Introduction
From the very first decision to invest in real estate market to actually buying a rental property in one of the biggest IT hubs of India, requires lot of daunting tasks. For the first-time investors, owning a rental property in Bangalore may cause some perplexes; however, shopping for an income property will definitely yield handsome returns in the near future. Top Ways You Can Land to a Profitable Rental Property. Below is a look at the most important factors you should consider while making a house for rent in Bangalore.
Understand the rental market of India’s Silicon Valley
Bangalore’s real estate is a good bet because of multiple primary growth drivers including IT/ITes sector that has ensured strong micro and macro dynamics and gaining the attention of prospective homebuyers to invest, settle and retire. The city has a stable realty market and as a result it has witnessed phenomenal migration as compared to other metropolitan cities. As per the insight report by 99acres.com, residential sales in Bangalore have witnessed a considerable rise in the property values, having gone up by four percent in July-September 2016 as compared to the corresponding quarter in 2015. Moreover, the residential rental market has matched the pace with city’s landscape – around seventy percent of tracked localities recorded an annual jump in the income property rates, testifying to an upbeat city’s rental market.
The high-end residential markets of city such as Indira Nagar in East Bangalore have witnessed median rental rates, increasing by eleven percent over the last one year. The reason for this escalation is burgeoning start-ups and proximity to entertainment zones and other basic civic utilities.
Bangalore is one of the most preferable places for working professionals
The city owes its popularity to smooth access to major IT hubs including Whitefield, Marathalli, and Electronic City.
The rental trend for this category experienced an escalation of four percent. Northern part of the city saw a larger growth as compared to west, with nearly 85 percent of northern residential pockets experiencing growth as compared to 70 percent in the western zone during July-September 2016 quarter.
The Gottigere –Nagawara metro line offered a comfortable travel to CBD and South Bangalore, resulting in a hike in rentals at Nagawara by nine percent as compared to the corresponding quarter of 2015.
Raja Rajeshwari Nagar, Hegde Nagar, and Rajaji Nagar witnessed improved rental rates by nine percent. While, localities like RT Nagar, Vijayanagar, and Sahakara Nagar increased by seven percent.
Starting your search
Although you may want a real estate agent to help you complete the purchase of a rental property. You should also start the search on your own. Having an agent can introduce unnecessary pressure to buy and may lead you into making a hasty decision. The most important thing is to take an unbiased approach to all properties and neighborhoods that fall in your range.
Looking out for a home is a crucial task. It has a direct impact on rentals that you will get in return.
Consider the following points when buying a house for rent in Bangalore
• The complex that you are planning to buy should be in a good condition. If required, make the necessary changes in order to earn a good rents.
• Do enough research on ready to occupy or under construction units and don’t hesitate to negotiate.
• Enquire with brokers, developers or visit the property sites.
• Ask the developer for all possible charges and additional charges such as stamp duty, registration charges, among others
Location:
Quality of neighborhoods in which you buy your property will influence both the type of tenants and the rents. Additionally, because of the demand, you can also expect to fill vacancies pretty quickly. Also, check the potential neighborhood for its vicinity to amenities.This will also offer the required convenience during the stay.
Average Rental Rates:
Before selecting the area for investment in the rental property, you should do a thorough research on average rents. Talk to the renters as well as homeowners in the location you are interested in. Also, understand the pros and cons of owning a property in the area before investing.
