For us Indians, to live in an own house is a life-long dream and aspiration that enhances status. The current costs of buying or building apartments really tell upon our resources both financially and emotionally. So it is necessary that we do a thorough check on standards, amenities, builders’ credentials and finally our bank balance. Lo! When the time is ripe, we compromise on quality and go for the best among the least costly ones.
We marketers know the pulse of the customers and contribute to campaigns beneficial only to builders. Nowadays, real estate promotions have their focus on grand amenities, user-friendliness and chic locations. Also sales pitch is so high we fall for it all. Let us come to the basics and essentials in real estate deals.
A handy checklist to keep in purchase transactions.
Undivided Share (UDS):
Undivided share is a factor that redefines investment scope. This share is proportionate to the area of the land utilized in the construction of each apartment. Property prices ultimately depend upon the undivided share of land, irrespective of what happens to each apartment, be it selling, rebuilding, natural calamities, governmental acquisitions etc. Further, UDS is inversely proportionate to the number of residences and floors in construction area. Higher the building, lesser the UDS value. Higher UDS values are always appreciable.
Each location in a city like Chennai or Bangalore has definite potential for development and growth over a period of time, but only to a certain extent. Costlier locations are likely to become more stagnant and more stuffy. So, it becomes touchy to resell an apartment or a land or plot in such locations. An upcoming location has better prospects in future, though the present growth value may be low.
An apartment lasts 20-25 years only. The next phase will see a lot of redesigning and rebuilding. Any builder will undertake to reconstruct an apartment for free, if he gets to build another 2 -3 floors and the UDS will devalue by 18%. So, does a multi-storied building have a future? Not likely. Cost of reconstruction, if need be, has to be met from one’s son’s or daughter’s or someone else’s funds. Multi-storied buildings are meant for a single generation only. Hence, if a deal comes, it has to be grabbed and enjoyed. Else, better ones will march in.
An analysis of overheads and projects towards maintenance is indispensable as and when one buys or shifts to an apartment new and not new. More the amenities more the cost of maintenance. In regard to skyscrapers, depletion of underground water level will occur over a period of time. It has also to be provided for as a component of these charges. Time is not far off when maintenance charges probably will equal the amount of rent or instalment. Worthy amenities make houses rather homes comfortable and convenient to reside and live in. So careful calculations always help. Construction or purchase of a house to make a home involves investment from all quarters. A right choice based on proven credentials of the seller will enable smooth and hassle free living. Hope the above checklist will direct buyers to choose custom-built apartments that match their imagination.