Hi Guys,

Here is the story :

I am looking for a flat to buy.
I work in Magarpatta City. (but don't know how long I will stay here or in pune)
I was looking for ready possession flat in hadapsar, kharadi.
My budget is 25 lacs.

Here are my findings:

    "Etasha" on Handewadi Road, Hadapsar : Charging 2575/sqft negotiable for 730 sqft 2BHK. Possession in 1 year, Good amenities

    "SeaGull" on Handewadi Road, Hadapsar : Charging 2800/sqft 1000 sqft

    "Sanskruti" on Handewadi Road, Hadapsar : Charging 2750/sqft not negotiable 1000 sqft Ready Possession

    "" on Handewadi Road, Hadapsar : Charging 2750/sqft not negotiable 1000 sqft

    "Sainath" Behind Noble Hospital, Hadapsar : Charging 3200/sqft for 800 sqft 2BHK

    "Magarpatta" : Resale Flat, Charging at 3700/sqft, 1BHK will go up to 31 lacs including all, 2BHK more than 40-45 lacs.

    "Greenfield" on magarpatta-kharadi road : Booking closed for 1 BHK, They will start booking after 2 months for Phase II. Posession in 1 year. Not sure about rate but should be near about 2800 sqft.

    "Forest County" Khadadi : 2BHK gone, 3BHK 1800 sqft 3800/sqft will cost around 86 lacs including all, possession after 2 years.


On magarpatta-khadadir road 2 big malls are coming up. may be in 2 years they will be operational.

So Greefield could be good investment but as if now only Etasha is coming in my budget and they are saying they've very few flats left.
But for Etasha I'm bit afraid and confused with locality and surroundings.

I heard that vegetable market has been allocated a new space near manjri and flyover on railway crossing at handewadi road is approved.

I am working in IT industry, could be relocated anytime in future. But will it go for good rent or will it return good money ?

Should I go for Etasha ? Should I wait for other projects ? should I continue
to pay rent ? Should I wait for prices to go down ?

Sometimes I think that I belong to lower middle class who cannot afford a single house at good location.
I dont how people are getting that much money to pay.

Totally confused and frustrated !
Seeking your help and valuable suggestions !
Please Help !
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  • Originally Posted by harshalx
    Do not hesitate to rent. There is nothing wrong in renting.

    For minimizing hassles while renting a flat, consider these things -

    1) Do not rent those flats whose owners are outside India. Problem is, if there plans change and they have to return back, they will give you a notice anytime and you will need to move.

    2) Ensure that your landlord has a different home and is not interested in living in the home you are renting. There are people who buy flats only for renting in the hope that the rent will be an income during their retirement years. This is the ideal renting house coz' the landlord is not interested in selling it unless he gets a crazy price for it. This also ensures a lot of peace of mind for the tenant.

    3) Don't rent investor flats. These are always up for sale, and if get sold, the new landlord might want to shift in. It's too much hassle for tenants to move out. Don't do this even if the rent quoted is really low. Never trade peace of mind with few hundreds of rupees. Everybody on this planet only lives for peace of mind.

    Spend some time in finding the right house for renting. If you analyze the right things, you could find peace of mind even while renting.

    Cud relate with your post..but i have never found renting to be a peace of mind option..

    Landlord I : Guy who eats-sleeps money, deducted some Rs 200 for laundry from my deposit and through out the stay kept on crying for more money for flat maintenance and stuff...

    Landlord II : decided to go for IT folks only expecting a bit of more professionalism...supposedly the bugger has defaulted the home loan amount and i was getting frequent visits from recovery agents :) and then followed visit of brokers and prospective buyers during odd hours of the day - so had to run from tht place

    Landlord III : almost similar to Landlord I..keeps cribbing about money..however i keep stuffing his mouth with money whenever he asks for something. and the ordeal continues..
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  • Owner does allow to stay more than 3-4 years on rent! Few of my friends are living on rent for more than 5 years.

