[lamborghini]

Originally Posted by adithya.kp

To my surprise, the quoted price is higher than the pre covid price. ( Or the same in some cases). This is contrary to what you see in online articles etc. These are properties are not good either. I understand this is a quoted price not the transaction price. But it will some idea about the supply/demand scenario.

I want to know the thought process of others who are looking to buy now. Or any advice from others would be great.

While I haven't purchased a house during lockdown, some friends have and whilst helping them here's what I realised (talking about the Bombay market but dont expect it to be much different).

1) Several articles have come out with many influencers saying that the only way forward is to cut prices. However, it is very case dependent - there are laws where one cannot sell below 10% or therabouts of the ready reckoner rate without having to bring the IT dept into the picture.
Similarly in Mumbai, most approval costs are linked to ready reckoner rates which goes to the Govt. kitty, so in many areas where the ready reckoner is high : reducing prices is tougher.
However these articles have given consumers a different picture, so I wont be surprised if the prices are jacked up to allow for more negotiating power. Unless it is an under construction project which has actually made significant progress during lock in - you should refer to pre-covid pricing and negotiate on that. Information is easily available through brokers and online mediums.

2) Competition: to get the best pricing its all about demand vs supply. Find a neighborhood where there is high supply compared to demand - negotiate heavily on such properties.

3) Look at ready to move in properties offered by reputed but financially troubled developers.
Ready to move in will save you money by way of GST, is safer, and the developer is eager to negotiate as he gets 100% of the payment as compared to slab wise payments where money will be deposited in an escrow account.
Financially troubled is a key term : don't expect Godrej to give you as good a deal as a local player such as Mantri / Embassy, etc.
Similarly there are several distressed investor properties up for sale as well at ridiculous prices.

4) Payment upfront is a big plus for developers and an equally large negotiating tool for you. Loans take time to disburse at the moment so if you have liquidity - maximise it.

5) Lastly while residential real estate with its low yield is not a great investment option, you could think of investing in a pre-leased commercial asset which could have a higher rental yield. Again its not a great time for commercial rentals, but if you get a property at a good value and consider a discounted to market rental yield in your calculations - it could be a good option especially once things normalise.

Unrelated: we have a property in Chikkabidarakallu, Bangalore which we are keen to sell.
Its a new development (last 3-4 years), unfurnished villa which we purchased with the intent of using as a second home when we travel for work, but don't end up using as we closed operations there and it's a little away from the city.
Any broker recommendations to help list it would be appreciated!

[ajmat]

Have been looking into these 54EC bonds which locks you into bonds for 5 years at 4% (post taxation) to exempt oneself from LT capital gains. The max one could save is Rs 10 Lakhs.

Am wondering if this would be worth it when one could invest in the stock market with slightly better returns and gives you more liquidity?

[sunilch]

Originally Posted by ajmat

Have been looking into these 54EC bonds which locks you into bonds for 5 years at 4% (post taxation) to exempt oneself from LT capital gains. The max one could save is Rs 10 Lakhs.

Am wondering if this would be worth it when one could invest in the stock market with slightly better returns and gives you more liquidity?

Given the low returns and the lock-in period, these are not really worth it. These are useful only if you want assured returns and may not need the funds for a while.

Otherwise, it is better to pay of the tax and invest where you can get better returns.

[VRJ]

Howdy BHP'ians,

Hope you and you're family are doing well.

I have a small query regarding cost of land in places such as Wayanad and other lovely places in Kerala and Karnataka. The below video is from Buildofy page, whom i regularly follow. The video shows a farm house in the hills of Wayanad. The farm is 10 acres in size and the house in built on a plot size of 3700 sq. ft. Such a lovely property. Who doesn't want a holiday house in Kerala?

Couple of queries that i have:

1. First question, can non-locals even purchase land close to the forests? I ask this because there is this beautiful hill station called Araku, 100km from Vizag, which common sense would dictate to be perfect place for a holiday home as it is only 3 hours from where i live. However, no one can sell/purchase land in the region. It is only the tribals i.e. people who have been there from generations that can own land there. All the private hotels that have come up there lease land from the local residents, which I'm not comfortable with personally.

2. If yes to the first question, then what would the approximate costs be like. Does the per acre cost of land run in to crores? Whats the deal? of course closer it is to a town/city and the main road, the more it costs. Maybe places like Munnar and Wayand have become all touristy and commercialized, so their prices must have gone through the roof. So, what other options i.e. places can one purchase a farm and build a house, with security being the top most priority, a good view of greenery being the second priority and accessibility being the third?

3. Based on the news i watched and interactions with a couple of people, the maoist/naxalite activity is higher in the Eastern Ghats when compared to the Western Ghats. Do you folks concur? or maybe the activity there hasn't filtered to our local news channels here.

4. A simple YouTube search shows villas in Lonavala which cost 4-7cr . Ouchh, MH real estate is out of reach to a common man.

So, I'd really appreciate it if someone can shed some light on buying a farm and building a farm house in picturesque places in South India? Thank you in advance.

Mods, apologies if I'm posting in the wrong thread.

https://www.youtube.com/watch?v=8PxBg6T-O9A

Cheers!

[sunilch]

Originally Posted by VRJ

4. A simple YouTube search shows villas in Lonavala which cost 4-7cr . Ouchh, MH real estate is out of reach to a common man.

Hehe, you are taking into account one of the, if not the, most over-priced and over-crowded holiday spot in India. Thanks to close proximity to MMR region and Pune and Bollywood. Lonavala has been a fantasy for many as a weekend holiday spot.

Alibaug will be spot number 2 in my list of over-priced and over-crowded holiday locations.

