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View Poll Results: Home Loans in today's times: Are they worth it?
Do Not take a Home Loan, invest in retirement savings plans, etc. 19 24.05%
Take a Home Loan for a well developed area, it makes financial sense in the long run. 23 29.11%
Take a Home Loan, but not for a well developed, inflated area. 29 36.71%
None of the above, there are other ways of safe guarding your future. 8 10.13%
Voters: 79. You may not vote on this poll

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Old 22nd April 2019, 01:06   #76
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Default Re: BUY a flat or stay on RENT?

Quote:
Originally Posted by AltoLXI View Post
Caught in a big dilemma.

I am staying in my own apartment in Bangalore (small one with no frills) from the past 13 years. No home loan as I repaid it back within 4 years. The construction quality is good though from a small builder. Son's school is close by and he has two more years to get into college. Things were going on well till...
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I have rarely come across people selling own house and going on rent at later stage of life. Not sure if I am doing the right thing or not. Please help me with your views.
My Panjim flat has just municipal water facility. In summer almost everyday alternate day we require water tanker. This has not hampered the selling price of our flat.

I have recently sold Panjim flat as we have shifted to Mangalore 4 years back. Purchaser of our flat were well aware about the water crises in our building.

Now our society members have decided to apply for 3rd water connection from municipal corporation, which will reduce the burden of water tanker to some extent.

RWH is a better option, but your building is already using the technology.

It is always better to relocate to native places which has lesser pollution compared to metropolitan cities.

Discuss with your family in detail and take a suitable decisions accordingly.


Venkatesh.H

Last edited by khan_sultan : 22nd April 2019 at 09:57. Reason: Trimmed quoted post
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Old 22nd April 2019, 10:56   #77
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Default Re: BUY a flat or stay on RENT?

Quote:
Originally Posted by AltoLXI View Post
Caught in a big dilemma.

I am staying in my own apartment in Bangalore (small one with no frills) from the past 13 years. No home loan as I repaid it back within 4 years. The construction quality is good though from a small builder. Son's school is close by and he has two more years to get into college. Things were going on well till...
You made the right call choosing a small apartment near your son's school and paying it off quickly. I hope you have calculated your inflation adjusted return of the sale. You can't be sure about college as he can't pass up if he gets into a good one far away from Bangalore.

Water problems don't have a bearing on resale or rental values, tanker supply is a norm in most parts of the city. Going back to your native place is good, but remember that most have left to the city like you and the majority won't be coming be back. I am seeing a trend of parents moving out and joining the kids, sometimes in a different country. Not sure about the economic opportunities in your native for rental yield. Your son is a Bangalore native, he won't have the attachment to the native place.

Selling and renting in the same area is a really bad idea.
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Old 22nd April 2019, 11:16   #78
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Default Re: BUY a flat or stay on RENT?

Quote:
Originally Posted by AltoLXI View Post
I have rarely come across people selling own house and going on rent at later stage of life. Not sure if I am doing the right thing or not. Please help me with your views.
Probably that's because it makes very little sense unless u wish to move out of town. Water scarcity is everywhere in bangalore. So scarcity of ground water is honestly least of your issues when trying to sell. I would suggest atleast let your son finish his school, meanwhile keep scouting for next investment. These investments are HUGE and you don't want to regret later.
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Old 22nd April 2019, 11:27   #79
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Default Re: BUY a flat or stay on RENT?

Quote:
Originally Posted by Venkatesh.H View Post
It is always better to relocate to native places which has lesser pollution compared to metropolitan cities.

Discuss with your family in detail and take a suitable decisions accordingly.
Venkatesh.H
Family is also in a dilemma. Now the burden to take a decision whether to sell or rent falls on me.

Quote:
Originally Posted by avira_tk View Post
I hope you have calculated your inflation adjusted return of the sale.
I spent 22 lakh including EMI interest. Buyer is willing to pay 37 lakh now. That also means I have saved on rent for the past 13 years.

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Originally Posted by avira_tk View Post
You can't be sure about college as he can't pass up if he gets into a good one far away from Bangalore.
He is starting 9th this year. So 4 years more till he finishes 12th. Post that I am not sure if he will be in Bangalore or not.

Quote:
Originally Posted by avira_tk View Post
Water problems don't have a bearing on resale or rental values, tanker supply is a norm in most parts of the city. Going back to your native place is good, but remember that most have left to the city like you and the majority won't be coming be back. I am seeing a trend of parents moving out and joining the kids, sometimes in a different country. Not sure about the economic opportunities in your native for rental yield. Your son is a Bangalore native, he won't have the attachment to the native place.
I am planning to construct two houses in my native in vacant land with the sales proceeds. I may get around 15k-16k from both houses combined which might be a little less than what I pay on rent here. I suppose that will be offset by HRA here. True about son being Bangalore native.

