My rule of thumb

The main principle of investing is this. Poor people have to take risk to create capital. Rich people avoid risk and concentrate on capital preservation - since they already have the capital

(Later having read entire thread)

Sorry rohit, I think you want a different i.e business idea advice - not what I wrote before.

My advice to you is this - for property, timing is everything. This is not the time when property business will give supranormal (20-40%) return within one year. That time was 2010. currently you can expect inflation linked return only.

Rule of thumb is this;

Return on property = rate of inflation + bond rate = 7+8=15% expected

Return on equity = rate of inflation + economy growth rate = 7 + 5 = 12%

Add 10% to equity rate of returns for every 1% lowering of interest rate and subtract 10% from equity rate for every 1% raising of rate.

In property, add 20% to return for every 1% lowering of rate and subtract 5% from property rate for every 1% raising of rate.

This rule of thumb is based on my own experience and is not given in any book