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Hi All,

Anyone invested in Unishire "The Weave" project at Thanisandra, Bangalore?
What is the probable appreciation in that area and the specific project?

Thanks,
Anup C

I came across the concept of fractional property investment.
propertyshare.in

Has any expert evaluated this?

This is a novel idea and thanks for posting about it.

However I would be very skeptical about it due to a number of reasons.

Firstly, it is unclear with whom the ownership of the property would vest. At a minimum amount of only ₹1 lakh, there would be many owners and it is unclear what would happen in case there is a dispute among the members. If the ownership is retained by the management company, then that opens another can of worms as to what happens in case the company goes belly up and also whether taxation is pass through.

Secondly an REIT framework already exists in India, but primarily for commercial property. Many articles exist on Indian REITs that state that it makes not one iota of sense for the small investor to invest in real estate in India due to the fact that rental returns on even commercial properties are not that high. In the case of residential properties, I have worked out the math before and at best you can get 2-3%. I am planning to build a rental property though and this has a higher ROI of around 9% in my case only because the land was bought many years ago and is practically free.

Thirdly as many analysts have pointed out, real estate in India drives a parallel economy dominated by politicians with zero transparency and many underhand deals. By purchasing property solely for investment, we are enabling corruption in India. Also property investment in India usually in the outskirts of cities is a lot like buying diamonds. When you go to buy, the price is set in stone but go to sell a few months later and you would be hard-pressed to anywhere close to the same price in case you are lucky to find someone willing to buy it.

I got out of the property investment craze many years ago when I found that mutual funds gave me the same or better returns. Nevertheless I would still be curious to know more about those who put their money in this.

Also, till our last-to-last generation the norm for most couples were to have 6-7 children, the norm today is 2 and many sticking to 1.

So, the Indian cities and towns that were ever expanding till recently, will start to go in sustenance for the next few years and then will start receding back to the original core areas. So I would suggest people who are investing in suburbs to be careful. Don't go by the marketing gimmicks like will-have-development-in-next-10-years, this-will-be-the-new-city, etc.

The trend of investment for our generation will be to split investment between mutual funds, property and Gold, and the best idea will be to balance the investment equally between the three.

Also, invest in the place you live, make your home bigger if possible, invest in day-to-day better quality of life. Once, you start feeling that the future is reasonably secure for you and your family, shift investing time from making money, to your family, loved ones and on things you always wanted to do.

Deccan Herald July 9 2015

"97 apartments built on lake lands"

Belagavi, dhns: Revenue Minister V Srinivas Prasad said on Wednesday that about 97 residential apartments have been constructed on lake lands in Bengaluru.

In his written reply to a question by Congress' V S Ugrappa in the Council, the Minister said that action would be taken against those responsible for encroachment based on the recommendations of a joint House committee set up to look into encroachment on lakes in Bengaluru Urban district.

Several innocent persons are in trouble as the encroached lands were sold many times. During the encroachment clearance drive in tank areas, 33 acres and 25 guntas of encroached land was cleared at Sarakki tank, five acre and 18 guntas at Haralukunte tank, 17 acres and 24 guntas at Banaswadi tank, and two acres at Allalsandra tank. A total of 167 unauthorised residential buildings were demolished, he said.

When Ugrappa sought to know how the BBMP installed its waste disposal unit in Haralukunte tank area, the minister stated that the issue will be investigated.

This apart, Minor Irrigation Minister Shivaraj Tangadagi said the department has prepared a detailed project report for implementing a project to fill up lakes in Kolar and Chikkaballapur districts with waste water generated in Bengaluru. The project is estimated to cost Rs 1,072 crore. Chief Minister Siddaramaiah has agreed to allocate funds to the project, he added. He was replying to a question by Y A Narayanaswamy in this regard.

Please do not book/buy apartments in future in this particular property , Team Bhpians.

"Another land scam in making: Dead man gets plot converted"

Residents fear a covert motive to pave the way for a high-rise residential apartment or a swanky commercial complex in the layout.

"We do not know which builder or politician is behind this land-grab, but what baffles is the way the district administration - from the village accountant at the lower rung to the deputy commissioner - have joined forces. They have tried to parcel off the park, which is actually a civic amenity (CA) site owned by the government," residents told BM.

The land in question is survey number 114/2 (measuring 1.34 acres) which was acquired by the state government from land owner Kudla Abaiyappa in 1988 and was handed over to the VBEHCS Ltd for formation of a residential layout.

the complete details may be obtained below:

http://www.bangaloremirror.com/banga...w/47993885.cms

I find this a bit odd that your calculations indicate that MF gives better returns than RE.

