Wishing all the readers a very happy new year 2014 ...

WISHING ALL THE READERS A VERY HAPPY NEW YEAR 2014 !!!

If you are planning for R2I during this year, wishing you good luck for the move.

Very good to see new year starting with winds of change in India, with AAP holding power and showing that true Democracy prevails in India and change is possible.

Rain Water Recharge and Harvesting(RWH) In Bangalore

Since many of the people reading this blog might relocate and make Bangalore their home, want to spread this message in the R2I community - this is one area where I was able to contribute and tried to make some difference. Unfortunately, there is not much awareness in the general community about this ticking time bomb for Bangalore and as always government is least bothered, leaving people to handle this on their own. You can see lot of debate about turning the water from Western Ghat to Bangalore etc, which are mega-mega projects but not much about making Bangalore self-sufficient on water. Why? - since this is not where these politicians make money but with mega projects! BDA/BBMP mandates RWH for all constructions beyond 30x40 area sites but that is in the plan - nobody checks about implementation or proper maintenance once it is in the plan. For all the reasons you know, there may not be any rain water flowing into the RWH pits! 

Key point with RWH is proper implementation and doing it in mass scale so that not even a single drop of water is wasted. With the current state of 'growth' (if you can call it that, I would say 'mess' or 'unplanned expansion' is a better word!), reality is that Bangalore will need to depend on Borewell water and complete Kaveri water supply is a 'pipe-dream'!. Fortunately, during normal years, Bangalore gets good amount of rains and is more than enough for the populace. With more and more concrete, most of this water flows into lakes, which are fully chocked and polluted. Most of the larger size apartments have STP(Sewage Treatment Plants), which recycle most of the water and that reduces the need for fresh water greatly. However, many of the mega apartments with 300-1000 families depend on tanker water, which is disaster waiting to happen.

Doing community RWH is simple - in the rain water drains, dig a pit, say 3' or 4' wide. Depth depends on the type of soil, you need to go up to a depth where you get soil that can absorb water quickly. Bottom is left open for water absorption and cement rings are used to cover the side walls. Between the cement rings and mud, granite stones(Jelly) are packed so that there is a 'breathing' gap for water to seep in. Top is covered with a removable slab, which can be opened up for cleaning of sludge every few years. 2 concrete mesh filters are placed - one right next to the pit with a pipe to feed the water to the pit and covered with small granite rocks to filter out debries. Another one is placed 5' away up on the drain, again covered with granite stones to filter out large debries like leaves etc.

Some people plaster the cement ring walls and bottom as well so that they can collect rain water and re-use for non-potable purpose. This is good for rain water collected from roof tops but not rain water drains. A good filter needs to be used in case of reuse of rain water. Also, it is necessary that the water doesn't get contaminated with construction dust or bird droppings etc in these cases. Also, water from first few rains are not used but left out. I have seen people going to elaborate level, where water from roof top is fed to a syntax tank (for gardening purpose, without the use of a pump), overflow fed to a collection sump, overflow from collection sump fed to a harvesting pit for ground absorption.

If you go with 3' rings, it would cost you around Rs. 1000-1500/feet. For community level pits, it is better to go to a depth of 15-20' and 4' rings. A 20' deep, 4' wide pit would cost around 25K, which is not at a lot for the value you are getting out of it. 

Some of the useful websites with information on RWH:http://bwssb.org/rain-water-harvestingrwh-3/
http://www.rainwaterclub.org/

There is a theme park as well, maintained by BWSSB: http://bwssb.org/theme-park-maintained-with-rain-water-harvesting-9/

Please feel free to drop an e-mail if you are involved in this effort, need contact information for some RWH contractors or need more information.

UPDATED: R2I - what are the things to take to India?

Here is the revised list of items that you might want to consider, based on my 2 years of R2I experience. Some of these might strange but it is true that these are hard to get here:
- Large size LED/LCD TVs(42 - 55" or larger): Price of LED TVs hasn't come down much in India and they are worth it, from cost saving point of view. I believe these are not free anymore from custom point of view (earlier, you could bring one, without duty) but even then these would be worth it. You are looking at 3 lakhs+ for a 55" LED 3D TV here, which is in the range of $4600+. No need to worry much about 110V or PAL signal, since you can get a good voltage converter and HDMI signal converters.
(see my earlier post: Looking back: Items brought back versus left behind)

- Specific electronic items like iPADs/iPODs, headsets, modems (if you can get a 220v, that is better), voltage converters, good car Sterio add-ons. As far as cell phones are concerned, if you a iPhone fan, you can bring one but this unlocking business becomes an issue + I think Andriod phones have caught up or even have exceeded in feature set. A good Samsung Andriod phone will offset you only by 12-20K or so. Better avoid digital clocks since they get reset whenever there is a power cut.

