I Bought 3 Flats in Bangalore and Made 1 Crore Profit
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- Опубликовано: 7 мар 2024
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In this video, I go over the 3 flats I have bought in the last 3 years and everything about it - how much I bought them for, how much money I made, what is my plan with them, why I still live on rent and much more.
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Hi Shashank, can you please make a video on how you are buying the house and what do we look when buying the house?
@@kiranmahesh93 12:37 sir actually I am 19years old. you told that buying a house is a liability but isnt paying rent for a longer time much more of a liability. like some day or the other you will have to buy a house right. why to wait for a time when the prices are gonna skyrocket in future. CORRECT ME IF I AM WRONG. just started learning about these would totally appreciate if i get to know more. Thank you ❤
I also live in Bangalore. Please let me know if we can meet in person. Need your advise on few things (real estate and investment)
Very unrealistic assumptions. so basically homes just keep going up as per your explanation. Like rental income goes from 35K to 60K (almost 70% increase) in just 24-36 months. This way in 10 years it will be like 1.5-2 lac per month for same 1000 sqft apartment which is unrealistic.
That too with water shortage 😂😂😂 Chennai rent skyrocketed which was controlled by floods and cyclones. Soon nature is going to teach a lesson to these Bangalore greedy landlords!!!
He makes it sound so easy 😂
Agree with u bro...not a gud investment though.
Seems like very unrealistic definitely and very much doubtful that you are making fake claims ?😂
It's not unrealistic. I have seen rents going up to crazy levels in Bangalore within last 2 yrs
Can you make one video on how to buy real estate especially in bangalore? What all certifications should one check before buying property? and what are the hidden costs that are not shown at first, but once you buy, you have to pay those?
Hey Shashank,
Just curious whether you have included Property taxes and House maintenance expense for apartments/Townships?
paper profit on illiquid asset is not profit.
assumed rental yield for a 1000 sqft is too high, particularly in devanahalli.
I appreciate your transparency man! Thank you so much for the insights :)
While buying TCS shares you don't take a loan from the bank but while buying property you do take a loan so the additional interest paid for the investment negates the thesis that rental yield is comparable to dividend yield. Only works if you buy the whole house upfront which again is a stupid idea.
@shashankudupa1
1. Can we claim interest being paid on an under construction property? I don't think so, as per law, all the interests can be claimed only once the property is registered and no benefits till then. However, keen to understand if there is a way for it.
2. If we sell property in less than 2 years, without registration, then will it still attract Short Term Capital Gains? As per my understanding, it should not, as technically we are not selling the house but just transferring the ownership. Again, keen to understand if this is right?
Im in the buying and selling business, made over a million $ so far in Bangalore by doing so, lemme see
1) I've ALWAYS bought cash down without loan but in my best guess, the benefits start only after registering so no. You can't apply for retroactive benefits in my experience, post registration so a strong no on that too.
2. Again, I've always sold properties on average after 6 + years as that is the optimum time for appreciation maximisation and also that LTCG will apply without doubt, but in your question I think the benefits are negligible either way, if you're taxed according to income by IT, it should workout to 20% odd, 30% if your income exceeds the max which it might given the appreciation you may earn, and STCG is also 30%.
Pro tip, and we all do it openly : Pay cash or pay part by declaring fittings and furnishings + take as much cash as possible when selling. If you feel guilty pay the savings to a worthwhile charity 😉 If one gets into real estate and want to play it straight then they might as well work a salary job instead.
Hi Shashank, Can you please provide the process to sell the under construction property before registration. Did you register your first property before selling??
Rental yield can be passive or active, depending on one's approach to property management. For those who employ a management company, it's a passive form of income, requiring minimal involvement. However, for individuals who personally handle tenant interactions and property upkeep, it becomes an active endeavor, suited for those who enjoy engaging with people and managing the property themselves.
Pl keep in mind that u bought the houses towards the end of covid when the property rates had gone down. Flats were not getting rented out since 2019 so owners panicked and sold at cheaper prices in bangalore. Its not a normal situation. I also bought a house for 90 lac in 2022 now the selling price is 1.4 CR and rental income is 45k+maintenance 😊.
This is just only in few areas close to office spaces and that too temporary spike in rental due to return to Work from Office. Plus after 10 years what would be the value of these apartments is unknown as most apartments suffer from water shortage and poor quality of constructions.
