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.
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  • Probably in your position I will go in for a 1 BHK and give it on rent for time being and think of sale after 3-5 years
    Due diligence, and legal diligence is must.
    Go for RTM flats only.
    First explore Pune RE by visiting sites on holidays and get a feel.
    Pune is nice and cosmopolitan in outlook.
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  • Originally Posted by homhunt
    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.



    Tax deduction for the preconstruction period, on the pre-EMIs, can be availed only after the construction of the building has been completed. Once the construction is completed, the total pre-EMI interest paid is deductible in five equal installments in the subsequent years. For example, if you have paid Rs 5 lakhs as the pre-EMIs, then Rs 1 lakh will be shown in the next five years as tax deduction. Pre-EMI is only the interest paid during the period. If you have paid any principal amount, it is not eligible for tax deduction.
    All interest payable in respect of the year during which the construction is completed, (including interest payable for the period during which the construction was still to be completed in that year) is deductible under Section 24.


    Source Tax benefits applicable on pre-EMIs - Economic Times
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  • I did a first try to study pune market, wants to validate my understanding with my friends. :)

    Properties(1 BHK) which can fetch a decent rental income should near to some business hubs like Magarpatta, khradi, viman nagar in one side of pune while hinjewadi on the other side of pune. I am staying in Hadapasar, so unware of the areas near hinjewadi but i realised lot of big IT/ITES companies are in that side and thats the reason baner,wakad and pimpri etc become a hot destination in pune for residents.
    I got little confuse and seeking your suggesttion for choosing a location and why?

    like..I find magarpatta is hot destination but property rates are too much. not much scope for further appreciation. almost 10 year old flats..construction quality is also not great.

    Viman nagar, very limited supply of 1bhk, not able to find any good project in my initial search.

    Please give me your thoughts as well and help me to zero down first the location. Then we will try to some good project which RTM.

    Thanks a lot for my support.
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  • One of my friend introduced me with one broker, he suggest me 3 options for 2 BHK around 40 lacs in 3 different locations. Locations are as follows:

    1) Pune - Saswad road...walking or 3 minutes drive distance from my office (SP Infocity). I went their in evening and the area was stinking but as per broker the near garbage centre will be moving from here.

    2) Shewalewadi, manjiri...I saw the project which inside from higway. seems to me good isolated society.

    3) Wagholi, somewhere on nagar raod..I am yet to go their and see the location.

    He told me that in and around 40 Lac and 2 BHK, these will be the only 3 locations in pune. Requesting you to guide me, which area seems to promising for future point of view. where the chances of appreciation will be high & are we at the right price to enter?
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  • 1. Garbage depot won't be moving, broker made you april fool :) Buy on the Handewadi side, not on the SP infocity side, because winds flow from east to west and the stench in inevitable.

    2. How far away from Mundhwa-Kharadi chowk?

    3. Wagholi - has hardly any space for appreciation, I think, as it is out of the city without any close vicinity to IT, like Manjri or Kharadi or Hadapsar.
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  • The Truth..Thanks for your response/suggestion. can you please suggest any good project which i can explore in coming weekend in hadapsar, kharadi or in hadapsar.
    My budget will be around 40L. good with 1 bhk as well. purely on an investment point, good if it could be RTM so that i will get some rent, once appreciate will sell and upgrade to 2BHK in same location----plan.
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  • Originally Posted by TheTruth
    1. Garbage depot won't be moving, broker made you april fool :) Buy on the Handewadi side, not on the SP infocity side, because winds flow from east to west and the stench in inevitable.

    2. How far away from Mundhwa-Kharadi chowk?

    3. Wagholi - has hardly any space for appreciation, I think, as it is out of the city without any close vicinity to IT, like Manjri or Kharadi or Hadapsar.


    Hello TheTruth,

    If I were buying for investment in the east, then I would bet (a bet, it is) on Wagholi. It is slightly further from Kharadi, and still further from Magarpatta, as compared to manjri. But difference isnt much.

    Had also heard about some Teraspace IT park coming up somewhere near Kharadi. What happened to it ? Scrapped? Cant find anything about it online.

    In any case, i am looking at west only for end use right now.
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  • Originally Posted by Sat234
    Hello TheTruth,

    If I were buying for investment in the east, then I would bet (a bet, it is) on Wagholi. It is slightly further from Kharadi, and still further from Magarpatta, as compared to manjri. But difference isnt much.

    Had also heard about some Teraspace IT park coming up somewhere near Kharadi. What happened to it ? Scrapped? Cant find anything about it online.

    In any case, i am looking at west only for end use right now.


    Eon is mostly occupied by vodafone BPO. There are mostly small companies barring Barclays , Citi , Sungard and Symantec which pay decent money and they have reached peak capacities. The average salary of employees in EON is around 7 lakhs. Prices cannot rise forever and time based correction has already started. Urban soul is in doldrums as they have only raised the time for free Stamp duty and other taxes till 30th April and pissed of a lot of buyers and investors.
    Downtown and gera are also facing hard time.
    People have invested in Kharadi thinking that WTC is indeed built by some recognized organization and will be surprised to know that it will host mostly mid sized companies and will not bring lucrative opportunities.

