Announcement

Collapse
No announcement yet.

Is Pune a Good Investment Place for 2nd Property?

Collapse
This is a sticky topic.
X
X
Collapse

Is Pune a Good Investment Place for 2nd Property?

Last updated: July 20 2017
357 | Posts
42504 | Views
  • Time
  • Show
Clear All
new posts

  • Is Pune a Good Investment Place for 2nd Property?

    Hello Folks - I have a flat in hinjewadi and worndering if pune is a good place for buyinng another property as well. I know that property rates have gone up in the last 5 years in pune, but will the same trend continue for next 5-10 years.
    I stay in Hyderabad and appreciation in real estate is not that great here.
    So, I dont want to invest in hyderabad.

    ANy thoughts ?
    Last edited June 14 2017, 03:04 PM.
  • #2

    #2

    Re : Is Pune a Good Investment Place for 2nd Property?

    Why not Navi Mumbai?
    Appreciation in ulwe has been tremendous due to upcoming airport.

    Comment

    • #3

      #3

      Re : Is Pune a Good Investment Place for 2nd Property?

      The rent to cost ratio is too nice in Pune esp in and around Hinjewadi. You get 1 BHK in 35 - 40 L and get around 10 K per month as rent.
      Last edited April 6 2017, 10:12 AM.

      Comment

      • #4

        #4

        Re : Is Pune a Good Investment Place for 2nd Property?

        Because of investors lust .genuine needy people are facing issues in buying

        Comment

        • #5

          #5

          Re : Is Pune a Good Investment Place for 2nd Property?

          Originally posted by Puneflat26 View Post
          Because of investors lust .genuine needy people are facing issues in buying
          Absolutely agree. If one is interested in investing and if all his money is white, there are far more better options available than investing in real estate - especially at current prices in Pune.

          Comment

          • #6

            #6

            Re : Is Pune a Good Investment Place for 2nd Property?

            I do not want to divulge the essence of this thread. But are investors the only reason for high rates. Its not a one sided phenomenon my friend.
            And I do not get one thing right here - why is it called investors lust ? Its a business deal & everyone is looking for profits . Whats wrong in that ?
            Imagine an analogous scenario where your son is in a competitive exam. He can come 1st - but if he comes 1st there will be other kids who will lose their opportunities to excel to be the 1st. There will be loss in terms of hope from other kids parent. Now in a competitive exam along with several others what do you expect from your son , to excel on the top or just score a bit low in average range so that others are also happy ? I know this ain't a logical comparison - but I could sense some analogy from my statement above - Agree ?
            If some one can invest - they will & its their righteous claim to expect profits over their investments. This is how our system has been designed & this is how evolution has taken place. The only fate is we are the part of this evolution.
            Can any financial experts on this forum throw light on these scenarios ,
            1.) What happens if RE market does not appreciate as expected by an investors ?
            2.) If RE crashes will there will be line of buyers - but will there be sellers in such market ?
            Last edited March 11 2013, 05:02 PM.
            Anything said before the word "but" hardly matters.

            Comment


            • Nirlar
              Nirlar commented
              Editing a comment
              Due to abnormal disparity in Industrial development Hubs like Pune and Mumbai , will hardly see any Decline even in next 10 years time , thanks to young fertile population infusion in these hubs , No chance for decline ! ( Only if other geographical regions get some extent good Industrial development , migrating fertile population can not be diverted to other regions ) , it is curse of Concentric growth pattern which make monstrous cities , which surely will be too big to collapse
          • #7

            #7

            Re : Is Pune a Good Investment Place for 2nd Property?

            I always read on this forum about RE crash. But by how much ammout will there be RE crash ? and it will long last for how many years ? Has anyone analysed it ? When someone invests in RE, that investment is for long term. Not for short term . So, while investing investors must have done this study. In a long term tenure of 10 years, any property gets appriciates. So, I dont think there is any loss at all. If property price depreciates because of short term RE crash, it will again boost up for sure. Can someone tell us, what was the last RE crash and till what point prices were down ?

            Comment

            • #8

              #8

              Re : Is Pune a Good Investment Place for 2nd Property?

