Why Rental Property in Bangalore is a Good Investment

Bangalore is also known as Silicon Valley of the country as major IT companies are based in here like Wipro, Infosys and so on. There are also good universities in Bangalore, students across the country come here for further education in engineering , medicines, fashion designing, architecture etc. Some come here for treatment as there are very good world class hospitals like famous heart hospital Narayana Hrudayalaya, where people not only come from all over India but also from abroad for treatment.

People who have to stay in Bangalore for short periods like students, people coming for treatments or young jobseekers have to live on rental basis.

The rental properties include flats, independent houses, bungalows, paying guest accommodation, apartments, rooms within a house and time share property. Many of the companies provide accommodation for their staff. One can get commercial property, office space, industry property, storage space and retail space on rent for business purpose.

Even banks have come out with an innovative scheme of providing loans for property owners, who have rented/leased their properties to banks, insurance company, PSU, multinationals, embassies etc. The scheme provides loans against future rent receivable of such owners.

With the increase in number of people migrating to Bangalore in recent years Bangalore house rents have increased.  Normally, owners who have more than one house give their other houses on rent to students, usually if the apartment is near any of the universities. Bangalore house rents are more in the city as compared to its outskirts. In recent survey the demand for rented properties was maximum in South Bangalore; this was followed by Bangalore east and north. The demand for rental residential properties in Bangalore south is thrice the demand in Bangalore central and twice the demand in Bangalore north, but due to current global recession there has been a drop in house rent by 1-10 percent.

A Good Investment?

Semi detached houses are a very popular choice for homebuyers and those who rent and are available in a wide range of styles. A semi detached house is attached to another house on one side, sharing a wall. Usually, both portions are identical in design although there can be a few differences.

These are cheaper than detached houses as two homes can be accommodated in place of one. The shared wall between the two portions is called a “party wall” and any change to the wall is subject to a legal agreement between the two occupants of the property.

A short history:

The original design is credited to architect John Shaw and his son in the 19th century in North London. Semi detached houses were generally attributed to the middle class. Around the 1920s and 1930s a number of semis in different styles came up in the suburbs featuring spacious living areas with modern amenities. After World War II, it was common to see council semis across the UK and eventually these became a preferred option among homebuyers. Semi detached “villa” style residences in the suburbs are much sought after. As an evolving style, even detached houses are being divided to create two homes because of the price they fetch. The reverse is also common, where two semis are combined into a single detached property thereby raising its value.

What are the benefits?

With the variety in building style, the area in which they are located and the quality of construction, the following are the perceived advantages of semis:

• The cost factor is the first benefit. There is the advantage of an independent residence at a much lower price than a detached home.
• Compared to terraced homes where the owner must park on the street, semis are equipped with their own garages and gardens.
• Semis offer privacy because of their location, in addition to less noise pollution from neighbors.

A semi detached house makes good investment sense for those looking for the benefits of a detached residence without the associated high costs. To choose the most suitable one, talk to the neighbors to get an idea of the area. A property with a garden is an advantage as it adds to the property value. Ex council Semis are more affordable, spacious and conveniently located.

Things to watch out for:

Building a semi detached house is a great idea but when a home buyer considers buying an existing property, it is important to have the property surveyed. Since semi detached houses were originally built as a cheaper housing option, there are chances that the quality of construction may not be up to the mark. Repairs and renovation if any must be taken into account before investing in the property. There is also the issue of mortgage, the complexities of which have to be properly understood before the purchase is made.

The best starting point is a reliable developer with an excellent reputation who can offer various options and unbiased advice based on the buyer’s needs, the location of choice and budget.

How to Find Good Investment Property

The topic that will be explained in this article is the way to find good investment property. Owning rental real estate seems to be more and more popular as investor tire of the swoops and swoons of the stock market. As for our information, not everyone has what it takes to be a landlord. But those who do may find out that rental will be a good way to build wealth. After we have decided to buy rental property, our real work begins. To find a profitable rental property usually takes a long time, connections and plenty of research.

To find good investment property, we need to know our time horizon. As it is the same as any other investment, we must have a plan or idea on the period we want to own a rental property before we buy it.

The longer the period we plan to own the property, the more we’ll probably need to invest in maintenance, improvements and repairs. If we’re keeping it for 20 or 15 years, at some point, it means that we will be putting a new roof on that property. In addition, we will be putting in new appliances and doing some major repairs. If we are only planning to own a property for four or five years, by contrast, we will probably want to avoid making any major improvements unless we are confident that we can recoup the cost with a higher sale price.

