I don’t want to sound overly pessimistic, but I would advise against buying a builder flat in Bangalore. Buying a plot of land is fine, but apartments are one of the biggest scams going on in cities like Bangalore. It is mainly because of the Indian mentality of owning a house as soon as you get some spare cash or increased salary. Let me list out some of the reasons why buying a flat in Bangalore is not worth your investment:
Sewage Problem: The BBMP rules state that any apartment complex with more than 20 flats should have its own sewage management system. Big builders will sell you flats with sewage systems that don’t really work. When it rains, the sewage water seeps into the car park and common areas. It will be the breeding ground for dengue, malaria, etc and you will be able to do nothing about it. Water Problem: Bangalore’s water problems are well known to most people. Buying any new, fancily advertised property will mean that you do not get Cauvery water which is in very short supply. Water will be provided through bore well which will need to be deepened each year. But even bore well will one day run out of water. At that point of time, the value of these expensive flats will come crashing down.
Useless Facilities: Major builders sell their apartment complexes with facilities like swimming pool, badminton court, banquet hall, gym, etc. If you are a working professional you will almost never use these facilities because you won’t have time. Your monthly maintenance will be around Rs.8000–9000 for these facilities which you don’t even use. Once you get old, you will have no energy left to use these facilities either. By then, most of these so called facilities would have fallen into disrepair.
Zero Honesty: My wife and I have looked at around 15 apartments in this city. Not even one builder we met had any honesty in them. Everyone tries to cheat you. The same sales guy who will talk really sweet will not even acknowledge your presence once you have paid the money. One of the biggest scams is ‘Built Up Area vs Carpet Area’. It is funny how even educated people fall for this. I have a laser measurement tool which I carried with me while looking at apartments. The carpet area is almost never as advertised. In some places there was a glaring 40% mismatch between what the builder advertised and what was actually there! But people still go into debt buying these flats. Builder-Banker Nexus: The builders and bankers collaborate with each other to cheat you. I once saw a flat which was for 46 lakhs INR. The bank sales manager called me and offered to take me out for dinner LOL! I didn’t go, but met him at home any ways. After a lot of beating around the bush, he gave me a loan option for 30 years. In that period I would end up paying 89 lakhs INR, almost double the value of the flat along with interest. I laughed on his face and asked him to get out. But still, it is shocking how many educated folks screw up their lives with such debt just for the sake of an ‘own home’.
Most of the apartments in Bangalore are sold at highly inflated prices. This is even more true if the builder is some big name with hoardings and TV ads all over the place. In the rare event that you are getting an apartment for a cheap price which is well within your reach, go for it. But never be foolish and get into debt for 20 or 30 years. Pay rent and live lavishly.