So my advice to you is to ignore such locations when trying to understand a weekend holiday spot for purchase or anything.

[ghodlur]

I had never imagined posting on this thread ever but here I am.

Looking for investment options available in Pune in form of 2 BHK flat (wife is from Pune, I hope all get the hint). What areas should we be looking at? The purchase will be purely for investment only and will be put on rental. I am told the upcoming areas are Wakad, Akurdi, Wagholi etc. Any more suggestions.

[pkulkarni.2106]

Originally Posted by ghodlur

What areas should we be looking at? The purchase will be purely for investment only and will be put on rental. I am told the upcoming areas are Wakad, Akurdi, Wagholi etc. Any more suggestions.

Wakad is already crowded, and the property rates have skyrocketed. If that's not a concern to you, it's a good option. You'll get good rent in this location.
Wagholi isn't yet fully developed IMO, and the prices are okay as of now. But don't expect a good rent here.

I'd advise against Akurdi.

Thanks!

[MegaWhat]

Originally Posted by adithya.kp

Can anybody who is in the market for house/flat/land, share their experience on the market condition?. To my surprise, the quoted price is higher than the pre covid price. ( Or the same in some cases). This is contrary to what you see in online articles etc. These are properties are not good either. I understand this is a quoted price not the transaction price. But it will some idea about the supply/demand scenario.

I was searching the market for some reduction in prices as well, but could not find any practical reduction; At least in the Pune west market and for under-construction properties. They claim it has reduced, but it is very close to pre-COVID times. MH govt. has recently reduced the stamp duty as well and many builders have gone into an advertising frenzy. But a little digging and a few calls show that the builders are basically eating into that benefit and none of it is passed on to the customer. Instead, many of them are again relying on the "no EMI till possession" schemes which are a big risk for a customer. On the other hand, I see that prices of resale flats has come down by ~5-7% depending on locality. If the money is handy, this is something that can be explored.

[Sk8r]

BHPians, need an advice on " Plot loan" .

- I am looking for a plot loan of 15 lakhs for purchasing a plot work 40 lakhs
- How different is Plot loan from Home loan - None of my family have taken a plot loan, hence this question
- Understand we cannot opt for tax exemption unlike Home loans ( Any suggestion on this )
- Are there any things I need to look out for with respect to Plot loans

Thanks in advance

Originally Posted by VRJ

So, I'd really appreciate it if someone can shed some light on buying a farm and building a farm house in picturesque places in South India? Thank you in advance.

Having lived 22 years in Vizag, I share your love for hills / seas. Me or rather my extended family are in the look out for similar options.

We have zeroed in on Kanyakumari / Kerala border. You will be a good 5 - 10 kms from Hills on one side and sea on the other.

I am still an amateur when it comes to places in Kanyakumari, so I will stop my suggestion here and allow you to explore further

[sukarsan]

Originally Posted by Sk8r

BHPians, need an advice on " Plot loan" .

- I am looking for a plot loan of 15 lakhs for purchasing a plot work 40 lakhs
- How different is Plot loan from Home loan - None of my family have taken a plot loan, hence this question
- Understand we cannot opt for tax exemption unlike Home loans ( Any suggestion on this )
- Are there any things I need to look out for with respect to Plot loans

Thanks in advance

plot loans come with a precondition that you will build a house on it within a stipulated period of time(2-3 years i guess). if not a penalty will be imposed in the form of higher rates. I have heard that this penalty is not a big deal if the bank can help you out in this regard.

[abhi_tjet]

Originally Posted by ghodlur

Looking for investment options available in Pune in form of 2 BHK flat (wife is from Pune, I hope all get the hint). What areas should we be looking at? The purchase will be purely for investment only and will be put on rental. I am told the upcoming areas are Wakad, Akurdi, Wagholi etc.

Hi Ghodlur(Girish),
Hinjewadi will be good if being looked from an investment point of view. Lots of properties from decent as well as reputed builders.

You should also check your preference if you are looking PMC/PCMC areas or ok with the ones which comes under (PMRDA). Its cheaper in PMRDA.

Mostly, coming from Mumbai and going towards Bangalore once you leave expressway, the area on your left is under PCMC and right PMRDA(rural) till Wakad Junction. After that, the area on left is under PMC(right still under PMRDA).

However, keep in mind that rental properties stuff will change post Covid era. I can see many flats empty in my society itself with many people left for hometown. If WFH gonna stay, renting place easily won't.

[ajmat]

Originally Posted by sukarsan

plot loans come with a precondition that you will build a house on it within a stipulated period of time(2-3 years i guess). if not a penalty will be imposed in the form of higher rates. I have heard that this penalty is not a big deal if the bank can help you out in this regard.

It is not enforced very strictly. I took a plot loan at some ridiculous 6.5% back in 2004. I did get a letter (normal post) in 2010 expressing the fact that I had not complied. Being normal post, I figured they would not take it seriously which was true. Additionally, thee were no penalties stated. In 2017, I foreclosed, no questions were asked.

It might be different now though.

[JMaruru]

I would like to get a tenant for my property in B'lore. What are the online portals one can advertise, for the same? Please advise!

[creative420]

Originally Posted by JMaruru

I would like to get a tenant for my property in B'lore. What are the online portals one can advertise, for the same? Please advise!

If your society is part of Apartment Adda, you can put this up in the classified section. Or else I think commonfloor, 99acres and the other usual suspects. DM me the details, my friend is moving back from UK by October end, so I can ask him.

[Red Liner]

Originally Posted by JMaruru

I would like to get a tenant for my property in B'lore. What are the online portals one can advertise, for the same? Please advise!

Nobroker.com is a better alternative to the usual.