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Why Should We Pay More in Pune than USA?

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Why Should We Pay More in Pune than USA?

Last updated: July 29 2016
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  • Why Should We Pay More in Pune than USA?

    I am worried by seeing the price trends in Pune

    Roads are filled with potholes

    Traffic is a nightmare

    Dogs run freely and it is risky to take kids outside without a vehicle.

    With all the above - normal salaried person cannot think of buying a flat.

    A flat in any area in Pune/PCMC limits cost more than Rs 5800 per sqft.

    Builders charge 30 -40 % loading this does not even include terrace area.

    For the same price, users can get individual houses with all amenities in USA.

    So why buyers still want to buy real estate which is not affordable coupled with builder delays and fraud?
  • #2

    #2

    Re : Why Should We Pay More in Pune than USA?

    If you are ready to live rest of your life in US and you can get (or have) the citizenship of USA, of course make much more point to buy in USA. But since most of people do not have that option, Desi RE market is doing good, given our population and thus demand for RE.

    Comment

    • #3

      #3

      Re : Why Should We Pay More in Pune than USA?

      Not only in Pune, each and every hot spot of india is not affordable for common middle class people.

      Whoever, whenever possible, starting to buy the properties for their end use or for investments. some are buying to live today, some are planning to live there after 5-10 years.

      especially, those who are earning in US, UK or Middle east buying these so called unaffordable(for us) properties, and giving fuel to the builders to rise the prices further. Not only them, i know lot of Grade A officers in government offices(all sectors), even from other states buying properties in pune(and even all over india - hot spots), keeping them idle like an hedge fund for their children's future or for a retirement fund.

      Coming back to pune, you have everything (good and bad). half of them described by lot of seniors here in this forum. Few more are IT companies, Colleges (MBAs, Engineering and others), Good International Schools, Automotive Giants, Good Climate, More or less Cosmopolitan, Less population compared to major metros (even compared to Bangalore), less travelling distances (traffic is everywhere), very near to Mumbai (business hub, international connectivity), good proximity to hill stations, what else you want for your family, children, job, entertainment & finally for your retirement......... here is the logic.... you are getting all these even when you are young, but of course for a premium price. Thats it.


      Here i am not justifying anything to anyone. this is RE of Pune. there is no justification of prices, why it is growing each and every day and for what?? nobody knows, even god.
      it was not affordable for me to buy 2bhk * 22lacs in 2008 recession (very eye catching add near wakad bridge, some might remember), good 3bhks in wakad or baner in 2010 * 50-60 lacs and even now as of today i can not think of buying a cheap (w.r.t quality and location) 2bhk for 40-55 lacs in highway side wakd or ravet or punawale......mamurdi.................talegaon.... ........ i really dont understand, who are all these guys, why they are buying, where they are coming from, where they will go.... sometimes i really think, there is some kind of ALIEN invasion in Pune RE - supported by BJP .)

      but one thing is for sure, this Pune RE market is very much closely monitored, guarded, secured and maintained by group of builders, who knows psychology of all buyer categories, that is the reason why there is not much price correction like mumbai or NCR.

      One more point to be added, two decades before, buying a own house/home is the dream of an middle age man and his wife, say 40-45 years. but today the culture is 25-30 years is the time, where everyone is running after a flat, 1bhk/2bhk, whether they can afford or not.
      we stopped to live our lives, we want to have a home and a homeloan..... a status symbol. this is today's minimum requirement before marriage (to get eligible for it) or even after the marriage (to live a happy life ??? !!! ). this what the difference is. more number of buyers than what a builder can build, so the rise in price.......

      i hope my observation is some how justifies (just for fun), but i also like others views in this regard.
      Last edited July 25 2016, 03:46 PM.

      Comment

      • #4

        #4

        Re : Why Should We Pay More in Pune than USA?

        Originally posted by RRRrao View Post
        Not only in Pune, each and every hot spot of india is not affordable for common middle class people.

        Whoever, whenever possible, starting to buy the properties for their end use or for investments. some are buying to live today, some are planning to live there after 5-10 years.

        especially, those who are earning in US, UK or Middle east buying these so called unaffordable(for us) properties, and giving fuel to the builders to rise the prices further. Not only them, i know lot of Grade A officers in government offices(all sectors), even from other states buying properties in pune(and even all over india - hot spots), keeping them idle like an hedge fund for their children's future or for a retirement fund.

        Coming back to pune, you have everything (good and bad). half of them described by lot of seniors here in this forum. Few more are IT companies, Colleges (MBAs, Engineering and others), Good International Schools, Automotive Giants, Good Climate, More or less Cosmopolitan, Less population compared to major metros (even compared to Bangalore), less travelling distances (traffic is everywhere), very near to Mumbai (business hub, international connectivity), good proximity to hill stations, what else you want for your family, children, job, entertainment & finally for your retirement......... here is the logic.... you are getting all these even when you are young, but of course for a premium price. Thats it.


