Why are people not constructing in Banashankari 6th Stage?

[PlotGuy]

I respectfully disagree. You don't build just because you own a plot. The numerous BDA/BDA approved and vacant plots on Kanakapura and Bannerghetta roads prove my point. Not all of them are investment properties after all.

As to rent vs own apartment, I don't have much to say about this since this is not my original argument, although a strong case could be made for renting an apartment and investing your principal elsewhere. For example, the rate of return on your investment through the Indian stock market for the last 5 years would be better to putting money in an apartment; but I am not trying to make that argument here. I am not looking at buying apartments. The original thread asked why people are not building in BSK 6th stage.

All I am saying here is given a choice between building in BSK 6th stage, and living in a rental apartment closer to the ring road on Kanakapura rd or somewhere on Bannerghetta rd, most people would choose the rental. Right now, living in a rental is much safer and offers so much better quality of life. Sure BSK 6th stage can become another Jayanagar down the road but it is pretty much unlivable right now.

[patelsumit1977]

Thank you plotguy. Appreciate your comment. I do agree its pretty much unlivable at the moment. Wht i am trying to present is the fact that, unless people start living in the place, scope for development reduces.
People who have bought a site with the intention on constructing on it, should not delay it because of the a/m point. if one has bought to construct, one should construct and thats how the layout will progress.
Regards - Sumit

[rrachuri]

We are planning to construct house in 4th Block, BSK 6th Stage. Bhoomi Pooja was performed couple of weeks back.

[patelsumit1977]

Attaboy! ..looking forward ....all the best...
my home coming up in this mnth.

[rrachuri]

In which block is your home coming up?

[patelsumit1977]

4th Block itself.

[rrachuri]

gr8 to know about that. Is that the 4th extension block or in the original 4th block itself which is adjacent to Chikkagaudana Palya(3rd blk)? Yesterday, I had the opportunity to visit the layout and spend some time there. The area is slowly gearing up towards development with one or two constructions here and there. Here are some pics of the area

http://www.facebook.com/home.php?#!/pho ... 4&view=all

[mybdasites]

Regarding rental vs own property, below is an interesting calculation!

Say, for 60 lakhs (which is the cost of most 3BR flat cost or for a house on 60x40 not including land cost), if you invest in a debt fund you will get 10% or 6L per year. Now, you pay about 15k per month in rent or 1.8L per year and the rest 4.2L you save every year.

At the end of say 40 years, your building value is zero (we are only using the cost of building, not land). The value of a flat after 40years would also be zero. Now, how much is the 4.2L per year worth after 40years with compound interest????

Just something to think about. Sure, a home is necessary. But it is not such a "sure fire" investment as everyone makes it out to be.

[house_hunter]

what does it mean by value of flat becomes zero after 40 years??
after 40 years, hopefully that area would have appreciated a lot!!
certainly a flat in that area would mean a lot at that time..

just a jovial remark: no offense pl..

if we go with this calculation, no one would build a house or buy a flat.. we would find only land owners in bangalore
may be living in tents on these lands..

or we should consider cost of building tents also!!

cheers,

[mybdasites]

In a flat you really don't own anything!! After 40 years, the building would be dilapated, but you can't do anything unless everyone in the complex agrees to rebuild.

As a case in point, there is a very old, dilapated apartment complex walking distance from Jaynagar 4th block. Just enquire the cost of a flat there and even at that cost, if there are any buyers??

I own a flat in an old apartment complex of 16 houses (36yrs old). The building is in a bad condition and nobody wants to live or rent! 14 owners decided to demolish and rebuild by working with a developer. The rest 2 didn't want to do it and it is in a limbo! The resale value? Essentially 0!!


I am not discouraging would-be-owners. Just to do their math before embarking on a project for purely sentimental reasons!!