Hi,
I am looking for investment in property in Pune for long term since the prices are low right now..around 5 yrs to 10 yrs term. What are the areas in terms of good appreciation..may be around 30 to 50%.
Some areas on the outskirts of Pune are Talegaon, NIBM, Kondhwa
Are cities like Nashik, Nagpur good for long term?

My budget is for 1 BHK around 12L to 15L

Thanks in advance for any inputs/ideas
Read more
Reply
38 Replies
Sort by :Filter by :
  • Originally Posted by stohid
    Hi,
    I am looking for investment in property in Pune for long term since the prices are low right now..around 5 yrs to 10 yrs term. What are the areas in terms of good appreciation..may be around 30 to 50%.
    Some areas on the outskirts of Pune are Talegaon, NIBM, Kondhwa
    Are cities like Nashik, Nagpur good for long term?

    My budget is for 1 BHK around 12L to 15L

    Thanks in advance for any inputs/ideas


    You dont need to invest in property for 30 to 50% appreciation in 5 to 10 yrs. simply put tht money in fixed deposit or buy any blue chip company shares now and you will easily double you money in that timeframe.

    Regards,
    Nilesh
    CommentQuote
  • Originally Posted by nilesh123
    You dont need to invest in property for 30 to 50% appreciation in 5 to 10 yrs. simply put tht money in fixed deposit or buy any blue chip company shares now and you will easily double you money in that timeframe.

    Regards,
    Nilesh

    Thanks for the advice dear friend, FD will be TDS deducted after 10K interest, and blue chip companies cannot be trusted any longer..remember Satyam? More over it incurs capital gains tax too..
    thanks for the suggestion though
    CommentQuote
  • You should look growing outskirts of Pune like Chakan.

    If your investment horizon is 5Yrs, then our suggestion would be invest in Real Estate at Chakan. You will get one of the best return in real estate.

    Disclaimer : Advice is based on our real estate experience
    CommentQuote
  • Investment

    Hi,

    property is a very illiquid investment with avg returns of 15 % that also only due to the huge run up recently.( 2003-2008)

    Consider the investment money i.e seed capital and the return u get

    Ex 40 lk flat gets u hardly 10 k rentals that is a return of 3%. it will not even pay the interest on ur loan. This is unlike western story.

    Now consider the same seed capital in FD, Stock mkt . c the light. Satyam saga was one off exception.

    If u want to diversify,then consider land better than flat.

    Beautiful comments r avble in chennai/real estate discussion threads on PROS and CONS of property investments versus other evenues.
    CommentQuote
  • Property investment in Pune

    Originally Posted by stohid
    Thanks for the advice dear friend, FD will be TDS deducted after 10K interest,

    The TDS deduction is per bank. You can create FDs in many banks and do not accumulate interest more than 10K in each bank.
    For e.g. having 10 lacs of F.D, 1 lac each in 10 different banks.
    There is even a scope of having FDs in the name of family members (who does not have taxable income) so no TDS deducted when you file Form-16.

    Originally Posted by stohid
    and blue chip companies cannot be trusted any longer..remember Satyam?


    You can diversify your investments in these companies or invest through mutual funds.

    Property investment can be good only in case of reducing tax-liability. This wud not be right time investment in property. Rates shud fall 15% more this year. And even more next year if this recession continues.
    You can diversify your investments in these companies or invest through mutual funds.

    Property investment can be good only in case of reducing tax-liability. This wud not be right time investment in property. Rates shud fall 15% more this year. And even more next year if this recession continues.
    You can diversify your investments in these companies or invest through mutual funds.

    Property investment can be good only in case of reducing tax-liability. This wud not be right time investment in property. Rates shud fall 15% more this year. And even more next year if this recession continues.
    You can diversify your investments in these companies or invest through mutual funds.

    Property investment can be good only in case of reducing tax-liability. This wud not be right time investment in property. Rates shud fall 15% more this year. And even more next year if this recession continues.
    CommentQuote
  • Originally Posted by stohid
    Hi,
    I am looking for investment in property in Pune for long term since the prices are low right now..around 5 yrs to 10 yrs term. What are the areas in terms of good appreciation..may be around 30 to 50%.
    Some areas on the outskirts of Pune are Talegaon, NIBM, Kondhwa
    Are cities like Nashik, Nagpur good for long term?

