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Imran Malhotra
SMD Altezz has a weird investor ratio problem.
SMD Altezz ka rental yield utna nahi mil raha jitna expect kiya tha. Just moved in last month, and I'm seeing quite a few empty flats, which makes me think investor ratio kaafi high hai yahaan. Isse resale market pe asar padega kya? I mean, secondary market mein buyers milenge easily ya competition high hoga? Any long-term owners here who can share their experience with actual capital appreciation post-OC? Not sure if this is typical for completed projects near this price point.
#resale-value#rental-yield#investor-ratio#completed-project#bangalore
Comments
So basically, for first-time buyers like us, it's better to stay away from projects with visible empty flats? My agent was pushing me towards a similar project near Adigara Kallahalli, saying 'investor-friendly' means 'good returns later'. But this discussion makes me think otherwise. Any tips on how to spot these high investor ratio projects before booking?
U19, that's actually a brilliant idea about asking the security guards! Never thought of that. I'm so confused, my budget is 60L and I thought SMD Altezz was a decent option. Now I'm back to square one, feeling even more nervous.
U17, yes, definitely be cautious. A good tip is to visit the project multiple times, at different times of the day (morning, evening, weekend). See how many lights are on, how many cars in parking, how many kids playing. Also, check rental listings for the building. If there are too many units for rent, that's a sign. And ask security guards, they often know the real picture.
This is a classic case of demand-supply mismatch. Builders launch projects, investors jump in hoping for quick returns, but if end-user demand isn't strong enough, the market gets flooded. SMD Altezz was priced quite competitively for its location back then, but now with so many options, that advantage is gone. For long-term owners, capital appreciation might only come when the surrounding infrastructure develops significantly, which can take years.
I heard from a friend who lives nearby that the total units are 216. If even 20-30% of those are investor flats sitting empty, that's a significant chunk. This directly impacts the 'community feel' too, which can deter genuine end-users. For resale, it means you're competing with other investors who might be ready to drop prices just to exit. Capital appreciation will be slow, if any, in such a scenario. Did anyone check the actual rental rates in the area versus the EMI for a 55L flat?
U11, exactly! The gap between EMI and rent is huge. This is why I'm so nervous about buying in a place with high investor ratios. It feels like we're just paying for someone else's speculative bet. My budget is tight and I need some assurance of stability, not just potential losses.
U9, I did some rough calculations. For a 55L flat, with a typical 80% loan, EMI would be around 45-50k. I haven't seen any 2BHKs in that area fetching more than 20-25k rent, even for well-maintained ones. So, rental yield is definitely a problem, it's less than 5% which is not great for an investment.
Exactly my thoughts! I visited the project site a few months ago, around Akshayanagar, and even then, many units looked unoccupied. My agent kept saying it's a 'new project' effect but possession was in 2021, right? Is this common for projects that completed a while back? I'm worried about finding tenants if I ever decide to rent out my future flat.
Not just SMD Altezz, a lot of projects in that stretch, even near Aavalahalli, are facing this. Too many people bought just for investment during the boom, now they are struggling. It's a tough market for rentals in some pockets of Bengaluru right now, especially for 2BHKs in that price bracket.
U3, haan bhai, 2021-03-01 is the possession date as per RERA. PRM/KA/RERA/1251/310/PR/171031/001082, you can check. It's definitely not a 'new project' effect anymore. If rental yield is low, it means there's less demand for rentals in that specific area, or too much supply from investors.
Bhai, you're not alone. I was looking at SMD Altezz too, the price range of 55-71L was tempting, but the empty flats thing is a huge red flag for first-time buyers like us. High investor ratio almost always kills the resale market. Good you noticed this early.