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Buying a 15-year old apartment near Hebbal Kempapura, Bangalore

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Buying a 15-year old apartment near Hebbal Kempapura, Bangalore

Last updated: September 27 2020
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  • Buying a 15-year old apartment near Hebbal Kempapura, Bangalore

    Is it worth buying 15 year old apartment? I am looking into 2 properties , one with amenities and gated community and another stand alone building with security. Both are in Bangalore, Hebbal kempapura

    Location is good for both. Both ar super build up 1550 sqft. Gated community asking 6800sqft and standalone asking 6000 sqft.

    New apartment with latest amenities are at the rate of 5800 to 6800 sqft in the same area.

    Benifit of old property is that it has some interiors although both need some renovation upto 5 lakhs.

    I was expecting old apartment will be less price than new one. How do we calculate fair price for old apartment?

    Thanks for your help.
    Last edited September 21 2020, 02:35 PM.
  • #2

    #2

    Re : Buying a 15-year old apartment near Hebbal Kempapura, Bangalore

    Firstly you should mention the apartment names so that users can give you the correct information. Without the apartment names, its mostly guesswork. Let me try - No one pays Rs 6000 or even Rs 5000 per sqft for 15 year old apartments unless its a Sobha or a Prestige. Local builders with 15 years age of building command not more than Rs 4000-4500 per sqft depending on the builder quality of construction, amenities, maintenance of the building.

    The other indicator is guideline value. If you are able to get the guideline value of the apartment, you get an indicative price. Negotiate upto 20% below the guideline value. That should be your purchase price.

    Apartment resale value depends on the location, A/B khata and Occupancy cerificate. If you are going to spend close to a crore for a 15 year old apartment go for one which has all of the above and more. Just remember if you buy for 1 cr, your total cost including registration etc is 1.07 cr at the minimum.. The question is can you resell the apartment the next day at the same price? If the answer is yes, you should go for it. In most cases, the answer is no and you dont even recover your money over next 10 years. Buy only as a primary house and forget return on investment. '

    Finally remember, what rate your potential seller bought has no relevance to your purchase decision. Its not uncommon for people to actually lose money on RE investments (although the RE bulls will never tell you that). So be careful.. there are no more greater fools in the market.


    To quote RE bulls - buy land(or Real estate), they stopped making it long ago.

    To quote RE bears- Be careful, land ( or Real estate) stopped making money long ago.

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