Hi Guys,

New to Pune real estate, need your guidance for investing about 45 to 50L for my elderly parents.
Objectives:
1. Good and immediate rental income to them (Primary Objective)
2. Some appreciation in 3 to 4 yrs timeframe.

From my study, I found that 1 BHK in Magarpatta City or in Baner (or near to Hinjewadi) are good options. I am finally zeroing on Magarpatta city.

1. Is it a good decision??
2. Any risk/concerns you see for investing in Magarpatta city?
3. Amanora Park town OR Magarpatta City, which one is better for rentals & appreciation?

Also can you please suggest any good project/society to invest in 1 BHK/ I am looking mostly on Resale flat to start the rental income immediately.

Appreciate your feedback, Thanks.
Read more
Reply
33 Replies
Sort by :Filter by :
  • Investment in RE for rental income is not a good idea.
    Same amount invested in MF,MIS,FD,PPF will give good returns and safe returns.MF Investment in debt funds,Monthly income plans like HDFC MIP,Liquid funds,Canara Robeco MIP will give regular returns.
    Rental income will be only around 3% of investment after tax,property tax etc.
    When you invest say around 40 lakhs for a one bhk,I dont think it will appreciate to 50 or 55 lakhs after three/four years.
    Entry price will be too high now.
    You say you are new to Pune Re but you also speak of your study.
    You speak of some appreciation in 3/4 years time frame,but my suggestion is quantify your expectation and then decide -take opportunity cost into account.
    Decision of RE investment vis a vis rental income ,needs review.
    Off course it is different thing,if flat is being purchased for stay of elderly parents.
    Finally when your new to Pune RE,you need to consider whether to invest in a new place like this. Definitely more study is mandatory,after all amount is huge.
    CommentQuote
  • HI,

    We sold our old property which was out of pune, and I want to settle long term capital gains. I am investing considerable part in infrastructure bonds (for safety ) and rest in property preferably getting good rental income.
    Since I am new, I am wading very cautiously, and definitely not in hurry for property purchase.
    Your ideas and views will really help. Thanks.
    CommentQuote
  • NHAI and REC bonds issue may be available.You can safely invest upto Rs50 lakhs in them.Interest of course is taxable.Capital gains can be worked out and that much portion put in infrastructure bonds and rest deployed in safe avenues/instruments.
    CommentQuote
  • I have a friend who owns a flat in Magarpatta.
    His 2 BHk is is fetching a whopping 23K per month.
    Plus I hear from him that there is no monthly maintenance as it is taken care by the 1 time maintenace which was paid.
    The above points I see as positives.
    I dont have any other details. Also check other details like whether it is a leased land or freehold. Amanora is 999 years lease, not sure about Magarpatta.
    Not sure if 50 lacs is a right amount for 1BHk as I am unaware of the rates in that area.

    Regards


    Originally Posted by anandx
    Hi Guys,

    New to Pune real estate, need your guidance for investing about 45 to 50L for my elderly parents.
    Objectives:
    1. Good and immediate rental income to them (Primary Objective)
    2. Some appreciation in 3 to 4 yrs timeframe.

    From my study, I found that 1 BHK in Magarpatta City or in Baner (or near to Hinjewadi) are good options. I am finally zeroing on Magarpatta city.

    1. Is it a good decision??
    2. Any risk/concerns you see for investing in Magarpatta city?
    3. Amanora Park town OR Magarpatta City, which one is better for rentals & appreciation?

    Also can you please suggest any good project/society to invest in 1 BHK/ I am looking mostly on Resale flat to start the rental income immediately.

    Appreciate your feedback, Thanks.
    CommentQuote
  • Investment for rental income alone is not a worthwhile propostion.
    2300*12=276000
    less 30 %=194000 less property tax is taxable income
    tax at 30% and maintainance chrges need to be reduced to work out cash in hand.
    Investment will be at least 50 lakhs for 2 bhk.
    Not worth it.
    But for capital appreciation it would be worth.
    CommentQuote
  • Originally Posted by vaibav123
    Investment for rental income alone is not a worthwhile propostion.
    2300*12=276000
    less 30 %=194000 less property tax is taxable income
    tax at 30% and maintainance chrges need to be reduced to work out cash in hand.
    Investment will be at least 50 lakhs for 2 bhk.
    Not worth it.
    But for capital appreciation it would be worth.


    If the flat is on EMI, then the full interest portion is tax free. So the tax deduction comes down a lot. 23k rent on 2BHK is good, and if one gets such flat at 60-70L, one should go for it.
    CommentQuote
  • The Truth,
    I am aware of EMI etc.But the question posed here is the person has huge amount of capital gains to save and I assume he will go purchase and no loan is involved.
    CommentQuote
  • Oh yes, sorry I didn't note the full downpayment.