@@venkatramprasad1157 Yes Bangalore FOMO is real, but dont expect this wave to continue
Thanks for the insights
Hi Shashank, How you found which property to invest into?
Can you suggest your broker? Or perhaps make a video for how do you research ?
Do you get enough water in your home?
Thank You so much for all the details you mention in this video.
Since you sold the house before 2 years I don’t think you will be able to reinvest it to another property to save taxes. You will be taxed as per the STCG rates
Yes i also think because i didn’t register it wont even be counted technically as the 2 years works after registration
@@ShashankUdupa1it will be tax evasion. Take the video down before you want IT department banging on your door
He is claiming tax benifit on pre emi. Which is not legal. He can only claim after getting it registered and oc
Abhi kaccha hai ye
Bank just accepted the pre payment right!!! didn't you have to pay extra to close the loan, if so then where is that charge?
Only one question- we can sell the apartments in between 1-6 years max .. I think it gonna be tough to sell older apartments..
so buy when it’s in construction mode and sell it off once it’s done ?
Buy during launch of a big mixed commercial-residential usage project stretching over large 100+ acres.
Sell after project is completed. It could take a decade.
Definitely there s huge risk involved and pre-emi. It could be a trap as well.
house 1,house 2 ka kya load repay karna ka bad apka profit kyasa hua?
Me & my wife has 3 flats.
I have bought in 2bhk 1056sqft Oct 2020 @ 27.5 gor 2.79L awas yojna benefit.
My wife bout in March 2021 2bhk, 956 sqft @ 29L. So far we have paid 5L as a intereste to bank.
Not flat cost is 51L & 46L resp.
Last oct 2023 we have bought 3rd one in pune 1170 sqft @ 83L.
Calculate net profit we have earned in 1st 2 flats?
hello @ShashankUdupa1 : were these A khata properties? Most of the many of the properties in bangalore are B khata, is it ok to invest in them for such investment purpose? or does it cause any issue in future?
This one i bought is a flat by Sobha, no problem with Khata
Good info bro❤
You cannot claim interest and principal deduction for under construction property, I know this because i myself have bought under construction property and have checked with multiple CAs and all of them have confirmed the same.
Even if we consider the deductions, the 1.75L that you are deducting is not the tax benefit. 1.75 is the tax deduction, the benefit being around 52.5k
Yes.. he is lying to the core, moreover who will take capital gains into consideration.. plus registration charges etc simply something in Excel 😂
Bhai p2p lending ma invest karna chaiya ki nhi ,agar karna chaiya tho konsa platform use kar to earn interest on investment eg 12% club?
Nahi bhai not a fan, very risky.
Very well explained.
I was told by an acquaintance that the first 20% of the payment goes from the pocket. Please explain how you were able to pay only 10% while booking. (You mentioned that you paid 6L for the houses)
You showed the purchase price but not the purchase date ! Sobha Dream Gardens was launched in Nov 2018 at the price you quoted. How did you manage to get one in 2022 for same price? I am assuming phase 2 or something? But that also means Phase 1 people have not made much money yet.
Good question….
Quite an informative video & thanks for being so transparent! What's your Strategy to buy the houses?
What about water facilities for these flats
The deduction for home loan interest is not applicable during the construction phase of the house. It becomes claimable only once the construction is completed. so how can you claim 2 lacks ??
Please let us know the loan process, is it with collateral or just down payment how does it work
bro i have a question in this video you showed PF contribution and all my question is you are working in the company ?( designation?)
Yes, i work as director of international sales in a company called Securens. Started by my father
In March 2024 purchase, house 2 purchase, you had high loan of 54,40, how you’re able to get this loan when down was 13.6L?
he only paid pre emi
Hi Shashank, can you please make a video on how you are buying the house and what do we look when buying the house?
Hi Shashank, thanks for the super helpful video.
1) Would you please also share the area you are purchasing these properties if possible?
2) Also the rental increase in 3 years from 35000 - 60000/- sounds a bit unreal at 20% YoY for 3 years. Per what I know, the rental increase in Bangalore every year is 9%. Am I missing anything there?
