Buy 2 bhk in Whitefield for investment

Water crisis is a major issue … keep that in mind before investing in Bangalore

Who is giving 2 bhk in 1 cr?? Now a days 1 bhk are touching 1 cr in top builder companies. For example check sobha neopolis- their tiny tiny 1bhk is worth 95 lac .. even second best builders like orchid goyal, rohan etc are selling 2bhk at 1.3-1.5 cr..

Coming to the part of buying and selling … here’s the math..
loan of 1.5 cr … interest for payment of loan roughly 50 lacs if you are going for finishing loan in 5-7 years.. which is not likely unless u are having a high paying job.
Yes a property of 1.5 cr can be sold at roughly 2.3 cr ..
but till then u would have incurred cost of interiors, property tax, society maintainance bills, electricity bills etc.. which makes ur profit lesser.

This is just the tip of the iceberg.
You’ll have to take the hassle of buying a good buyer who is willing to give u 2.5 cr for a resale property instead of buying a brand new one which will have fresh society look with more amenities. Put urself in buyer’s shoes. Will you buy a old / used / resale property if you had 2.5 cr in ur hand. Probably not. Probably prices would have gone higher but still if one can afford even a brand new 1 bhk instead of an old 2 bhk it will be more satisfactory for the family. Besides negotiating with builders is far easier than negotiation after market.

Also you will have to finish the loan before sell for a clean transfer/ getting buyers interested. Even otherwise , if ur still underloan and want to transfer the headache is even more plus ur profits are even lesser.

So all in all unless u are sure the property you purchase will be 3x in 3 years. Don’t buy it. Simply park ur funds in mutual funds and relax.

Just so you know, i had the same thoughts as you, and did research. Not just that i recently sold my only property and compared the profits with what i would would have got if i had put in mutual funds. It turned out to be the same, in fact slightly lesser with all the expenses stated above.

Property rates are already very high in Bangalore.
I believe the industry is going to be divided in the city like Pune, noida, Gurgaon property as a investment is not a good option.
You can look for some options in Tier 2 cities. You may benefit more from there.

Uh huh nope.
Add interest that you’ll be paying for that loan. 1Cr will not even get you a 2bhk with top builders.

Unlikely