    One more advise I will give is, if you are staying in a banglow, where a floor is rented out, see the owner's family as well. My previous land lord's wife was real psycho, and we had lot of trouble because of her idiotic behaviour. Now the place I am staying has a really nice family with all decent and lovely people, so staying there is actually comforting.
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  • vikanna, your confusion & frustration may be coz you're forced into RE-buying out of peer/family pressure.
    Irrespective of work-location, it makes no sense to buy at these levels in Pune.

    I am renting at Fatima-Nagar near big-bazaar for the past 3 yrs and it is the best option.
    Had I purchased, would be living in city-outskirt paying 3-4 times my current-rent. Absolute waste of money.

    If u want to buy RE for tax-saving, buy in place where rate is reasonable & rent in Pune. Then claim EMI & HRA both :D
    Originally Posted by ani_meher
    see the owner's family as well. My previous land lord's wife was real psycho, and we had lot of trouble because of her idiotic behaviour. Now the place I am staying has a really nice family with all decent and lovely people, so staying there is actually comforting.

    Agree. Builder/owner, should be reasonable and helpful person. Better to avoid arrogant people.
    It is better to have 11/22 months registered rent-agreement.
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  • fact of life .......
    there is no perfect budget or perfect timing to buy "your house".
    ur budget will ALWAYS be short by few laks and the house that you like will ALWAYS be beyond reach by few laks.
    tough one to crack....
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  • This is a bluffing game, one who blinks at the wrong time will loose. Builders want prices to remain stable, or go up slightly. Customers want prices to correct minimum 20% or more.
    There is already a correction in the market in terms of number of transactions. So for the time being I would suggest:
    1. Rent in Magarpatta city only, 2 bhk will be max 12k per month.
    2. Be extremely disciplined in your savings and investments for the next 3-5 years.
    3. Keep 40% of your net salary aside as savings for your future flat. Pay 12k rent out of that, save remaining. If you can save more, good.
    4. The objective is to accumulate as much liquid cash as possible within the next 3 years. So keep in FD, Nifty exchange traded funds, etc. avoid investing in stocks. The idea is to keep this cash available at short notice.
    5. When a crash / correction comes, the person with cash will be king, because bank loans will have become difficult.

    Do not increase your lifestyle right now, because that will be at the expense of your purchasing ability .
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  • Originally Posted by abeerbagul
    The idea is to keep this cash available at short notice.
    When a crash / correction comes, the person with cash will be king, because bank loans will have become difficult.
    Do not increase your lifestyle right now, because that will be at the expense of your purchasing ability .

    Thanks Abeer. Already doing that :D

    In the rising-interest regime, RE crash is most likely scenario.
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  • The place where I'm staying right now has been rented for past 2+ years & the next renewal will be in next 4-5 months. However, the landlord err landlady is so happy that she wants me to stay here for another 3 years:D.

    What I did was simple:-

    Paid more deposit than market rates & in turn reduced the rent. Add to it that PDCs of 6 months are given, they are relaxed as well, earlier I had to go to their bank & deposit their cheque & that bank was also so boring man....it was like a task for me....now I give PDC & no khich khich of those banks:)).

    Add to it that the flat is kept neat & clean, & they being pure vegetarian & religious are happy with us....so it struck the chord.

    * (The husband & wife have 3 flats, 2 in Pune & 1 near Dy Patil college, PCMC given out to students & they themselves have a bungalow in kothrud, one son is in US who is almost of my age & he will stay here if he returns in next 3 yrs).

    Abeer completely agree with you with what you said above in terms of saving & downpayment.
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  • Hi guys

    It is v nice to live on rent in good area with small rent but what i feel one has buy home one day. Suppose u dnt buy today tomorrow builder will increase the price and u have to pay more. In case of own living one should not delay.

    Pls share ur views
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  • :), it is not the builder who increase the price, it is the buyers. Tomorrow, all builders say they want to sell it at 10000 rs per sq feet, will you buy it.

    I remember 2006-2007 - when approx 5000 flats were getting absorbed in a month at reasonable rates, today it has come down to 500 a month.