              Originally posted by kartikpai View Post
              I do not want to divulge the essence of this thread. But are investors the only reason for high rates. Its not a one sided phenomenon my friend.
              And I do not get one thing right here - why is it called investors lust ? Its a business deal & everyone is looking for profits . Whats wrong in that ?
              Imagine an analogous scenario where your son is in a competitive exam. He can come 1st - but if he comes 1st there will be other kids who will lose their opportunities to excel to be the 1st. There will be loss in terms of hope from other kids parent. Now in a competitive exam along with several others what do you expect from your son , to excel on the top or just score a bit low in average range so that others are also happy ? I know this ain't a logical comparison - but I could sense some analogy from my statement above - Agree ?
              If some one can invest - they will & its their righteous claim to expect profits over their investments. This is how our system has been designed & this is how evolution has taken place. The only fate is we are the part of this evolution.
              Can any financial experts on this forum throw light on these scenarios ,
              1.) What happens if RE market does not appreciate as expected by an investors ?
              2.) If RE crashes will there will be line of buyers - but will there be sellers in such market ?
              There is a LOT of difference between RE and other investment instruments. Home is a basic need for human being. In cases like Pune, there are people who need a home badly but because of invester and Builder lust they aren't able to afford. Govt need to do something for the first home buyers in order to make it difficult for the investors. Investors can invest in other instruments with far better returns. The main reason they are coming to RE is because it is safe haven for black money. Buy in 1 crore do agmt for 65 lacs. Builder is also happy to do agmt in 65 as he can't accept 1 cr as white as otherwise he will have to pay greater income tax. Both do tax evasion in the process. Investor sell the same in 1.5 cr. Does agrmt for 70 lacs. pay tax on 5 lac instead of 50 lacs. Invest the black money again in a new property.

              Here in London, govt does a lot for first time home buyers. Affordable housing in itself is a big poliy. In India, It is not just the investors but the govt too is to be blamed. Ultimately it all comes down to corruption again as they are hand in glove with the builders.
              Last edited April 6 2017, 10:18 AM. Reason: quote formatting

              Comment

              • #9

                #9

                Re : Is Pune a Good Investment Place for 2nd Property?

                Investors and RE

                Originally posted by RP Pune View Post
                There is a LOT of difference between RE and other investment instruments. Home is a basic need for human being. In cases like Pune, there are people who need a home badly but because of invester and Builder lust they aren't able to afford. Govt need to do something for the first home buyers in order to make it difficult for the investors. Investors can invest in other instruments with far better returns. The main reason they are coming to RE is because it is safe haven for black money. Buy in 1 crore do agmt for 65 lacs. Builder is also happy to do agmt in 65 as he can't accept 1 cr as white as otherwise he will have to pay greater income tax. Both do tax evasion in the process. Investor sell the same in 1.5 cr. Does agrmt for 70 lacs. pay tax on 5 lac instead of 50 lacs. Invest the black money again in a new property.

                Here in London, govt does a lot for first time home buyers. Affordable housing in itself is a big poliy. In India, It is not just the investors but the govt too is to be blamed. Ultimately it all comes down to corruption again as they are hand in glove with the builders.
                Purchase of flats is one type of investment. Gold,shares,MF are all instruments of investment to grow ones wealth.
                People with money always have an advantage.Just because one invests in RE does not invariably mean he has black money.
                I know many salaried persons whose income is accounted for buying multiple flats and selling it to rotate cash. It is a way of growing your assets and heading toward financial security.
                We cannot blame the ills of RE only on investors.It is too simplistic.
                Government should not treat symptoms and forget the basic causes of RE problems.
                Conditions in UK and India are not in way comparable.Population is the main difference.We are heavily over populated resulting in heavy demand for flats, which cannot be met.This results in increased prices.

                Comment

                • #10

                  #10

                  Re : Is Pune a Good Investment Place for 2nd Property?

                  Check UK and India's population density, and you would know it's not unfair to compare.

                  Price rise has been because of continuous demand but not completely from the end users. There are a lot of investors too. Therefore, saying the price rise is because of overpopulation is completely wrong.

                  Originally posted by vaibav123 View Post
                  Purchase of flats is one type of investment. Gold,shares,MF are all instruments of investment to grow ones wealth.
                  People with money always have an advantage.Just because one invests in RE does not invariably mean he has black money.
                  I know many salaried persons whose income is accounted for buying multiple flats and selling it to rotate cash. It is a way of growing your assets and heading toward financial security.
                  We cannot blame the ills of RE only on investors.It is too simplistic.
                  Government should not treat symptoms and forget the basic causes of RE problems.
                  Conditions in UK and India are not in way comparable.Population is the main difference.We are heavily over populated resulting in heavy demand for flats, which cannot be met.This results in increased prices.

                  Comment

                  Have any questions or thoughts about this?
                  Working...
                  X