1 - Area is north Bangalore mostly in Devanahalli due to lot of growth triggers coming up - KIADBL Park, Metro to Airport, 5star properties coming up there and a lot more
2 - So last year Rent was 21000 and now its 35,000 and some going at 40,000. 60k was just an example, point was as the rent grows, the fixed income per year % on my buying price goes up
Note - We are currently in a bull run for real estate with major beneficiaries in Bangalore, Hyderabad, AMD and Gurgaon doing really well. Market will come to equilibirium soon
bro is there truth to it? Because most of registered value of plots is 30-40% less cost than market value u pay. Is this real?
Insightful
Shouldn't you be taking an IRR calculation? Also, what about maintenance cost? Don't you pay any association fees during your ownership?
So sobha when i bought had this offer that we dont pay maintenance until the society or committee is formed, they took one time advanced included in the 68L and will pay from that interest. House 3 said maintenance cost is there but thats only after we get OC. None of the flats have got oc yet still in construction
Real state is all wether investment.
Thanks for sharing all details.
Some time utuber just tells the things but by showing all with actual propeties rate and all it real helps and make sense.
Shashank do you also have comercial or plots in your portfolio or in future is there any plan.
And also how you get to know all the upcoming plans for the new location i side the city like devahanalli
Yes i want to - plot gives appreciation but im scared because i have to track it constantly for illegal settlements. Commerical i want to do but lack of knowledge today
Thank God someone is making sense, yt is full with no house bla bla, I also believe in diversification is must specially in real estate😊
Hi shashank, I was hoping if you could share the process of buying a home, type, area, builder if any, reason, time to complete and every other thing so that we can learn this aspect of home buying.
Yes il make a separate video for it since it has lots of info
Assumptions are fair enough, calc and yeild curve can be better. i get the point you are trying to say and the thought process behind it.
What about Apollo hospital and Fortis hospital share..
hai bro, liked ur video though, It would be great if you recommed some best books as well in this segment..
Before 2023 was good time to buy real estate. After that real-estate shot up like anything in Bangalore.
Hey bro, great information. Can you please share the excel sheet for us?
Excellent update on how the residential apartment also could give better return & also from diversity on investment it is really very good option thanks for sharing this wonderful informative info
well done mate!!
Intelligent investors buy land not flats, Buying when not living is bad, and buying flats is not an investment.
You have not deducted the interest paid on the loan from the profit as well the amount paid to builder for selling flat before registration .
Can you please also help us with where you do the research and all things to consider
Eg. We can use a screener for equity...
Yes, i will make another video on it
@@ShashankUdupa1 Thanks, wating eagerly!
What is the name of builder and apartment name that you recently purchased?
Brigade orchards ivory phase 1 devanahalli
II am sure there is perfect explanation for it, But why does your brokerage on home 1 keeps changing between 1L and 2L from time to time? Also I would not add 1.5L 80C benefit here as if you have decent salaried income, most of 80C will be filled up by EPF itself. Appreciate the video though. Would have been better if you could explain how you picked these particular properties.
Nah ive kept my epf low and my salary is 3L gross so epf is not that high.
Buy land and give on rent or made flats , 1 bhk or 1 rk near college etc
You didnt include registration charges for the first property. How did you manage to sell it without registering it?
Its called resale, sell at 5-7% discount vs builder price. Do a triparty agreement and transfer the flat to new buyer. They new buyer technically becomes the first owner when he registers - only problem with it is the process is long and irritating
1300 sq ft apartment for just 1.1 cr that too in a city like banglore?
Need to know property details which builder
pre-paying the enire loan amount hurts the cibil score, some please correct me if I'm wrong.
Not sure, Mine actually went up because my loan accounts reduced and my Cibil went above 800
You can invest in reits ? That is easier . I understand it did not appreciate like in the video. But it is regulated
coupon code pls ?
Hi Shahank, You showed 1.75 lacs saved on the first house as well which you sold in 2 years. In that case you are not eligible for tax exemption and you have to pay that money back to Govt
That 1.75L is not on profit, that is on home loan paid under 80c and section 24 for interest. That is deductible. What might not be is capital gains which is different
Hi Shashank - I don’t think you can claim tax exemption for under construction property. The first house tax exemption won’t be valid per my understanding as it was under construction. Deduction on home loan interest cannot be claimed when the house is under construction. Can’t claim under 80C or 24. Anyway for 80C, there are other things you would be doing as well, so would it be true to count this?
He's simply exaggerating stuff. He cannot claim tax for under construction property. Also, he didn't calculate the interest paid on principal for these two flats in 1 and 2 years.