There will also a greater risk that we will face within a shorter time horizon. Although our rental will almost certainly appreciate over 15 years, but it could easily lose all the value in the following next five, especially if we are buying in an overheated market. We will need a higher amount of potential annual return to make up for that risk.

As for small investors, they might prefer long-term ownership. We will have plenty of time to achieve great result in the market, and rental income can make a nice supplement to our day job. Find more rental properties, and being a landlord may become our daily job.

Lastly, we need to develop a network. Landlords that have greater experience might find their properties in a variety of ways. Some of them will hunt for foreclosures, making friends with bank employees and city hall clerks or who has information on which properties are about to be sold. Some of them run promotion in local newspapers. Meantime, others might work with real estate agents that keep their eyes peeled for possible buys. Some of the landlords might be joining a local landlord and property owner’s association to make contacts and good relationship. It is believed that when we begin to own rentals, all the other investors start coming out of the woodwork.

Is Whitefield Still A Good Investment Bet?

Initially embarked upon as a IT/ITES driven real estate market, Bangalore was known for its commercial properties. But over the years, with infrastructure development and more employment opportunities, the city is now known to offer an impressive mix of residential and commercial real estate. One of the important areas that has garnered much of the investor’s attention is Whitefield in East Bangalore. Bangalore’s IT boom transformed the locality from a quaint suburb to a major growth corridor. Property in Whitefield Bangalore is in high demand among the professionals of the IT sector because of its excellent connectivity with the city’s IT hubs. The neighbourhood has kept its charm alive by maintaining its scenic green beauty and the surroundings lashed with greenery.

East Bangalore is known for its standalone prominence as the commercial nerve center of the city. With the establishment of Electronic City and the EPIP zone, this quadrant has attracted a lot of investors. The development of SEZs and STPs further fuel the growth. The reasons as to why Property in Whitefield Bangalore has become so popular can be broadly divided into two categories:

Connectivity Related Advantages-

It has grown into one of the most sought-after localities because of its connectivity with Bangalore’s IT hub and several other important locations. It offers hassle-free access via the Outer Ring Road and the Old Airport Road. Proximity to the airport further adds to the advantages. It is well-connected via flyovers, under bridges and other local transport networks. The Namma Metro is also extending upto the locality in its second phase. Good connectivity via a network of roads has also led to a surge in the demand for Residential Projects in Sarjapur Road Bangalore as it is the liaison between residential and commercial areas of the city.

Other Advantages-

In addition to its connectivity features, Whitefield also boasts of a full-fledged social infrastructure replete with high quality schools, colleges, malls and multiplexes, retail centers, entertainment centers and all the other facilities that complement a comfortable urban lifestyle. Continuous development is recorded in the segment to offer the residents with a higher standard of living. Metro connectivity will bring more additions to the neighbourhood’s social landscape.

The Benefits of Using a Property Investment Specialist

When you are in the market for a new property, especially if it is far away from home in another country, it is advisable to do your homework first. If you are considering investing in property overseas, you need to be sure that you are making the best investment you can. However, sometimes you’re not able to go there yourself. You could then list the services of an investment specialist that will do the homework for you.

Here are the main benefits of using a property investment specialist.

They will advise you on the neighbourhood. If you are considering purchasing property in another country, then you may not be familiar with the neighbourhood where the property is located. The property investment specialist will know a lot about the neighbourhood you are considering and can advise you accordingly. This will assess whether it is a growing or declining neighbourhood and whether it’s worth the investment.

They will advise you on the safety of the area. Usually, they would have assessed the area beforehand and are well aware of the safety aspects of the area. A good property investment specialist will indicate which areas are worth considering as an investment.

They will check the exact location of the property. If it is a house or building that you are looking at purchasing, then you need to find the exact address where it is located, so ask the property investment specialist to show it to you on a map. For obvious reasons, you need to know where the property is. You may discover that it is near a shopping centre which will be beneficial to you.

They can advise you on the state of the property. The property investment specialist will conduct a full inspection of the building. They can advise you on the structure of the walls, the conditions of the doors, the functioning of the plumbing and geysers, the electrical fixtures, the stability of the roof structure, the condition of the floors, as well as the front and back yard. Therefore you will be fully informed of what you’re purchasing.

Searching for property investment opportunities can be exciting. Ensure that you find a good property investment specialist that has been to the location and can give you accurate information that will be beneficial to you. If you have all your facts, you cannot go wrong with property as an investment option.