    There isn't much need for yet another IT park in pune.
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  • Originally Posted by TheTruth
    1. Garbage depot won't be moving, broker made you april fool :) Buy on the Handewadi side, not on the SP infocity side, because winds flow from east to west and the stench in inevitable.

    2. How far away from Mundhwa-Kharadi chowk?

    3. Wagholi - has hardly any space for appreciation, I think, as it is out of the city without any close vicinity to IT, like Manjri or Kharadi or Hadapsar.



    Wind in pune is mostly west to east and for a small time north west to south east.
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  • Originally Posted by RP Pune
    Wind in pune is mostly west to east and for a small time north west to south east.


    Damn it this is the second time that I have made this mistake on the forum :( Guess my internal compass has wrong markings!

    Yes, winds flow from WEST to EAST, and the SP infocity projects are on the eastern side of the garbage depot, hence the ungodly stink.

    homhunt: Are you in Pune? If yes, explore the u/c projects on Handewadi road/Undri side. The railway underpass at Mohammadwadi is supposed to come soon, and the road from Katraj to Saswad too is going to be widened. So I am bullish on that area with a horizon of 3-4 years in future (not much livable right now). I think this area will develop good. Manjari too has a nice rustic feel, and not too far away from Eon/Magarpatta/Amanora. Not too keen on Wagholi solely because the Nagar road is a killing machine and I don't want to cross it every time I wish to visit my investment.

    40L for 1BHK is a good budget I think. You should get one in Wadgaon Sheri/Kharadi, with rent of about 10k.

    How are your finances spread? Are you going to take a loan or full downpayment? Rentals will be good in city limits, and in outer areas, appreciation will be good.
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  • Yesterday broker shown me a flat approx 900 sq feet. very nice build 2BHK on pune saswad road opposite side on SP Infocity. approximately 1 KM ahead of SP Infocity.. I went during the evening intentionally and I find the stink but seller is in hurry to sell and negotiation is very much possible to get this flat under 40 Lac including registration and covered parking etc... I just gave a thought for my end use purpose for a while and then sell it in next 3 years and save my rental part as well. I am confused because 3500/Per sqfeet rate today to get RTM property in a decently build society complex is seems to me dream come true situation....might be i am comparing with Delhi/NCR rates back of my mind.
    What you guys think the price appreciation on Pune Saswad road 3 years down the line. Broker told me that they have a plan to widen this road as well and I am looking for RTM to get immediate home loan benefit.
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  • Keep the stink factor in mind.Can you tolerate it day in and day out?
    Price will appreciate in the area,but general area is crowded and messy.
    Think carefully and buy.
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  • Originally Posted by homhunt
    . I went during the evening intentionally and I find the stink but seller is in hurry to sell and negotiation is very much possible to get this flat under 40 Lac including registration and covered parking etc...
    might be i am comparing with Delhi/NCR rates back of my mind..


    Please don't type...like...this. Makes it hard to read.

    I would recommend against the deal, no matter how lucrative. Just think of the quality of life you and your family can have, with a stink and illness in the air for 24 hours. Why do you want to take that risk for saving a few lacs, which you may have to spend for medicine in future?

    This is summer time, when the garbage is mostly dry, and still you can smell stink. Imagine the wet monsoons and moist colds. Don't do it brother.

    All the hurry to sale the flat and willingness to bargain etc is just a plot to dump the flat on a willing bakra. A few years later, when you will be selling the house, you will be cursing yourself for saving a few lakhs while purchasing and not finding any buyer then.

    Remember, Mehenga roye ek baar, sasta roye baar baar! Don't buy properties in stinking areas, period. This is not a temporary problem caused due to some negligence. The garbage depot is there for a LONG time and it is legal, so no reason that it should move. See the garbage depots in Mumbai and how the residents there are facing health problems.

    You have summarized your problem in your post. You are comparing Delhi prices here. Same happens to Mumbai investors, when they see that in 50L, which would buy them hardly a 1BHK in old societies in Thane/Mumbai, here in Pune they get 2 or even 3BHK, and they jump on it. Compare Pune prices with Pune prices only.

    Lastly, don't be so averse to pay rent. Treat it as an insurance against making any mistake of hurried decisions.
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  • Originally Posted by TheTruth

    Lastly, don't be so averse to pay rent. Treat it as an insurance against making any mistake of hurried decisions.


    +1 very well stated
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  • "Lastly, don't be so averse to pay rent. Treat it as an insurance against making any mistake of hurried decisions.""
    The Truth, good advice indeed.
    Stink is stink and should be avoided unless one has Congenital Anosmia.
    Even then it is not good for health to be in such locations.
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