[Pallavi]

Amitk26 is spot on.

"only few apartments left" statement is also used by builders to sell off the less favored floors and apartment whose plans are not so great. The favored floors and apartments will get sold anyway.

[KRRaj]

Guys, any reviews on Mahaveer Varna? Situated on the Whitefield road, looks like a decent budget buy. Only Prestige Tranquility looks within my budget of around 35 lakhs.

[condor]

Guys, what's the situation / issue about betterment charges for apartments ? One broker I was talking to said that this is common to all apartments, but honestly I could not make out what he said.

[karty_83]

Folks from Bangalore, need suggestion. Planning to invest in real estate in a couple a months time. Would like to know which is a better option.

1) Buy a site.

2) Buy a flat.

3) Buy an independent home.

I wont be living in there. Its purely for investment. But yes would like to get good returns. Five years down the lane the property value must have appreciated considerably. For example, a friend of mine invested in a flat for 30 lac in 05. Now that is worth around 75 lac. I am looking for a similar investment.

Which are the affordable areas in Bangalore that have a potential for growth in the coming years ? One i can think of is Marathahalli.

[condor]

@Karthik, it all depends on your budget.

If budget is medium & you want a site, you may have to go away from the city
Medium budget & an apartment - lot of options.
The higher your budget, the better /more premium flats you can get. Or atleast get a site not too far outside the city.
If only investment, can also look at under-construction apartments.

Start searching now, so you will have a better idea of the situation/availability & what you will like to do.

Though, land would be my first choice

[karty_83]

Originally Posted by condor

@Karthik, it all depends on your budget.
If budget is medium & you want a site, you may have to go away from the city
Medium budget & an apartment - lot of options.
The higher your budget, the better /more premium flats you can get. Or atleast get a site not too far outside the city.
If only investment, can also look at under-construction apartments.

Though, land would be my first choice

Please may i know as to in what range does Medium budget qualify ?

I am under the impression that a flat is a better option because i get rent alongside the appreciation of the land value as against only 'Land'. Not sure if i am right though.

Its purely for investment and am not looking at any premium options. The lower the better. Only requirement is that the property must have scope for growth. Say for instance, 10 years back HSR layout was relatively very inexpensive and affordable compared to many other areas in the city. But today its amongst the expensive ones.

[hrman]

Originally Posted by karty_83

Please may i know as to in what range does Medium budget qualify ?

I am under the impression that a flat is a better option because i get rent alongside the appreciation of the land value as against only 'Land'. Not sure if i am right though.
.

This is subjective. If its a flat with a premium builder (Read well known) with a good location - preferably closer to IT hubs, you may get better rentals.
If the above is not met, you would not get good rentals for the flat, nor very high appreciation in value.
IMHO, land is always a solid investment. Although you may not get monthly rent on it, the value is sure to appreciate in a few years.

[karty_83]

Originally Posted by hrman

This is subjective. If its a flat with a premium builder (Read well known) with a good location - preferably closer to IT hubs, you may get better rentals.
If the above is not met, you would not get good rentals for the flat, nor very high appreciation in value.
IMHO, land is always a solid investment. Although you may not get monthly rent on it, the value is sure to appreciate in a few years.

Wouldn't the same logic extend to Land as well ? I thought the appreciation would be more or less the same and relative to the 'x' amount invested in the same location.

[Spitfire]

Originally Posted by karty_83

For example, a friend of mine invested in a flat for 30 lac in 05. Now that is worth around 75 lac. I am looking for a similar investment.

Bad example. And those days are behind us now. Appreciation yes, but of the sorts you mention. Possible but then you wont sell it.

Coming to your query. First question. How are you financing the buy? Loan, cash, sale of another property?

[karty_83]

Originally Posted by Spitfire

Coming to your query. First question. How are you financing the buy? Loan, cash, sale of another property?

Financing is through sale of ancestral property.

[Spitfire]

Originally Posted by karty_83

Financing is through sale of ancestral property.

Is this going to be a long term investment or a short term? If any could you give an approximate period you will hold the property for?

And what gains are you looking at in terms of annual growth.

[karty_83]

Originally Posted by Spitfire

Is this going to be a long term investment or a short term? If any could you give an approximate period you will hold the property for?

And what gains are you looking at in terms of annual growth.

Am not really sure about that. As of now, i have thought of a 5 year term and ll probably take it from there. As for gains, would like as much appreciation as possible over what ever i invest in be it land or flat.

[Spitfire]

Originally Posted by karty_83

Am not really sure about that. As of now, i have thought of a 5 year term and ll probably take it from there. As for gains, would like as much appreciation as possible over what ever i invest in be it land or flat.

So lets say 5 years?

"As much as possible" is a naive and immature way of going about it. You need to do some learning on your own before you invest. Because more is never enough. Set a goal aim at that. An open ended target will always be a bad investment.

[Mr_Bean]

Originally Posted by karty_83

Am not really sure about that. As of now, i have thought of a 5 year term and ll probably take it from there. As for gains, would like as much appreciation as possible over what ever i invest in be it land or flat.

karty_83, When we talk about investing, one needs to draw a liability/asset graph and have some clear projection. For example let us think of buying a piece of land with or without loan:
With Loan:
1.) Need to calculate the interest part you pay upfront on a loan, the amount of interest may overshadow the appreciation in initial years. I took loan from Manipal Housing finance at 13.5%, my initial 2 years of EMI amounting to 4 lakhs held an interest of close to 3 lakhs and principal of little over 1 lakh. So, if I ask myself, has the land appreciated in 2 years, a big NO and will it appreciate in future, I don't know.
2.) Down payment also garners interest over the years, look out for it.

Without Loan:
1.) What if I invest in fixed deposit or balanced fund, will my real restate appreciation break all these.
2.) Recurring deposit is also a good option.

============================================
Regarding investing on a flat, gone are those days when you see that kind of a jump from 30 to 75 lakhs in 5 years. To be honest, if you buy a flat at 75 lakhs it has to logically depreciate after 5 years, but the way real estate functions, it really beats my thoughts.

Originally Posted by Spitfire

So lets say 5 years?

"As much as possible" is a naive and immature way of going about it. You need to do some learning on your own before you invest. Because more is never enough. Set a goal aim at that. An open ended target will always be a bad investment.

Good thought!!

[karty_83]

@ spitfire, mr_bean

Thank you for all the inputs. Well, i have seen a lot of people in the last couple of years who have made a fortune in areas like Koramangala , Hsr layout and others having invested in there in the past. So was wondering if there is room for such investments even now albeit in other areas.
Well, i dont really know much about real estate, but having seen people invest in land and reaping in the benefits is luring me in.