Is it Worth investing in Bangalore?

Amazon bessjezos1
Dec 30, 2018 60 Comments

Indian. I see Bangalore as a growing it hub. Is it worth investing there? Prices are already sky high

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TOP 60 Comments
  • LinkedIn Gstiwbsh
    Unless you plan to go back to india, its not worth investing in India. Prices are already too high, and with RERA regulations, appreciation is not fast. Also most important to consider is exchange rate. If you send today at Rs.70 per each Dollar, after 5 years or 10 years even if your property doubles, your Rupee also devalues at almost same rate. If you are lucky and still get better appreciation, to bring that money back here is a head ache. You will have to pay tax at normal income tax rate in US, which i assume is about 45% (less tax pain in India) on appreciation amount. You can reduce the tax rate to minimum if you earned minimum in an year, but making less money is not feasible, considering you may be on H1 status forever. If you invest the same here in US, you get better rent and your property is more safe from litigation and encroachment by goons or politicians.

    In short, its not worth the pain, unless you maxed out your investments here in US, and trying to diversify.

    This is from my personal experience
    Dec 30, 2018 7
    • LinkedIn sdmnow
      1. You don’t need to buy investment property in the Bay Area. Lots of places in the US where you can buy a single family home for 300k and then rent it out for >1.5k a month.

      2. Meanwhile in Bangalore, rents are way lesser since there is a glut of flats and thus you make peanuts renting out your flat.

      3. Have you watched Khosla ka Ghosla? Something similar happened with my friend, though in a different city. Same with that Amrapali builders.

      Risk not worth the reward IMHO.
      Dec 30, 2018
    • LinkedIn Gstiwbsh
      @sdmnow clearly stated my intent. Its foolish to invest in bay area, where there is no positive cash flow with 300k investment. If you invest in other market areas, you can buy decent property for 150k, that fetches 800$ per month. With 300k investment, you can net 1500$ per month. If you invest same amount in India, you may get 50k rupees at max, with risks involved. Even if you go back to india due to H1 issues, there is no one stopping you to hold property. You can manage thru property manager and do all documentation thru E-Sign.
      Dec 30, 2018
    • LinkedIn Gstiwbsh
      @begin. Peace of mind never grows your money. Thats not called investment, but called as retirement plan.
      Dec 30, 2018
    • Nutanix / R&D
      w0lfp@ck

      Nutanix R&D

      PRE
      VMware, Apple, Cisco
      w0lfp@ckmore
      @Gstiwbsh: Which market areas are you referring to?
      Dec 30, 2018
    • LinkedIn Gstiwbsh
      Texas, Atlanta kind if markets. You can get B class renters there
      Dec 30, 2018
  • Microsoft / Product Sanctiel
    Bangalore might run out of water by 2023.
    Dec 30, 2018 7
    • Microsoft UMbR3
      TIL. Cuz I ain't seeing none of that water in Chennai.
      Dec 30, 2018
    • Microsoft / Product Sanctiel
      JK. But Cauvery water is not enough for the growing population of Bangalore. It was never meant to be. That’s why the founder of Bangalore had dug 300+ lakes and with all the lake encroachment by real estate moguls, the number of lakes is down to 14. Serious water crisis in north and east Bangalore. You’d see tankers supplying water to all the high rise apartments in east and north Bangalore.
      Dec 30, 2018
    • Microsoft UMbR3
      Are you based in Bangalore or Hyderabad?
      Dec 30, 2018
    • Microsoft / Product Sanctiel
      A Bangalorean. In Seattle now.
      Dec 30, 2018
    • Lol and the lakes in Bangalore catch on fire. Great place.
      Dec 30, 2018
  • Google / Eng smart 😎
    🍿
    Dec 30, 2018 3
    • AMD / Eng LEtV72
      What is the meaning of this emoji? Looks like a bag of popcorn
      Dec 30, 2018
    • Dec 30, 2018
    • AMD / Eng LEtV72
      Ok. Thanks!!
      Dec 30, 2018
  • New vNlw64
    Not at all. Buying an apartment in bangalore is like buying a car. The value depreciates with time. There is too much unsold inventory and prices haven't moved from past couple of years.
    Dec 30, 2018 3
    • Amazon 123raj
      And the city is dying so expect ppl to go elsewhere/existing ones to leave.
      Dec 30, 2018
    • New vNlw64
      Most of Indian metro cities are in more or less same state so there is nowhere to leave.
      Dec 30, 2018
    • Amazon 123raj
      Probably. But BAngalore is Rank 1 in the race to bottom.
      Yes other cities have issues but overall hyd/pune/mumbai and even NcR are better than blr. Wait for capital of ap to come up too.
      Bangalore has gone down the tubes.
      Dec 30, 2018
  • Amazon 123raj
    Nope. Not at all. It's a shithole
    Dec 30, 2018 2
    • eBay kulla
      Looks like you come from a sluthole
      Dec 30, 2018
    • Amazon 123raj
      Lol.
      A) learn to spell.
      B) calling a shithole shithole doesnt mean u love the country less.
      Dec 30, 2018
  • New begin
    Yes Definitely, it's Indian Silicon Valley. Due to Trump, now the reverse immigration will start from Silicon Valley to Indian Silicon Valley. It's a startup heaven as well. As the Metro is also shaping well, it should soon solve Traffic problems as well.
    Dec 30, 2018 3
    • Microsoft / Eng
      haha2