- Leather sofas & furniture

- Good display/showcases: Again, you have to custom order, which costs a lot or you have to do lot of search to get a good one.

- Good copper bottom vessels: Hard to get good quality ones or they are expensive

- Spring mattress: You can get the frame done here but if your kids like spring mattresses, worth bringing them since you don't get them here.

- Branded items like Shampoo etc: You do get most of the items these days but not some specific brands.

- Some simple items like shower caps(surprised? yes, it is hard to get good ones here since not many people use shower!). 

- Good supply of specific medicines like Ibuprofen, Claritin etc - Costco is your friend for these items! And, if your kids are 'Mac & Cheese' friendly, get few Costco boxes of those since we are yet to find that here!

- Cloths like Jeans/pants (mens shirts is not an issue), kids dresses, swimming trunks/goggles, shoes etc - you can get most of these here but good quality one cost a lot

- Bags, backpacks

- Good large picture frames- you can get lot of values from places like thrift stores.

Things you can avoid:
- Bedsheets, rugs etc: You get good quality ones in India itself, Ok to carry what you already have but no reason to buy new ones.
- Toys: Most of the american branded ones are available in India itself.
- Heavy items like treadmill, refrigerators, washing machines etc: Voltage conversion + service is an issue. All of these are available in India now, at a bit higher price but you have local service + no issue of voltage conversions.
- Things like kids stationary items, books etc: For books, there are good pay & borrow libraries like JustBooks. Staples is there in many places for stationary items.

Hope ths list helps with the important decision that you need to make prior to move, If you still have questions on specific items, post a question and will try to help you out....

Planning R2I - should I 'burn the bridges'?

This is one of the common question/debate that most of the R2I prospects have - should I close-off everything before I move to India?

As my heading suggests, that will be 'burning the bridges', which as the common knowledge says is not a very good idea :-)





Several factors to consider here:

• You never know where the kids are going to be - they may come back to US (or other country) for further studies and having some funds in US can really be of help.
• Change in government policies: You might have heard that recently Indian government reduced the limit of outflow of Indian funds from $200,000 to $75,000 or so. That is not a good sign. Governments can be fickle and if you transfer entire funds from US(or other country) to India, you might have problem when you need those funds back in the foreign country.
• You might have to move back for job purpose. Having some funds there will make it easier for you to setup.
• After all, you or family may not like to stay in India after trying for few years. Going thru' the currency conversion, you will loose some funds in conversion.

List can go on and I know, it is easier said than done - real estate in India is a major cost factor and you need sufficient funds to have something of your own. Hence, it is a delicate balance and only you can make the call about how much you need in India to have a comfortable living. 

In summary, don't burn the bridges - don't rush and move all of your assets to India and close all your links in foreign country. Instead, do that in stages after getting a taste of R2I. For ex, keep a bank account, some funds invested, transfer only needed funds and do further transfers as needed, if you are closer to getting a US citizenship, complete that process before you move etc...

R2I In 2014? Best to start planning now ...

I covered this topic around the same time last year. What you should be doing now for R2I in 2014 is not going to be much different from what I summarized during last year, however, a recap would help those thinking about it!

If you have not read that post, here it is again: http://r2idiaries.blogspot.in/2012/12/r2i-in-2013-what-you-should-be-doing-now.html

Main item to look into right now is the school planning - this one takes a good amount of time and a crucial factor for success of R2I. Choice of school decides where you stay, whether kids are going to be Ok after R2I etc. If your kids are already grown up(say, above grade 6), my suggestion is to go for a international school - these kids can take a while to settle down and their friend circle makes the difference in the world for them. You might need to make a short trip to visit/shortlist the schools, understand the paperwork needed, tests to be taken, costs etc.

If your kids are smaller, they can adopt to their surroundings quicker. Hence, school choice is not that big of a deal. However, to note, there is a good race to get into good schools and they can fill up fast. Hence, you need to get in-touch with school folks asap.

