The authors are Shobhit Agarwal, National Head - Investment Services and Deepak Sankhye Manager - Investment Services Trammell Crow Meghraj Property Consultants.

Query you asked:
I have already invested in a property in Noida Expressway. I am interested in investing in another property. My investment amount will be about Rs 40 lakh. I am looking at this from investment point view and long term. Would appreciate your comments on the same. I work in Gurgaon. Vikas Mehta

Our experts from Trammell Crow Meghraj provide answers:
When it comes to investing in properties, a clear exit strategy is important. You have to be sure about how long you wish to hold a property.

Based on this there are three types of holding periods: short-term, medium-term and long-term. Short-term means an investment horizon of 2 years. Medium-term means a period between 2 to 7 years. Long-term is more than 7 years.

In the current scenario, it makes sense to go for long-term investing. Short-term investing is not advisable given the economy's inflationary pressures. Property has always given good returns in the long-term. If your budget is, say, Rs. 40 lakh, you can buy residential properties in growing suburbs with good infrastructure.

If your budget is higher, say about Rs. 1 crore, you can invest in venture capital (VC) funds. Most of the VC funds require a minimum investment of Rs. 1 crore. These funds invest in projects giving 20% to 25% returns with preferred returns of 9% per annum. But this return is not guaranteed.

It is preferable to invest in funds floated by developers. These funds get exposure to development projects in the early stages. This results in higher returns. CIG fund sponsored by Unitech and IndiaReit fund sponsored by Piramals are examples of such funds.