Quote:
Originally Posted by avira_tk View Post
Selling and renting in the same area is a really bad idea.
That is the fear I have apart from how the family members will cope up with rental home after staying in own house till now.

Quote:
Originally Posted by SoumenD View Post
Probably that's because it makes very little sense unless u wish to move out of town. Water scarcity is everywhere in bangalore. So scarcity of ground water is honestly least of your issues when trying to sell. I would suggest atleast let your son finish his school, meanwhile keep scouting for next investment. These investments are HUGE and you don't want to regret later.
Agree with what you are saying. With hardly 10 years "official" working life left, I may move out of Bangalore after that. These 10 years are when son also will be completing his college life.

Last edited by AltoLXI : 22nd April 2019 at 11:37.
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Old 22nd April 2019, 12:09   #80
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Default Re: BUY a flat or stay on RENT?

Quote:
Originally Posted by AltoLXI View Post
Agree with what you are saying. With hardly 10 years "official" working life left, I may move out of Bangalore after that. These 10 years are when son also will be completing his college life.
I would recommend not making any changes now if all of you are extremely comfortable in terms of where you are staying. I am sure your son is already getting set for his Board exams, the last thing you need is to make changes in your living situation at the moment.

Your house can always be sold, another 4 years to an already aged property is not going to make a significant difference to its price. Further the ticket price is economical, and is affordable for the vast majority of first time home buyers in Bangalore.

I recommend that you keep your son's Bangalore education (another 4 years) as the inflection point to make a decision on whether to sell or retain.

Lastly, I would suggest you buy property in your native immediately before prices begin creeping up - because as you say, you intend on going back. Take that loan burden on yourself as a retirement goal and begin working towards it. You can take your time to buy something you really really like - without the pressure of making a deal happen now.

This way, in about 4 years - you have the choice of moving back, selling this, or renting either one out. You can make a decision based on free will, rather than circumstantial situations.

Last edited by Red Liner : 22nd April 2019 at 12:10.
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Old 22nd April 2019, 12:17   #81
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Default Re: BUY a flat or stay on RENT?

I recently moved from my own flat in Bannerghatta Road, South Bangalore to a rented flat in Whitefield to reduce commute distance.

While searching for a flat in Whitefield I saw instances:

1. Owners moving from WF to Electronics city for school.
2. My flat owner wanted a 3 BHK; so he has moved and given his 2 bhk for rent.
3. Moving to reduce commute for either of the spouses.

This and many other such examples now leads me to my below guidance that I give to my younger colleagues:

1. Do NOT buy a house in your "effective" working age. In case of IT, this can be considered as 25-45. Put all your savings in financial assets (equity, debt MF etc).

2. Be Flexible, and I cannot stress this enough to move localities, cities, countries to enhance your career during the working age.

3. Once crossed 40, start looking to buy a real estate asset to live beyond 45. The priorities for the flat drastically changes when you think beyond 45 - distance to office may no longer be a primary criteria, kids will be in college (or just about to go to college), club house/swimming pool etc won't matter. Buy what you can afford with your savings only (keeping retirement necessities also in mind). No loan/EMI.

Check out property in your native place or a tier 2/3 town. Live retired life peacefully away from noise and pollution.

Last edited by DigitalOne : 22nd April 2019 at 12:19.
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Old 22nd April 2019, 12:28   #82
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Default Re: BUY a flat or stay on RENT?

Quote:
Originally Posted by Venkatesh.H View Post
In summer almost everyday alternate day we require water tanker. This has not hampered the selling price of our flat.
Quote:
Originally Posted by avira_tk View Post
Water problems don't have a bearing on resale or rental values, tanker supply is a norm in most parts of the city.
Quote:
Originally Posted by SoumenD View Post
Water scarcity is everywhere in bangalore. So scarcity of ground water is honestly least of your issues when trying to sell.
This is interesting (and also scary to read that a place like Panjim with that much rainfall has a water scarcity issue!).

Right now property values in my area are high because of the relative proximity to the 'tech park zone'. But there's really nothing else good about this area and there's an acute water shortage. So wondering how much my place will be worth when I try and sell it 10 or 15 years in the future when I plan to leave the city and head to a smaller town near the coast.
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