Planning to buy a resale 2bhk in kharadi only for investment,
just started my hunt.

Some of my observations on rental appreciation in kharadi are:
- Connectivity to highways, airport and public transport
- Connectivity to various business hubs like EON, magarpatta, kalyani nagar
- Could be a professional's hub in future
- kolte patil's downtown will contribute a remarkable boost in rental segment
- EON IT crowd, hence tremendous tenant supply
- Upcoming World Trade Center and wagholi developments
- Wide roads and better transportation

Above all will contribute in investment appreciation

Drawbacks today might get rectified over a period of time:
-tanker lobby
-more agents than the individual sellers (may be due to paper works etc)

I would appreciate your comments and data points in terms of rental in kharadi.

With a budget of 45 to 60 lacs, I guess I should get a descent 1000sq.ft. and more area in a resale 2bhk

Ganga Costilla – does anyone know if a society is formed or still maintained by the builder?
if no society handover, then builder would charge transfer commission...

I would surely come up with more findings in later posts.

many thanks,
prakash.
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  • Not talking about the area, looking at the inflated prices of RE everywhere, you can surely expect more rent in coming years.
    But if you are thinking to buy something at 50 L for rental income then it'll always be a bad deal.
    For 50L, rough interest calculations show you that you'll pay or get (if you have cash in hand) 50k per month and you'll not get that amount as rent at least in near future (say down the line 4-5 years). So what's the point?

    Invest in such an area where you get more appreciation in cost and that too only makes sense if you take a right deal at right time to cash in the profits.
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  • you cant get a descent 2bhk resale in kharadi for less than 50L

    regardless of inflation, rent will always less than the EMI.

    Eventhough the EMI would be 50k aprrox and the rent would be 20k approx,
    i would be owning a property in 30k per month.
    above all, resale value will still be more in future.
    In worst case, if i could not sell it, i would be still using it as a 2nd source of income.

    coming to other areas, it is an individual choice.
    i live in koregaon park, hence eastern corridor suits me.

    lets do a simple mathematics,
    example,
    on a loan of 50L,
    emi per month 50k-20k (rent)=30k,
    for 4 years i would be paying 15L approx
    after 4 years, sell it in 80L +/- (based on historical data of pune property, incremental rates)

    loan outstanding after 4 years would be around 45L approx +/-
    so 80L-45L=35L
    since i paid 15L loan repayment, 35L-15L=20L

    so wouldn't that be a good value in 4 years?

    an average salaried person like me, cannot save more than 30K per month which would still compounds to 15L approx for 4 years.

    the above calculation is purely approx.

    your thoughts.
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  • Originally Posted by punekash
    you cant get a descent 2bhk resale in kharadi for less than 50L

    regardless of inflation, rent will always less than the EMI.



    For good properties or if you have patience, rent goes beyod the EMI. I know many such cases from Aundh, Baner etc. and from koregaon park & kalyani nagar as well.

    Eventhough the EMI would be 50k aprrox and the rent would be 20k approx,
    i would be owning a property in 30k per month.
    above all, resale value will still be more in future.
    In worst case, if i could not sell it, i would be still using it as a 2nd source of income.

    coming to other areas, it is an individual choice.
    i live in koregaon park, hence eastern corridor suits me.

    lets do a simple mathematics,
    example,
    on a loan of 50L,
    emi per month 50k-20k (rent)=30k,
    for 4 years i would be paying 15L approx
    after 4 years, sell it in 80L +/- (based on historical data of pune property, incremental rates)

    loan outstanding after 4 years would be around 45L approx +/-
    so 80L-45L=35L
    since i paid 15L loan repayment, 35L-15L=20L

    so wouldn't that be a good value in 4 years?

    Originally Posted by punekash

    an average salaried person like me, cannot save more than 30K per month which would still compounds to 15L approx for 4 years.

    the above calculation is purely approx.

    your thoughts.


    I completely agree that you are a salaried person and don't know business :)
    Nothing to disrespect you, it was a fun part.

    My dear friend, you forgot to consider the interest of 50k per month (at least for full of first year EMIs and the reducing slowly.. very slowly) in your calculations.

    4 years = 48 months, considering only 50k as EMI you end up in paying total 24L to bank but please wait - 24L not against principal. Google and get the reducing balance loan emi calculator and do your maths.

    Originally Posted by punekash

    based on historical data of pune property, incremental rates


    Coming to this historical data, salary hikes were proportionate to this rise. Did you get (if in jan-dec cycle) or will you get (in april-may) minimum (i said MINIMUM) 30% raise in pay?

    You need little bit more research to come up with correct math/calculations.
    Don't be in hurry, your loan eligibility will also grow. Think wisely and patiently before you take any decision.

    And yes, 50L was example, don't go by words - I am well aware of property rates all over the pune. You also forgot to take into account the period when the flat remains vacant in search of tenants and the amount that every property needs a year which includes maintenance, society maintenance charges, property taxes and so on.
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  • well, no convincing comments.
    thanks though.

    properties purchased before 2006 might have lower EMI than rent
    as i do on my current property.

    when it comes to such a big investment, i believe no one leaves a stone un-turned.
    needless to say, aspects like..flat vacant in search of tenants, society maintenance charges, property taxes and so on..are already in consideration.

    never-the-less, I would definitely seek our advise on properties i will shortlist.. shortly...!
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  • Rentals for 70-80 lacs properties is around 12-15k in kharadi. Properties above 80 lacs can fetch an effective rent of 15-18k.
    WTC towers will take another 5 years to be operational and contribute to kick the rentals in Kharadi.
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  • Originally Posted by investwest


    lets do a simple mathematics,
    example,
    on a loan of 50L,
    emi per month 50k-20k (rent)=30k,
    for 4 years i would be paying 15L approx
    after 4 years, sell it in 80L +/- (based on historical data of pune property, incremental rates)

    loan outstanding after 4 years would be around 45L approx +/-
    so 80L-45L=35L
    since i paid 15L loan repayment, 35L-15L=20L

    so wouldn't that be a good value in 4 years?


    Assuming your calculations are in order (to a level), let me add a few minor points
    1. add annual maintainence costs of ~60k = 2.5 L to be faced in 4 years.
    2. Opportunity cost - Put that 50L in mutual funds, etc; say an annual growth of 9% and the net after 4 years would be more than 70L. And absolutely no headaches in this option.

    So 20L earning in your example is not really a good value in 4 years time! :)
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  • Real Estate from pure investment is a bad option in Pune market. If you don't want to stay here in next 5-10 years there are much better alternatives.
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  • Originally Posted by punekash
    Planning to buy a resale 2bhk in kharadi only for investment,
    just started my hunt.

    With a budget of 45 to 60 lacs, I guess I should get a descent 1000sq.ft. and more area in a resale 2bhk


    Kharadi is pretty much past the investment destination milestone unless your earnings are closer to 40 - 50L / annum.

    Its madness for people lower than 20L /annum income to invest in areas where average price for 2 bhk is north of 60- 65L.
    Its all right if you want to setup your home there .

    Salaried should invest in manjari/kondhwa/punawale/bhugaon/alandi and other far off places instead.

    Constella society is formed.
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