        Here i am not justifying anything to anyone. this is RE of Pune. there is no justification of prices, why it is growing each and every day and for what?? nobody knows, even god.
        it was not affordable for me to buy 2bhk * 22lacs in 2008 recession (very eye catching add near wakad bridge, some might remember), good 3bhks in wakad or baner in 2010 * 50-60 lacs and even now as of today i can not think of buying a cheap (w.r.t quality and location) 2bhk for 40-55 lacs in highway side wakd or ravet or punawale......mamurdi.................talegaon.... ........ i really dont understand, who are all these guys, why they are buying, where they are coming from, where they will go.... sometimes i really think, there is some kind of ALIEN invasion in Pune RE - supported by BJP .)

        but one thing is for sure, this Pune RE market is very much closely monitored, guarded, secured and maintained by group of builders, who knows psychology of all buyer categories, that is the reason why there is not much price correction like mumbai or NCR.

        One more point to be added, two decades before, buying a own house/home is the dream of an middle age man and his wife, say 40-45 years. but today the culture is 25-30 years is the time, where everyone is running after a flat, 1bhk/2bhk, whether they can afford or not.
        we stopped to live our lives, we want to have a home and a homeloan..... a status symbol. this is today's minimum requirement before marriage (to get eligible for it) or even after the marriage (to live a happy life ??? !!! ). this what the difference is. more number of buyers than what a builder can build, so the rise in price.......

        i hope my observation is some how justifies (just for fun), but i also like others views in this regard.

        Well I am a typical I.t guy joined I.t force in late 2007 and managed to own 3 flat
        1 in (2bhk)Mira road in late 2009 my sal was 23k and 2 in Naigaon (1bhk each) 2010 and 2014 in Mumbai suburb and have very less debt around
        15L. Got married in 2015 and now planning to buy home in Pune (though not sure this time)

        I think its all about how you do the planning and how you manage fund
        Last edited July 26 2016, 12:08 AM.

        Comment

        • #5

          #5

          Re : Why Should We Pay More in Pune than USA?

          if you're green card holder with more than one sources of income, feel free to buy in USA

          Comment

          • #6

            #6

            Re : Why Should We Pay More in Pune than USA?

            Originally posted by RRRrao View Post
            Not only in Pune, each and every hot spot of india is not affordable for common middle class people.

            Whoever, whenever possible, starting to buy the properties for their end use or for investments. some are buying to live today, some are planning to live there after 5-10 years.

            especially, those who are earning in US, UK or Middle east buying these so called unaffordable(for us) properties, and giving fuel to the builders to rise the prices further. Not only them, i know lot of Grade A officers in government offices(all sectors), even from other states buying properties in pune(and even all over india - hot spots), keeping them idle like an hedge fund for their children's future or for a retirement fund.

            Coming back to pune, you have everything (good and bad). half of them described by lot of seniors here in this forum. Few more are IT companies, Colleges (MBAs, Engineering and others), Good International Schools, Automotive Giants, Good Climate, More or less Cosmopolitan, Less population compared to major metros (even compared to Bangalore), less travelling distances (traffic is everywhere), very near to Mumbai (business hub, international connectivity), good proximity to hill stations, what else you want for your family, children, job, entertainment & finally for your retirement......... here is the logic.... you are getting all these even when you are young, but of course for a premium price. Thats it.


            Here i am not justifying anything to anyone. this is RE of Pune. there is no justification of prices, why it is growing each and every day and for what?? nobody knows, even god.
            it was not affordable for me to buy 2bhk * 22lacs in 2008 recession (very eye catching add near wakad bridge, some might remember), good 3bhks in wakad or baner in 2010 * 50-60 lacs and even now as of today i can not think of buying a cheap (w.r.t quality and location) 2bhk for 40-55 lacs in highway side wakd or ravet or punawale......mamurdi.................talegaon.... ........ i really dont understand, who are all these guys, why they are buying, where they are coming from, where they will go.... sometimes i really think, there is some kind of ALIEN invasion in Pune RE - supported by BJP .)

            but one thing is for sure, this Pune RE market is very much closely monitored, guarded, secured and maintained by group of builders, who knows psychology of all buyer categories, that is the reason why there is not much price correction like mumbai or NCR.

            One more point to be added, two decades before, buying a own house/home is the dream of an middle age man and his wife, say 40-45 years. but today the culture is 25-30 years is the time, where everyone is running after a flat, 1bhk/2bhk, whether they can afford or not.
            we stopped to live our lives, we want to have a home and a homeloan..... a status symbol. this is today's minimum requirement before marriage (to get eligible for it) or even after the marriage (to live a happy life ??? !!! ). this what the difference is. more number of buyers than what a builder can build, so the rise in price.......

            i hope my observation is some how justifies (just for fun), but i also like others views in this regard.
            Savings on rent and tax exemption with assumption of appreciation of capital are the reasons for buying by salaried class.
            Who said it's status symbol to buy a house on loan?
            The price in real estate of India is mainly fueled by black money and off late the money coming from abroad, IT guys are just pray to the larger whales as they have to buy whatever is available in a comparable lifestyle of western world whose glimpse they get to see in their offices.
            A typical Indian office worker will buy a plot but those exposed to western style of living will buy a condo with so called amenities for which they pay but hardly use.

