If we look at financial factors, remember that rental income is very low in India, especially if you invest in residential real estate, where it is just 2-2.5 per cent annually. Capital appreciation also depends on several factors. Besides that, transaction costs, which include stamp duty, registration fee, legal fee, brokerage and so on, eat up the returns in the short term. Liquidity is another big issue with real estate. You don’t have the option to make partial withdrawals from your investment. In case of emergency, you might have to sell your property below market rates. You must consider all these factors and compare them with other investment avenues that are available to you.