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investing in 7yr old apt in thiruvanmyur

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investing in 7yr old apt in thiruvanmyur

Last updated: December 4 2014
21 | Posts
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  • #11

    #11

    Re : investing in 7yr old apt in thiruvanmyur

    If staying in Thiruvanmayur is not a "Must" but need to be close by then I would suggest Velacheri or Pallikarani.

    Both those areas have many brand new or near new flats.

    Both these areas have plenty of population, amenities & transport.

    Pallikarani could come at a lot cheaper price and you may be left with spare cash for other liquid investments.

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    • #12

      #12

      Re : investing in 7yr old apt in thiruvanmyur

      Originally posted by Haojin View Post
      Using ypur Mom money is not a good idea. Locking your entire 80 lac in apartment may also not a better idea, because from your post i undrstand you want to park 80 lacs for 7 years for appreciation and in future you will use for other purposes. In that case it would bebetter to split it in two lots, part in rentable flat and balance in MFs . MFs may give you good return over 5 years. Your mom money may continue to be in FDs Diversification would always better. All the best.

      Thanks for the suggestion.. So for flats in 40l budget, do I go for new flats in areas like pallikaranai?? And look for capital to appreciate in next 7 yrs rather than rental income? What other areas would you suggest

      I'm an nri and not sure if I can invest in MFs. Probably have to do in my mothers name again.

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      • #13

        #13

        Re : investing in 7yr old apt in thiruvanmyur

        Originally posted by Economist View Post
        If staying in Thiruvanmayur is not a "Must" but need to be close by then I would suggest Velacheri or Pallikarani.

        Both those areas have many brand new or near new flats.

        Both these areas have plenty of population, amenities & transport.

        Pallikarani could come at a lot cheaper price and you may be left with spare cash for other liquid investments.

        Thanks for the suggestion.. I'll look for flats in pallikaranai. For 40L can I expect a 1100 sq ft 2 bhk flat?? Or would it be less than 1000 sft

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        • #14

          #14

          Re : investing in 7yr old apt in thiruvanmyur

          Originally posted by eshwaran View Post
          From your replies I see that you dont have the full picture and you dont have people who have done this before to do the legwork. In this case, I would say keep accumulating the money and invest when you get a chance to come down here. For this particular offer, 2nd floor no lift for 1C doesnt look interesting to me. In my view, I will not pursue it further.

          Thank you for the response.. Yes I've not done the needed legwork. I'm very new to managing investments . My dad was taking care and we sold his properties for his hospital treatment but that did not help him.. he is no more and we are left with the money. Basically like korangu kaila poo malai.. So I'm just learning and understanding from other threads.. And hence the layman questions..

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          • #15

            #15

            Re : investing in 7yr old apt in thiruvanmyur

            Originally posted by jugj1984 View Post
            Thanks for the suggestion.. So for flats in 40l budget, do I go for new flats in areas like pallikaranai?? And look for capital to appreciate in next 7 yrs rather than rental income? What other areas would you suggest

            I'm an nri and not sure if I can invest in MFs. Probably have to do in my mothers name again.
            Pallikaranai is 4.5 - 5k psqft and Velachery is a lot costlier. I would say be patient, acquire the knowledge and then invest. Its a long term game so dont be in a hurry and rush it.

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            • #16

              #16

              Re : investing in 7yr old apt in thiruvanmyur

              Vellachery is more well established than next door Pallikaranai.

              Both are in city limit now.

              Few things that makes Pallikaranai very desirable for new home buyers (owner occupiers) are:

              1. Closeness to Vellacheri, MRTS station,

              2. Closeness to OMRs IT employment.

              3. Inside City corporation limit, hence infra such as water, Sewage, roads, lights are in full swing.

              4. Proximity to GST/Airport/Gundi on one side and Proximity to Tharamani, Thiruvanmayur etc on the other side.

              5. Many key arterial roads cris cross Pallikaranai or not far from it. (Pallavaram radial road, Vela-Tham road, Inner Ring Road, OMR & GST)

              6. The biggest push factor is "The Price" very affordable when compared areas at similar distance in OMR side or Mugaperu side.


              This price difference is fastly closing.

              I would imagine you can get a decent 1000 sqft, 3BHK flat for around 50L.

              I would recommend you look in Velacheri - Thambaram Main road projects or look the nicest area of Pallikaranai such as IIT colony, Kamakoti Nagar, VGP Shanthi colony etc.

