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30-40 Lac for 2 BHK flat, under current economical environment?

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30-40 Lac for 2 BHK flat, under current economical environment?

Last updated: October 11 2009
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  • #31

    #31

    Re : 30-40 Lac for 2 BHK flat, under current economical environment?

    buying vs renting

    Originally posted by veeemkay View Post
    This is a very important and interesting calculation. Does give a important financial insight into buying and renting. Thanks guys.

    I have one question if someone can answer please
    In case of Rent, who pays for the Society Maintenance charges, general addhoc home maintenance (like painting in 5 yrs or plastering or Society painting etc.)

    If people staying on rents do not pay the above then the calculation would turn out to be more interesting.

    VK

    Most of us are in young age group so most likely cannot be tied to a particular location that too in a particular city. may stay for 3 -4 yrs and then change city ... its a private job.
    So anyways you have to live on rent.

    So by buying the only benefit is asset creation.
    Rest all are psychological gimmicks enforced by media and builder.

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    • #32

      #32

      Re : 30-40 Lac for 2 BHK flat, under current economical environment?

      Originally posted by veeemkay View Post
      I have one question if someone can answer please
      In case of Rent, who pays for the Society Maintenance charges, general addhoc home maintenance (like painting in 5 yrs or plastering or Society painting etc.)


      It depends on the city. In Bangalore, the tenant pays for the maintenance. In Pune, the landlord pays for the maintenance(But I'm sure they may be including that amount in the rent). Adhoc home maintenance, like if something is broken at home etc, the landlord pays( in both the cities), but they usually subtract that amount from the deposit when the tenant leaves the flat. But some landlords never fix the issues at home. So some tenants like us just fix it ourselves or just live with it fearing if we cry too much they may not renew the contract.
      Last edited by Navina; October 9 2009, 10:43 AM.

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      • #33

        #33

        Re : 30-40 Lac for 2 BHK flat, under current economical environment?

        Originally posted by Navina View Post
        I think the first major recession after the dotcom boom in India was in 2000, then there was a recession again in 2003 and now in 2nd quarter of 2008. So there is no specific time interval between a boom and recession. Investment in RE is a risk, but so is investing in the stock markets, but if you are lucky it can appreciate to great heights. Fixed and insurance will carry less risk, but the money appreciation will not be much. But even if someone is investing, if they have intuition on upcoming areas and they get a good deal that they can afford comfortably, I still feel they can go ahead. Our landlord bought the house we are staying somewhere around 2004 at the area near Ashish gardens at Kothrud. That time there was nothing beyond karve putla. No autos would even go beyond karve putla(as told to me by one of the auto driver). When we landed there at 2006, there was no proper road in front of our apt complex. It used to take about 10 mins to just get to our flat from the ashish gardens road and no autos would even come till our flat or they would charge 10 to 20 rs extra. The road was so bad. No businesses put up on that road was doing well. There were no restaurents around. We had to go beyond Karve putla in case we wanted to eat out. During common wealth youth games, the road in front of our flat, the DP road was one of the 8 roads chosen for laying out properly and then our landlord struck gold. Now the road in front of our flat looks like a runway in the night. The road is so wide, I guess it would be 80 to 100 feet with reflectors in the sides and middle. I think they would not have even bought that flat for 15 ls, but now that flat may be worth 45 to 50 ls for 2bhk( Our flat is 975 sqft). Every year our landlord increases 1000rs for rent. This year when my hub said that it is recession, she increased it by 500 rs saying that she is increasing it less due to recession. Some risk definitely pays off. Getting ahead in life is all about willing to take some amount of risks.

        For me anyway I am not looking to buy as an investment option, I just want to stay in my "own" home, considering that I am going to settle here for quite some time. For me the loan tenure should also be taken such that it should not last beyond 2 to 5 years and one should also check if they would be able to comfortably close it within that time.
        Very true ! Good to see thoughts coming from your heart. Many people are wandering in Pune RE without knowing the effects of the economy and the builders/landlords fool them without their notice. I have lived in rented apartments for 5 years and changed my apartment thrice. At times, me and my wife used to get frustrated seeing the boom in RE and the rates.Now, we know that we made a wise decision of not buying a house.Now, we bought our own house...we are kind of breathing easily.Interestingly, the landlord who wanted to sell his flat (where we lived on rent) advertised in magicbricks 55 Lacs.Location : Parihar Chowk He is still not able to find the buyer at this rate. Y'day he called me and asked me..."would you like to continue here and would you buy this flat 41 Lacs ALL inclusive ?"