Also, other factor is - if you own a home, you need to plan to sell/rent etc. This can be time consuming as well and needs good prep-work. Doing these things at last minute can cost you $$$.

If you are still debating, settle the debate. Possibly my post on R2I decision assessment would be of help:
http://r2idiaries.blogspot.in/2011/12/r2i-or-nr2i-not-to-r2i-dilemma-take.html

Good luck with your R2I efforts ...

News article: Housing slump: Realty market in India crumbles

This is a good read for a prospective R2I. Seems like there is a going to be a dip - with the rupee value versus dollar, there might be a good chance to get into something. For the first time, I am seeing buyer referrals being offered from builders now...

http://www.deccanherald.com/content/357271/housing-slump-realty-market-india.html

TOI article - Startups rise and shine in Bangalore ...

This is a good read for any of the prospective R2Is, who are thinking of coming to Bangalore and doing their own start-up. 

http://timesofindia.indiatimes.com/tech/tech-news/software-services/Startups-rise-and-shine-in-Bangalore/articleshow/22309538.cms

I couldn't agree more on this line in the article: "Mukund Mohan, CEO in-residence at Microsoft Ventures - The city attracts good talent because of great weather, job options, and a cosmopolitan and welcoming culture."

I have heard lot about 'outsiders taking over Bangalore'. But, as the article says, that only does good to the place. As US has proven, it gains top talent by welcoming others to come over and by providing an environment to thrive and in-turn thrives itself. Sure, Bangalore has ways to go in providing the right environment, infrastructure but just having the talent pool here creates an ecosystem around that which is beneficial to the local populace as well.

South India trip ...

What are some of the things R2Is do once they are back? Visit all over India! Every weekend was pretty much a travel weekend when you are outside of India and you try to do the same here. Not surprisingly, we have seen much more outside of India than what we have seen here. 

Once you travel in India, it amazes how travel friendly things have been made outside of India. We have ways to go before we can get there but as we experienced during this week-long trip, things are changing. You do have access to nicer hotels, much cleaner restaurants, much more improved highways etc. Sadly, most of the towns are still dirty, congested and don't seem to change :-(

Some pics from the south India trip. Special mention of Nirmala Travels, using which we traveled - highly recommended for this type of trip, even with kids. When you travel in group, you don't get much time for shopping etc but they manage to cover so many places and know the places inside out. If you do it by yourself, it would easily take a day/place (South India trip is heavy on temples) - language is an issue, long queues in temples, getting around, food etc can become a challenge. Hence, these folks are worth the money. Something you should consider even if you are visiting for a vacation. Routine was - early wake-up, early to bed! Unfortunately, these places are not 'camera friendly' since cameras are not allowed in most of the places.

We visited Vellore Golden temple, Kanchipuram, Trichi, Maduri, Rameshwaram, Tanjavore, Kanyakumari, Kaladi (Kerala), Thiruvanathapuram(Kerala) in 7 days.  

Rock Ganesha - Tanjavur

Brahadeeshwara Temple, Tanjavur

Meenskshi Temple, Madurai

Majestic Pillars and roof paintings

Sound pillars

Looks like any US highway, isn't it? Highway that runs along eastern corridor

Sunrise in Kanyakumari

Kanyakumari Vivekananda Memorial

Kaladi where Adi Shankara was born

Only in Kerala!

Wish you all a happy Independence day ...

Service in India is improving ...

We are used to here stories about bad customer service in India, on a daily basis. Especially after experiencing the service level in the western world (even though queues are quite long in Walmart for returning items!), you don't expect much and use the 'buyer be aware' approach always.

And, you vent about it in web sites when you get bad service and you are helpless. So, it is very rare that you post about the good service that you got. Experienced such a case recently and it was a good feeling.

Brought a showcase from Nesta furniture after a long search. Hint: if you are doing R2I and have a good showcase that you want to keep, by all means do, it is worth it -- a teak showcase can offset you by Rs. 40,000 - 50,000, that is $900 for you!. Custom made ones are even more expensive. It is hard to get simpler/cheaper ones in the regular furniture stores. 




You can get crockery showcase type ones but we were looking for a simpler one, for the living room. This is also called bar unit.


We went for the showcase at Nesta - the model looked good and sturdy. Was delivered the next day. However, when they opened the package, glass door was broken. So, assemblers put the work on halt (yes, you don't do the assembly here, like the Ikea's of the world) and said they will come back with a new one. So, the headache started. They did come back the next day, assembled it again with new door glass. But, the hinges were different and the door was shaky since hinges were fitted in incorrect place. You might be thinking - yes, that is the Indian service but...