    My budget is for 1 BHK around 12L to 15L

    Thanks in advance for any inputs/ideas

    Who said that prices in Pune are low? Currently, you would get 1BHK at cheap areas where rental will be meager, resale prices low & seeing the construction, I doubt whether the building would even last for 10 years!! Point is noone will buy 1BHK at cheap area which is 10 year old for 35L.
    Btw, who said that capital gains tax is not incurred on sale of property? It varies between 20-30% depending on how long you have hold the property. Rentals too would mean additional incomes & tax levied on it like stocks appreciation.
    CommentQuote
  • Originally Posted by stohid
    Thanks for the advice dear friend, FD will be TDS deducted after 10K interest, and blue chip companies cannot be trusted any longer..remember Satyam? More over it incurs capital gains tax too..
    thanks for the suggestion though


    Your investment horizon is 5 to 10 years.
    Capital gains taxes are not applicable for investment longer than 1 year.
    CommentQuote
  • I moved from 2 BHK to 1 BHK now..Looking to buy 1 BHK in Pune in a decent area, new or nearing posession
    CommentQuote
  • Originally Posted by PuneRental
    You should look growing outskirts of Pune like Chakan.

    If your investment horizon is 5Yrs, then our suggestion would be invest in Real Estate at Chakan. You will get one of the best return in real estate.

    Disclaimer : Advice is based on our real estate experience

    "our" - Do you own some RE agency or something like that? :)
    CommentQuote
  • Chakan airport is cancelled, is there still some prospect for chakan?
    CommentQuote
  • rates are at their peak. stay away from the market. Builders are taking advantage of post-recession optimism.
    CommentQuote
  • Originally Posted by wadia
    rates are at their peak. stay away from the market. Builders are taking advantage of post-recession optimism.

    I totally agree with you, builders are taking undue advantage of post recession optimisms, which is not real.

    So far in India we have not seen any major downturn in RE market. We don't have any precedence doesn't mean that it will never happen in future, some things happens in life for the first time.

    People are trying to put the rosy picture of growth. It's true that we are growing, but the growth in RE market, especially in Pune is totally fabricated, if one witnesses 300% rise in just 3 yaers (2005-2008) then it is sure to come down sometime. Anything which rises steeply should see the steep fall ... I am very curious when it will happen in Pune RE market.

    I am not sure whether I am too much optimistic about this, but I feel that a well deserved fall in PuneRE market is expected in near future.
    CommentQuote
  • Originally Posted by Punekar_1
    I totally agree with you, builders are taking undue advantage of post recession optimisms, which is not real.

    So far in India we have not seen any major downturn in RE market. We don't have any precedence doesn't mean that it will never happen in future, some things happens in life for the first time.

    People are trying to put the rosy picture of growth. It's true that we are growing, but the growth in RE market, especially in Pune is totally fabricated, if one witnesses 300% rise in just 3 yaers (2005-2008) then it is sure to come down sometime. Anything which rises steeply should see the steep fall ... I am very curious when it will happen in Pune RE market.

    I am not sure whether I am too much optimistic about this, but I feel that a well deserved fall in PuneRE market is expected in near future.


    Totally agree with you. Just a minor point: Realty prices in Mumbai halved between 1996 and 1999
    CommentQuote
  • What will happen to people who have bought at high rates? To banks who gave high credit?

    Its complete chain; from land owners to buyers with banks, developers, workers ....

    What happens to them in case of such crash?

    Originally Posted by Punekar_1
    I totally agree with you, builders are taking undue advantage of post recession optimisms, which is not real.

    So far in India we have not seen any major downturn in RE market. We don't have any precedence doesn't mean that it will never happen in future, some things happens in life for the first time.

    People are trying to put the rosy picture of growth. It's true that we are growing, but the growth in RE market, especially in Pune is totally fabricated, if one witnesses 300% rise in just 3 yaers (2005-2008) then it is sure to come down sometime. Anything which rises steeply should see the steep fall ... I am very curious when it will happen in Pune RE market.

    I am not sure whether I am too much optimistic about this, but I feel that a well deserved fall in PuneRE market is expected in near future.
    CommentQuote
  • Originally Posted by puser
    What will happen to people who have bought at high rates? To banks who gave high credit?

    Its complete chain; from land owners to buyers with banks, developers, workers ....

    What happens to them in case of such crash?


    It is scary. For those who can manage, bank only with sbi. ICICI and HDFC will suffer adversely in case of a bubble burst.
    People in stock market, at current prices a lot of RE stocks are inflated.
    CommentQuote