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Old 7th June 2009, 18:59   #1
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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?
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Old 7th June 2009, 19:25   #2
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Hey Red Liner,

2008 taught me some great lessons in investment and I struck realization then.

5 million's a lot of money! I suggest you invest Rs. 300 in a good quality spade.

Once you have that, dig a hole in the take 49,99,700 and place it there. At least you'll have it whenever you need it. Save the spade for the time you need to dig again.

Just make sure the Rottweilers don't hide their bones in the same place.
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Old 7th June 2009, 19:30   #3
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Digging sure sounds like a lot more hard work...
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Old 7th June 2009, 19:38   #4
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Hi Redliner,
I am the heir to His Royal Highnesses estate and property. My country Zimbabwe is in strife. I need to tranfer 1,000,000,000,000,000,000,000,000 Zimbabwean Dollars from my account to a safe haven and I think India is the best option. The person who will carry out this transaction will receive 50% of the transferred amount. From my sources and information you have been selected for this. You are one lucky man. Please transfer 100,000 USD in my account for this transaction to be processed.

Bank of Nigeria, Nigeria
A/c No: 0000-0000-0000-0420

Yours... Honestly,
Prince Peter Zumba
(they call me Princey)
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Old 7th June 2009, 19:39   #5
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Well best thing to do is invest them in capital gain bonds (REB or NHAI) and stay in peace knowing at least they are inflation proof rather than 'bury it, shut it and ....forget it'.

Last edited by pranava999 : 7th June 2009 at 19:41.
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Old 7th June 2009, 19:46   #6
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Quote:
Originally Posted by pranava999 View Post
Well best thing to do is invest them in capital gain bonds (REB or NHAI) and stay in peace knowing at least they are inflation proof rather than 'bury it, shut it and ....forget it'.
Seriously... +1 to that, I myself have put in some in NHAI and bought a fair bit of stocks.

Also this is the time to take risks and hard bargain, put cash down, take it or leave it terms on property. Even if you get 0.5% lease, count the appreciation too once the property market picks up.
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Old 7th June 2009, 19:48   #7
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Nice one there Anil. I am certainly looking around to drive a couple of hard bargains and I want to beat the overall upturn in the industry before real estate prices beat me at my game. So I am definitely keen on pushing through a real estate acquisition...
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Old 7th June 2009, 19:56   #8
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You dont like FDs ? Safe and can be broken anytime unlike MFs . This is until you find what can you do with your cash .

Last edited by black12rr : 7th June 2009 at 19:57.
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Old 7th June 2009, 19:59   #9
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Arrrrrr! The market's down and out and this when I land the knockout punch! Make hay while the sun shines! FD's are when the market's doing extremely well and prices are wayyyy high!

Ever heard of bear market operators?
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Old 7th June 2009, 20:24   #10
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dont take a bank loan and dont invest the whole amount in one place
25 laks in real estate(land is better than apartment)
15 lakhs in stocks
10 lakhs in fd(you never know when you need ready cash)

Last edited by dockap : 7th June 2009 at 20:25.
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Old 7th June 2009, 20:41   #11
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I'm faced with a similar dilemma (on behalf of my old man).

1)The gated community would (IMO) have to be something close to the new Airport. Thats practically in the land of far far away.

2)Haven't really been able to put my finger on any one apartment project in the city. The only thing exclusive about several of the ones I saw was their price tag.

Until I figure something out - I'm going to sit around and dream of the day when I'd be able to put some greens into Sam's hole new investment idea.

This is one idea that's sure to send land prices soaring.
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Old 7th June 2009, 20:45   #12
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Quote:
. I can take this number up by another 30L through a bank-loan.
Only take a loan for an asset


Quote:
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.
New projects promoted by those who have overstretched is risky.

Quote:
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.
Expecting and knowing are two different things

Quote:
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?
SJP and whitefield have oversupply and poor water. Land is the better option

Quote:
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.
er.

Nitesh is in big trouble. Sobha also but will somehow come out


T
Quote:
he 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?
As I mentioned above also the rent returns after takng tax etc into account may not match the basic interest rate. Especially in ths area. You need to earmark an extra 15% for stamp duty, furnishing, deposits etc.
Quote:
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?
A good chance but water is an issue as also land titles
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Quote:
Originally Posted by dockap View Post
dont take a bank loan and dont invest the whole amount in one place
25 laks in real estate(land is better than apartment)
15 lakhs in stocks
10 lakhs in fd(you never know when you need ready cash)
Best advice
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Old 7th June 2009, 21:18   #13
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Buy a huge chunk of land someplace remote.
20 years down the line you will be able to sell it of for a fortune.

Alternately give it to me..i promise I will keep it safe and return it to you whenever you need it back

Regards,
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Old 7th June 2009, 21:44   #14
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If you are planning for investment in fixed deposits(FD), do it as soon as possible in any Nationalised Bank, interest rates are falling. Ask for special rates before investing, Banks (sometimes) do offer better rates on FD above 15 Lakhs.

Last edited by major : 7th June 2009 at 21:46.
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Old 8th June 2009, 09:39   #15
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Do one thing.Buy lots of NTPC and wait for the IPO of NHPC to come out.Both companies will have eventual privatisation and disinvestment.So the shares will go up.Even otherwise these are the two shares which will go up no matter what.NTPC is considered as a very very good fixed deposite if you will.

By the way these are my observations and please don't hold me responsible for them or flame me about them.I'm sure the brainy Tbhians have tons of other better ideas.
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