When checked again, saw that the corner of the glass was cracked. Without much of replacement, called the store - to my surprise, the person said they will do something about it. I said I will visit the store next day and I did. Made sure I take the pictures as well(and ready for hard talk!). To my surprise, they asked me whether I am happy with the one in the store. Since it was exactly the same as the one we were looking for, I said 'yes'. It was delivered with 3 days, assembled and we had exactly what we wanted!

Unlike other stores, Nesta people were ready for the replacement, just over the phone. I liked that. And, I am making sure I am posting on that in a public forum. Hope to have more such experiences in the coming days ...

Reader's question - what are the housing options on R2I?

I have received this question from several readers. I have listed the options a few times before but didn't provide a consolidated list. Let me write a summarized list of options. 

Hope you will find it useful. Drop a comment if so ...

Of course, when it comes to real estate, it is location, location, location - the option which you pick mainly depends on location. Most of the other factors like budget etc depend on this as well.

Option #1: Buying an already constructed villa/home in a gated community
This is the best option of all, if you can afford it - this is the only place where you can get some piece of mind, a place to walk/jog, cleaner air, place for kids to roam around freely, gym, tennis courts,  swimming pools etc. Also, in most cases, you have full control on modifications (including exteriors. (Unfortunately, few of the builders are taking the western way, where external modifications are not allowed, hanging of cloths to dry are not allowed, no balconies etc). Most of these villas are owned by well educated families and there is a good interaction within home owners association. Hence, the closest you can get to a US/Western style of living. If you are going for a villa/independent home, certainly consider a gated community - you can afford to lock the home away and stay away for few days outside without much headache.

There could be issues here as well - many of these communities depend on tanker water, which is a main issue. Cost is another factor - a good villa in a good location (close to IT parks) can cost upwards of 2 crores. Also, you need to like the style of the house - these days villa builders are using standard styles but in many gated communities, custom building is still the choice. In-addition, there are no disclosures - it is a buyer beware of situation. Get a good known plumber/architect to evaluate the house before you make the purchase decision.

Option #2: Buying an empty site in a gated community and construct a villa/home
This is similar to Option #1 but with the overhead of dealing with construction, which is not an easy task, let me say in-advance. Dealing with contractors, labors may not be your piece of cake but reward is the cost savings - cost savings versus buying a already constructed home could be significant + you are getting a house of your choice. For ex, if only one person is working in the house hold, other person can take care of the construction. Getting a good custom house on a 60x40 site can take up to 1.5 years to 2 years - no kidding!. Issue here is - plot based developments are happening at a good distance from work locations and in suburbs. It could take few years before the place is 'developed' and livable. The plots within the city are quite expensive and you would see very few. For ex, the per sq.ft cost would be in the range of Rs. 4000-5000, which means you are shelling out close to a crore just for the land (assuming 60x40 plot area).

(However, to note, there is no real concept of  'gated community' -- this can work as long as it works. For ex, the site owner next to the gated community may not have access road and may ask to open up the road to get access. The gated community will be forced to provide access in such cases.)

Option #3: Buying an already constructed home outside of the gated community
This could work if you are buying in a good locality but don't do the mistake of buying in a sparsely built area - it would be too risky. I have seen the experience of a friend whose new house was broken into twice in a newer area and they were out during day! You could possibly save a bit with this option but security is a major hassle - you need to depend on friends or employ services of security agency if you are leaving the house unoccupied for few days. Only reason you could opt for this is - house in an area where there is Kaveri water supply.

Option #4: Buying a plot outside of gated communities and construct
All of the issues in option #2 and option #3 apply here as well. Also, the plots in good localities are quite expensive. But, if you prefer an independent home, this is still an option.

Option #5: Buying an already constructed apartment unit
This option is not the best in my opinion but could work well if you are new to Bangalore or don't have much friend/family circle here. It is easy to make friends and kids will have lot of company. However, go only with a reputed builder like Prestige, Sobha, Mantri, DLF etc. Construction quality can vary a lot and can give you a lot of headache. As I mentioned in option #1, there are no disclosures from sellers here. For ex, it could be that the bathroom roof is leaking and the seller is not able to get it fixed from the owner who stays above him or there might be some issues with the home owners association etc. Do get the meeting minutes from the association before you make the buy decision. Also, try to get in-touch with somebody who is living there and get feedback. However, you pay a premium for this option - compared to buying a unit pre-construction, this could offset you by 10-20 lakhs, depending on the size of the unit.

