Going to buy a house

[ltty head]

Friends need advice about an investment plan.

Option 1

Planning to buy a house in an apartment in between bambalapitiya to wellawatta. House price is 30 million. (owned by a relative at the moment)

Selling the current house, vehicle and a land to get this house.

Will this be a good investment? If I am to rent this house, monthly can rent this for 140 thousand. (currently being rent at this rate)

Planning to buy this and rent it for next 5 years.

My expenses will be to get a small house for rent (40 thousand) and a vehicle lease at about 40 thousand

Total expenses are 80 thousand and I have a saving of 60 thousand monthly.
In 5 years I will have 24 lacks and the house.

Current square feet price in that area is about 25000 rupees.

Considering the inflation and land price increase in 5 years do you think this is a good investment idea?

Option 2

If I rent out the current house / vehicle / land without selling, it can generate about 160 thousand per month. Still I have the same expenses of 80 thousand and will be saving 80 monthly.

But vehicle is depreciating and then again land value of my current house and the land is not equal to land price of bambalapitiya house.

current house land price comes about 17000 rupees per square feet.

Friends, Please share your experience / ideas on this.

Rep++

 

[IKL]

OPTION 01

 

[DangerMan119]

01

 

[ROCCO-X]

Yeah good opinion.why not.

 

[ltty head]

OPTION 01

01

Thanks machanla. any specific reasons ?

 

[Mawathagama]

buy the apartment. its value goes up and it's easy to find tenants for that. and its rent price goes up rapidly unlike suburban areas. easy to maintain, good security, and even an electricity outage is rectified much sooner than in other areas. respectable neighbours most probably.

 

[King_cobra]

land is better than apartment ​

 

[ltty head]

buy the apartment. its value goes up and it's easy to find tenants for that. and its rent price goes up rapidly unlike suburban areas. easy to maintain, good security, and even an electricity outage is rectified much sooner than in other areas. respectable neighbours most probably.

Thanks machan. rep+
this make sense too. but in apartment we dont own the land fully right?

 

[chika009]

01

 

[Emios]

Be very carefull with apartments.Most of them are build upon borrowed loans.If something goes wrong you’re done.Again if something happen to building again it takes long to recoverr unlike a separate land.Have a look at thalawathugoda area.Goverment head offices are heading to battaramulla and surroundings.Hyperrail is coming too.You can get a really good house for 30m.Will be easy to rent out or sell.Or look at options to devide the investment.20m for a house and another 10m for another house somewhere near beachside etc which you can airbnb for tourists.

 

[asylum]

bump.

 

[ltty head]

Bump

bump.

01

Thanks. rep++

 

[ltty head]

Be very carefull with apartments.Most of them are build upon borrowed loans.If something goes wrong you’re done.Again if something happen to building again it takes long to recoverr unlike a separate land.Have a look at thalawathugoda area.Goverment head offices are heading to battaramulla and surroundings.Hyperrail is coming too.You can get a really good house for 30m.Will be easy to rent out or sell.Or look at options to devide the investment.20m for a house and another 10m for another house somewhere near beachside etc which you can airbnb for tourists.

this is a good investment idea too. thanks

 

[corn]

i think no 1

 

[ltty head]

Thanks machan

 

[ltty head]

i think no 1

Thanks. rep++

 

[vj3660]

I know apartment is the current trend. Reality is landprices goes up not the apartment. Because the people like to move into modern ones all the time so reality is unless its crescat or monarch rest are depreciating. . I would prefer if you go for option2.

 

[snm1990]

Yes, 1st would be a good option...

 

[kukkupatiya]

Dont ever buy apartment because value will never increase

 

[ehseres]

Mate you will be risking your assets if you go for option 1 where as the risk in option 2 much less and worry free. Also there is no value in apartments after several years. Mark my words and check this post after 10years time.

All the very best with your investment.