[oss]

Buy a coffee estate in Coorg.

That's my recent trip to Madikeri speaking

[vkochar]

Buy a house / flat.

The property market in metros like bangalore is going to boom like anything by 2010 - 2012 I am told. Even if it does not you can expect your flat to at least double / treble in the next 7 - 8 years. Is that not better than the 8 % a bank gives you.

[oss]

Originally Posted by vkochar

Buy a house / flat.

The property market in metros like bangalore is going to boom like anything by 2010 - 2012 I am told. Even if it does not you can expect your flat to at least double / treble in the next 7 - 8 years. Is that not better than the 8 % a bank gives you.

And who told you that and what was his/her/their logic?

[vkochar]

Well, I was told by investors & friends in Bangalore who are doing the same.

Also watch the latest episodes of NDTV Property.

Hopefully what they say should be correct. They have been correct many times in the past and I am sure they will be now. If not then of course it's not all loss, you still have a house and the rental income helps !!

LOGIC - I cannot explain that in a few sentences

In my opinion - A Piece of land / flat / house / shop will yield more benefits in the long run than putting the money in a bank.

[jaysmokesleaves]

Without stretching yourself, you can reinvest that sum to buy another apartment(flat) in a decent area and rent it out.
Im sure the cost of the property will appreciate in time and the rental income will be quite good income too.
Look for a good second hand flat(not more than 5-7 yrs old) somewhere between a residential cum commercial neighborhood.

[five46]

MFs too will attract Capital gain Tax. Moreover, the government is preparing a new Direct Tax Code.
For SIP, Red Liners age and his Investment objective are to be considered. From reading this thread this far, I don't see Red Liner looking for a long term investment tool (I know the thread is old and may be Red Liner has already made his investments), which SIPs are supposedly meant to be.

Real estate/Land is probably the logical looking alternative.

@ Red Liner,
On a lighter note, if you still haven't invested, give your money to me. I'll invest it through my company, I'll get an immediate raise. Then, I'll share my increment with you. You'll get FDs returns + some peanuts from me.

[YVES]

Originally Posted by Red Liner

Long story short: I have about 50L in white which needs to be invested immediately to avoid capital gains and make good with the downturn in the economy (which is already on the upswing now). I can take this number up by another 30L through a bank-loan.

The predicament: I have been looking at different investment options - but all of them center around land and land related investments (such as houses/apartments). I was - until recently - looking at Brigade Gateway which is a fantastic project but plagued with delays. The asking price came up to more than the holy Number 1 with 7 fat ladies behind him.

Until now I was extremely confused between buying a place where I would love to stay in as opposed to buying something at an extremely low price - expecting maximum appreciation in value. Obviously, if you want both, you should first have a car from the Back to the Future series to go back in time.

Recently, I struck realization. Honestly, I was not looking for a crazy self contained project within the city at such prices because there is no way I was going to go live there. I either see myself living in a villa-styled exclusive apartment or a very grand house with a couple of rottweilers. I might not have the car to go back in time, but I can certainly day dream.

So what do I look at? Do I see:

1. A 2BHK apartment from a good builder in Sarjapur/Whitefield/Electronics City for about 40-45L and invest the rest in land within a gated community of some sorts? What gated community and where?

2. A good exclusive apartment in one of the projects far out of the city (by today's standards - early 2000 saw Prestige Acropolis as being far from the city). A possible contender is Nitesh's Central Park or the Sobha Petunia which is coming up around there. The prime consideration here is price. And ofcourse invest the rest in land again. If any is left over.

The difference between 1 & 2 is that with option 1, I will get an OK apartment with some one to rent it out to immediately. I am not sure of property appreciation though. Arent all these areas kind of saturated now? Option 2 on the other hand has a couple of grand projects on Bellary road which has caught my fancy - considering the proximity to the international airport. Will that be the new hub of development?

What other areas and options would you suggest?

There is Vilas behind SAP Labs in Whitefield , which are unsold for close to a year , advt in times property last week, builders (Vaswani) and a doctor desperate to get buyers , can be a good deal.