Option #6: Booking an apartment in a upcoming project
If you have time, this is a better option than #5 - this will save some money for you and you will have some customization options as well. The wait could be easily in the range of 2 years but you could get an unit closer to work location. You could possibly rent an apartment unit until construction is complete and then make the move. Here also, go with a reputed builder. Many of the large projects can run into hurdles and may stop work, delay the projects etc. 

See my related posts:
http://r2idiaries.blogspot.in/2013/01/bangalore-real-estate-should-i-invest.html
http://r2idiaries.blogspot.in/2013/01/investing-in-bangalore-real-estate.html
http://r2idiaries.blogspot.in/2013/01/investing-in-bangalore-real-estate_24.html

It's raining, it's pouring ...

Yes, it is raining good this year in Bangalore compared to the last year - and that is a good news for water thirsty Bangalore ...

Some pics for those who miss Bangalore rains ...

R2I irritants ...

Ok, let's look into what are the irritants for R2Is, as I mentioned in my last blog entry. Several things can be irritants once you R2I, specially those things which can't be changed easily ...

One thing that always bothers you is how much care is taken about surroundings in western countries and how much it is disregarded here. Fact is that these things are unlikely to change in the near term. Worst thing is our country has all the potential to address these issues - we have educated people, there is enough money in the system but we don't see things changing.  Unfortunately unqualified people are ruling and government intervention is required to make these changes - view of nice getting filled up with dirt, trash, without any regard to the fact that these are the critical water resources irritates you.

When it comes to service, things are improving but it is still bad - for ex, you don't see people lining up in a bank or post office and see 5 people standing right next to the service table. And the banks don't enforce this, which can be done so easily. So, you have to rush even though you don't want to do it. Also, if you buy something, sellers are nice until you buy them. Once you bought it, you are on your own. 

When it comes to public sector, there can be lot of irritants - unfortunately, political system doesn't have the will to address these issues. When the average worth of an MLA is 10 Crore Rs, why would they have public interest to serve people?. They just need power and want to enjoy their term. Again, case of where there is a potential for things to get fixed but there is no will and that bothers you.

There are many other small things which I had listed - lack of footpaths makes it hard to walk in any place. Noise on roads is irritating but you get used to it. Driving habits of people drives you bit crazy since following rules is the last priority(I have heard Bangalore is much more civilized when it comes to this and places like New Delhi can be really bad).  You may be right but that hardly matters.

Overall, main irritant is - you see that there is a potential for things to change but they don't happen. What disappoints is - Bangalore is a city with high number of educated population but it is hard for them to change things. However, you do see ray of hopes like people in localities getting together to clean up the lakes, clean up the footpaths etc. But, these are drops in the ocean. What we need is some major surgery to fix things from a right administration - and you know that won't happen in the near future!

Reader's question - do you regret your R2I decision?

There was a question from one of the readers - "do you regret your R2I decision, now having made the R2I?". Thought this will be a very relevant question for many of the folks thinking about R2I. So, some thoughts on this ...

One of my friend's said while I was in US - "if you are 95% sure that you want to be back in India, don't come back"! That's very true - you need to be 99% sure that you want to be here to make the R2I. Reasons being several - there are somethings that you can't simply get here and those are out of your control. Examples being, nice parks, footpaths, nice roads where you don't need to worry about commute, discipline and order in things etc. There is no way these things can change in the near term, read, in your lifetime :-).

From my personal point of view, do I regret the R2I decision? Absolutely not, from my point of view. However, your 'mileage' may vary, as I mention below.

However, as I mentioned in my initial blog entries, R2I is a very personal decision. I was 100% sure that this is something I want to do and something that would be good for the kids. In that light, I enjoy things which were not available earlier like frequent visits to parents, kids mingling with cousins and family, Indian food, "feel of at home" etc. Fortunately, kids have adjusted to the Indian climate and don't fall sick as often. We do take precautions like avoiding road side food, not drinking water outside except bottled water etc. Also, the US style malls are abundant in Bangalore there days, which give access to latest movies, bowling, pizza, berger etc - to keep the kids connected to US.

However, same thing may not be true for lots of families or even for your family members. Dealing with the chaos here may seem like a headache for lots of people and knowing the problems will persist, may become a ongoing pain.