    Still, I would say that if one wants to buy for appreciation, then a good rental property that yields 1:250/1:300 monthly rent to price ratio is a good buy. Such search is very tough, but once a while, options do pop up.
    CommentQuote
  • The Truth,
    No problem.Nice to read ideas,opinions about rent,investment tax etc.
    Unfortunately rental in pune is too small compared to capital value.Only capital appreciation will give you good gains.
    CommentQuote
  • Agree with Truth and if the investment is for rental income and if home loan is there, then on a home loan of 60-70 Lakh, income tax worth 15-20K is saved apart from getting rental income of 10-15K. Clubbing these 2, can easily bring rent to investment ratio in range of 1:200 to 1:300
    CommentQuote
  • Originally Posted by anandx
    Hi Guys,

    New to Pune real estate, need your guidance for investing about 45 to 50L for my elderly parents.
    Objectives:
    1. Good and immediate rental income to them (Primary Objective)
    2. Some appreciation in 3 to 4 yrs timeframe.

    From my study, I found that 1 BHK in Magarpatta City or in Baner (or near to Hinjewadi) are good options. I am finally zeroing on Magarpatta city.

    1. Is it a good decision??
    2. Any risk/concerns you see for investing in Magarpatta city?
    3. Amanora Park town OR Magarpatta City, which one is better for rentals & appreciation?

    Also can you please suggest any good project/society to invest in 1 BHK/ I am looking mostly on Resale flat to start the rental income immediately.

    Appreciate your feedback, Thanks.


    1. The areas you have chosen are both good but then it depends on why you are buying.

    2. 1 BHK in Magarpatta of amanora will fetch you good rental income.
    But then the cost is so high that buying just for rental income makes no sense in these townships. They are best for self use as you can make use of the amenities provided.
    Else you can buy at a much cheaper price outside and rental income would also be there.

    3. Very bad choice of the properties if you are looking for appreciation.
    Magarpatta is already appreciated and its ageing. Soon the prices should start declining as the flats grow older.

    4. Amanora would be better as atleast they are new but the prices are sky high and do no expect much appreciation.

    5. In magarpatta flats were built and sold at much cheaper price so you can understand the quality would not be that great.

    6. Amanora is built as premium property so quality is better.
    CommentQuote
  • It seems, I got a nice place to interact with some RE experts. My situation is little different and seeking your expert comments/ suggestions for the same.

    I recently move to pune from Delhi, I have my own property in delhi(Home loan clear). No idea about pune and different location. But I love the city because of its weather and people.

    I am playing nominal rent to my cousin for his flat which is near to my office. worked in my favour.

    Need to invest in RE purely for additional income and saving from tax persepective and I am in 30% slab...Badly need to get into some RE investment.

    Please advice me, which location, project...under construction, ready to move...which equation work best in my favour.

    Thanks a ton in advance for your guidance and support.
    CommentQuote
  • homhunt
    Investment in RE at Pune is a challenge which needs careful evaluation.
    Firstly how long do you expect to be in Pune?
    What is your budget and expected return on your investment?
    Time frame of holding the investment.
    Holistic planning is required.

    Alternative options need to be considered.
    If you have to move out of Pune,what arrangement will you make for looking after your flat?
    Stay in Pune for some time and look around your area,see few projects and get a fair idea of Pune.
    Dont rush in to invest.
    Considered plan with legal due diligence is a must to increase wealth.
    Suitable RE investment can help you along,provided you examine the proposal in all angles.
    Best of luck in your search.
    CommentQuote
  • Thanks vaibav and i truly appreciate your advice. I like Pune better than Delhi/NCR because of quality of life. I want to stay here for a longer period now because I have stable job in good company now. my son settled in a nice school. overall, seems to me a settled life and as i mentioned, I have my own property in delhi as well. I am looking for a 2 BHK in a longer run for myself here and in future for son, in case he want to study and settle in pune. My budget in not much right now around 40 Lac, as i just paid the final settlement in Delhi property. I am ok to start with 1BHK and then once that is done, will upgrade to 2 BHK. I can stay in my rented accommodation which is 3bhk for next 5 years as it belong to my cousin only. So, if I buy 1 bhk today, i will start getting some rent and start saving my tax as well.

    Seeking your advice as if you will be in my position. Thanks a ton for helping me.
    CommentQuote
  • just want to add that I never took a benefit of home loan, so paying huge tax till now. Just now got a possession for my delhi property and that was almost 5 years after my booking. will start taking the benefit from this year for the interest part. It was so delay that i closed my home loan as well before my possession.
    But now i really want to save my tax by all possible means and want to build some 2 bhk properties for longer run. My cousin is having few good friend who took care of his flat before i came here. even myself having couple of good friends to take care of my property in my absence.
    and above all i wanted to give the property on rent straight.
    CommentQuote