myBDAsites.com

this site is sold.

Just y'day someone was asking about the price of these sites in 9th block. and to that somebody else replied saying the real rates are 1000 onwards. I have a hard time finding plots in the Rs 1000 range in both BSK 6th stage or Anjanapura.

plotguy,
if u go around BSK 6th stage or Anjanapura ; you would realize why some1 said the real rates are 1000 upwards..
there r not many homes n also not much construction activity happening.. so in this case, is it worth paying 68L for a property where you cant get neighbors for next 2-3 years!
also, the rental for 2BHK is rs.4,000. a 30*40 site costs 20.4 L plus registration cost of 2L. Construction of 2 unit of 2BHK would cost another 25L. for a investment of 50L, all you get is 8k per month if you let both houses on rent at present situation.. the interest you pay to the bank is around 40k(for a 40L loan for 20 year tenture)..

a)IF
land rates increase,
you make a profit only when you sell it
ex : rs.1700/sqft becomes 3000 in next 5 years.. the profit made is 15.5L or close to 50%.. but, u need to factor in interest, lost opportunity cost, selling n buying cost etc..
FD would have fetched 6L interest, stock would hve made u poorer or richer in multiples of 3-4 times.. so, investors r thinking twice b4 buying these days since rates are not increasing every month or week as in 2007 or 2008..

b)IF
rental increase,
YOUR contribution towards loan EMI would decrease!
ex: a rental of 4k might increase to max of 15 to 20k in next 5 years considering location becomes livable, inflation goes up, Bangalore is hot place for investors etc!
so, your duration of making a breakeven on these properties is very long duration since all the benefit of making a profit is taken by seller of the land by quoting high land rates..

The seller might hve brought at any rate. but for illustration purpose, let's think he is a direct allotted owner .. cost of site in 2001-02 was 190/sqft. appreciation in 8 years is 190 to 1700 sqft or 795% .. is it possible to get a 800% appreciation in next 8 years, is the Q? it means, the rates should double every year from now onwards to get such kind of profits.. its not possible.. tht explains why investors are shying away from testing waters in RE today..

if u feel that my calculation/view point is wrong, do let me know.. i would like to hear a different perspective too

I don't disagree with the crux of your argument. I am talking about getting plots for Rs 1000+(as opposed to 1600+), which doesn't seem to be realistic - as the first post in this thread illustrates. I mean it is next to impossible to get a BDA plot at around 1000.

yeah.. i too know that sellers r not ready to sell at 1000+.. few buyers r ready to buy at 1600+.. tht why the overall transactions in RE has come down..
I have had some thought provoking arguments with my friends who are from finance/CA background on the topic ' whether its good to say in rented house or be a virtual owner by constructing ur own house using bank loan'..
i hve learnt tht most of times, we construct houses out of social obligation rather than need.. anyway, lets keep the search on!

Well said Duffyhair

the so called sellers in the BSK 6th stage are only those erstwhile landlords and the bakras who purchased these plots during the peak time by paying upto 2k/sq.ft(Now they're resellers not the original allottees)

So you can't expect buying at Rs.1000/sq.ft with the above 2 category people. since the first category guy is a saturated man who can wait for more time. the second category person is occurring huge losses as the current rate is below his bought price and is not able to earn a single pie in a year by investing huge amount from his pocket/by taking loan from banks. at the same time he is not ready to book loss by selling at the current market rate.

Look for genuine sellers(i mean direct BDA allottes who are ready to dispose at short time due to financial needs) and negotiate in multiple rounds. Then you can defintiely get around 1000-1100/-sq.ft for full cash transactions.

I understand what you are saying but my point is it works only in theory. It is very difficult to find original owners willing to sell in the 1000-1200 range. I haven't found one so far.

from how many days r u searching?
how many of ur relatives n friends know abt ur site search?
how many friends hve u made apart from internet one's who are also searching for sites like u?
all these matter a lot to get the right info..
FYI : I am searching for sites from last 8 months.. n almost every1 in my circle know abt it.. so, whenever they find something interesting.. they just give me a call n pass the info..
the flip side of this measure is that everytime they meet u, they ask where did u get the property finally? why r u not yet finalized on something?

Plot guy,

I can understand your anxiety,be patient in your search.
You can take your own time in selecting the suitable plot for reasonable price either at Anjanapura or BSK 6th stage unless you are planning to construct a house immediately which i don't advise.

The negativity about these two areas are they are on the south of Bangalore where commercial/IT/Industrial development has come to a halt. Though they make good residential areas, it will take few years ( 5 or more) to come to a livable state. You have enough time to decide and buy. Good luck.

If you are buying for investment purpose duffyhair's calculation holds good!!!