Bangalore Real Estate: Yet another Buy/Rent data point
Craigslist offers us yet another buy vs. rent comparison:
Rent:
BEAUTIFUL 3BHK + SERVANT QUOTER SEMI FURNISHED FLAT AVAILABLE FOR RENT. “SJR PARK VISTA”.
Broker’s asking for Rs 16000/16500 per month.
Buy:
3 BR flat available at SJR Park Vista, on Sarjapur main road for SALE, off Sarjapur Road, behind SpringFields. 3 BR, 2 attached, one common, open kitchen, Servant’s qts . SBU Area: 1817 Sqft, 6th Floor, Block: CEDAR. Expected Price: Rs. 65 L - inclusive of registration.
1% of sale amount will be charged as commission/brokerage.
Per HDFC’s home loan calculator, a loan of Rs. 65 lakhs over a 20 year period at a fixed interest rate of 13.5% works out to a monthly installment (EMI) of almost Rs 80,000. The EMI / Rent ratio thus comes to 5; or the Price / Rent ratio is 65 lakhs purchase price / 1.92 lakhs annual rent = 34!
Seems that the increase in home loan rates, the oversupply of 2/3BHK apartments or the price corrections in some parts of Bangalore haven’t dented the enthusiasm of property sellers and brokers. Any buyers?
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August 11th, 2007 at 8:16 am
Why don’t you write same stories of Real Estate for Mumbai..all your examples are only for B’lore….would like to see something similar for Mumbai…
August 11th, 2007 at 9:04 am
Jignesh,
The Bangalore bias is because I live here, I did a lot of research when I was looking to buy/rent an apartment, and I read the Bangalore Craigslist regularly. Unfortunately, none of this applies to Mumbai. What would be great is if you or other readers could share experiences about Mumbai real estate.
Thanks!