        I simply said..."not interested" ! SO...fortune favours the brave but we need to hit at correct time. All the best for your house hunt Navina....you will definitely find a home of your dreams very soon....keep looking !

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        • #34

          #34

          Re : 30-40 Lac for 2 BHK flat, under current economical environment?

          how old is the apartment and whats the area.

          41 all inclusive for 2 bhk is not bad, bit depends on location also

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          • #35

            #35

            Re : 30-40 Lac for 2 BHK flat, under current economical environment?

            In 2005 my office was in 2 BHK apartment near parihar chowk Aundh (in Anand Park). We have to leave that place as owner that time sold that apartment t 10Lac only. 2 BHK in same area is for 40- 50 Lac now a days. what a appreciation....

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            • #36

              #36

              Re : 30-40 Lac for 2 BHK flat, under current economical environment?

              Word will not end if prices go back to 2004 levels.
              Originally posted by Navina View Post
              I dearly wish the prices would go back to as in 2004, then for my current income perhaps I will be able to buy not 1, not 2 but perhaps 3 houses. But frankly I do not think the prices are going to collapse that much unless there is the repeat of the great depression of 1929. That means even our finances will be affected to the extent that we maynot even be able to buy at that price also. And frankly I do not want to see India in such a state.

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              • #37

                #37

                Re : 30-40 Lac for 2 BHK flat, under current economical environment?

                Originally posted by hporwal View Post
                how old is the apartment and whats the area.

                41 all inclusive for 2 bhk is not bad, bit depends on location also

                850 sq ft saleable area..Near Parihar Chowk.

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                • #38

                  #38

                  Re : 30-40 Lac for 2 BHK flat, under current economical environment?

                  Originally posted by RAJESHP View Post
                  Buying does not create asset always, you can get bankrupt too. so calculate your risk
                  All the best.
                  Add one more:- The difference between EMIs & rent can be invested which can surely give you far better returns.

                  Man, you loose your peak period of life by overstretching overself & get converted from man to donkey & then when you retire, you will say:-
                  Damn, I wasted my life for pigeon hole.

                  At the end of the day, what matters is whether your mind is in peace or in pieces.
                  If you are happy, you are successful.

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                  • #39

                    #39

                    Re : 30-40 Lac for 2 BHK flat, under current economical environment?

                    Originally posted by veeemkay View Post
                    This is a very important and interesting calculation. Does give a important financial insight into buying and renting. Thanks guys.

                    I have one question if someone can answer please
                    In case of Rent, who pays for the Society Maintenance charges, general addhoc home maintenance (like painting in 5 yrs or plastering or Society painting etc.)

                    If people staying on rents do not pay the above then the calculation would turn out to be more interesting.

                    VK
                    In my case, the owner pays for that. I pay for electricity only.
                    Originally posted by harishkulks View Post
                    SO...fortune favours the brave but we need to hit at correct time.
                    But unfortunately, many buyers turn into sheeps once they enter builders office but those who don't are happy later.
                    The more the hardships, better the results. Once you go through this, you never lose in your entire life. Trust me guys, this is my first hand experience. Better late & happy than early & sad.
                    Last edited by realacres; October 9 2009, 01:11 PM.
                    If you are happy, you are successful.

                    Comment

                    • #40

                      #40

                      Re : 30-40 Lac for 2 BHK flat, under current economical environment?

                      Originally posted by realacres View Post
                      In my case, the owner pays for that. I pay for electricity only.

                      But unfortunately, many buyers turn into sheeps once they enter builders office but those who don't are happy later.
                      The more the hardships, better the results. Once you go through this, you never lose in your entire life. Trust me guys, this is my first hand experience. Better late & happy than early & sad.
                      Correct..Just remembered the movie "In pursuit of HappYness" starring Will Smith. Hardships can teach you how life treats you and makes you a better & intelligent human being in most cases.Since we are talking about RE here, I have lived in prime areas as well as fringe areas...lived on rent as a tenant...lived/living as an owner...life is great...but we need to carefully put the money in RE. Renting to my mind is always a better option in economical perspective.

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