A potential homebuyer in Bengaluru has sparked a discussion on the risks and rewards of investing in old properties. The buyer shared on Reddit that they are eyeing a 33-year-old apartment on Old Madras Road priced at ₹1.4 crore, asking social media users if investing in the property is "worth it”.
“Is buying a 33-year-old apartment in Bangalore a good investment?” the Reddit user wrote, adding, “I’m considering buying a 33-year-old apartment in Bangalore, located on Old Madras Road near Tin Factory (main road–facing, direct entry from OMR side).”
The individual explained that the 1,400 sq ft property is priced at ₹1.4 crore, adding that they would need to invest another ₹10 lakh to make the place “family-friendly.”
“One potential upside is that the property might be converted to commercial after redevelopment, since it’s on the main road,” the Reddit user continued.
{{/usCountry}}“One potential upside is that the property might be converted to commercial after redevelopment, since it’s on the main road,” the Reddit user continued.
{{/usCountry}}In the following lines, the individual asked about risk, redevelopment, and the “remaining lifespan of the building.”
What did social media say?
An individual posted, “Not worth unless it’s in Koramangala or Jayanagar.” Another added, “More often than not, redevelopment gets locked in legal official troubles for years. The rental yield will stop if the government declares the property unsafe to live in. Builder or redevelopment will squeeze you to sell for less, or plain right, providing you with a replacement 1-2 units for the value of 1, but subject to construction being completed. Also, rental compensation during construction never comes after the first few months, regardless of who the builder is. If you have time and money, then you can treat it as a fixed investment with returns probably after 10-20 years.”
A third expressed, “Honestly, older apartments can make sense for end-use, but as an investment, they’re tricky. Appreciation is usually limited compared to land value. A lot of people I know are moving towards plots now, especially in growth corridors, because land tends to hold and appreciate better over time.”
A fourth wrote, “Nope. In the first place, builders use poor construction materials, so the life expectancy of these apartments ranges from 40 to 60 years. This apartment is already 30 years old, so if it’s in BTM, I wouldn't pay more than 1.2cr.”
(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them.)