On average over 5 years, I think MF returns is around 15% per annum (average).
In contrast, in upcoming areas, in 5 years, the property price goes up to 300% at the end of the 5 years.
Also, the price never really goes down in between (people just refuse to sell and sit on the property).

TBHPians and readers, please factor in such possibilities before you select your Apartment or Office !

"Apartments lining the road find their basements filled with sewage water"

"Nandidurga Rd residents pitted against sewer pits"

By Bharat A Patel, Bangalore Mirror Bureau | Jul 22, 2015, 04.00 AM IST

"Choked sewage pits have made life miserable for the residents of buildings lining Nandidurga road, with overflowing sewage flooding their basements and parking lots.

With no help from the BWSSB, the residents have been forced to pump out the sewage water in the rain water drains."

to know everything about this ,
http://www.bangaloremirror.com/banga.../48165016.cms?


================================================== ==========================

Salarpuria Sattva Koramangala Bangalore

"Government set to take possession of prime Koramangala property"
Aparajita Ray,TNN | Jul 23, 2015, 02.51 AM IST

"BENGALURU: The district administration has cracked the whip on another landmark highrise — this time in Koramangala — terming it an encroachment of public land.

Revenue officials put up a notice in front of Salarpuria Towers, Hosur Road, on Wednesday, announcing takeover of the property. The two-acre plot houses three buildings of Salarpuria Sattva, an IndianOil fuel station, and the Koramangala branch of Uco bank."

for more details,
http://timesofindia.indiatimes.com/c...w/48181024.cms

"The C++ Address" - Guess what it is? New villa project in Electronic city, Bangalore. I guess they have run out of European street names....

Somehow I missed both your posts.

Personally I think that urbanization of India is inevitable. We have close to 50% of our population who hide unemployment by claiming to be farmers, and they will move to cities to seek employment IF the economy expands.

However my own guess is that that these cities of tomorrow will be the towns of today. I already have seen the creeping urbanization happening in Kerala where other towns are gaining prominence (Disclaimer: I am based in the South, hence my reference to a state that is sub-optimal in terms of economic growth).

OK, how better than to give you my own experience?

Property A: I bought for ₹700/sq. ft. some 9 years ago and was worth ₹2,300/sq. ft. when I looked 1.5 years ago.

I calculated the rate of interest and this works out to slightly less than 15% compound interest with monthly rest.

Property B: I bought for ₹500/sq. ft. some 6 years ago in an "upcoming area" and it is worth ₹550/sq. ft. now.

Obviously I have to sit on property B because I am losing money on it. That brings me to the next point: Property is illiquid. When you want to sell it, it is not as easy as you think.

I do have 2 other properties including the one I live on right now which I mention below:

Property C: Bought for ₹550/sq. ft. 15 years ago, now worth ₹12,000/sq. ft.

But Property C is my own house and I don't care what it is worth because I am never going to sell it, so what use is it to me?

All of this is land. Unfortunately I do not have any experience in buying flats.

MFs have the benefit that they give you a diversified portfolio and superior returns PLUS you can get your money within 3 days of redemption.

If I may ask, which project have you shortlisted? And how much rate (per sqft) have you finally settled for?

I had almost finalized Mahaveer Promenade at Rs.3350/sq ft. Hadn't negotiated a final price, but was about to block a flat for document verification.

Somehow the prospect of delivery in 2017 end + 3 months was keeping us on hold to finalize.

Finally early this month we dropped the plan and are on lookout again for a 2016 delivery flat, with an additonal budget.

Hello Friends,

I am looking at buying a premium villa/apartment (2000 sq ft. MINIMUM) in Jaipur but am not able to figure out how to go about finding one?

I have lived in Bangalore since 2003 and know the localities, builders, amenities etc here. But I am not able to find anything suitable in Jaipur. This will be for end use. I have visited Jaipur a few times for the purpose of buying something but each time come back confused and clueless.

I will really appreciate if someone can help me with his/her personal experience.

Thanks.

3 BHK Apt available for rent in Bangalore near Bannerghatta road:
One of my friend's 3 bhk apt is available for rent in Bannerghatta Main Road behind Decathlon Bannerghatta. It is located in 1st floor and expected rent is around 16K. close to Electronic City, Accenture and Honeywell. If any of you interested in taking a look, I will pass on the info to my friend and get it arranged.

Though the idea is interesting, it carries huge risks. I read an article about such crowd funded real estate investments form Tech Crunch. There is in fact another start up doing this (https://brickvest.com/). Just thought it might be interesting to share this here!