Friends,
We sold a plot in our hometown and got 20 lacs. Now we need to invest that money in bangalore.
Option 1: Invest in a pre-launched flat valued @35-40 lacs, so that with construction based plan we can pay the money for next 1.5-2 yrs and then sell that off at a profit.
Option 2: Invest in a plot near Old Madras Road. Lot of activity is happening i.e Prestige Tranquility, Brigade Exotics, Brigade Golden Triangle, Many villa projects on that road. In 5 yrs it should be much more developed and land can easily give a return of 15% annually.

Signature Tulip plots are available @1800/sqft.

Please suggest what to do with this money.

Cheers.
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  • K R Puram seems to be a good investment option

    Snippet from today's Times of India news:
    --------------------------------------------
    Hebbal and K R Puram hottest property hubs
    IT, Biotech And Aerospace Are Driving The Realty Boom In Areas, Says Knight Frank
    Anshul Dhamija TNN

    Bangalore: Hebbal in north Bangalore and K R Puram in the east have emerged as the top residential destinations to invest in.
    In an investment advisory and research report put out by global real estate consultants Knight Frank, in the five year period between 2013 and 2017, Hebbal and K R Puram are expected to see an average price appreciation of 94% and 91% respectively. These two destinations are on Knight Frank’s list of top ten Indian destinations to invest in.
    Ram Chandnani, deputy MD for South India in CBRE, another global real estate consultancy firm, said that Sarjapur-Outer Ring Road and Whitefield areas are also promising, and would see a price appreciation of over 70% in the next five years.
    The Knight Frank report studied various micro markets across the country based on parameters such as employment, physical infrastructure, connectivity to important locations, access to social infrastructure, planned development, proximity to premium office spaces and land availability. Price appreciation in micromarkets was calculated based on future office space demand and absorption levels.
    The report states that demand for office space in Bangalore in the next five years would be 44.4 million sqft, driven by the IT/ITeS, biotech, and aerospace sectors. Of that, 60% would be in the North and East corridors of the city, close to Hebbal and K R Puram.
    In Hebbal, the stock of residential apartment units in 2007 was just 300, which in 2012 has risen to about 1,800. That’s a growth of 500% in five years. Similarly, K R Puram has seen a 200% growth in inventory of apartment units, from 2,000 in 2007 to 6,000 as of September 2012.
    “These two markets are sun-rise areas due to various reasons, the most important being connectivity to arterial roads and proximity to business clusters,” said Prashanth Sambargi, partner at property brokerage firm Mars Realty.
    -----------snipped---------------------------------
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  • Originally Posted by pssk006
    K R Puram seems to be a good investment option

    Snippet from today's Times of India news:
    --------------------------------------------
    Hebbal and K R Puram hottest property hubs
    IT, Biotech And Aerospace Are Driving The Realty Boom In Areas, Says Knight Frank
    Anshul Dhamija TNN

    Bangalore: Hebbal in north Bangalore and K R Puram in the east have emerged as the top residential destinations to invest in.
    In an investment advisory and research report put out by global real estate consultants Knight Frank, in the five year period between 2013 and 2017, Hebbal and K R Puram are expected to see an average price appreciation of 94% and 91% respectively. These two destinations are on Knight Frank’s list of top ten Indian destinations to invest in.
    Ram Chandnani, deputy MD for South India in CBRE, another global real estate consultancy firm, said that Sarjapur-Outer Ring Road and Whitefield areas are also promising, and would see a price appreciation of over 70% in the next five years.
    The Knight Frank report studied various micro markets across the country based on parameters such as employment, physical infrastructure, connectivity to important locations, access to social infrastructure, planned development, proximity to premium office spaces and land availability. Price appreciation in micromarkets was calculated based on future office space demand and absorption levels.
    The report states that demand for office space in Bangalore in the next five years would be 44.4 million sqft, driven by the IT/ITeS, biotech, and aerospace sectors. Of that, 60% would be in the North and East corridors of the city, close to Hebbal and K R Puram.
    In Hebbal, the stock of residential apartment units in 2007 was just 300, which in 2012 has risen to about 1,800. That’s a growth of 500% in five years. Similarly, K R Puram has seen a 200% growth in inventory of apartment units, from 2,000 in 2007 to 6,000 as of September 2012.
    “These two markets are sun-rise areas due to various reasons, the most important being connectivity to arterial roads and proximity to business clusters,” said Prashanth Sambargi, partner at property brokerage firm Mars Realty.
    -----------snipped---------------------------------


    Yeah and because the information has been shared in TOI one should just take it on face value. It is the beacon of light which should guide investors in their quest for holy grail of awesome returns in real estate.

