Based on the information you provided, I would have gone with the 2 x 1bhk apartments for immediate cashflow and no burden on my pocket and lower rent would attract more tenants.
You understand 20% downpayment needed for a loan. But there are other costs associated as well. And significant ones.
Registration snd Stamp Duty shall be about 7% of property cost. So additional 7L needed up front when making purchase. Or 14L if going for 3bhk.
If you do go for 3bhk, how will you accumulate another 20L ? If that shall take more time then delivery of under construction property by 2025 Dec is unlikely.
Since you are purchasing pre-built properties in HSR or Bellandur, they are most likely 10+ years old. 20+ in some cases. Over time their maintenance cost will be significant.
Lastly, this isn't a FIRE question, definitely not FATFIRE. there are other subs where this would be better suited. And you shall get more replies there.
Thanks… and all valid points. I did consider all those finer details in my calculations (will spare those details), and want to get some advice on the fundamental choices from other folks who are already fatfired or pursuing that goal.
It's 2024, people still investing in expensive properties in Bangalore. Not thinking for a minute that city is going through huge water crisis which is going to get worse in the future.
Risk tolerance: medium to high
Income stability: currently stable job; 1L emi = current passive income from existing assets.
Fire plans: NRI, relocating to India and fire by 2030.
All of the rent numbers look optimistic, esp the 3 BHK near Hebbal renting out at 70K to 80K per month. 3 BHKs from brand name builders in reasonably affluent areas rent out at 70K (4 Cr types in today's market).
My reference is east Bangalore where I am getting a rental yield of roughly 3.5% of current market value. Good to know north Bangalore might not have a similar yield. That does impact the viability of the larger unit.
Based on the information you provided, I would have gone with the 2 x 1bhk apartments for immediate cashflow and no burden on my pocket and lower rent would attract more tenants.
You understand 20% downpayment needed for a loan. But there are other costs associated as well. And significant ones. Registration snd Stamp Duty shall be about 7% of property cost. So additional 7L needed up front when making purchase. Or 14L if going for 3bhk. If you do go for 3bhk, how will you accumulate another 20L ? If that shall take more time then delivery of under construction property by 2025 Dec is unlikely. Since you are purchasing pre-built properties in HSR or Bellandur, they are most likely 10+ years old. 20+ in some cases. Over time their maintenance cost will be significant. Lastly, this isn't a FIRE question, definitely not FATFIRE. there are other subs where this would be better suited. And you shall get more replies there.
Thanks… and all valid points. I did consider all those finer details in my calculations (will spare those details), and want to get some advice on the fundamental choices from other folks who are already fatfired or pursuing that goal.
It's 2024, people still investing in expensive properties in Bangalore. Not thinking for a minute that city is going through huge water crisis which is going to get worse in the future.
Yeah I own a home and situation is not improving in near future
I was considering moving back to bangalore from USA. This water crisis worries me, especially when i dont see any talks of solution
r/personalfinanceindia
Depends on your risk taking propensity, income stability, relocation probability and fire plans
Risk tolerance: medium to high Income stability: currently stable job; 1L emi = current passive income from existing assets. Fire plans: NRI, relocating to India and fire by 2030.
Always consider delay of 3 years on top of builder possession promise...it will be only EMi without any income if it goes in that direction..
I understand that’s a risk, and I baked in at least a 30% delay in my calculations.
All of the rent numbers look optimistic, esp the 3 BHK near Hebbal renting out at 70K to 80K per month. 3 BHKs from brand name builders in reasonably affluent areas rent out at 70K (4 Cr types in today's market).
My reference is east Bangalore where I am getting a rental yield of roughly 3.5% of current market value. Good to know north Bangalore might not have a similar yield. That does impact the viability of the larger unit.
None, Look for pre leased commercial properties for less hassle.