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The Real Problem of End User Who are on Rent

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The Real Problem of End User Who are on Rent

Last updated: March 6 2012
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  • The Real Problem of End User Who are on Rent

    Hi Guys,

    I am living on rent and want my own home as we all want, but constraint is budget, i have around 15-16 lacs of cash but total budget for home is around 37-40 lacs. There are three options:-

    1) Look for any 2BHK in resale of around 1000sqft area in new gurgaon sectors and then wait for 4-5 years for the project delievery and area to be livable but along side that have to pay rent till area is livble

    2) Buy some builder floor (not very spacious) in any colony of Gurgaon (like patel nagar, shivaji nagar) or EWS floor in sector area of Gurgaon which are ready to move in and comes around 30 lacs. Stay there for 3-4 years and then buy home in new gurgaon area as my budget will increase with time but i also have to consider that the cost of house will also increase in new gurgaon by that time

    3) Stay on rent and keep an eye at new gurgaon for 4-5 years, may be some slow down happens in period of 4-5 years and i get the option to buy.

    Guys please suggest on each option, i guess that wud be problem of many of us
  • #2

    #2

    Re : The Real Problem of End User Who are on Rent

    Originally posted by virkranjit View Post
    Hi Guys,

    I am living on rent and want my own home as we all want, but constraint is budget, i have around 15-16 lacs of cash but total budget for home is around 37-40 lacs. There are three options:-

    1) Look for any 2BHK in resale of around 1000sqft area in new gurgaon sectors and then wait for 4-5 years for the project delievery and area to be livable but along side that have to pay rent till area is livble

    2) Buy some builder floor (not very spacious) in any colony of Gurgaon (like patel nagar, shivaji nagar) or EWS floor in sector area of Gurgaon which are ready to move in and comes around 30 lacs. Stay there for 3-4 years and then buy home in new gurgaon area as my budget will increase with time but i also have to consider that the cost of house will also increase in new gurgaon by that time

    3) Stay on rent and keep an eye at new gurgaon for 4-5 years, may be some slow down happens in period of 4-5 years and i get the option to buy.

    Guys please suggest on each option, i guess that wud be problem of many of us
    I guess you have two options in 2BHK resale:
    1. SARE Phase 1 - Sec 92
    2. Vatika Sec 81

    SARE would be ready to move in next 6 months & I don't know about Vatika.

    Comment

    • #3

      #3

      Re : The Real Problem of End User Who are on Rent

      Originally posted by virkranjit View Post
      Hi Guys,

      I am living on rent and want my own home as we all want, but constraint is budget, i have around 15-16 lacs of cash but total budget for home is around 37-40 lacs. There are three options:-

      1) Look for any 2BHK in resale of around 1000sqft area in new gurgaon sectors and then wait for 4-5 years for the project delievery and area to be livable but along side that have to pay rent till area is livble


      2) Buy some builder floor (not very spacious) in any colony of Gurgaon (like patel nagar, shivaji nagar) or EWS floor in sector area of Gurgaon which are ready to move in and comes around 30 lacs. Stay there for 3-4 years and then buy home in new gurgaon area as my budget will increase with time but i also have to consider that the cost of house will also increase in new gurgaon by that time -
      Depends totally on your personal preference if you are ok with this option.

      3) Stay on rent and keep an eye at new gurgaon for 4-5 years, may be some slow down happens in period of 4-5 years and i get the option to buy.

      I would not recommend this, I still believe that appreciation and rental income , might beat the returns from FD..

      Guys please suggest on each option, i guess that wud be problem of many of us
      virkranjit,

      You said your budget is 40 lacs and you have around 15 lacs cash. Does that mean you are planning to take home loan for 25 lacs ? Are you comfortable paying the emi for 25lac along with your current rent ?

      If that's the case then I will advice you to look at below options:

      1. Buy a ready to move in that budget - look at 1 BHk ( 1 BHK in Sushant Estate will fall in that budget and will fetch a rent of 12- 15k ). This investment will hedge you from price rise in other projects, which you might buy after few years, when your budget can get you your dream home and will earn you monthly rental income.

      2. Buy a 2/3 bhk ready to move in a tier 2 city and enjoy the same benefits as of point 1 above.

      3. If your risk appetite is high and can afford both emi and rent for 3-5 years, look for a under construction project - go with your option 1

      Comment

      • #4

        #4

        Re : The Real Problem of End User Who are on Rent

        Thanks for such a great reply, could you please suggest me tier-2 cities where i can buy 2/3 BHk and can get a decent rent?

        I am not sure if ready to move 1 BHK in Gurgaon for 40 lac is avaliable ? will check as suggested by u

        Originally posted by shkhan View Post
        virkranjit,

        You said your budget is 40 lacs and you have around 15 lacs cash. Does that mean you are planning to take home loan for 25 lacs ? Are you comfortable paying the emi for 25lac along with your current rent ?

        If that's the case then I will advice you to look at below options:

        1. Buy a ready to move in that budget - look at 1 BHk ( 1 BHK in Sushant Estate will fall in that budget and will fetch a rent of 12- 15k ). This investment will hedge you from price rise in other projects, which you might buy after few years, when your budget can get you your dream home and will earn you monthly rental income.