[oss]

Originally Posted by vkochar

Well, I was told by investors & friends in Bangalore who are doing the same.

Also watch the latest episodes of NDTV Property.

Hopefully what they say should be correct. They have been correct many times in the past and I am sure they will be now. If not then of course it's not all loss, you still have a house and the rental income helps !!

LOGIC - I cannot explain that in a few sentences

In my opinion - A Piece of land / flat / house / shop will yield more benefits in the long run than putting the money in a bank.

Well, oflate everone is talking about a rebound in real estate prices, which i find hard to believe. Yes, there is lots of cash lying around, so everyone is looking to capitalise on the (or atleast not miss the) opportunity available, but not sure if there will a 'sustainable' rebound so soon.

Just FYI, the long term return of every investment will average out to the same, and this applies to even the ultra prima lower manhatten properties or the marine drive/nariman properties closer home. You can compare the CAGR of DowJone index and the Property prices starting from great depression till today, and you will find them all averaging to about 4-5%.

It is the timing that makes one the winner or the loser

[DCEite]

Common sense tells me that real-estate prices just cannot go on tripling every 7-8 years.
If that were to be the case, think about what will happen in long term. Salary hikes minus inflation rate will not be able to catch up the exorbitant rise of real estate, which would mean for majority of buyers the real-estate would be out of reach. And when demand goes down, so does the price.

[jaysmokesleaves]

Originally Posted by DCEite

Common sense tells me that real-estate prices just cannot go on tripling every 7-8 years.
If that were to be the case, think about what will happen in long term. Salary hikes minus inflation rate will not be able to catch up the exorbitant rise of real estate, which would mean for majority of buyers the real-estate would be out of reach. And when demand goes down, so does the price.

Real estate prices and Stock market both defy common sense. The only word that defines them is SENTIMENT.

[Zappo]

There is a point in what DCEite said. While Jay is correct in saying more than common sense it is the sentiment that rules the property market the fact remains that whenever it breaches the final sensible levels possible something like what happened a while back happens and that brings in a downturn. That immediately levels things out.

If there were to be no checks then within 10 years you would have found all properties beyond the reach of common people and only those with stacks of black money would have been dealing in property.

[Red Liner]

Originally Posted by Takumi-san

Buy an Audi R8. Hang on to her till she becomes an antique. Make sure she is well maintained. Your kids will enjoy a lovely appreciation.

Cant I just buy a car which is already an antique now and hold on to her even longer?

Originally Posted by null

why break your head soo much? give it all to me and be happy that you have made a wise decision

And you're the half brother of the recently deposed King of Sudan right?

Originally Posted by PAVAN KADAM

Great minds think alike

Mee tooo in the que venky.

Be wise, we'll equally take care of your money.

And you must be one of the children of the *keep* the beheaded Sudanese king had?

Originally Posted by s0uljah

Where do you live? Do you have any dogs?

Jokes apart, I see JK.Das suggestion as something I would do.

Food prices = Going up
Population = Going up
Food Supply = Stagnant or dropping

Invest in land. Sow the seed. You shall reap.

While your at it, go green, go organic, get certified. If you really want to take it next level go natural. You can charge a premium with the 'organic' tag when you sell or if you plan to sell your estate in the future.

Area's in around Denkanikottai are still attractive, barring some water problems. The area will appreciate rapidly in coming years. Access through Electronic city.

If your interested in Kerala estates I know just the agency, honest & 100% transparent. Lots of NRI's have invested through them and successfully built up home stay resorts / retirement homes.

I have really been thinking around this but my issue is I hardly know anyone in the villages. To really keep this kind of thing going on, you need a lot of trustworthy people living probably right on that land and tilling it for you. But its definitely on the cards for me.

Originally Posted by supercars

Do not invest anywhere ? Why not buy a Porsche Cayenne ?

btw We have some very rich guys with a lot of money to spare.
I know for sure that India is not poor anymore except some few unfortunate people. LOL

I am surprised that no one gave you the Bad Idea of investing in MF/SIP/Whatever MF. Investing in Stock Market is dangerous.

