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 ?
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  • Why not Navi Mumbai?
    Appreciation in ulwe has been tremendous due to upcoming airport.
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    • mayankbarholia3 years ago
      Mumbai rates are already High... Pune i have one good option in Baner very nice location and sure short gives you 28 to 32 % ROI . 9028613131 if you want to know more details about that project .... it in pre launch
  • 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.
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  • Because of investors lust .genuine needy people are facing issues in buying :(
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  • Originally Posted by Puneflat26
    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.
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  • 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 ?
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    1 Comments
    • Nirlar3 years ago
      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
  • 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 ?
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  • Originally Posted by kartikpai
    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.
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  • Investors and RE

    Originally Posted by RP Pune
    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.
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  • 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
    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.
    CommentQuote
  • Bubble is when price is not in sync with economy. This happens when investment is from other sources than end users, as end users would/could only pay what they can afford for living. Rental income should be 4 to 4.5% but instead it is just 2% in India which clearly suggest this is a bubble.
    I am surprised to hear you know many salaried person who have multiple flats! All of them may be aged more than 40?
    People getting 12 lac/annum in salary with one kid can't afford flat more than 50 lac, and here we see 2 BHK flats in far flung areas with no facilities costing moe than 50 lac.

    The whole bubble is for the sole reason of black money - from investors and builders and govt.

    Originally Posted by vaibav123
    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.
    CommentQuote
  • I think you should buy a property close to you. If you live in Hyderabad it is hard to manage a property in Pune. Also at current levels Hyderabad is a better deal than Pune due to Telangana issue. The Telangana issue will settle or die down in the long term and the prices in Hyderabad will appreciate.
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  • Originally Posted by RP Pune
    There is a LOT of difference between RE and other investment instruments. Home is a basic need for human being.

    How so? Isnt food and clothes also a basic need. But does that means shares of companies which make and sell foods and clothes or the prices of food and clothes goes up like RE?
    Just because something is a basic need does not mean its price has to keep going up. Its the weird rules on land building and political and builder nexus which has caused this bubble and you are expecting the same political class to solve the issue :)


    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.
    Define a home pls. 1-2-3BHK and location. Does everyone want to stay in Aundh or Viman Nagar? Also should everyone have a swimming pool, sports amenities, car parking along with this house that the govt is supposed to help provide for 1st time buyers.

    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.

    You think black money does not flow in stocks and all other investment avenues?
    And restricting investment in RE is going to stop the problem? People will invest with the builder rather than buying the house. So people will put money in a fund which will take a stake in a project with a builder and sell the flat at the same rate as before and enjoy the same kind of profits. Which all avenues is the govt going to ban then?



    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.


    Sitting in London and seeing what kind of crap policies the govt had here before 2009. Billions spent on housing benefits and other other benefits. So much free money given to people that no one wants to work and those who are good are leaving the country. The govt has no responsibility to provide some something and certainly not a particular group but again its India so each group will lobby for special service, pay bribe and then sit back on Sat and Sun and pass commentary on how bad the corruption is that the govt need to change :) So first ask govt for special favors and tax benefits and to get it bribe the govt or elect leaders who will promise free stuff and then curse the same people for favoring someone else :)

    Sitting in London and seeing what kind of crap policies the govt had here before 2009. Billions spent on housing benefits and other other benefits. So much free money given to people that no one wants to work and those who are good are leaving the country. The govt has no responsibility to provide some something and certainly not a particular group but again its India so each group will lobby for special service, pay bribe and then sit back on Sat and Sun and pass commentary on how bad the corruption is that the govt need to change :) So first ask govt for special favors and tax benefits and to get it bribe the govt or elect leaders who will promise free stuff and then curse the same people for favoring someone else :)
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  • Originally Posted by kartikpai
    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 ?

    you example of exam is irrelevant here...
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  • Second home buyers are not always the investors. I have a flat in Pune and I live in this flat with my wife and kids. Now my parents are growing older and I need to get them near to me? Shouldn't I look for buying another flat if I can ? Of course the assets need to be planned and grown over the time. Stock market, mutual funds etc are only for big players. Everyone knows how small investors burn their fingers in the stock market. FD returns just beat the inflation. So if real estate fetch a good return over long term, why not one should invest in real estate? I completely agree with Kartik.
    Talking of basic necessity, well food is also a basic necessity. Look at the inflated prices of food grains due to commodity broking and export. Should not govt control this and keep the prices of food grains under control? The way govt releasing everything to open market, it is unlikely to keep anything under control, be it food, be it house or other basic necessities. Everything is going to be controlled by demand-supply and the way population is increasing, there will always be demand for everything.
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  • Originally Posted by guideus
    you example of exam is irrelevant here...


    Take it as an analogy & not in literal manner.
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