amitpethe

Hello People,

At the outset let me begin by introducing myself to be one of the Pune fans (born and brought up in Mumbai, but have spent few years in the Punyanagari as a student) who wants to invest in the city in a decent 2 or 3 bhk and intends to put it up on rent for 2 or 3 years. I also expect capital returns after that period when I hive it off.

I am looking at Baner - Pashan link road, Aundh or Sus Pashan Road. I am looking at projects which are either ready posession or due for posesseion in next couple of months.

Please advice me as to what would be the right location (considering the above mentioned expectations) and what kind of rates I should be expecting for those location and of course what kind of rents I can look at getting in these areas.

Thanks and Regards,

Amit Pethe

bloger

Investment is to be done at lower rates like 1000-1500 psf in Pune. Current rates are at all time high in Pune (since mankind has invented calender ) and way above sustainable values as neither current income levels support them nor input costs are that high. So chance of further appreciation are next to none, in fact danger of falling prices overshadows everything else today. So no point in investing at current abnormal peaks .

lazybone007

The areas you have mentioned no longer have investment appeal. Prices are already at a high. If you spend 40-50L for a 2BHK, how much do you think it will appreciate in 2-3 yrs?

adabass

Well, I am no RE expert, but the feeling was the same about 3-4 years back when the rates were 1500-2000. We always thought that it will not go further up, but now they are 3000-3500. What makes you think that it will stop? Isn't the automotive and the IT sector on rise in Pune? I just want to understand why this is not the right time in investing. I fear that if I do not do it now in another 2 years, I will have to spend 60 L instead of 40 L now.

puser

Is it on rise? Is it? Salaries have not changed since 2007 but inflation is high on everything; in fact at someplace salaries have cut down. My friend purchased apartment in 2007(early) and got salary cut by 2008; now he is unable to meet monthly ends and have to pay EMIs by reducing expenditure through various creative means

Many engineers can not afford apartment at 40 L; stretched band is up to 30-35 L normally.

Because of bullish investors who gave money at any rate to builders; hoping for future appreciation; prices have gone beyond imagination; and almost everyone in my knowledge blames IT folks for price rise

realacres

You can do simple experiment:- Buy one in today's market & let us know the value after 2 years!! Man, 4-5 years ago, the rates were in accordance with the incomes. See where one stands today. And man, why auto-auto? We have vendors in that sector & let me assure that the demand is good only for particular car segment & not in totality. Ask Bora Auto how many scorpios he sold last year & Pandit auto the no. of Safaris or Deccan Honda the no. of Accords!! Maruti & Hyundai is on rise just because of Swift, Swift Dezire & i10, rest have all been hammered. Look on the roads for actual new registration plates.

Personally, the appreciation in RE will be negative w.r.t. inflation. Hence, better stay away from RE from investment point of view.

* Btw, many distress sales are happening in Blueridge. Find the reason for the same.

ams444

realacres, how does one find 'distress sale' data? any insider tip

ttt43

From Jan 2008 to Jan 2010, last two years, the prices have remained either the same or decreased by 10-20% depending on locality. This indicates a resistance to increase in prices. What future holds is unknown. but I think most probably it is going to continue the same story.

adabass

Sorry to hear about your friend, but let me play the devil's advocate. All IT companies are posting profits and positive outlook for the next quarter. Isn't that a sign that things are improving? Take a visit to Hinjewadi and look at the amount of construction going on. How many ppl are going to be employed here, where will all this junta stay? What about the auto manufacturing plants in ranjangaon, more factories coming in - won't that mean more demand for housing?

Unfortunately, I hesitate on self sponsored experiments
Exact reasons I am asking these questions. In fact I was looking to pay BlueRidge a visit today.

realacres

Correct & add to it the pre-EMIs & interest + rent which they are paying as delivery for most projects has either got stuck or delayed indefinately. Add this cost too, which itself gives negative returns even before you shift in.