You either invest in the stock market for the short term - be really involved and get out and make your money. Or you get involved for the long term and forget about it. Its the medium term where you get skewered.

Originally Posted by cpyder

Well, IF i had that kind of money, I would research about some good MFs across different industries. Deposit that entire sum for some sort of FD from which I could withdraw a particular amount every month/fortnight. I am sure with this kind of money, banks can customise a scheme if they do not already have one. This sum goes via SIP to my chosen MFs every month. The best part - It all happens automatically, so I dont even have to bother about anything. The money just keeps growing.

In fact I am already doing so, its just that my amount is quite humble 50k (less than 10% of what you got), out of which Rs 3500/- goes for SIP every month. The MF is a dividend option which keeps getting back to same bank, so it is pretty much self sustaining now. I started it about 3 years ago, and despite all that downturn and all, I am still sitting at a profit of about 30%.

@Supercars, Investing in stock market is dangerous if you dont know what you are doing. Pretty much like buying cars without any research and all (which includes consulting tbhp), you might end up with a good vehicle or with a lemon from Skoda. There is an old saying in stocks, it is not the timing, but the time in the market. In my case, I was running a loss of around 15-20% in 2008, had i exited, I would've been also saying that stock is dangerous. But I have maintained my position and continued the SIP and thats what is yielding profits for me. With a modest returns of just about 10% p.a., my account will be perfectly self sustaining in another one year. Another year later, it would generate enough income for me to invest somewhere else as well. And mind you, the average returns are going to be 15%-30%!!

You're pretty involved. I am going to do just that early next year. My 3 year ICICI crap-fund is coming to an end and I should pull some money out. Plus, I should be gearing up for the 1L (or is it 1.5L now?) tax saving a year in friendly instruments thing.

Originally Posted by oss

Buy a coffee estate in Coorg.

That's my recent trip to Madikeri speaking

Coffee estates are passe...no money in it unless you're really a big landlord or something. organic farming is in.

Originally Posted by vkochar

Buy a house / flat.

The property market in metros like bangalore is going to boom like anything by 2010 - 2012 I am told. Even if it does not you can expect your flat to at least double / treble in the next 7 - 8 years. Is that not better than the 8 % a bank gives you.

Its definitely on the upturn - but I think the maximum killing people would have made during this bad time is probably in the range of 3-5 Lakhs and not more than that. 30-40% dip in prices is an exaggeration by a mile. Almost all the builders I know negotiated to 3-5 lakhs lower than MRP, and then basically decided to hold on to wait for the impasse to tide over.

Originally Posted by vkochar

Well, I was told by investors & friends in Bangalore who are doing the same.

Also watch the latest episodes of NDTV Property.

Hopefully what they say should be correct. They have been correct many times in the past and I am sure they will be now. If not then of course it's not all loss, you still have a house and the rental income helps !!

LOGIC - I cannot explain that in a few sentences

In my opinion - A Piece of land / flat / house / shop will yield more benefits in the long run than putting the money in a bank.

That's pretty obvious.

Originally Posted by jaysmokesleaves

Without stretching yourself, you can reinvest that sum to buy another apartment(flat) in a decent area and rent it out.
Im sure the cost of the property will appreciate in time and the rental income will be quite good income too.
Look for a good second hand flat(not more than 5-7 yrs old) somewhere between a residential cum commercial neighborhood.

Thats precisely what I ended up doing. The money belongs to my folks, so it was very important that I did not look at it as a risky proposition/gambling opportunity. So I got my mom to invest it in a very safe apartment complex with an existing tenant in place giving a firm income for them. If the need to sell does arise - it should not be tough. The apartment is in Cox Town, near ITC.

Originally Posted by five46

MFs too will attract Capital gain Tax. Moreover, the government is preparing a new Direct Tax Code.
For SIP, Red Liners age and his Investment objective are to be considered. From reading this thread this far, I don't see Red Liner looking for a long term investment tool (I know the thread is old and may be Red Liner has already made his investments), which SIPs are supposedly meant to be.

Real estate/Land is probably the logical looking alternative.

