[RGK]

My cousin rented out his flat ( 3BHK - 1800 sft) in Mantri Tranquil (Kanakapura Rd) for 26k, including maintenance. The tenant vacated and a new one came. When we enquired the other flats, everyone was giving 30k excluding maintenance. He originally planned to sell, but now he has changed his mind.

[amit1agrawal]

Originally Posted by RGK

My cousin rented out his flat ( 3BHK - 1800 sft) in Mantri Tranquil (Kanakapura Rd) for 26k, including maintenance. The tenant vacated and a new one came. When we enquired the other flats, everyone was giving 30k excluding maintenance. He originally planned to sell, but now he has changed his mind.

On a lighter note, if the office allowed permanent WFH then I would have rented my flat in Whitefield & shifted to a bigger flat in Kanakpura while earning a side income from the difference in rentals.

[GutsyGibbon]

Originally Posted by Sebring

Off Kanakapura road, Sobha Forest View (Oak) is awesome

Yes, I really like all that it has to offer. It has all kinds of people, and has a great view of the Turahalli forest. Apartments facing this way are very calm/quiet.

Originally Posted by RGK

My cousin rented out his flat ( 3BHK - 1800 sft) in Mantri Tranquil (Kanakapura Rd) for 26k, including maintenance. The tenant vacated and a new one came. When we enquired the other flats, everyone was giving 30k excluding maintenance. He originally planned to sell, but now he has changed his mind.

This is what gets in the way of RE as an investment. Invest 1.3Cr to get Rs30k in rental income? For an investment of 1.3Cr, a lot of other investment vehicles can return more interest every month, without having to deal with the renter. Borrowing some money and renting it out makes even little sense. People are banking on appreciation, and if the build quality is questionable, it is a huge risk.

Originally Posted by akhil_007

I have been looking to invest in IT belt for a long time now. But it comes with lots of concerns/issues like. I am curious to know what is the experience of people who resold their properties/flats after X number of years and what profit % they made.

It is a risky headache. For investment as a rental, you may be better off if you can control all the costs. Like build something, and rent it out to corporates. Buying from a builder who has a hefty markup, and then looking for ROI immediately is just not possible. Perhaps its possible after 5 to 10 years of owning the apartment.

[akhil_007]

My thoughts/comments inline

Originally Posted by airguitar

I sometimes wonder if the price will ever fall in Bangalore.

I still remember scoffing at my dad who asked me to buy a villa - when it was launched, it was 85 Lakhs a villa ( 20 years ago ) and now costs anywhere in the vicinity of 12 crores.

Very hard to believe and curious to know (unless it was in CBD 20 years ago) which area was this in.

I still maintain that earning in Bangalore and spending in another place is still a great VFM way of living ( and you get awesome, quiet places 40-50 kms from Bangalore for a fraction of a cost ), provided you are willing to compromise on some creature comforts and lifestyle.

Fraction of cost? 40-50 kms? I highly doubt as this might be more of a hearsay. Land/Plot/Farmland everything has shot up like crazy.
PS: Don't tell me its in Andhra/Hosur/Border Towns like Bagepalli etc. That just doesn't cut it.

Originally Posted by GutsyGibbon

It is a risky headache. For investment as a rental, you may be better off if you can control all the costs. Like build something, and rent it out to corporates. Buying from a builder who has a hefty markup, and then looking for ROI immediately is just not possible. Perhaps its possible after 5 to 10 years of owning the apartment.

A different dilemma- Hypothetically speaking, if I keep the flat vacant and forego rental income OR I adjust rental income against maintenance expenses, would I be able to sell after 10 years at a profit? I have seen only a handful of projects which have given good profits(Brigade WTC, Prestige Falcon City, Prestige next to Forum Koramangala). The inventory is limited and/or we are out-bid by full time investor community.

[GutsyGibbon]

Originally Posted by akhil_007

My thoughts/comments inline
Response: A different dilemma- Hypothetically speaking, if I keep the flat vacant and forego rental income OR I adjust rental income against maintenance expenses, would I be able to sell after 10 years at a profit? I have seen only a handful of projects which have given good profits(Brigade WTC, Prestige Falcon City, Prestige next to Forum Koramangala). The inventory is limited and/or we are out-bid by full time investor community

Given the employment climate and the growth of our economy, you will probably be proven right. The question is - will this profit be more than any other investment vehicle that is returning (8% or more) in interest/dividend. When you take into account the compounding, a 10 year period can return decent returns, while you maintain excellent liquidity. I found buying and selling of an apartment very cumbersome. Even with an excellent RE lawyer and a CA by my side. I am comparing this to buying a mutual fund or such.

[redcruiser]

Need a help on some decision making.

I was checking out the new upcoming project from prestige in Whitefield (park Grove) its a new launch. Possession is around early 2028.
Although I have given EOI for 3bhk I am not sure if I should go ahead with booking.
Questions that cross my mind,
1. Will it be easy to sell the new flat if you change your mind even before taking the possession. How much premium can one expect for such flat from reputed builder.
2. I am not sure if there will be recession and flat prices coming down. Should one Wait for it and then book!!. I mean strike the rod when its hot.
3. Would I get proper buyer of my current flat (from Mahaveer builder,6 year old and decent amenities) by 2028. What would be the real selling price 4 years from now, i am not sure. Assuming a 6% rise in property prices from current prices, I am assuming I would get somewhere around 1.5Cr around 2028 time frame. This is absolutely important to me because I don't believe in keeping more than 1 flat. By selling the current flat would bring down my financial burden. However by looking at the number of constructions happening nearby I am not certain if it will be easy getting a buyer.

