --------- This isn't random is a structured wealth play. Over 7–10 years, Riya repeats this process 3–4 times. Each time ●• Buys early, before the crowd. ●• Waits for value to unlock. ●• Exits smartly or converts to rental income. ●• Moves profits into high-yield commercial assets. This was the real story for a client we have. He needs us to diversify now into equities and other liquid assets. And before you jump the gun, Read more... 🟧 𝗧𝗵𝗲 𝗟𝗶𝘀𝘁 𝗼𝗳 𝗔𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻𝘀 𝗬𝗼𝘂'𝗿𝗲 𝗕𝗲𝘁𝘁𝗶𝗻𝗴 𝗢𝗻 𝟏. 𝗧𝗶𝗺𝗲𝗹𝘆 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 If the builder delays, your plan collapses. 𝟐. 𝗠𝗮𝗿𝗸𝗲𝘁 𝗮𝗽𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻 You're counting on 20–30% growth by possession. 𝟑. 𝗡𝗼 𝗹𝗲𝗴𝗮𝗹 𝗱𝗶𝘀𝗽𝘂𝘁𝗲𝘀 RERA is not as fast or effective as promised. 𝟒. 𝗘𝗻𝗱-𝗯𝘂𝘆𝗲𝗿 𝗱𝗲𝗺𝗮𝗻𝗱 You need someone willing to pay premium for ready units. 𝟓. 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹 𝗮𝘀𝘀𝗲𝘁 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 The shift from residance to pre-leased needs due diligence. 🟦 𝗛𝗶𝗱𝗱𝗲𝗻 𝗙𝗿𝗶𝗰𝘁𝗶𝗼𝗻𝘀 𝗬𝗼𝘂'𝗹𝗹 𝗙𝗮𝗰𝗲: 🔹 Bank Loans You start paying EMIs once disbursement begins, even if the flat is incomplete. 🔹 Registration & Stamp Duty 6–7% of property value reduces net gain. 🔹 Capital Gains Tax 20% with indexation if held over 2 years. 🔹 Rental Vacancies 1–2 months empty can shave off your yield. How people reacted? "Intensive capital is the key to invest into a real estate, atleast 10-15 lakhs," said one user. "As far as I know , some smart players made huge money in the booming Mumbai market , while May lost their shirts and pants in this game , since 2000s. So it is not something new . This was aided by the game of the builder financing your emi ( many ended up paying only emi and possession was a distant dream). There was a tacit support from banks also when disbursements were made not strictly on the basis of the progress of the project , aiding the unscrupulous promoters to divert the money instead of completing the project. My expectation from a responsible advisor like you is that such products are not recommended even with warning. People tend to ignore the warning or may not even understand the same," added another user.