            Present days flats are so compact that if you are not careful you will bump into the furniture, you might also catch a glimpse of others bathroom from yours, if you turn the volume of your tv up the neighbours will ring the door bell, you hear the sound of flush going on from all over and you know when neighbours have bad stomach and god forbid if your bed rattles a bit when you take a karwat next morning the aunty living in the flat below yours will bear a weird smile next day saying I know what you did last night . there are so many changes when compared to the design say ten fifteen years ago all in name of optimisation of sape.
            The key word is optimisation which people now relate with them because that is what they are told to do in office.

            Compact
            Optimised
            Just right
            Secured
            Tuned up
            For Young
            Just 30 mins (read 30 km) from ...
            Domino's and ccd nearby
            Airport is in close proximity

            These are some of the key words used but read and re reas again are the above really add any value or are just perception?
            Last edited July 26 2016, 04:23 AM.

            Comment

            • #7

              #7

              Re : Why Should We Pay More in Pune than USA?

              Buy one flat for self stay_Suitable size,place subject to your budget.
              Do not get into huge loans and spend life on EMI.
              Jobs are scarce and at times uncertain.
              So do not take such a huge loan that you sacrifice pleasures of life for EMI.
              Legal diligence and avoidance of u/c flats is prime consideration.
              Buying 2nd flat is not worth it as an investment idea.
              Every one views investment in his own prism
              I am aware of problems of rental flats-starting from looking for a suitable tenant,police verification,IT,Society requirements,lease agreements,broker charges and so on for the amount of income you get finally,if you are declaring rent to IT.
              Non declaration of rental income is unwise and not recommended anyway.
              Plan your finances properly and realistically.
              No investment can always give 100% return.
              Sometimes you get it by luck,time but cannot rely upon everything clicking always.
              Buying a flat is easy(if you have money),but selling it at the price you want is difficult.
              This I say out of personal experience.
              You will presently not get the price you want.
              Dont believe brokers who keep promising such prices.
              Land is a better investment if you can get a safe marketable title without jugaad and fake certificates.
              Do not go by brokers making big promises.
              Do title search using an independent lawyer not connected to the broker.
              Finally there is no comparison
              with USA and India is India with all its charms,population etc.
              Last edited July 26 2016, 08:20 AM.

              Comment

              • #8

                #8

                Re : Why Should We Pay More in Pune than USA?

                What i think is you should buy keeping in mind your future plans.
                If you want to live in USA forever there is no meaning to buy a flat in Pune.

                But if you are thinking from investment perspective then definitely Pune is better, May be you are not aware but Donald Trump himself is investing Pune Real Estate, one of his such investment is Yoo Pune Near Magarpatta.

                Reason Pune/India is better from investment perspective:
                Although right now market seems saturated , but this is a cycle it happens every few years. At a point may be 15-20 years back people thought Real Estate price won't increase in Mumbai, but the truth is , it is increasing although slow but it is, but that's not the case with US, even i have few friends when they sold the propertyin US they have to sell it at loss.
                Property Tax are way high in US, may be if you buy a property of 1.5-2.0 lac USD, you will be paying 6000-8000 USD property tax every year, apart from this insurance is compulsory in US, which will also cost you 1000s of dollar per year, while this is not the case in India.

                In Pune if you can hold property for few years, sooner or later RE market will bounce back and you will get the benefit.

                So it depends how you do your calculation and which all parameters/expenses you consider.

                Comment

                • #9

                  #9

                  Re : Why Should We Pay More in Pune than USA?

                  Originally posted by cracker View Post
                  Well I am a typical I.t guy joined I.t force in late 2007 and managed to own 3 flat
                  1 in (2bhk)Mira road in late 2009 my sal was 23k and 2 in Naigaon (1bhk each) 2010 and 2014 in Mumbai suburb and have very less debt around
                  15L. Got married in 2015 and now planning to buy home in Pune (though not sure this time)

                  I think its all about how you do the planning and how you manage fund
                  +5 for the last line...

                  It is about the planning and managing..
                  Life is what happens when you are making other plans. Enjoy it

                  Comment

                  • #10

                    #10

                    Re : Why Should We Pay More in Pune than USA?

                    What member Cracker say is right about fund management.
                    He can give more specifics about how much the flats cost him and how much loans he took etc.
                    """In Pune if you can hold property for few years, sooner or later RE market will bounce back and you will get the benefit.""In light of changing circumstances I do not agree with the assessment of better returns-after flat will be that much older and with our quality,issues will come up.
                    I would never go in for a resale flat which is more than say 5 years old at the most.
                    RE is no longer a worthwhile investment.
                    Last edited July 26 2016, 03:22 PM.

                    Comment

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