Buying a second home in Bangalore: Tips to follow
Riding on the back of steady growth, the real estate market in Bangalore has been soaring high and has borne witness to a steep rise in the number of second home buyers in the city. With other areas of investment proving to be a flash in the pan, Bangalore’s residential market has experienced a sudden surge in the number of second home buyers.
According to experts, more than 80% of the soft launches in the city constitute of this category and the buyers mostly range from senior or C-Level personnel to businessmen, who purchase the properties with an eye for profit on resale. With time, the community of second home property purchasers in the city is becoming more firm with buyers aging between 27-40 years.
In addition to it, there are numerous micro-markets in the city that have not been tagged with high prices, unlike Koramangala and Whitefield. This, as a result, has sustained the affordability of the areas, with builders offering an array of apartments in such locations, laced with modern luxuries in more than 80% of such complexes.
However, investing in real estate for the second time can be a risky take for a young property buyer. According to realtors, there are some do’s and don’ts to watch out for, in order to buy a good property in the present real estate market of the city. Such points include:
Avoid future assumptions
Property consultants strictly recommend not to invest in localities, depending on future assumptions. It becomes difficult to book for future profits, if the investment is based on a hunch, even if it is a proposed government plan.
India lacks a specified time-frame for the completion of its infrastructure projects and often take 8-9 years to become fully functional. Investing on a proposed plan means locking the money for a specified time, with no fruitful returns in most cases.
Buy from a reputed developer
It is always considered safe to buy from reputed developers who offer a wide range of choices in a single project and adhere to their deadlines. This, as a result, increases the chances of a buyer to avail high-quality lifestyle and amenities, within a specified time and not wait long for price escalations.
Existence of core-business localities
To make the most of an investment, a second time home buyer must confirm the presence of core-business areas in the neighbouring 6 km. Unlike few metropolitan cities such as Chennai and Mumbai, core-business areas in Bangalore are found only in certain locations. In order to book profits within the next 1 and half year and for better returns, it is imperative to make a note of the core-business areas.
Focus on the ticket size
One of the golden rules to go by, for a second time property buyer is to look for ticket size instead of focusing only on the price or rate of property. Experts confirm that focusing only on rate can pull down the profits significantly, while targeting only on the ticket size will guarantee higher margins, irrespective of the investment range.
Good project designs increases the resale value
A good project design, where the builder comprehends exactly with the buyers sentiments exactly, pairs with the ticket size and offers quality amenities always escalates the resale value. For instance, a property above Rs 70 lakh in Electronic City may not yield a good resale value for the next 6-7 years. However, a property below the Rs 50 lakh price prices in the same area will yield fruitful returns in a shorter span of time.