      Microsoft Eng

      PRE
      Amazon
      haha2more
      Keep dreaming
      Dec 30, 2018
    • New vNlw64
      Ah, looks like a comment from a realtor
      Dec 30, 2018
    • Target / Eng 11-11-11
      ROFL ! Metro Hahaha.
      Dec 30, 2018
  • Google / Eng come2daddy
    Nah... Bangalore as a city is going to be dead pretty soon. Too much pollution, no water and increasing rowdy behaviour. Government is not interested in any serious improvement work except building bridges as per decade old plan.

    It is true Bangalore real estate prices doubled or even tripled in last 2 decades. But that was because of low base. 100,000 USD in 2010 could have bought a decent apt. Not anymore. At 200,000 USD , it made sense for top guys to buy and invest in house. At 300,000 most top end projects have available inventory. However, at 400,000 USD and beyond only fools buy a house in India for investment. You can invest in houses anywhere in world at this price. Bangalore is not going to see average house prices doubling in next 10 years simply because 225000 ( 1.5cr ) apartment cannot be sold for 450000 as salary is not going to be more than US salaries in India even for top end paying companies.

    You just need 7% return to double your money. Nothing beats a fixed deposit with SBI or other Indian govt banks.
    Dec 30, 2018 6
    • Google / Eng come2daddy
      Good locality good projects already have a price tag of 1.5Cr for 3BHK. If you getting anything lower, it is either not a good project or not good locality. If you really get anything for 1Cr which has potential, you should get in.

      Before purchasing, please do some research with top guys like Sobha, prestige, SjR and Purva. They all have been selling houses for 1.5 cr since last few year and all have ample inventory even in 5 year old projects proving there is significant resistance beyond this point.
      Dec 30, 2018
    • Microsoft / Eng
      haha2

      Microsoft Eng

      PRE
      Amazon
      haha2more
      Instead of FD and blocking cash, keep in US savings bank account. The INR will depreciate faster than FD interest rates and you will have liquid money. Even better, put some portfolio in diversified stocks.
      Dec 30, 2018
    • Adobe adobebest
      But projects around ORR and have average connectivity to IT hub will always have a demand. In my opinion if someone wants to work in India in IT , it makes sense to purchase an apartment in Bangalore. With rents being high, coupled with high security deposits, investment in a decent located apartment from tier 1 builder would rarely turn out to be a bad investment.
      Dec 30, 2018
    • LinkedIn Gstiwbsh
      @adobebest. You statement about investment rarely turning out to be a bad investment is shirt sighted. In long run( real estate is a long term investment), apartments especially with current market value in India is not sensible. But everyone’s situation and thinking is different. Many invest in real estate like a “retirement plan” and see monthly rent, but think they are investing.
      Dec 30, 2018
    • Google / Eng come2daddy
      @adobebest agree the houses in India would always be in demand. But the investment value would not increase. The increase in housing prices in BLR are largely due to increase of Indian salaries to the levels of US. A house in Bangalore would never cost as much as a house in SFO or any city in USD. 300k -400k usd is max for average 3bhk. Don’t expect your investment in 400k house would convert in 800k after a decade. It’s not gonna happen.
      Dec 30, 2018
  • CVS Health Trade
    It all depends on how much you want to invest mate.
    Dec 30, 2018 5
    • Microsoft UMbR3
      2 crores. You got any ideas?
      Dec 30, 2018
    • Athenahealth tcismylife
      Lend me money I will give you 7 % interest
      Dec 30, 2018
    • EY / Consultant
      chikibum

