Real estate in Bangalore

This is to make everyone aware of why the prices quoted to buy apartments are still ridiculously high as compared to what it takes to rent it. Look at the below on this page to see the rents that these apartments command

http://bangalore.craigslist.co.in/apa/1044982345.html

Now look at the links that I have provided on this page that takes you to the price quoted on craigslist to buy the same apartment. You will notice that in almost all cases is under 4%. What this means is that if you bought the apartment for cash and rented it out then you would just be making 4% on your investment as against the risk free rate offered by fixed deposit at around 9%. Now consider the case where you are taking a home loan where you are paying upwards of 10% in most cases. With such low rental yields and the housing market in a state of decline for at least the next 5 years, the chances of creating any sort of equity is non existent.

Check the below if you want to do a rent v.s. buy analysis
http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html# -

Tata Sherwood, off HAL Airport rd - flats 2bhk/14 K + M -

Tata Sherwood, off HAL Airport rd - flats 2.5bhk/16 K + M

Tata Sherwood, off HAL Airport rd - flats 3bhk/20 K + M rent 6500000 to buy http://bangalore.craigslist.co.in/reo/1048433744.html

Sobha Iris, Outer Ring Road - 3bhk flat @ 16 K - 18 K rent 6000000 to buy http://bangalore.craigslist.co.in/reb/1036613430.html

Springfields, Sarjapur rd - 3bhk flat @ 25 K 7000000 to buy http://bangalore.craigslist.co.in/reo/1045259004.html

Sobha Jasmine, Outer Ring Road - 3bhk flat @ 25 K and 4 bhk flat @ 40 K to rent 8700000 to buy http://bangalore.craigslist.co.in/reb/1051453522.html

Akme Harmony, Outer Ring Road - 3.5 bhk flat @ 22K - 24 K 7500000 to buy http://bangalore.craigslist.co.in/reb/1004164183.html

Prestige Acropolis, Koramangala - 3bhk flat fully fur @ 65 K 24000000 to buy http://bangalore.craigslist.co.in/reb/1031535677.html

Adarsh Palm Meadows - 3bhk villa @ 1.9 L 32000000 to buy http://bangalore.craigslist.co.in/reo/1002674845.html

Sriram Spandana, off Inner ring rd, Koramangala - 3bhk flat/22 K + M with soft furnishings 7000000 to buy http://bangalore.craigslist.co.in/reb/1012462541.html

MIMS Ardendale, Whitefield - 3/4bhk villa @ 35 - 45 K No buy info

Akme Ballet, off Marathalli - 4bhk pent hz - 40 K 6700000 to buy http://bangalore.craigslist.co.in/reb/1023008068.html

Prestige St.Johns Wood, Koramangala - 2bhk flat fully fur - 45 K + M No buy info - Zen Gardens, Artillery rd - 3bhk fully fur - 95 K No buy info

The purpose of this illustration is to make buyers aware of what to look for when you are considering to buy a property v.s. the decision you make to rent one.