Owing a home is a keystone of wealth – both financial affluence and emotional security
Owing your first home. Our own shelter is so important in life. It adds to emotional security.
During covid, home loans were reduced to as low as 6.5% which was quite attractive and more over stamp duty reduction was an extra bonus. This boosted the residential sector.
Within one crore ticket size in the residential sector, were actual buyers (End users) who are looking to move into their apartment. Some usually book at an early stage, so they get a payment plan. While some who are ready book at a near completion stage, ready to move into an apartment.
Post due-diligence and after getting a good deal and payment plans, if one has booked early in a project then surely you can expect a good deal as rates do go up during completion.
Buyers could look at expanding from their existing 2 to 2.5 to 3.5 BHK. Some could be tenants looking at their own first home. Additional room for Work from home.
Higher ticket size in Residential are mostly for actual users. Moreover, residential area in Pune for IT professionals are spread out across the city.
Some of the areas that buyers are interested in looking at as real estate investments in Pune include:
West Pune: Baner, Aundh, Hinjewadi, Punawale, Wakad, Tathawade, Kiwale, Ravet Hinjewadi, Punawale, Wakad, Tathawade buyers are mainly IT / ITES and also from the manufacturing sector.
South Pune: Wanowrie, Undri
East Pune: Koregaon Park, Mundhwa, Kalyani Nagar, Boat Club Road, Viman Nagar, Kharadi
As an investor, one should understand that real estate investment in Pune through investing in a residential flat in any city / area where there is infrastructure spend and there is a mixed development around and the potential of jobs, they will be able to rent their house which is invested even though the Return on Investment (ROI) may be 2% odd. They must consult with realtors in India look at capital appreciation over time. This is for investing in real estate for a second home.
Lots of questions do come up in mind. Is it going to be worth it? Less return on the investment.
While one is physically fit and in a good job with a paid up first home, you could try and get a second home if you are comfortable with the EMI without much stretching. Rental income received could help supplement in the EMI payment. At the end, this money could be used for non-appreciating goods. What you will create is a valuable capital asset.
Working professionals must try and invest in a small accommodation under construction with much due-diligence and invest in their first home. In India, I have observed any disruption for example COVID, no real estate prices corrected. It remained stagnant. Unsold inventory if any, can get you a good deal.
One waits for corrections, rather get a good realtor who could help you with due-diligence and get you the best deal and payment terms.
What this shows, our population is our strength. Internal consumption and disposable income are great.
There are stages in life for every individual.
Having done well in life and invested in equities etc. One should think of real estate and keep track of upcoming residential projects in Pune.
Spread the RISK. Invest in various asset classes. Not all eggs in one asset class. Idea is to beat inflation!
Talawade and Hinjewadi both IT
- Connectivity to Hinjewadi better in PCMC
- Bangalore-Mumbai expressway a major infra boost in the west
- IT companies in Hinjewadi since it gets better benefits
- Developers opted for project under the 80IB (10) act, 0% tax from project earnings if certain norms are satisfied. These are for end user – not for investment by various family members. Starting ticket size: 45 Lakhs –
2 BHK 45-70 Lakhs Carpet – 575 sq ft to 850 sq ft 3 BHK approx. 85 Lakhs+ saleable area just under 1000 sq. ft
2.5 BHK 65 lakhs carpet 725 sq ft to 75 lakhs
3 BHK – 80 Lakhs + carpet 800 sq. ft+
Chakan to Talegaon industrial zone
Life Inspiration Advisory LLP
Disclaimer: These are my opinion and views. My advice to you is to do your own due diligence.