    So, people who are buying today - some of them are foolish, or some of them have struck a really good deal, some of them are into re-selling.

    The investors are already out, so are the actual Punekars - other than the IT guys. WHy are we so dumb ?
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  • Originally Posted by pcpune
    :), it is not the builder who increase the price, it is the buyers. Tomorrow, all builders say they want to sell it at 10000 rs per sq feet, will you buy it.

    I remember 2006-2007 - when approx 5000 flats were getting absorbed in a month at reasonable rates, today it has come down to 500 a month.

    So, people who are buying today - some of them are foolish, or some of them have struck a really good deal, some of them are into re-selling.

    The investors are already out, so are the actual Punekars - other than the IT guys. WHy are we so dumb ?


    It is wise for investors to get out (I mean those who want to buy and sell in short term and roll over profit in next project), they would be first to jump the ship. They can't wait for market to come back to previous levels in case of major correction. Current over inflated price levels are risky to get in, even for genuine buyers, because when investors and banks are out, they will be ones who will get hit the most resulting in challenges in servicing their loan/installments (because property value < loan amount), can't resell either. Slightly unrelated note, BSE seems to have hit the ceiling at 18k (looking back 2 years, mostly it stayed on or below that level), it might take a correction to break the ceiling, same can be fate of RE.
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  • Well, I am tired of searching house, I seen almost every project in my area of preference, many of them r overpriced or infra is sick around and in the project.
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  • Well..Interesting discussion. Thought of adding what I feel.

    Why buy a house? - Because you want to be rent free at some point of time in your life, maybe after retirement but you need that otherwise from where will you pay the rent then which will already be doubled or more.

    Why buy now? - I also feel that market is a bit inflated at present but not very much. If you can strike a good deal you should go for it. I really doubt that RE prices will correct more than 10 - 20 percent in a heavily populated country like India. This is simply demand and supply. Our's is a growing population and soon we will surpass China. there is no space in Metros and in a weather friendly metro like Pune, prices are bound to increase in general when the market is good.

    Why prices will not correct more than 20% ? - As I said our's is a rapidly growing population and everybody needs a home so either you buy or pay rent. In EMI vs RENT option, I prefer EMI as it will end one day but rent will never. If you compare Indian RE with World RE, our market was low some 5 years back so that correction had to happen and it's happening since last 5 years. Also, I feel that we are almost at peak of that and it should get stabalise from here (again comparing to world RE). Only factor which will drive it further is the growing population. Buying power of a middle class Indian had incresed considerable. I too feel that IT had contributed largely to that but it had not remained only to IT guys, It had increaded in general.

    Thanks
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  • Misleads

    This is what I had written in RE Bulls thread:-

    1.) Buy today, houses always increase in value in the long run.

    WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
    Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
    To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
    Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.

    2.) Renting is just wastage of money.

    WRONG. As said before renting is now much cheaper per month than owning. If you don't rent, you either:

    * Have a mortgage, in which case you are throwing away money on interest, tax, insurance, maintenance, costs that increase forever.
    * Own outright, in which case you are throwing away the extra income you could get by converting your house to cash, investing in bonds, and renting a similar place to live for much less money. This extra income is sufficient for emergency expenses,retirement etc.

    Either way, owners lose much more money every month than renters and that's assuming prices don't correct to very high level & everything is smooth in the economy.


    Man, even when you pay EMIs, it is like paying rent to the banks. Either you rent the house or rent the money, at the end of the day, you remain RENTER till you don't pay anything except taxes & maintenance for the property .
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  • Originally Posted by realacres

    Man, even when you pay EMIs, it is like paying rent to the banks. Either you rent the house or rent the money, at the end of the day, you remain RENTER till you don't pay anything except taxes & maintenance for the property .


    Thats correct but then in case of renting the money.. House become your's after a period of time and no need to pay rent on either house or money. Taxes and Maintenance you will anyway have to pay.. if not directly then indirectly as a renter. Owner always takes that into account while doing his calculations for rent.
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