Hi,
I need some advice on investing in Mumbai. I am looking to buy a property for investment purposes. I am looking at capital appreciation as the key return in 3-5 yrs. I am looking at the following 3 properties right now, and i plan to take a loan of about 1 crore in any case. total budget 1.3 crores.

1. Rustomjee Urbania in Thane - (possession in 2 yrs) 2015 - 8900 psft
2. Hiranandani Rodas Enclave in Thane (possession in 1.5 yrs) - 9500 psft
3. Resale property in Malad west off Link Road - (13500 psft)

When i started looking in Thane, I got interested in Soham Tropical Lagoon project which was being offered at 6500 psft ready for possession in 1.5 years. At that point, it seemed that i would get very good appreciation in Thane, considering some ready possession properties were selling for 7500+ already. However, I was advised to stick only to the good builders, as builders like Soham and others have construction quality issues, and even fraudalent scams. When i looked at Hiranandani and Rustomjee, suddenly the prices look really high, and I am not sure if Thane deserves such high prices. All of them have 50% loading.

At the same time, I saw this resale property in Malad West just off Link Road with 3 malls (evershine, inorbit, hypercity) in its vicinity. Its an 11 yr old building by Soni developers, no amenities really, an old looking building but not bad, 25-30% loading, maintainance cost < 3K, 1 car parking at the rate of 13500 psft. The place already commands a rent of 28000 rupees per month.

Malad (W) sounds like a safe option considering its already well developed, but I am not sure i will see the kind of capital appreciation (> 15% per year). I am not sure if Thane at Hiranandani/Rustomjee rates of 9000+ is such an attractive option as the price seems high for Thane, it is less developed compared to Malad(W).

Any advice would be appreciated. While people write about Thane (W) appreciating because its a developing area, good infra, i dont read much about Malad(W). My take on the pricing after 5 years is: Prices are governed by demand/supply in the long run. Malad (W) prices are already governed by that factor, while Thane(W) prices currently are governed by the fact that its a developing area. Malad is really close (abt 20 mins) to prime areas like Lokhandwala which are at 20-25K psft. The gap between the rates is high and should narrow in the future. Malad(W) is congested while Thane(W) is very open, and feels nice. Will Thane(W) catch up to Malad rates?

Thanks for the help,
Gurpreet

PS: I do understand it could be unfair to match price of a hiranandani/rustomjee to an old soni developer property.. apples v oranges.
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  • If I had to chose between the three I would go with Hiranandani, simply because the brand equity and quality associated with Hiranandani townships is great. There is a marginal location advantage for Hiranandani as well and end users would prefer Hiranandani Thane unless there was a long commuting consideration. With a lot of offices moving out of western suburbs to Thane this area may experience appreciation, but please keep in mind that short term appreciation in the next 2-3 years may almost be negligible as property prices have already overshot affordability for most people.
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  • For your information that Hiranandani Rhodas rate is 9800 psf with possesion in June 2015. Canary was the building which was in despute now expected to be completedin 1.5 yrs where rate is 10300 and 103 FR. As plan of Canary is passed earlier carpet area is 75 % of build up where as for Rhodas is 70 % of build up area. Rate is adjusted accordingly.

    I think Hiranandani is charging too much for brand but one can take call as people expect appreciation in Ghodbunder Rd as it is on of the happening place in and around Mumbai area.
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  • The price quoted for malad for a standalone building is too hight at 13500. Pls do some search, you would get imperial height at 14k and some of the other premium complex like mahindra, kalpataru etc in similar range. These are complexes with community living and a charm about it. I am personally not convinced about a significant appreciation in malad west. Its not abt the distance of 20 mins its about the prestige of area and gentry living in which determines the price of the area. Comparing lokhandwala and malad is not fair and 20-25k price in lokhandwala is in real premium complexes not in general. Guys...just bargain hard, its easy to get good deal if you dont loose patience. This 13500 will never go o 20 k even in 5 years and considering all payouts you would end up making no real money.
    Originally Posted by gssachdev
    Hi,
    I need some advice on investing in Mumbai. I am looking to buy a property for investment purposes. I am looking at capital appreciation as the key return in 3-5 yrs. I am looking at the following 3 properties right now, and i plan to take a loan of about 1 crore in any case. total budget 1.3 crores.

    1. Rustomjee Urbania in Thane - (possession in 2 yrs) 2015 - 8900 psft
    2. Hiranandani Rodas Enclave in Thane (possession in 1.5 yrs) - 9500 psft
    3. Resale property in Malad west off Link Road - (13500 psft)

    When i started looking in Thane, I got interested in Soham Tropical Lagoon project which was being offered at 6500 psft ready for possession in 1.5 years. At that point, it seemed that i would get very good appreciation in Thane, considering some ready possession properties were selling for 7500+ already. However, I was advised to stick only to the good builders, as builders like Soham and others have construction quality issues, and even fraudalent scams. When i looked at Hiranandani and Rustomjee, suddenly the prices look really high, and I am not sure if Thane deserves such high prices. All of them have 50% loading.

