When ever some one thinks about an investment in real estate, the first question that comes in to mind will be whether I should go for an apartment or for an independent house...I would say going for an apartment is like buying the food from a restaurant where as building your own house is like cooking your own favorite food. And when it comes to a villa from a villa project... I guess its a blend of that...and yeah I am a bit struggling to define it, but trust me its an expensive affair for a middle class person like me...
Any ways after a lot of paper works and calculations I decided to go for the toughest one. To buy a site and build a house..tough decision I know.. but this is what lead me to that...
Say you pay Rs. 2000 per sft for the 2000 sqft site. that means your total investment is 40,00,000/-
And lets say its after 20 years that you are selling it off... what ever be the reason. With the current trend which ever place you are in Bangalore the rate after 20 years will at least be 10,000 per sft. that means after 20 years your property is worth 200,00,000/- lets forget the inflation for time being
Now lets pick an apartment of the same rate... you are spending 40,00,000 on a 2000 sft apartment. and after 20 years the only option for you and all your neighbors is to demolish the building and build a new apartment complex. Say you want to take your share and move out. Lets say the apartment is built in a 20,000 sft plot and there are 40 apartments in the complex. that means each of you will end up getting 20,000 divided by 40 =500 sft of land. yes that is the parking area you had and your share in the common area. So what rate should you expect to get back that same 20,00,000? 20,00,000 divided by 500 yes it is four times. ie 40,000/- or in other words the value of your investment after 20 years is 500X10,000 50,00,000/-. And yes getting those 40 inmates in the apartment to agree for that plan after 20 years? thats another headache...I was convinced...And I started searching for a good site...
Still why people go for apartments?
1) You get an off the shelf product.- My argue point was why to live in some thing that some one else designed as per his/her ideas?
2) The community living factor - how much time do you get for that these days? and if you are living in a developed locality you still can build it
3) You are not alone in solving any issues - this is a big advantage, when you are in a house, a leaking drain or an empty water tank is only your headache. Thats ok I am ready to take that risk.
4) Security - Yes a big advantage in the apartment. My solution was to put strong safety grills for all doors that open out.
5) In an apartment you will have some one to receive your child when she or he comes from the school. I sorted it out by finding a good post school day care.
And yeah when you are living in an dependent villa your son is not restricted from jumping or dancing in front of the TV by that person living in the below floor. Your after noon sleep is not broken by that pressure cooker weight dropped by that lady staying on the apartment above yours.
And yes you will not crib telling, I wish the bathroom was a bit more bigger or the kitchen was like this. You will not say I wish I could see whats happening to my dear car afterI leave it in the basement and come. You will not say I wish I had a bit of land to grow a tulsi plan or a curry leaf plant....
I love freedom and that is what drove me in taking my decision...
Any ways after a lot of paper works and calculations I decided to go for the toughest one. To buy a site and build a house..tough decision I know.. but this is what lead me to that...
Say you pay Rs. 2000 per sft for the 2000 sqft site. that means your total investment is 40,00,000/-
And lets say its after 20 years that you are selling it off... what ever be the reason. With the current trend which ever place you are in Bangalore the rate after 20 years will at least be 10,000 per sft. that means after 20 years your property is worth 200,00,000/- lets forget the inflation for time being
Now lets pick an apartment of the same rate... you are spending 40,00,000 on a 2000 sft apartment. and after 20 years the only option for you and all your neighbors is to demolish the building and build a new apartment complex. Say you want to take your share and move out. Lets say the apartment is built in a 20,000 sft plot and there are 40 apartments in the complex. that means each of you will end up getting 20,000 divided by 40 =500 sft of land. yes that is the parking area you had and your share in the common area. So what rate should you expect to get back that same 20,00,000? 20,00,000 divided by 500 yes it is four times. ie 40,000/- or in other words the value of your investment after 20 years is 500X10,000 50,00,000/-. And yes getting those 40 inmates in the apartment to agree for that plan after 20 years? thats another headache...I was convinced...And I started searching for a good site...
Still why people go for apartments?
1) You get an off the shelf product.- My argue point was why to live in some thing that some one else designed as per his/her ideas?
2) The community living factor - how much time do you get for that these days? and if you are living in a developed locality you still can build it
3) You are not alone in solving any issues - this is a big advantage, when you are in a house, a leaking drain or an empty water tank is only your headache. Thats ok I am ready to take that risk.
4) Security - Yes a big advantage in the apartment. My solution was to put strong safety grills for all doors that open out.
5) In an apartment you will have some one to receive your child when she or he comes from the school. I sorted it out by finding a good post school day care.
And yeah when you are living in an dependent villa your son is not restricted from jumping or dancing in front of the TV by that person living in the below floor. Your after noon sleep is not broken by that pressure cooker weight dropped by that lady staying on the apartment above yours.
And yes you will not crib telling, I wish the bathroom was a bit more bigger or the kitchen was like this. You will not say I wish I could see whats happening to my dear car afterI leave it in the basement and come. You will not say I wish I had a bit of land to grow a tulsi plan or a curry leaf plant....
I love freedom and that is what drove me in taking my decision...
nice article
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