In initial years, interest component is on the higher side compare to principal.
I am investing 10,000 per month in Aditya Birla PSU fund and 10,000 per month in quant small cap and 10,000 in quant mid cap And 5,000 in icici nifty 50 and 5,000 in parag Parikh FlexiCap and 1 lacks in smallcase (safe haven) and i have invested 2 lakhs in sbi Arbitrage Opportunities fund.
For my son higher education and for short duration only for 1.5 year
Please let me know if it needed any changes...
I cant guide sir, not a sebi registered RIA. But from looks of ur post it looks fairly balanced
Short term ke liye fd karo if your horizon is morethan 5-10 yrs then go eith equity.
Ok
Smallcap like quant smallcap, nippon smallcap, bank of india smallcap, hdfc smallcap inme se kisi 2-3 me invest karo paisa agar horizon 3 saal se zyada hai toh shortterm me koi bhi kuch nahi kehdakta but in the long run bada returns banenge inme
Investing in flats now is not a good decision. From where you will get water ?
Temporary issue for now sir. Cant stop investing due to temp issues. Its like saying tomorrow recession will come dont invest
@@ShashankUdupa1 okay. Do u feel that flats are good investment. When we dont have our own proper land. Duplex is atleast having our own land. Flats are depreciating asset.
You said you have invested in north Bangalore ( Devanahalli stretch) . But the rental is not that high as you said. You can expect high rental only in posh areas .
Currently sobha dream gardens is going at 30-35 k for semi furnish, my other flat is under construction
What is the name of other project you bought in Mar’24
Did you include the registration cost which is 8-11% in different states?
Yes sir, see excel sheet row 10. Registration for house 2 is added. House 1 i sold before registration as resale
why isn't the video viral yet? Make the thumb clickable maybe, the title is solid
I dont know whats the value over a period of time for apartments in Bangalore. Most apartments don't have good water supply and are dependent on water tankers. Plus lot of leakage problems and high maintenence payouts.
Anyway to speak with you to know exactly how to buy property in bangalore what all things to check I need some urgent help
If the water problem in Bangalore is not solved, rent of flats may come down..leave it going from 35k to 60k..
You think people will move out of Bangalore if there is water problem?
The so called "tax benefit" you are getting is on the taxable income and not on the actual taxes.
So, putting 1.75 lakhs under gains is fundamentally erroneous !
One Q: how did you buy underconstruction apartments without paying GST? You have not added that in your total cost too. Its applicable for all under construction projects! If you have bought it post construction, then the builder will force you to register which you did not for your 1st house. Sorry something is missing in your calculations.
Very nice presentation but I would not pay off the house as you say by cash straight away but first put the money in a single premium policy and then borrow from the policy and pay off part of the house loan and still get the tax benefit on the Home loan. The policy meanwhile will also pay me at least 6.5% annuity annually that is tax free.
Thoughts on tata power share
how to do you sell apartments in bangalore? do you go by brokers ?
Is there a intrest from people to buy old apartments
Yes brokers
Can you also throw some light on what kind of a game is it to rent the building , built to suit PG accommodation, out to PG business? I see it as multiple tenants with one point contact for rent, kind of an affair...
What percentage of 44ada you claim? 50% of invoice?
Yes
How do you get to know the price of real estate in real time
Online housing websites and calling brokers and asking them going rates
Hey shashank, Cheers on making a good arbitrage but i would like to highlight some points which looks very unrealistic to be true,
1. You cannot offset short term capital gains (As the property is not held for more than 24 months) by buying/investing in another House property. As per Exemptions under section 54 only when you have long term capital gains can you set off the gain portion by investing into another property.
2. Further lets say you have a long term capital gain and you invest in a new property to set it off, you need to keep in mind that it is locked in for 3 years wherein you cannot transfer the new property. and if you did so, you would end up paying capital gain tax on the saved portion.
Stamp duty registration and govt charges taken into consideration?
Not for house 1 but yes for house 2
you cannot offset capital gains on short term tax - let me know if this incorrect
Bro has a net woth at a young age of 30 thats impressive assuming your equity is 2cr 1.5 or 2?