In summary, one person's enjoyment of R2I may not be true for another person - it all depends on your perspective and what you want out of R2I. If staying in India is the strong reason, it is very likely that you will enjoy the R2I and make it work for you.

So, no regrets? No - there are but more of irritants and I will cover those in my next post.

If you are still in-doubt, take this assessment I posted a while back and access yourself to see what factors drive your R2I decision. These are the factors that drive your R2I stay here in India as well once you are here...
http://r2idiaries.blogspot.in/2011/12/r2i-or-nr2i-not-to-r2i-dilemma-take.htm

Completed second year of R2I ...

Here we go - completed second year of R2I and onto 3rd year !!!! :-)

Big thanks to all the readers - this blog has crossed the 20K page visits mark and very happy to see that this has been useful to many people. Hope this continues. Please drop a comment if you want to hear about something specific on R2I in the blog...

I had reflected about R2I experience after the first year, here:
http://r2idiaries.blogspot.in/2012/06/reflecting-year-of-r2i.html

Not surprisingly, nothing much had changed - good things have remained and have improved. Kids know lot more about family, have gotten used to much more Indian food and have started eating stomach full in ceremonies like Weddings etc. They had a blast during the 2 months of summer vacation - visiting places, playing with cousins etc.

Bad and ugly things have remained the same - roads continue to be bad, there is much more uncontrolled construction, thanks to rain gods - it has been raining good. Otherwise, water situation would have been terrible. Unfortunately, these things change over time and are under government control. Only major change I have seen is the Outer Ring Road, which now flys all the way to Hebbal, without much obstruction of service roads. However, whenever we get on the road, it feels like we are driving on the war zone - random traffic, pot holes etc never stop!

Some pics of Sarjapur road area ...

If you are looking for housing options after R2I, it is very likely that you have come across the Sarjapur area - either apartments to rent/buy or gated communities. Also, worth the look if you are looking at one of the schools in this area.

Thought it would be worth sharing some latest pics from Sarjapur road. Will try to cover few more areas (on the IT belt) down the line - pls add a comment if you have a preference.

Here they are ...

Near Wipro Corp entrance

This railway crossing was a bottleneck, finally an overpass coming up ...

Moving to Bangalore - Where should I stay?

Thought this post might help some of you who are planning to move this year and don't have much time to explore and decide - the main question is always where should I stay to start with?

I have covered this a bit earlier but let me try to give some specific pointers ...

The place you pick depends on your work location. Normally, finding a school is not that big of a challenge since there are international schools in most of the locations. However, finding a balance is bit tough. However, if you are going to start with renting an apartment, that makes it easier to look for a place in a year or so. Even if you have a house in a 'not-so-close' to work area, consider renting a place closer to work for a year or so.

For the context here, I am assuming you are from a high-tech industry.

• If your workplace is closer to Electronic City, consider BTM Layout, HSR Layout or Electronic City itself.
• JP Nagar, Banashankari, BTM Layout, Bannergatta Road etc would work for Electronics City, Domlur area, ORR-Sarjapur Road. However, you are going thru' busy ORR and expect bit of longer commutes.
• If your workplace is closer to Sarjapur Road area of Outer Ring Road, consider HSR layout, Sarjapur Road or Marathhalli area.
• If your workplace is closer to Marathhalli, Mahadevpur, KR Puram, consider Marathhalli/Whitefield area.
• If your workplace is in Whitefield, consider Marathhalli/Whitefield area.
• If your workplace is in Hebbal, consider HBR Layout, KR Puram area. Marathhalli, Whitefield area also would work but bit of a commute.

Would like to hear from you, if you are a reader - don't just go away after reading. Please post your thoughts....

Some pics from Bangalore ...

Hope all of you are doing good and in the process of packing up if you are going to be R2I during this year (and if that is tied to the school timings)...

One thing I was looking for was good, latest pics from Bangalore, specifically in & around tech sectors. Thought of sharing some which are the latest to give you an idea how things look here. These are from in & around Outer Ring Road. This is a major artery now, connecting all the way from Banashankari to Hebbal. Also, connects with the other ring road at Banashankari, going all the way to Mysore Road, Vijayananagar and back to Hebbal. Most of the tech companies are located in the Sarjapur Road-Marathhalli belt, K.R. Puram and Hebbal (Manyata IT Park).