      EY Consultant

      PRE
      Mu Sigma, dunnhumby
      chikibummore
      ^ says the person who’s username is tcsismylife
      Dec 30, 2018
    • Intel Asde
      @tcsismylife: Where do u invest to get 7% guaranteed returns
      Dec 30, 2018
    • Microsoft UMbR3
      State Bank fixed deposit is 6.5. why will I give you?
      Dec 30, 2018
  • LinkedIn Gstiwbsh
    Buying an apartment is really fools decision. Always, land is gold. History teaches all Wars were always to grab land mass. Only silly minds think of monthly rent and invest in apartments. After 30-40 years of life of these apartments, you will be rebuilding them spending money again
    Dec 30, 2018 2
    • Adobe adobebest
      You can't always think of investment. Apartments fit well with modern day of living as it saves hassles buying land and later on doing construction. @gstiwbsh buying land is a thing of past. How many colleagues of yours are living in apartments and how many are planning to buy land.
      Dec 30, 2018
    • LinkedIn Gstiwbsh
      @adobebest Grow up and think like an investor. Many friends live in apartments bcaz of affordability. Why do you think you sell prime land to a friend? You dont sell prime land to friends. You have to find right partnership to develop the land to reap the maximum out of your investment. Once again, my saying is don’t do a retirement plan. Do an investment plan.

      If you do not want to handle simple things of partnering with a builder to maximise the rewards on your land and consider it as a hassle, then you are not fir for an investor at all.

      Retirement plan will assure for your expenses only, while investment plan will not only pay for your expenses, but also make you richer.

      Only buying an apartment with mortgage is affordable for many people in India, hence you see many buying apartments. If you have cash, buyung apartment is not wise. Invest in better rewarding land, if you must invest in India only.

      Many people here give you advise for retirement plans. Its up to you to decide which one you want to opt
      Dec 30, 2018
  • Cisco / Eng boombkkm
    If you want to go back to india and work for an IT company what other options you have other than Blore and Hyderabad ?
    Dec 30, 2018 2
    • Amazon 123raj
      NCR/Pune.
      Dec 30, 2018
    • New / Eng ladka
      Looks like he got triggered
      Dec 30, 2018
  • eBay chg
    Invest in a BDA property, prices were stable for last 2/3 years, picking up now, right time to invest
    Dec 30, 2018 0
  • New begin
    Which part of Bangalore? Hebbal to Airport side, still the prices are quite low and there is huge investment opportunity.
    Dec 30, 2018 3
    • Microsoft UMbR3
      Give an example apartment? Why not buy a small place in brigade gateway instead?
      Dec 30, 2018
    • New begin
      Check commonfloor.com. Definitely not in Brigade gateway as it is next to Railway track.
      Dec 30, 2018
    • Bank of America / Other tSWv17
      Check out 'Century Artizan', they're selling just lands and you can construct your own Villa; I like the concept more than apartments (apt market is saturated in India)
      Dec 30, 2018
  • This comment was deleted by original commenter.

    • Amazon 123raj
      Because he's moved out of india but cant get the indian out of him aka fails to assimiliate.
      Dec 30, 2018
  • Microsoft du316
    It’s a pain to maintain if you want to rent it out. Also you get charged 30% of the rent if you are NRI
    Dec 30, 2018 1
    • New begin
      Pain to maintain? First time I am hearing this sort of complaint
      Dec 30, 2018
  • Adobe adobebest
    Ncr real estate is doing real bad.
    Dec 31, 2018 0
  • Xperi trollololo
    N
    Dec 30, 2018 0