Is It Worth Buying a House for More Than 50 LAKHS in Bengaluru?

Buying a house in Bengaluru, a bustling metropolis known for its tech hub status, is often scrutinized as a combination of financial and sentimental investments. Though renting might seem cheaper in the short term, owning a house can bring a sense of stability and security, especially for those above the middle class.

However, the decision to purchase a home in Bengaluru, particularly for more than 50 LAKHS, requires careful consideration of several factors. From understanding the property prices and locations to the nuances of property documents, it's crucial to navigate the market with a keen eye for detail.

Understanding Property Prices and Locations

Real estate prices in Bengaluru can vary widely, with an inclusive cost of 5000-6000 per square foot (sft) for medium to low-range builders. For high-end builders, such as Prestige Salarpuria, prices can escalate to 8000 per sft all inclusive.

Key Considerations for Property Purchases

Efficient Use of Space

The carpet area, which represents the total liveable space, is a crucial aspect of property purchases. It's advisable to avoid projects where the carpet area to built-up area ratio is less than 65 or even 70.

Example Scenarios:

Scenario 1: Super built-up area is 1300 sft with a ratio of 60. This yields a carpet area of 780 sft at a per sft price of 6000, totaling 78 LAKHS for a 2-bedroom flat. Scenario 2: Super built-up area is 1100 sft with a ratio of 70. This gives a carpet area of 770 sft at a per sft price of 6000, totaling 66 LAKHS for a 2-bedroom flat.

Comparing these scenarios, the second option offers the same liveable space for 12 LAKHS less, along with an additional saving on registration fees of 1-1.5 LAKHS. The total saving is 14 LAKHS.

Project Completion and Builder Reputation

Builders have increasingly mislead buyers by inflating the super built-up area to maximize profits. It is imperative to avoid ongoing or under-construction projects and opt for projects where all walls are built and at least one coat of white paint is applied. Aim for a completion timeline of 1 year, despite even reputable builders taking 3-5 years from start to finish.

Examining the Property in Depth

Before finalizing, visit the property multiple times and gather insights from as many residents as possible. Listen closely to their pain points and experiences. It's also wise to talk to previous owners from the same builder. This can provide valuable insights into the builder's reliability and the quality of construction.

Document Verification and Legal Safeguards

Always verify paper documents to ensure they are not shady. Be wary of projects where permission for 4 floors has been granted but a penthouse is built in the 5th floor. These can be risky and lead to legal complications.

Informed Decision-Making

In summary, if you're considering purchasing a house for more than 50 LAKHS in Bengaluru, it is recommended to visit the property at least 5 times, accompanied by relatives and friends. Seek multiple perspectives and do not rush the decision. The stakes are high, and due diligence is paramount.

Buying a house is a significant investment, and while the financial commitment is high, the personal satisfaction and long-term benefits can be well worth the investment. Always approach the process with a clear understanding of the market, a critical eye, and sound advice.