    At the same time, I saw this resale property in Malad West just off Link Road with 3 malls (evershine, inorbit, hypercity) in its vicinity. Its an 11 yr old building by Soni developers, no amenities really, an old looking building but not bad, 25-30% loading, maintainance cost < 3K, 1 car parking at the rate of 13500 psft. The place already commands a rent of 28000 rupees per month.

    Malad (W) sounds like a safe option considering its already well developed, but I am not sure i will see the kind of capital appreciation (> 15% per year). I am not sure if Thane at Hiranandani/Rustomjee rates of 9000+ is such an attractive option as the price seems high for Thane, it is less developed compared to Malad(W).

    Any advice would be appreciated. While people write about Thane (W) appreciating because its a developing area, good infra, i dont read much about Malad(W). My take on the pricing after 5 years is: Prices are governed by demand/supply in the long run. Malad (W) prices are already governed by that factor, while Thane(W) prices currently are governed by the fact that its a developing area. Malad is really close (abt 20 mins) to prime areas like Lokhandwala which are at 20-25K psft. The gap between the rates is high and should narrow in the future. Malad(W) is congested while Thane(W) is very open, and feels nice. Will Thane(W) catch up to Malad rates?

    Thanks for the help,
    Gurpreet

    PS: I do understand it could be unfair to match price of a hiranandani/rustomjee to an old soni developer property.. apples v oranges.
    CommentQuote
  • Originally Posted by gssachdev
    Hi,
    I need some advice on investing in Mumbai. I am looking to buy a property for investment purposes. I am looking at capital appreciation as the key return in 3-5 yrs. I am looking at the following 3 properties right now, and i plan to take a loan of about 1 crore in any case. total budget 1.3 crores.

    1. Rustomjee Urbania in Thane - (possession in 2 yrs) 2015 - 8900 psft
    2. Hiranandani Rodas Enclave in Thane (possession in 1.5 yrs) - 9500 psft
    3. Resale property in Malad west off Link Road - (13500 psft)

    When i started looking in Thane, I got interested in Soham Tropical Lagoon project which was being offered at 6500 psft ready for possession in 1.5 years. At that point, it seemed that i would get very good appreciation in Thane, considering some ready possession properties were selling for 7500+ already. However, I was advised to stick only to the good builders, as builders like Soham and others have construction quality issues, and even fraudalent scams. When i looked at Hiranandani and Rustomjee, suddenly the prices look really high, and I am not sure if Thane deserves such high prices. All of them have 50% loading.

    At the same time, I saw this resale property in Malad West just off Link Road with 3 malls (evershine, inorbit, hypercity) in its vicinity. Its an 11 yr old building by Soni developers, no amenities really, an old looking building but not bad, 25-30% loading, maintainance cost < 3K, 1 car parking at the rate of 13500 psft. The place already commands a rent of 28000 rupees per month.

    Malad (W) sounds like a safe option considering its already well developed, but I am not sure i will see the kind of capital appreciation (> 15% per year). I am not sure if Thane at Hiranandani/Rustomjee rates of 9000+ is such an attractive option as the price seems high for Thane, it is less developed compared to Malad(W).

    Any advice would be appreciated. While people write about Thane (W) appreciating because its a developing area, good infra, i dont read much about Malad(W). My take on the pricing after 5 years is: Prices are governed by demand/supply in the long run. Malad (W) prices are already governed by that factor, while Thane(W) prices currently are governed by the fact that its a developing area. Malad is really close (abt 20 mins) to prime areas like Lokhandwala which are at 20-25K psft. The gap between the rates is high and should narrow in the future. Malad(W) is congested while Thane(W) is very open, and feels nice. Will Thane(W) catch up to Malad rates?

    Thanks for the help,
    Gurpreet

    PS: I do understand it could be unfair to match price of a hiranandani/rustomjee to an old soni developer property.. apples v oranges.


    @gssachdev,
    I will not waste your time by trying to explain my reasons for the advice

    My verdict ---> go for Malad West property for 10500-11500 psft ONLY

    Avoid Rustomjee Urbania or Rodas Enclave - these properties may be having better amenities but then what abt social infrastructur e- u have swimming pool or gym but school, fresh mkt, hospital, malls, shops etc are not near by - public transport or even autos fleece u in day light - these apts are not for family person - they are gud for bachelor executives with house keeping at disposal.

    Malad West at 13500 psft is expensive and that too for older building - i think u shud walk aroudn check out any u/c property or older property arnd this area - u shud get within 12k psft - market is not that hot anymore...

    bargain hard!!

    Cheers Mate!!
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