        2. Buy a 2/3 bhk ready to move in a tier 2 city and enjoy the same benefits as of point 1 above.

        3. If your risk appetite is high and can afford both emi and rent for 3-5 years, look for a under construction project - go with your option 1

        Comment

        • #5

          #5

          Re : The Real Problem of End User Who are on Rent

          Originally posted by virkranjit View Post
          Thanks for such a great reply, could you please suggest me tier-2 cities where i can buy 2/3 BHk and can get a decent rent?

          I am not sure if ready to move 1 BHK in Gurgaon for 40 lac is avaliable ? will check as suggested by u
          The great Indian realty story outside the metros

          From Crisil Researsh report:

          CRISIL Research | Real(i)ty Next: Beyond the top 10 cities in India

          Jaipur has the maximum numbers of flats sold in a year
          Prices of flats rose the most in Bhubaneswar during the last 18 months
          Over the next, prices of flats will increase the most in Lucknow; five of the 10 areas across the cities, where prices are likely to rise the most, belong to Lucknow.

          Comment

          • #6

            #6

            Re : The Real Problem of End User Who are on Rent

            Thanks Amit, regarding your first point i have 3 options, go for sidhartha resale or book new in SKM, other option is SARE 950sqft but the rooms sizes are too small so i have ignored that. I am interseted in SKM but not sure about SKM as its new builder and i dont want to risk my money.

            regarding your second point even if i will earn buy selling my unit and will pile up money by 213 but by that time the property whcih i will buy will also be at high prices so again my budget will not allow me to buy new property

            Originally posted by amit2222
            Buddy, you question is very valid and it is not you but hundreds of people who are in such a dilema. For me, this is the main reason why prices of property in GGN especially for 2BHK are high and going higher because of the sheer demand.


            If you want to meet your requirement you have to take a risk. A risk to multiply your earnings or risk of changing the city and moving somewhere else including Noida or Tier 2 city. At this point may be you would stick to the first option of living in GGN for some reason. Now, I won't suggest you to shift your focus of investing in some other tier II city just to hedge your position. This way you would be loosing out on cash in hand and also getting minuscule rental income (read rental yield) if the property is fully constructed. If you buy under construction property then also your investment would go plus EMI on loan and no rental income.

            Most of the young couples in Gurgaon face the same thing. At the end it comes to an individual on how much risk and return he wants from his investment. My two cents would be:

            1. Buy a property in Sec 81 to 95 which is under construction with a 3-4 years horizon. You might get property which is almost ready or will be ready in 2 years time but do not buy them as you might not be able to shift there because of infrastructure issues. Take a CLP and pay over time.

            2. Most of the brokers will tell u to take a bigger risk. Which is to invest your cash in hand into a good pre launch project of a reputed builder. Pay 20-30% over 3-4 months and expect to earn 4-5 lakhs. This will happen only when the entry price is right, location is good, builder is credible, market is moving upwards. This way in just 4-6 months time you would add 4-5 lakhs in your kitty which will give u flexibility to look at better options not that far off.
            You can repeat this twice in a year and in April 2013 you have a fair chance of selecting a property with few options to choose from.

            Know yourself first and then choose the plan.

            Comment

            • #7

              #7

              Re : The Real Problem of End User Who are on Rent

              Originally posted by virkranjit View Post
              Thanks Amit, regarding your first point i have 3 options, go for sidhartha resale or book new in SKM, other option is SARE 950sqft but the rooms sizes are too small so i have ignored that. I am interseted in SKM but not sure about SKM as its new builder and i dont want to risk my money.

              regarding your second point even if i will earn buy selling my unit and will pile up money by 213 but by that time the property whcih i will buy will also be at high prices so again my budget will not allow me to buy new property
              Don't miss the last line in Amit's post

              "Know yourself first and then choose the plan."

              Buying in pre launch for short term is a very high risk and medium return strategy now., so be very careful.

              Also when looking for under construction project, be very conservative with your assumptions about possession and avoid builders who have 0 track record.

              Comment

              • #8

                #8

                Re : The Real Problem of End User Who are on Rent

                Guys the Tulip option is beyond 50 lacs and also in sector 37 its over 42-43 lacs.

                What about the foption 2 suggested by me in first post in this thread?
                is looking for builder floor or EWS is good or not, there are RTM

                Originally posted by amit2222
                I would suggest you not to go with Sidhartha of SKM project. For that matter, Tulip petals is ready for possession and it is on pataudi road closer to gurgaon than manesar sectors. Or even Ramprastha project in Sec 37 which itself is in Gurgaon. Also do not go with any project which will be available in next 1-1.5 year such as DLF NTH, Vipul greens, Mapsko, Crescent park, etc. Who is going to live there neither the owner nor the tenant? Roads might come up but the rest infrastructure will take time and unnecessarily you will burn fuel of your vehicle.

                For point two, you have a valid reasoning. But who knows, jackpot is what it all takes. That is why I told u it is a high risk.

                Comment

                • #9

                  #9

                  Re : The Real Problem of End User Who are on Rent

                  You can also explore ERA Sec 86 and Parkwood Westend sec 92 in resale. Not much payments has gone to builder in these projects.

                  Comment

                  • #10

                    #10

                    Re : The Real Problem of End User Who are on Rent

                    Parkwood Westend sec 92 has some litigation going on ( this is as per some posts in the relevant thread ).

                    Do scrutinize this aspect, before finalizing .
                    Please read IREF rules | FAQ's

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