Folks who bought real estate in Bangalore (primarily for living in it), what are some things that you wish you knew earlier before buying the property? Also what are some things you would advise to new folks who are looking to buy property now?
I’ve been looking to buy a flat and have mostly finalised on A+ builder(Prestige) society but wanted to hear from experienced folks once. And I’m not a huge fan of taking hefty loans so planning to do around 50% in down payment and 50% in loan which I will aim to finish within 5 years. Is this a good approach??
After reading all the comments given before me, I'll try not to repeat the one's already covered.
I've bought a 2bhk last year in Jan'23 in Electronic City Phase 1.
These would be my suggestion:
Don't go for an under-construction property. Builders give 100 promises and deliver only 10.
Even in Prestige societies like Falcon City, people suffered heavely in Feb-Mar'24 during the water issues.
Going for a ready to move, resale flat which is in a society that's 4-5 years old is the best, as you get all the good and bad things in front of you and you can make the right call, rather than hoping for a dream sold by the builder and later regretting. ~ I've bought a resale flat and I'm very happy until now, as I've had no suprises in the last 1.5 years.
I knew all the good and bad things from day one, before buying.
Go with a reliable broker who agree to help you with (1) Smooth Registration (2) Khata Transfer (3) Bescom Name Transfer. There's bribery in all these, but for us working in startups its much simpler paying a small negotiated bribe, rather than wasting our precious time on following up with Govt offices.
I would also recommend to get a loan for the longest period i.e. 20-25 years for the maximum amount possible, i.e 80-85%.
Which you can later close at your convenience early on.
But this would come in handy, if you have a sudden unfortunate event in the middle and you've put all your savings in your home.
Happy to connect over DM, if you have any more questions.
I disagree that one should avoid under construction properties from tier 1 builders. They tend to deliver what they advertise and booking early is far cheaper than buying it from a reseller.
@Ragnar_Growthbrok Got your point but I feel buying house is a very emotional decision as well especially in India and many people would like to buy a new house instead of an older one.
Bad idea to take a loan for 50% @Kafkaa
The maximum you can get a loan for is around 75-80% of the value of the house. I would suggest that you should take as much as possible.
Easier to do this as chat / call over typing long messages here. Will try to do it nevertheless.
Why should you give my advice any consideration: financial services industry veteran and home loan customer
Home loan is the lowest interest rate loan that one can get. Currently in the range of 8.5% - 9.5% and we are at a high interest cycle right now - so will go down in a few quarters.
My expectation from equity market is about 12% over the next 5-10 years. Adjusted for tax, equity l investments will give better return.
If you have the cash to pay down, you can always pay it down whenever you want to. But dont be in a rush to close it. Mentally be okay to have a loan that you dont need. :)
Also, can help on the loan piece too. Have done this for quite a few friends. :)
@Toph56 yes I had also thought about this as equity returns outweigh home loan rates but just that mental block of taking a huge loan from bank especially coming from a middle class mentality is a bit too much 😬
Prestige properties are way too overpriced.
However, if you've made up your mind, check for a few things:
Also, do a rough back-of-the-envelope calculation before making the decision. How much rent will you be willing to pay every year to live in that apartment? If that exceeds 4% of the property value, then good, otherwise it's expensive.
Thanks 👍🏻
New properties by A grade builders are becoming increasingly small in Blr. Do look for resale properties from these A grade builders - could be a much better deal. (Hoping you're buying for your own use)
If you're looking for investments returns - buy land in a tier 2 (if you have a tier 2 home town and can see the city growing - no flat will give you that return)
Loan - A big yes! Get IT rebate - invest that money and earn :)
Already have both house and land in my hometown which is tier-2 city.
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