quinn_deals
Landlord
This would be our first rental, and I’m trying to work out whether the headline return justifies the risks on a large single property.
It’s a 5-bed new-build flat in Bengaluru priced at ₹87,260,000, with expected rent of ₹598,200 per month. That puts the gross yield at roughly 8.2% before costs. The building appears sound, but vacancy and tenant turnover could materially change the result.
My conservative model already includes a vacancy allowance, management fees, routine maintenance and a reserve for one larger repair. I still need to pressure-test insurance, property tax and any financing sensitivity.
For those familiar with Bengaluru rentals, which local or building-level cost am I most likely to be underestimating? I’d also be interested in the vacancy assumption you would use for a 5-bed flat and the minimum net yield you would want at this price.
It’s a 5-bed new-build flat in Bengaluru priced at ₹87,260,000, with expected rent of ₹598,200 per month. That puts the gross yield at roughly 8.2% before costs. The building appears sound, but vacancy and tenant turnover could materially change the result.
My conservative model already includes a vacancy allowance, management fees, routine maintenance and a reserve for one larger repair. I still need to pressure-test insurance, property tax and any financing sensitivity.
For those familiar with Bengaluru rentals, which local or building-level cost am I most likely to be underestimating? I’d also be interested in the vacancy assumption you would use for a 5-bed flat and the minimum net yield you would want at this price.