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Flat for Rental Income: Mumbai Vs Pune

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Flat for Rental Income: Mumbai Vs Pune

Last updated: September 16 2010
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  • Flat for Rental Income: Mumbai Vs Pune

    hi folks
    I am in dilemma . would request opinion from the esteemed members of this forum.
    I have some ready funds , i can buy two flats in Pune or one flat in Bombay. this is purely for rental income for my monthly expenses .your suggestions will help me in talking the decision
    thanks to all
  • #2

    #2

    Re : Flat for Rental Income: Mumbai Vs Pune

    My vote goes for one in Mumbai.

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    • #3

      #3

      Re : Flat for Rental Income: Mumbai Vs Pune

      What do you think will the rental income yield. In my area in Mumbai a 1cr apt goes at 25k a month on rent. If income was only the criteria I would just book a bank FD and get 8L as income instead of 3L with the added hassle of maintaining the house etc. This is assuming the 1cr is white. You havn't mentioned how much % you are paying in white.

      Just to answer your question I would go with Mumbai with the caveat that you not see growth in prices for a long time and liquidating it will take forever. With Pune I feel there is scope for another 20% upside on properties in the 3k-4k range, however your rental income will be lower. In fact I notice the super built up loading on Pune apts of new flats is now approaching that of Mumbai. My apt in Pune is which I bought in 2006 is loaded at 25%. Now it is 35-40% so best would be to go for resale older apt and buy in Baner-Pashan or Wanavdi which are my choice of areas. So if you buy an apt built in 2005-2007 you will end up with more livable space and over a 5 year horizon the story will be similar to that of mumbai where brokers will say "Juna building me built up area jyaada milta hain". Once builders start loading 40%+ it becomes a norm and everyone does it. Its as if there is a silent mafia in the works
      Last edited September 16 2010, 12:40 PM.

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      • #4

        #4

        Re : Flat for Rental Income: Mumbai Vs Pune

        Must go for Pune. Any calculation you will be at profit. You can PM me for more discussion.

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