Any Thoughts.

[RGK]

Originally Posted by GutsyGibbon

This is what gets in the way of RE as an investment. Invest 1.3Cr to get Rs30k in rental income? For an investment of 1.3Cr, a lot of other investment vehicles can return more interest every month, without having to deal with the renter.

No, He bought in the year 2011/12 for ~65L. Had a thought about moving there, but had to pull the plug because of some personal issues.

[Red Liner]

Originally Posted by redcruiser

Need a help on some decision making.

I was checking out the new upcoming project from prestige in Whitefield (park Grove) its a new launch. Possession is around early 2028.
Although I have given EOI for 3bhk I am not sure if I should go ahead with booking.


Any Thoughts.

How much is the prestige property?

[ValarMorghulis]

Originally Posted by redcruiser

1. Will it be easy to sell the new flat if you change your mind even before taking the possession. How much premium can one expect for such flat from reputed builder.

A lot will depend on how this 80 acre society finally comes up. Do keep in mind that there are ~4000 flats planned in this society and many will buy for the same reason. Also, 3BHKs are most difficult for re-sale.

Originally Posted by redcruiser

2. I am not sure if there will be recession and flat prices coming down. Should one Wait for it and then book!!. I mean strike the rod when its hot.

Never count on recession to buy property. Builders like Prestige, Sattva, Sobha never reduce prices. They'll only waive floor rise etc. during a recession but never provide discounts.

Originally Posted by redcruiser

3. Would I get proper buyer of my current flat (from Mahaveer builder,6 year old and decent amenities) by 2028. What would be the real selling price 4 years from now, i am not sure. Assuming a 6% rise in property prices from current prices, I am assuming I would get somewhere around 1.5Cr around 2028 time frame.

Too many variables in this equation.
What is the total sqft area?
What is the location? Upcoming Metro? Availability of other flats in the same region?
Current demography of occupants?
Construction quality?
1.5cr? That's on the low side even for a 2bhk in 2028.
For comparison, Prestige Park Grove has an asking price of ~65lakh for a 650sq ft SBA 1BHK. An 1800sq ft 3BHK is quoted ~2cr, right now. Who knows where the prices will be in 2028.

PS: For how much did you write up the EOI cheque? I'm interested in getting one flat as well.

[sdp1975]

Investing in property is pretty much a dead end these days. The apartment complex I stay in Bangalore has resale rates of about 6.2-6.6K/sft. This is from a reputed builder and the rates have been stagnant for several years. The buildings are between 15-25 years old. I've seen that buyers always prefer to buy new apartments even if they're located far away. Small builder apartments have a hard time holding on to their price. We sold our 40 year old house recently and we got just about the land value for it. Nobody was willing to pay for the building/construction. A friend invested in a plot in Bangalore about 15 years ago and recently someone made a claim that it's his ancestral property. The case went to court and my friend won, but it took 3 years and pretty much exhausted him.

Buy a property only if you want to live in it. Putting your money in stock/debt/gold/FD are far better investment options. You can liquidate your asset at a click of a button and stay away from the hassles of resale, renting it out, squatters and the like.

[redcruiser]

Originally Posted by ValarMorghulis

Too many variables in this equation.
What is the total sqft area?
What is the location? Upcoming Metro? Availability of other flats in the same region?
Current demography of occupants?
Construction quality?
1.5cr? That's on the low side even for a 2bhk in 2028.
For comparison, Prestige Park Grove has an asking price of ~65lakh for a 650sq ft SBA 1BHK. An 1800sq ft 3BHK is quoted ~2cr, right now. Who knows where the prices will be in 2028.

PS: For how much did you write up the EOI cheque? I'm interested in getting one flat as well.

square feet (carpet)1200 sq ft. and built up is 1600sqft.
Location is in whitefield which is 2kms from kadugodi metro.
There are many flats coming up in this location. Godrej is coming up with very big complex.
Right now where I live. People are mostly middle aged with toddlers. Many people in 2bhks would definitely try to buy a 3 bhk in the same apartment complex as the family grows. I am banking on that for my resale.
EOI cheque is around 20L.

Location wise the new project will be very good because of the new peripheral ring road that is coming up which would finally connect to NICE road.

[warrioraks]

My guess is - we have already seen the best of real estate boom over last couple of years and prices will enter a lull very soon. Folks who bought during Covid times have made a killing because of the sweet bargains. That is now behind us and prices will remain near flat (adjusted against let’s say debt funds) till there is another trigger for a boom cycle.

[barcalad]

Someone close is looking to rent out their semi-furnished apartment (3 BHK+ in a gated society) in North Bangalore. The place is near Manyata Tech Park. If anyone's seriously interested, feel free to connect over DM.

[2000rpm]

I finally booked my first real estate property with Lodha.

Its an office space in a great location in Mumbai (on LBS, opposite R-City). Rental yield should be about 7% post possession (fingers crossed). (can share the details of the sales person, who genuinely tried and got me a good deal and payment terms if interested)

I think commercial property is highly underrated, even more underrated asset class is land.

My next purchase will be some land in outskirts of Mumbai. Any tips will be appreciated. I will prefer Khopoli, Karjat, Nashik Highway areas.

[adi.mariner]

Has anyone invested in pre-leased studio apartments (something like by Stanza Living or Housr)? There are a couple of projects in the Hinjewadi/Wakad area which are pre-leased for atleast 5 years (upto 10 years) along with a regular raise in rental income.