    TOI after all is the only newspaper in country whose professional ethic is still intact. The only media house which is not running a shop but sharing honest information day in and day out. :o
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  • Its a frank knight report that TOI has quoted , duh !!
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  • Originally Posted by Nishant Sharma
    Its a frank knight report that TOI has quoted , duh !!


    Did that help you justify that prices will keep flying in these locations because Knight Frank has reported it?

    Do you freaking know the credentials of the people who have come up with this report, what is the exact criteria they used for these price projections. Did the authors use a price projection model (And if they did then which one) or did it suit their fancy to quote such lofty numbers. For all we know if could be a bunch of IIPM (Yeah the same college that is aggressively marketed as better than IIMS by that moron Anirban Mukherjee) kids fresh out of college penning their first paper for Knight Frank.

    Why is it that only TOI felt the need to Quote the report as soon as it came out. Probably its people like you who are the target audience, duh!
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  • @transporter, awesome....Bangalore REF got another rational thinker....

    These all are bloody organized networks.....like the builder pays to newspaper or the newspaper themseleves are into real estate and there are experts/veteran members to write blog all to trigger that 1% of fence sitter to go and rush and buy...and then based on that 1% they advertise we sold this much and units r getting booked everyday blah blah....

    What is the real thing is, huge inventories all over....

    I was shocked to see, in a sale office of one of very very highly reputed builders, they pasted the property index on the wall...based on that they r claiming and selling....

    now who decides this property index?....is it based on customer demand or the builders/news papers organized push?

    Its kind of feedback oscillation (if u know the concept of oscillator in electornics) effect where one feeds the other....eventually it become huge and unstable and blast....

    Thats where these all r leading....
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  • Originally Posted by gkannan16
    @transporter, awesome....Bangalore REF got another rational thinker....

    These all are bloody organized networks.....like the builder pays to newspaper or the newspaper themseleves are into real estate and there are experts/veteran members to write blog all to trigger that 1% of fence sitter to go and rush and buy...and then based on that 1% they advertise we sold this much and units r getting booked everyday blah blah....

    What is the real thing is, huge inventories all over....

    I was shocked to see, in a sale office of one of very very highly reputed builders, they pasted the property index on the wall...based on that they r claiming and selling....

    now who decides this property index?....is it based on customer demand or the builders/news papers organized push?

    Its kind of feedback oscillation (if u know the concept of oscillator in electornics) effect where one feeds the other....eventually it become huge and unstable and blast....

    Thats where this all r leading....


    GKannan just to add to what you have written, its very well known to people who regularly deal in Stocks that Bennett Coleman & Co. which is the holding company for TOI has major interests in Real Estate, Equity, High Finance and other areas. They have a subsidiary whose business model is very interesting and unique. Under a legal arrangement, they pick up a stake in a company in return for discounted ads and favorable editorial coverage.

    TOI is one of the biggest brokers there is in Real Estate in India with interests spread across almost all major cities in the country. If anybody has doubts about what I am saying a simple google search should help assuage your anxieties. And trust me I am not saying do not believe anything that you read anywhere, all I am trying to convey is that use your brains too. Why would somebody give you free information with which you can make money.
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  • Originally Posted by transporter
    GKannan just to add to what you have written, its very well known to people who regularly deal in Stocks that Bennett Coleman & Co. which is the holding company for TOI has major interests in Real Estate, Equity, High Finance and other areas. They have a subsidiary whose business model is very interesting and unique. Under a legal arrangement, they pick up a stake in a company in return for discounted ads and favorable editorial coverage.

    TOI is one of the biggest brokers there is in Real Estate in India with interests spread across almost all major cities in the country. If anybody has doubts about what I am saying a simple google search should help assuage your anxieties. And trust me I am not saying do not believe anything that you read anywhere, all I am trying to convey is that use your brains too. Why would somebody give you free information with which you can make money.


    Guys instead of cat and mouse fights, could anyone also spare a thought to answer the original query.

    These days only 2 things are happening on this forum:
    1) If one suggests that property prices will increase, few will come up just bursting the emotions that it will fall etc etc etc.
    2) Vice versa: if someone says prop prices will decrease then few will say no it wont etc.

    If all of u are so adept in forecasting the trend. Can u pls help me decide whether to invest that 20 lacs in some plot for 5 yrs or just keep that money in FD for 5 yrs or wait till the prices come to half.

    Apart from sentiments, plz try to help me out.

    FYI: This money is only for investment and dont want that money as of now.
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  • Hi Gaurav,

    Investing plot will bring more money compare to FD or apartment.

    You might be able to get up to 20% discount in plot booking if you offer full payment and immediate registration. This may be better option in your situation. Ask them for full payment price. This is true if the layout formation is not started very much. Completely finished layout may not offer that much discount.