              There used to be water logging issues in the past just like Velacheri & Madipakkam, this issues has now reduced to a large extent due to Junnurum funded Strom water drains.

              Also consider Madippakam & Adambakkam.
              Last edited November 29 2014, 07:28 AM.

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              • #17

                #17

                Re : investing in 7yr old apt in thiruvanmyur

                jugj1984,
                Maintenance would be paid by owner only.
                Asking tenants to look after minor repairs is ok but other aspects like property tax will be your look out.(It can be paid on line)
                Showing legal papers to a good lawyer will be helpful and the lawyer should give you a report about the title.
                Cracks,wiring a civil engineer in this line should be able to help out.
                You will have to look out for such structural engineers.
                Area rentals can be found by even talking to any broker in the area.
                One needs to take total view about buying a flat and renting it out.
                Mothers money should never be touched for such ventures.That is her safety valve for any problem.

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                • #18

                  #18

                  Re : investing in 7yr old apt in thiruvanmyur

                  Originally posted by jugj1984 View Post
                  Septaa - apologies in advance.

                  4% net rental yield for the entire life of the flat? so if i assume its 25 yrs then the monthly rent comes very less? is that what you were trying to convey or have i misunderstood.

                  What is DSR and I'm an NRI - i dont pay any taxes. Should i buy it in both me and my mom's name so she gets the tax rebate. She is still working.
                  Rental is just an hedge over period say 5 10 15 20 years ur yield on your investment will surely increase could be in excess of 100% return on intial investment 4% for me is the thumb rule to invest in real estate in India minimum
                  DSR debt service ratio today interest rate in India is approx 11% and if rent yield is 4% then DSR in this case is 2.75 lower the DSR better the hedge in US DSR is around 1.2. However in India it is very high approx 5 times because median rent yield in India is below 2%

                  For tax purposes u and mom investing is recommended
                  Last edited November 29 2014, 10:15 AM.
                  RE overpriced still fancy then 4% yield is must anything less is overpriced

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                  • #19

                    #19

                    Re : investing in 7yr old apt in thiruvanmyur

                    Sorry to repeat others advice, but wanted to contribute by saying please keep your mom's cash invested in assured Cummulative deposits with reputed firms like Sundaram Finance (the most professional and trustworthy Deposit company I have ever dealt with) etc. Please dont touch it unless you need it for her medical or other personal needs. Its a blessing in disguise that there is around 20 L to take care of her future. Also please dont invest in any Equity or other risk based funds. Just plain FD, CD only.

                    I was also a novice when I started searching out for investing in Chennai. Absolutely no one to advice me among relatives and friends.

                    I was patient and kept acquiring knowledge via
                    1) Selecting few locations all around Chennai - Like Mogappair, Porur, Valasaravakkam in West, Madipakkam,Keelkattalai, Pallikaranai, Velachery in South, Perambur in North etc - to get a good view of whats happening.
                    2) Visiting popular projects in those areas, getting accustomed to the popular builders in the area, strata of the area etc.
                    3) Parallel study of popular real estate oriented websites like IREF, , Magicbricks, etc
                    4) Building rapport with few agents to show me around the shorlisted areas in Point 1)
                    5) Studying the rental ads in the shortlisted areas

                    Then you are good to go. I know you are an NRI. But if you come here for short time or any close people who can do the above for you, you can give the above modus operandi a shot.

                    Out of the top of my mind, I would suggest to go for resales from completed GCs. I got a call recently or a resale for 6.3 K from a 3-4 yr old popular GC in Ramapuram - Asvini Amarisa - You can call them tomorrow or PM me. I can put you onto them. I have seen steady rental Ads for this GC as there are not so many options around DLF for GCs.

                    Other than that, as others have advised, I dont think it is good to put all the 80 L for a flat. You can do a 60 L upfront payment + 20 L loan. This will help keep the rest 20 L invested for you.

                    Also good upfront payments lead to good negotiations in resales or R-T-M apartments. Dont waste money in CBD resales as the quotes are starting to sound ridiculous. Old creaky apts are being advt for 1 Cr etc.

                    Thumb rule, Keep it around Velachery, Ramapuram. Good streets in these areas fetch consistent rentals.

                    Comment

                    • #20

                      #20

                      Re : investing in 7yr old apt in thiruvanmyur

                      You can think of international funds like zurich, etc for investments, where you don't have to bother about Indian taxes

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