Equity 1.5 and real estate around 2
*To buy a stock of TCS, you just need to go online to your brokerage account and you can buy with a few clicks. It's the same when you have to sell your stock. What do you have to go through when you buy a real-estate? And then maintain it. You never talked about the maintenance cost. And then sell it. Stock is liquid for the most part, real-estate is not. Do you put a cost on your effort and the time that you spent into doing all that for a real-estate?*
Part of diversification. Having all eggs in 1 basket is the issue. My Stock portfolio was more than 1cr so wanted to diversify. I dont compare it as stock vs real estate. both have different use case
@@ShashankUdupa1 *But you DID compare in this video. Therefore, my comment.*
July 2022 you bought it for 68L and sold it for 86 in Oct 2023, how come you again bought it for 68lacs in march 2024?
Didnt buy it again in March. I bought 2 flats for 68L in july 2022. The 2nd house is what is the situation as of March 2024. I had bought it for 68, current value is 1cr +
Very smart!!
I have done this but th3 calculation shown is very u realistic 😊
good job Bro.
Strategy?
sashank why dont you buy commercial real estate instead of houses? the rental yield is much better and the appriciation is at par the house?
Agree - but i honestly dont have the time to maintain it, if there is a way to do that in simple ways then yes. Right now im strecthed for time. I buy homes like this where i see good upside and sell after few years- simple flipping
@@ShashankUdupa1 maintaining a flat or a commercial property would be very similar or not?
Can you make a video or give a point of 2 in detail why it's hard to maintain a commercial property? My point was why don't you leave buying flats but only put your energy on commercial property?
@@jainaaush for me buying flats r passive, i spend 90% of time in my job and stock market. If its commercial then i have to find buyers, maintain it, put generators, more compliance with local bodies, paint it, maintain it etc
Wr did you invest for your 3rd house? Bangalore?
Just bought at brigade orchards devanahalli
You have not included insurance cost /cover in exel sheet
Very Very Smart & Very Clever MAN......😄😄.....
In which area did you buy ?
Indiranagar
What is that presumtive income? And where is your f and o income of crores?
Presumptive income is what i earn as a creator when i take money directly. Some ad deals and some youtube income and other affiliate income. FnO income is in my corporate company account called Udupa ventures.
what about the short term tax gain?
I am sure you know abt the stock investment and all much more than me... I think a yield of 22% is pretty good but I still consider it less because of the fact that you could have got atleast 30% even in one of the top mutual funds like Nippon or QUANT SMALL CAP. You could have made much more if you have atleast 3-4 real growth stocks and it could make it 50% growth in 1 year. Real estate is much slower to multiply the money compared to stocks!
Yes but what you are talking about is a bull market scenario. During prolonged bear markets , nifty wont get even 4-5%, infact during russia ukraine war nifty gave around-3% return. So if i extrapolate over 20years avg nifty still beats real estate but not a huge margin. Also real estae i got only to diversify bcz i had 100% equity portfolio
@@ShashankUdupa1 I do agree in diversifying your assets as there could be market crash as per Harry DENT in 2025. Not sure, if anyone beleives him or not but a scenario of huge growth in stocks for the past 2years suggests a correction.
Good explanation but you could have added the heavy deposits amounts which owner receive interest free from Tenent.
Hi Shashank - I don’t think you can claim tax exemption for under construction property. The first house tax exemption won’t be valid per my understanding as it was under construction. Deduction on home loan interest cannot be claimed when the house is under construction. Can’t claim under 80C or 24. Anyway for 80C, there are other things you would be doing as well, so would it be true to count this?
Same thoughts
You are day dreaming about rental yield. Rental yield has to be calculated at today’s market valuation. Also do account for tax outgo. If rental yield is 4%. Post tax it would be 2.6%. Not to mention about
1. Property tax
2. Maintainance cost
3. Occupancy ratio : even if the unit is unoccupied for 2 months it would bring down the rental yield.
Bro, i get your point but thats not reality. Reality is what is your ROI - return on investment. Simple math- i bought something for 64L and now its giving me 3.6L a year so around 5% ROI. Property has appreciated by 50% as well.
If i bought tcs 10 years ago at 1000rs my dividend yield is more than what you would get if you bought today because il have more shares so my dividend per share increases compared to you. Never look at from a singular lens.
After 10 years for example - this property say gives me 7L in rental income and my buying price was 64, then will i calc on market rate or my buying price?
if your nifty trading profits can easily pay off your house loans, what is the purpose of all this circus in trying to make profit in real estate ? This cannot even be justified as diversification ...