@ Red Liner,
On a lighter note, if you still haven't invested, give your money to me. I'll invest it through my company, I'll get an immediate raise. Then, I'll share my increment with you. You'll get FDs returns + some peanuts from me.

Real estate/land it was! My next investment will be back into the markets in bite sized pieces - I dont see the markets picking up a lot aggressively until middle of next year. It will go up and bob back down.

And that better be on a lighter note...or I'll have to lug rocks at you...they hurt more than peanuts - *winks*

Originally Posted by YVES

There is Vilas behind SAP Labs in Whitefield , which are unsold for close to a year , advt in times property last week, builders (Vaswani) and a doctor desperate to get buyers , can be a good deal.

Whitefield was absolutely out of my reckoning. Way too much property out there. Was just not appealing.

Originally Posted by oss

Well, oflate everone is talking about a rebound in real estate prices, which i find hard to believe. Yes, there is lots of cash lying around, so everyone is looking to capitalise on the (or atleast not miss the) opportunity available, but not sure if there will a 'sustainable' rebound so soon.

Just FYI, the long term return of every investment will average out to the same, and this applies to even the ultra prima lower manhatten properties or the marine drive/nariman properties closer home. You can compare the CAGR of DowJone index and the Property prices starting from great depression till today, and you will find them all averaging to about 4-5%.

It is the timing that makes one the winner or the loser

Very true.

Originally Posted by DCEite

Common sense tells me that real-estate prices just cannot go on tripling every 7-8 years.
If that were to be the case, think about what will happen in long term. Salary hikes minus inflation rate will not be able to catch up the exorbitant rise of real estate, which would mean for majority of buyers the real-estate would be out of reach. And when demand goes down, so does the price.

Wont triple - but if you look at any reasonably good/posh place to buy in Bangalore, the magic number is automatically 1C. Would you have even thought of this number 5 years back? The same place would have gone for about 50-60L max. So property values will go up, but will probably not spike as much as we have seen recently. But 7-8 years from now, I really do see it doubling. Remember, Bangalore is only growing - not stagnating.

Originally Posted by Zappo

There is a point in what DCEite said. While Jay is correct in saying more than common sense it is the sentiment that rules the property market the fact remains that whenever it breaches the final sensible levels possible something like what happened a while back happens and that brings in a downturn. That immediately levels things out.

If there were to be no checks then within 10 years you would have found all properties beyond the reach of common people and only those with stacks of black money would have been dealing in property.

Common people stay in common places. They will be the ones to spur development in areas outside Bangalore (like we are seeing closer to the new airport). The rich will continue to live in pockets in the city. But this is the only way the city will grow. People stay in a locality, local business opens up, and then come schools, shops, banks, coffee shops, and what have you - a new layout bustling and jostling about

[karanraheja]

Originally Posted by Red Liner

organic farming is in.

Looks like you really like the New Wagon R Advt

[comfortablynumb]

I've no idea about how the capital gains thing works or what the real estate prices in B'lore are like, but still, can't resist jumping in with my $0.02.

Buy two 1 BHK 2nd hand flats in a decent area. Renovate them into posh self contained service apartments and rent them out on short term basis(less than 1 year). I'm sure you'll get a lot of customers - expats looking for a good place to stay till they find a good house of their own and bring their family here, companies who get frequent visitors from abroad but can't afford the ridiculous hotel tarriffs etc.

If the scene there is anything like Pune, then there's sure to be a shortage of good self contained places in Bangalore too.

Cheers,
Vikram

[clevermax]

Originally Posted by jkdas

Land.

Can you spare 10-20lac ? Buy some rubber estate at Pala or so. Rubber = income and you have an 'estate' , build a house, and then you have 'bungalow'; this can be your holiday home. Sell it in 3-5 years and double price.
Oh, forgot for 10-15 lacs you get couple of acres of rubber estate.

Oh yes. My dream.. If I had 50L, I'd buy a rubber estate for about 20L, build a nice house and buy a car with the the rest, enjoy the peaceful life away from the city. It's a nice thing to be able to drive to the local club in a premium sedan and have a couple of drinks with friends - everyday. I know such people, in the place jkdas mentioned - Pala, Kerala