Without any assessment it is difficult to ascertain if a current home on sale is worth the reasons for buying. The two main reasons home buyers in Bangalore deliberate are-closeness to utilities and job market for any property that will bring an income. Of course, there are other things that matter while assessing the property that is for sale. If you are interested in new apartment projects in Bangalore, look for at least 8 main metrics that will seal the deal. Let’s begin with a home for sale in the market for a long time.
Why Is A Home Not Sold For Long?
Home buyers hit the click button and go on property portals to know which homes are for sale. Curiously, some of them are enlisted for a long time. The first reason for this is that it is priced too high for any average buyer if it belongs to a reliable developer. If the neighborhood is ideal, and the cost is reasonable then it should have been sold. For example, apartments for sale in Bangalore south are being booked by investors and genuine buyers. It is best to call and find out if the property still interests you. Some people reject a home because it is not vaastu compliant. If you do not believe in it then show some interest in buying it.
Good Cash Flow Is Equally Important
Buyers who already have ownership homes, tend to be investors. Look at the income yield to determine if the property should be picked up. Is that the kind of cash flow you need or will it be saved. A property in a good neighborhood in east Bangalore will get good rental income. Look for apartments for sale in Bangalore East where people like to reside if it is close to their workplace. When investing here, check the down payment and monthly flow of income required. The debt income ratio should not be more than 36%. If you take a loan to buy the home, then a lender may offer up to 45% depending on the project. Do a careful calculation to make the required savings. A new home has all the modern amenities and services that a tenant requires.
When a Single Home Gets Number of Buyers’ Interest
Often a particular location, type of construction or space makes one home coveted to several buyers compared to others. It is already happening in the case of luxury apartments for sale in Bangalore in few localities. If one builder has other house types in other areas, you may ask for site visits for the interesting home on offer. If it is good but beyond your budget, then ask for other similar homes by the same builder. You may get a similar one which fits your financial plan. This is a key metric to consider when choosing a home. The coveted home that others are interested in may have its price jacked up. It is like a bidding process where the highest one gets the deal. This is a tricky metric and think about long term repercussions if the payment has to be done via loans.
Even if the home will not be given on rent, you will need to calculate the ROI. How are you going to ensure that this home will be ideal and worth the money spent? It is not only the money spent on buying, registration and stamp duty that you will spend. Once it becomes yours, there are other things to be paid annually. These include maintenance, electricity, repairs, taxes and also insurance if any against fire or high scale burglary. The area and the property will make the difference for potential returns like in case of apartments for sale in Bangalore east.
Ratio of Price to Income
You have already paid the price and need the income. Calculate the income that the home needs to get if it will be rented. Look at the market price and not just the income in isolation. For example, a friend or relative may expect you to give it on rent for a lesser amount. Will you agree to it? If you think about this metric, then know the gap you will have between the market price and actual rent from it.
There may be some other metrics that are not listed which include occupancy rates of other similar homes, revenues and tenant types.