Canterbury Hillview is a beautiful place in the foothills of Nandi hills. Canterbury Hillview offers the perfect blend of nature and luxury for eco-friendly living. Each plot and villa is surrounded by breathtaking views and greenery, and with guaranteed rental income and a world of travel opportunities through Trip Villas’ holiday exchange program, it’s the ideal place to call home. With properties starting at 50 Lakhs for 1 BHK, 75 Lakhs for 3 BHK, and 22 Lakhs for land, it’s the perfect investment for your dream life.. Enjoy sumptuous meal at our club-house restaurant and spend a relaxed evening at the clubhouse & swimming pool.
There are three types of investment that can be done in Real Estate in and around Bangalore
Where we invest a sum of money in a property and get fixed returns over a period of time, with annual or 3 year increments. This is suitable for investors with less risk and can earn a return of 6–7% on your capital in Bangalore with increments, combine this with an annual increase in the land price of 3–4% per year. These type of investments are good but provide only unrealised return as we would not be selling a commercial property land.
These type of investments are usually where people reside. These include, Apartments, PG’s, Hostels, Layouts. The usual rental yield is around 2-3% and around 8% land appreciation per year on an average. Residential real estate properties take more time to manage and they yield lower returns to the buyer, the yield on this is lower than commercial properties.
This is an investment where you buy the property in the outskirts of a city approximately 100 Km from the city and hold it for a long period of time and hope some development happens in the region so that your land value increases. You then sell it to a person who thinks he can get a good return on the land. This is a very lucrative investment as the growth rate of land is higher in these areas as compared to the interior part of the city as compared to interior part of the city over a long period of time.
Coming to a perspective as to where to invest for an investor with 15 – 20 Lakhs in real estate. Assuming that a person makes a down payment of the amount, which would be 20% and remaining 80% capital comes from loan – 75 Lakhs – 1 Crore.
Land in the outskirts:
This is a lucrative investment as explained previously, but there is no measured return you would be getting on the land and it might generate either a huge positive return over a long time but you would not get any passive income out of these. The best time to invest would be when some other people announce a project nearby so we can reap the benefits of the development immediately.
Real estate investment trusts (REITs):
These are investing in companies which have investments in real estate and construct offices and they give part of the ownership to a person who invests. There would be two types of return here, dividend return and stock price return. Dividend return is something where the REIT earn rent from the property and pay them as dividends to the buyer. The stock price return would be the increase in the price of the REIT. There are 3 REITs in India, which is Embassy, Brookfield, Mindspace.
Embassy REIT has given a return of -4.21% in the last 3 years, Mindspace has given an XIRR return of 7.62% and Brookfield has given an XIRR of 12% since inception. The return includes both price appreciation and dividend received.
You can invest 10 Lakh today and get a bank loan for the remaining 40 Lakh. You can repay the loan with the promised rental coming in from the property and own the property in 13 years assuming you are in the 30% tax slab, growth rate in land being 10%, and the 10 year government bond yield being 7.2%. The expected IRR on the property would be 30% and if you want to sell the property and cash in between we could do that and buy a bigger land and get section 54 benefit and earn all this income after tax. The per sqft price is 2000 on land remaining on building.
Link to buy the property: https://www.vishuddh.biz/own-house-bangalore-karnataka/
Link for the calculations: https://docs.google.com/spreadsheets/d/1pbiHNVzPUgVogw2CXo58OgenGhA2foTkR98pfqUyz2A
Link for TripVillas Website: https://www.tripvillas.com/
*7 Days of holiday exchange with tripvillas would be provided and you can utilize it to stay in your own property or in other places in India or abroad and enjoy your vacation without breaking the bank.