If I get some good reader feedback, will share some more videos and pics from other areas as well.

ORR - near HSR Layout

ORR - near Silk Board

ORR - near Banashankari, with Metro track overhead

ORR - near Bellandur, Bangalore Central Mall

ORR - near Mahadevapura

ORR - another Metro track

ORR - Marathhalli

ORR - towards Marathhalli

Hebbal - Manyata IT Park

Inside Manyata IT Park

Investing in Bangalore real estate - pessimistic view ...

I covered the optimistic view in the last post - had to give good news before giving the bad news! Now it is time for the pessimistic view.
Why both optimistic and pessimistic views?  That is the nature of the beast! The old saying of 'risk versus reward' can't go wrong and this is definitely a 'time will tell' type of story.

As a R2I hopeful, you might be quite familiar with what happened in the Western world in the real estate scenario in the last few years - lets revisit that a bit. There was so much hype that even office cleaners bought homes(not a made up one, this is a real story and I have seen this) - since homes can be bought literally for 'free' - loans were available with no down payment and pretty much 0% interest. No background checks were done for income or eligibility. Needless to say, all of got foreclosed when their 'free' term ended and they couldn't afford to even do the interest payments. Now, that was greed working its way and taught some tough lessons that 'nothing is free'.

So, what is the take away for Bangalore real estate from this story? There are few for sure and this is where the pessimistic view comes into picture. Let me list few downside points and leave you to think about those...

• There is a huge demand for apartments in Bangalore and there is no statistics to show how much of these are investment properties versus how many of these are bought for occupation. There is a good demand for rental housing as of now and is expected to stay but at the current rate of new building, there could be an oversupply when constructions are completed - needless to say there are so many new mega size projects which are in-progress as of now.
• Adding to this factor is that - there is very minimal control on how much can be built. Many of the apartment complexes are very large and can house anywhere from 300 to 1000 families. BBMP, one of the worst run entity is not worried about any of the factors like road infrastructure, water - anything is possible by 'you know what' and 'you know who' factors. It is the golden time for real estate in Bangalore and so many things can be developed in-terms of infrastructure with the taxes that are pouring in but unfortunately the funds are pouring in to leaking pots! That can spell doom to the real estate future of Bangalore.
• Infrastructure: As I said above, the density of occupation is not measured against available infrastructure and building happens without any regard to such factors. You would be surprised to see  that for a apartment of the size of 300-500 families, there would be 5-6 visitor parking slots! That is the kind of planning and approvals that go along with these buildings. The approach roads are so small  hardly one car can pass thru' but that is not a factor when building permissions are given.
• Water availability: You might already be aware of the 'Kaveri' war! Unfortunately, there isn't sufficient natural water supply closer to Bangalore. With the indescriminate digging of borewells, there is more water extraction than preservation. Rain water harvesting is a must for new development but nobody checks whether they are really maintained after homes are built. As one saying goes 'water scarcity has made cities to vanish'. Water scarcity can impact Bangalore real estate scene in a major way. Unfortunately, our politicians are busy holding on to their seats and filling up their pockets than any of these real issues.
• Tech industry dependence: Unlike other cities, the apartments and high end real estate is driven only by tech sector in Bangalore. We do see other industries like pharma etc coming in but at much slower rate. If the cost keeps going up and it is not economical anymore for multi nationals to come here, that could impact this sector in major way as well.

Anyway, these are my opinions - pls feel free to sound off your thoughts ...

Investing in Bangalore real estate - optimistic view ...

As I mentioned in my previous post, let me cover the optimistic view of investing in Bangalore real estate. Unfortunately, like any thing else, risk and rewards go hand-in-hand here as well. If somebody says 'investing in real estate in Bangalore/India is the sure bet to get handsome returns', don't trust that! The old truth of 'risk versus rewards' always wins. However, in the current environment, Bangalore real estate does look in the upward trend and what future holds is a 'time will tell' story...

