Hello Friends,
I had come to know about this website by googling about real estate investment in bangalore. After i started reading each of the existing threads, i realized that there are lot more than i can learn by simply go through an existing threads.
Big Salute to all members who had contributed and shared their knowledge.

I introduce myself as a engg currently working in one of the MNC in Outer Ring Road(Bellandur), Bangalore. I am exploring ways to invest my savings.
At the moment, i am paying rent of Rs 7500 for a 1BHK house. I already lived for 2 years in the same house and now i think i that should may be invest in my own house instead earning and giving it to my landlord :).

I am trying to invest in a apartment near Outer Ring Road as this would be close to my office. However i realized that this property rates in and around ORR is way too expensive. Financially i can manage approx 8 Lacs without loan and any amount above that would have to be dealt with by housing loan. I think approxiamately 10 to 15 Lacs Rupees loan would be fine with me... This means i am targeting an apartment(2BHK) for approx 25 Lacs..

I found the following sites very useful. These are investments in and around KR puram: As KR puram is close to ORR, old madras road and also has better rail connectivity, i thought it might be good to invest in here.


Do you think it might be a valid investment ? Alternatively another way of investment would be gold\silver investment, but i am unable to decide which way to go. Buying the apartment would mean that i dont have to pay rent..

Guys suggest me better investment option. I save approx Rs 30000 per month and need best way to save this amount.
I am also open to any other form of investment.

Regards,
Andy
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  • anand,

    its not quite clear as what exactly you trying to ask. you want invest/save/avoid rent??

    answering your query, sorry i have no idea about the builder. but i will answer your main query. i assume you want to save the 7.5 rent that your paying and move to an own house. and you have zeroed on a 25 lakh apartment. Think abt the following

    1) To save 5.25k ( i mention 5.25 because on 7.5 can claim HRA), you are putting ur lifetime savings, and will be paying EMI. Considering the current interest rate, effectively you would be paying double the flat cost
    2)Just because u can afford a 25 lakh flat, do you think you should buy it no matter what?.. Have you thought about quality and other aspects?

    I don't suggest anything to you. If I were you, I would invest in a proven MF in SIP mode. And will probably look for a cheaper house. I believe you are single and I think 7.5 for a single bed room is on the higher side. Otherwise it looks reasonable.
    CommentQuote
  • Originally Posted by kaatesha
    anand,
    its not quite clear as what exactly you trying to ask. you want invest/save/avoid rent??
    answering your query, sorry i have no idea about the builder. but i will answer your main query. i assume you want to save the 7.5 rent that your paying and move to an own house. and you have zeroed on a 25 lakh apartment. Think abt the following
    1) To save 5.25k ( i mention 5.25 because on 7.5 can claim HRA), you are putting ur lifetime savings, and will be paying EMI. Considering the current interest rate, effectively you would be paying double the flat cost
    2)Just because u can afford a 25 lakh flat, do you think you should buy it no matter what?.. Have you thought about quality and other aspects?

    I don't suggest anything to you. If I were you, I would invest in a proven MF in SIP mode. And will probably look for a cheaper house. I believe you are single and I think 7.5 for a single bed room is on the higher side. Otherwise it looks reasonable.

    Hi Kaatesha,
    Thank you for taking your time to respond to my query.
    I wanted to invest in real estate with the aim of avoiding to pay rent. My question was with regards to whether it is a good idea to do so ? Alternatively i thought i would instead continue to pay rent and may be then invest in Gold\Silver as an investment. The latter option would mean that i dont have to go for a loan and continue to pay that rent.

    What is your suggestion if i end up saving Rs 35k to 40k per month ? i need to invest this money on a monthly basis so that this money is not idle and it multiplies after some time ? I need to know all options which would give me better returns ?

    Considering this requirement, what would you suggest ?

    Regards,
    Anand
    CommentQuote
  • Originally Posted by anand_i2k
    Hello Friends,
    I had come to know about this website by googling about real estate investment in bangalore. After i started reading each of the existing threads, i realized that there are lot more than i can learn by simply go through an existing threads.
    Big Salute to all members who had contributed and shared their knowledge.

    I introduce myself as a engg currently working in one of the MNC in Outer Ring Road(Bellandur), Bangalore. I am exploring ways to invest my savings.
    At the moment, i am paying rent of Rs 7500 for a 1BHK house. I already lived for 2 years in the same house and now i think i that should may be invest in my own house instead earning and giving it to my landlord :).

    I am trying to invest in a apartment near Outer Ring Road as this would be close to my office. However i realized that this property rates in and around ORR is way too expensive. Financially i can manage approx 8 Lacs without loan and any amount above that would have to be dealt with by housing loan. I think approxiamately 10 to 15 Lacs Rupees loan would be fine with me... This means i am targeting an apartment(2BHK) for approx 25 Lacs..

    I found the following sites very useful. These are investments in and around KR puram: As KR puram is close to ORR, old madras road and also has better rail connectivity, i thought it might be good to invest in here.

    KR Puram Bangalore09999684955 Samruddhi Lemon Tree Projects - Bangalore - Houses - Apartments for Sale - best designer houses in bangalore


    Do you think it might be a valid investment ? Alternatively another way of investment would be gold\silver investment, but i am unable to decide which way to go. Buying the apartment would mean that i dont have to pay rent..

