Many of us, who have a weekend home, know that it comes with costs. It needs a care taker – there are no common amenities (like a pool) and managing it is a lot of work. Eventually we realise that it is not as much fun as originally envisaged. We end up only going a there few weekends every year. Over time, the weekend home becomes a costly expense, that we justify as a hobby.
Here is a weekend home option off-Bangalore, which costs you appx 40 lacs , does not need to be maintained, comes with loads of amenities plus it gives you an assured rental income at more than double the yield of a residential property. You can also take a home loan for this investment. Plus, it is being developed by Kush Shah – whom I trust and with whom I have invested in the past. Many of my readers would know Uniworld 1 and Uniworld 2 – quite a few of my readers have invested in these properties and in Uniworld 1, they are already reaping 10% plus rental returns for the past 2-3 years.
So here are the details:
- You invest in a one bed room villa in a resort called Nandi Havens – this property is very close to Nandi Hills -appx 30 Kms from Bangalore airport. The two photos here is how your villa will actually look.
- For an investment of appx 40 lacs, you will own a 1200 sq ft plot (valued at appx 20 lacs at a cost of Rs 1500 per sq ft) and appx 640 sq ft fully furnished villa (valued at appx 20L at a cost of Rs 2300 per sq ft for construction and Rs 1200 per sq ft of furnishing and fitouts).
- If you want, you can take home loans from HDFC, LIC HFL and Aditya Birla finance.
- You will lease back this villa to the property management company managed by Kush Shah – that will assure you returns as follows (please note that rental yield for typical residential property in India is around 2-3% of the property value):
- First two years – construction time and hence no returns
- Third year – resort start year and an assured return of 4% on your investment
- Fourth year – an assured return of 6% on your investment
- Fifth year – an assured return of 7% on your investment
- For the next five years – an assured 5% escalation every year – resulting in an ROI of 8.93% in the tenth year
- Beyond the rental yield, I believe that land value in this location would appreciate over time. There are schools, hospitals, residential complexes and IT parks coming up in North Bangalore already. In ten years, Nandi hills area would be part of Bangalore.
- Your ownership of this villa entitles you to a complimentary 30 nights stay per annum – so this is your weekend home where you can go every fortnight.
- The resort will have the following amenities – heated swimming pools (2 nos); wellness centre with spa, suana and yoga; club room with movie room, snooker, table tennis; coffee shop and multi cuisine restaurant, karaoke bar, banquet halls, outdoor activities like lawn tennis, basketball, golf putting green, turf football, paintball, zipline. wall climbing etc.
So, by investing appx. 40 lacs, you get a weekend home which needs no maintenance from your side and which also gives you rental income that is more than double the residential rental income.
Here is a two minute video on the offering.
There is one more investment option. If you are interested in just the capital appreciation and not the rental yield, you can invest in just the plot (appx 20 lacs for a 1200 sq ft plot) and still get 15 complimentary night’s stay per year.