    I would suggest to see places where the prices are around 1000 rs/sqft and buy two plots. They will appreciate enough in five years and selling one will bring lot more money than your investment plus interest.

    Apartment should be considered if you prefer to move into that apartment at the time of possession.

    Hope this helps, Good luck.
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  • Originally Posted by transporter
    Did that help you justify that prices will keep flying in these locations because Knight Frank has reported it?


    No I just meant that TOI has quoted a report, you are generally getting worked up for something that YOU deduced ;)

    I dont give a flying fck if the prices double or halve from here.. I was curious about the topic and had read the article in TOI earlier.

    In the meantime you guys continue with your rational thinking and discussions...
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  • Gaurav,

    Buy a two BHK flat in PSN.

    Cost 70L
    Pay 20L, take 50L loan

    Rent it out for 20K per month, which is equivalent to 20L of loan covered.

    Pay interest on 30L.

    This way, your 20L will be of equivalent value of 40L as 20K of rent will cover the 20L loan.

    This is just a suggestion, check your carrying capacity.

    Either of your options are good as well. Depends whether you want to carry the loan or installment burden or not.

    Also from your posts it seems you want to exit soon and book profit, in that case don't go for Land. Land is a much longer term exit game than Apartment - RTM or Pre-Launch.
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  • Originally Posted by zhakaas
    Gaurav,

    Buy a two BHK flat in PSN.

    Cost 70L
    Pay 20L, take 50L loan

    Rent it out for 20K per month, which is equivalent to 20L of loan covered.

    Pay interest on 30L.

    This way, your 20L will be of equivalent value of 40L as 20K of rent will cover the 20L loan.

    This is just a suggestion, check your carrying capacity.

    Either of your options are good as well. Depends whether you want to carry the loan or installment burden or not.

    Also from your posts it seems you want to exit soon and book profit, in that case don't go for Land. Land is a much longer term exit game than Apartment - RTM or Pre-Launch.


    I wud have loved that option but 2 problems:
    2BHK now costs 80+ lacs in PSN.(no intent for any discussion on this. If someone thinks its 40 lacs, i accept :-))
    I already have a loan so wont get that much loan.(paying my loan is not an option as my exisitng loan is not much , it just covers the Tax rebates properly).

    That money we just got from selling an old plot and not require that money for next 5 yrs atleast. So no hurry.

    Thinking of Pre-launch but that will be a short term game of 1.5 - 2yrs and after that we have to start paying EMIs. Even when i dont require that money for next 5 yrs then for Pre-launched I again have to hunt another investment in next 2 yrs. So more hassles.
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  • If you can add another 10 lacs, you can buy a BDA 30* 40 site in BSK 6th stage, which is more reliable


    Originally Posted by Gaurav2k101
    Guys instead of cat and mouse fights, could anyone also spare a thought to answer the original query.

    These days only 2 things are happening on this forum:
    1) If one suggests that property prices will increase, few will come up just bursting the emotions that it will fall etc etc etc.
    2) Vice versa: if someone says prop prices will decrease then few will say no it wont etc.

    If all of u are so adept in forecasting the trend. Can u pls help me decide whether to invest that 20 lacs in some plot for 5 yrs or just keep that money in FD for 5 yrs or wait till the prices come to half.

    Apart from sentiments, plz try to help me out.

    FYI: This money is only for investment and dont want that money as of now.
    CommentQuote
  • agree, looks like TOI owns Artha properties

    I agree with you
    TOI new is junk
    they have share in couple of RE companies

    Originally Posted by transporter
    GKannan just to add to what you have written, its very well known to people who regularly deal in Stocks that Bennett Coleman & Co. which is the holding company for TOI has major interests in Real Estate, Equity, High Finance and other areas. They have a subsidiary whose business model is very interesting and unique. Under a legal arrangement, they pick up a stake in a company in return for discounted ads and favorable editorial coverage.

    TOI is one of the biggest brokers there is in Real Estate in India with interests spread across almost all major cities in the country. If anybody has doubts about what I am saying a simple google search should help assuage your anxieties. And trust me I am not saying do not believe anything that you read anywhere, all I am trying to convey is that use your brains too. Why would somebody give you free information with which you can make money.
    CommentQuote
  • Originally Posted by honest
    If you can add another 10 lacs, you can buy a BDA 30* 40 site in BSK 6th stage, which is more reliable


    But returns in BSK sites will not be that much as it is already developed ...
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  • Hello Gaurav,

    Did you finally took any decision as I was also sailing in the similar situation and not getting clear picture for the right decision for investment.
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