    Guys suggest me better investment option. I save approx Rs 30000 per month and need best way to save this amount.
    I am also open to any other form of investment.

    Regards,
    Andy


    Invest in :

    PPF
    FD - Link savings account to auto sweep in , sweep out to FD

    Diversify in :
    Mutual Fund SIP
    Equity

    Buy a term life insurance
    Buy a health insurance

    I would stay away from RE for sometime . Better bet is to stay on rent for sometime and accumulate more downpayment so that the loan you take is less . At 7.5k - minus HRA the rent you pay is only 5-5.5k per month . Ownership will cost you property tax , maintenance etc. alongwith current unstable , high priced , no commitment and quality housing .
    CommentQuote
  • Real estate vs Gold/silver

    Gold/silver is comparatively safe option, and will yield benefits in the long term. Real estate is more complex investment in the sense that you need to worry a lot about your property, its maintenance, evicting your tenant, etc.

    However, real estate can give you a dramatic appreciation, that Gold/silver will never give. If you buy a flat for 25 lacs, it may well turn out after 5 years that its price runs into crores (obviously u need to judiciously choose the location and the builder).

    Cities like Delhi and Mumbai are safer for investment. Bangalore economy is tremendously dependent on IT sector. So, another slowdown, you will be gone. Metro like Delhi and Mumbai are insular to such economic slowdown in some sense, because they have a diversified economic growth and century-old commercial centers.
    CommentQuote
  • Originally Posted by MumbaiShark
    Gold/silver is comparatively safe option, and will yield benefits in the long term. Real estate is more complex investment in the sense that you need to worry a lot about your property, its maintenance, evicting your tenant, etc.

    However, real estate can give you a dramatic appreciation, that Gold/silver will never give. If you buy a flat for 25 lacs, it may well turn out after 5 years that its price runs into crores (obviously u need to judiciously choose the location and the builder).

    Cities like Delhi and Mumbai are safer for investment. Bangalore economy is tremendously dependent on IT sector. So, another slowdown, you will be gone. Metro like Delhi and Mumbai are insular to such economic slowdown in some sense, because they have a diversified economic growth and century-old commercial centers.

    Hi MumbaiShark;,

    I agree Gold\Silver are safe options. However, real estate as an option could also be dangerous.. I mean i know even reputed builders don't really complete their project as planned. There are always delays. And then there is no point in investing if you cannot stay in our house as planned and continue to pay EMI and rent as well unnecessarily !
    CommentQuote
  • Gold Market

    Some one should look at this blog, Konkan Tribune: Gold, very good articles posted about why to buy gold, and how to invest also I found some post on Real Estate as well Konkan Tribune: Real Estate.

    Thought to share with this community.
    CommentQuote
  • Hello All,
    I would like to re-open this thread .

    I have seen and read lots of articles where everyone wants to buy a home instead of staying in a rented house.
    This has given opportunity to many builders to come up with small and large projects.
    Thereby, making supply so large than the demand, that almost 50-60% of flats are unsold in Bangalore

    Considering all these ...
    Where should you keep your hard earned money..
    1) you put it in FD - returns are low , and you end paying tax on already taxed income
    2) PPF - returns are low, but safe
    3) MF / SIPs - returns are high, but more risk
    4) Real Estate - not sure where this will lead to... everyone is investing on plots/flats.. will there be a resale ?
    5) Gold - resale is low incase of ornaments..

    Can some experts help here..
    I am sure there are like minded people who have these questions lingering ..

    FYI : Above views are personal.. others may think differently

    Considering all these ...
    Where should you keep your hard earned money..
    1) you put it in FD - returns are low , and you end paying tax on already taxed income
    2) PPF - returns are low, but safe
    3) MF / SIPs - returns are high, but more risk
    4) Real Estate - not sure where this will lead to... everyone is investing on plots/flats.. will there be a resale ?
    5) Gold - resale is low incase of ornaments..

    Can some experts help here..
    I am sure there are like minded people who have these questions lingering ..

    FYI : Above views are personal.. others may think differently
    CommentQuote
  • Look at the date of first post here and the advice given, it was 5 years ago, almost. You will get the same advice today also.Better spread your money across the fields mentioned but avoid plots as they are minefields because of cheating. After a setting aside a good amount as savings check your income and the amount you can save every month and decide on buying a house or flat for self use.

    If you want a house for yourself go on checking and bargain hard as bargaining in the present scenario will get you what you want easily.Reading all the threads should have made you realize that free advice is useless.Think on your own and decide.


    Originally Posted by lekhya25
    Hello All,
    I would like to re-open this thread .

    I have seen and read lots of articles where everyone wants to buy a home instead of staying in a rented house.
    This has given opportunity to many builders to come up with small and large projects.
    Thereby, making supply so large than the demand, that almost 50-60% of flats are unsold in Bangalore

    Considering all these ...
    Where should you keep your hard earned money..
    1) you put it in FD - returns are low , and you end paying tax on already taxed income
    2) PPF - returns are low, but safe
    3) MF / SIPs - returns are high, but more risk
    4) Real Estate - not sure where this will lead to... everyone is investing on plots/flats.. will there be a resale ?
    5) Gold - resale is low incase of ornaments..

    Can some experts help here..
    I am sure there are like minded people who have these questions lingering ..

    FYI : Above views are personal.. others may think differently
    CommentQuote