Many factors contribute to this:

• Tech sector is definitely driving the housing market. Banks are still generously giving home loans and it is very easy to get funds to invest in an apartment unit. Crossing loan amounts of above 60-70 lakhs becomes a challenge even for the tech folks but even at this level, it is still possible to settle on something.
• Availability of high-tech workers: It would be hard to find anywhere else in India the amount of tech savvy people like in Bangalore. This naturally attracts more tech companies to have Bangalore as the location, which in-turn drives the real estate market.
• There is still a good influx of people from all parts of the country to Bangalore(not only in tech sector but other peripheral sectors like hotels, construction etc) and that will keep the demand at higher level. The fact that it is difficult to get a good apartment unit in a decent location shows that there is still demand for apartment units. This is typical in larger communities where there are good facilities like swimming pool, club house, good walking area, gym etc.
• Bangalore tops in getting access to malls, entertainment, good Indian/international food etc. This does attract lots of folks to stay in Bangalore.
• Whether is a major factor - it is comfortable throughout the year, which is hard to beat even when compared to any part of US.
• There is still lots of international investment that is happening into Bangalore - not only in the tech sector but in other sectors like hotels, malls, hospitals etc. As far as new tech companies starting offshore setups, that is a TBD. However, I have seen many, many startups, which are setting up offices in Bangalore, which is a good sign for real estate as well.

I have seen places like Sarjapur, which are really outside of Bangalore and not at a commuting distance for work to high tech areas getting sold out when it comes to Villa/apartment projects. Unfortunately, nobody knows whether these are getting bought for investment and with a view of appreciation or they are folks really who are going to stay here when homes are ready. If you are from California, you might remember the story of city Stockton!

Overall, if you count the factors above, it seems like good times are there to stay for some time. If you buy the right property at the right location, you can still get good returns. However, to note, buying a finished apartment and keeping it for few years with a view to sell down the line won't get you much - they may go up a bit but start loosing value as the apartments start getting older. Will cover such scenarios in my next post ...

Bangalore real estate - should I invest for R2I ?

Looking at the traffic to the related posts, I can see that there is definitely lots of interest in the topic of real estate in Bangalore. This is very relevant if you are doing R2I to Bangalore as well. Hence, let me try to  add my 2 cents, with R2I as the focus ...

As a possible R2I, you have few choices:

• Buy an already built apartment
• Buy an upcoming apartment, which is not yet built.
• Buy a site and construct.
• Buy an already built home.

All of these have their own +ve and -ve sides.

Option #1 Buy an already built apartment: This is going to be bit of an expensive proposition. Once completed, price of such apartment goes up - it could be Rs. 3000 or so during initial launch and it could go up to Rs. 4000 or so once completed. However, you are avoiding the risk that builder may run into some legal issue and may not complete or delay. Also, in the already built apartment, many things are already established like swimming pool, STP etc.

Option #2 Buy in an upcoming apartment, which is not yet built: If you have strong R2I feeling or sure about it, this is the best option - if you plan to move to an apartment setting. Prices are lower and you can save anywhere from 10 lakhs to 30 lakhs. There is risk that builder may run into legal issues or may simply delay the handover. Also, if your job location is not fixed, this may become a challenge (whereas in the option #1, you can buy close to your work place). Note that builders take anywhere from 2 to 3 years to complete once they launch. Apartment communities do provide much more social exposure to you and kids but the space you get is much more limited. The problems of noise from neighbors(like in US apartments) is not there since walls are concrete. Also, noise from upper floors are relatively less (you definitely don't hear toilet flush on your head!).

Option #3 Buy a site and construct: This could work very well, given 2 constraints - a)you have some time to come over to India, look for a site, do all of the paper work b)willing to wait for few years before you can occupy. Remember - getting a good site in a good location with clean paper work is NOT easy. Also, getting a house constructed along with your work schedules is no joke. I haven't yet seen a single house owner who said he/she was able to get it done in-time. All of the advice we have gotten so far is to avoid this if you can. However, here you get the option to build your home the way you want. If you construct an independent house outside of a gated community, you need to worry about the security as well.

Option #4 Buy an already built home: This is still an good option. Normally, already built houses don't carry so much value. It is the land price that matters more. However, don't at all be surprised to see a price tag of anywhere from 2 to 5 crores (yes, that is crores for you!!!) in gated communities in high-tech areas like whitefield. You can get older houses within 1.5 crores or so (more like 2500-3000 sq ft area) in decent areas but search is going to be bit longer.

Looking from the investment perspective, I don't see any indication of the prices going down any time soon. Instead all indications are that they are heading upwards. In general, the land gets more appreciation and you can safely sell and invest somewhere else on R2I (say, you need to stay in a different location). So, if you have concrete R2I plans, planning ahead using one of the options could save you some $$$!

I will cover the optimistic and pessimistic parts of buying real estate in Bangalore in my next post ...