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Rental Income on sinhagad road

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Rental Income on sinhagad road

Last updated: December 5 2008
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  • Rental Income on sinhagad road

    hi all

    i have a 3 bhk apart ment on the 1st floor with a balcony.
    The location of the apartment is on the Mumba- bangalore highway just where the previous toll naka used to exist on the highway.

    the locality is known as wadgaon budruk

    i would like to the potential to earn a rental income for a 3 bhk apartment in that area

    regds
    sujit
  • #2

    #2

    Re : Rental Income on sinhagad road

    So what is your question?

    Comment

    • #3

      #3

      Re : Rental Income on sinhagad road

      In the last statement ...

      Hi question is in the last statement. He would like to know the potential to earn rent.

      He's asking how much rent would a 3 BHK Aptmt fetch in that area.

      cheers

      Comment

      • #4

        #4

        Re : Rental Income on sinhagad road

        Not sure about the rents in the location you have specified ... but usually the yearly rent is around 4% of the current value of the property .... so you are looking at (current value)*0.04/12

        all the best !!!

        Mukesh Pednekar

        Comment

        • #5

          #5

          Re : Rental Income on sinhagad road

          Originally posted by wiseman View Post
          He's asking how much rent would a 3 BHK Aptmt fetch in that area.

          cheers
          I hv an investment property in the same area. 1bhk for 5k pm. hv seen lots of students or single professionals living together in the bigger apartments in that area.

          Comment

          • #6

            #6

            Re : Rental Income on sinhagad road

            Originally posted by mukesh_pednekar View Post
            Not sure about the rents in the location you have specified ... but usually the yearly rent is around 4% of the current value of the property .... so you are looking at (current value)*0.04/12

            all the best !!!

            Mukesh Pednekar

            What would be the "magic" ratio to calculate price of open plot provided we know the rentals and property prices in the same area. I am planning to but plot in pune on the east side of NH4 bypass strechtching from Kothrud to Aundh .. Baner...

            I have been quoted different rates by various brokers and so want to come with a thumb rule to calculate land cost by using rentals as benchmark.
            Any help or advice will be appreciated.

            Comment

            • #7

              #7

              Re : Rental Income on sinhagad road

              Interesting that both of you are mentioning this ...

              Originally posted by ssj2690 View Post
              What would be the "magic" ratio to calculate price of open plot provided we know the rentals and property prices in the same area. I am planning to but plot in pune on the east side of NH4 bypass strechtching from Kothrud to Aundh .. Baner...

              I have been quoted different rates by various brokers and so want to come with a thumb rule to calculate land cost by using rentals as benchmark.
              Any help or advice will be appreciated.

              Hi,

              Mukesh and yourself noted that Rent to Value ratio is a constant 4%. Therefore, Mukesh says that, whatever its current price, multiply by 4% and that should be annual rent.

              Yes AND No.

              First of all, the 4% (I personally think its 5%, but that doesn't really matter) is a long term average (crucial point). Which means, like in 2007 since value soared (but rent did not keep pace) the ratio would have declined to probably 2-3%. Now, when prices decline much lower, rents will also not keep pace (meaning they will not decline as sharply) and the ratio may rise to 6-7%.

              So, simply multipying by 4% (or whatever figure) is not a magical formula since there are so many other factors that govern rent besides the price of the property.

              Market Pricing itself is such a complex subject (involves demand and supply at any time mainly). Which is why I posted a query whether it is time to have a market-driven pricing mechanism like the Stock Exchange for shares where people can freely quote buy as well as sell figures. Otherwise, like now, we are at the mercy of Builders and Brokers and the system is totally opaque!

              cheers

              Comment

              • #8

                #8

                Re : Rental Income on sinhagad road

                @wiseman
                Definitely and totally second that .... and hence i specified AROUND 4% .....

                As you rightly pointed out ... the prices are driven by demand and supply ... and unfortunately .... Builders and Brokers keep us in dark regarding the same ....

                about ur phrase "market-driven pricing mechanism like the Stock Exchange for shares" not quite sure how that can be achieved as each property is different .... unlike shares of the company, which are identical in nature ..... two flats, of equal area, in the same building can obtain different rates .... depending on factors such as - floor, vastu, plan, furnishing etc.
                taking the above into consideration .... it is difficult to create a platform for renting/selling the properties ... however, can give you a good idea of the ongoing rates ....

                Regards,
                Mukesh Pednekar

                Comment

                • #9

                  #9

                  Re : Rental Income on sinhagad road

                  3 BHK rent

                  Hi,

                  In vadgaon & sinhgad rd. 1 bhk's r commanding rent around 5000rs & 2 BHK's around 7 to 8 thousands.... considering this & also the fact that there are very less no. of 3BHK in this particualr belt,one should expect rent around 10000rs.

                  Comment

                  • #10

                    #10

                    Re : Rental Income on sinhagad road

                    Originally posted by sujitpatwardhan View Post
                    hi all

                    i have a 3 bhk apart ment on the 1st floor with a balcony.
                    The location of the apartment is on the Mumba- bangalore highway just where the previous toll naka used to exist on the highway.

                    the locality is known as wadgaon budruk

                    i would like to the potential to earn a rental income for a 3 bhk apartment in that area

                    regds
                    sujit
                    If you want potential income from your flat then I think hire services from the professional like I have given to steward home solutions pvt ltd.
                    They are lookafter my all requirement from searching tenant to verification of the tenant too plus they also maintain my property own their own.

                    I m giving you their contact number 020-25383536. they might help u as well

                    regards

                    Comment

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