The general perception is that flats depreciate with time. That’s true to some extent but in Gurgaon some good flats have appreciated more than 500% in the last two decades. A well-maintained group housing gives good returns both in appreciation and in rentals.
The most important factors to keep in mind are:
- Track record of the developer or professionals hired by the developer. Most important professional being the construction contractor.
Customer must ask the developer before buying a flat whether a contractor has been appointed or not. If yes check his credentials online. If possible, visit a project he has constructed. Keep in mind its your hard-earned money. The most reputed construction companies are L&T, Shapoorji Pallonji, Ahuja and Kashyap, Ahluwalia constructions etc.
2. Second most important question which I have never seen customers asking is Who will maintain the society?
Ask the developer whether he can give in writing that it will be given to a third party. Third party is generally a professional company like JLL, DTH, etc. In group housing where number of flats is large, RWA (Resident Welfare Association) cannot maintain it. Classic case is all the societies in Chandigarh (from Sec-48 on wards) are ill maintained and their value is stagnant from many years.
Some companies have in house maintenance like ATS group. They maintain their projects very well.
Secondly, enquire about the tentative per Sqft maintenance. If possible, ask the developer to mention it in the buyer’s agreement. Ideally the maintenance should not be above Rs.2.50 per Sqft + GST. If it is around Rs.5/- per Sqft then you are a tenant in your own house.
Example, for 1800 Sqft Super area flat you will be shelling out Rs.10080/-( 1800X5 =9000X12% GST) per month.
3.Choose Different Proposition
Different proposition can be because of Location, Size and Layouts. We will deal them separately.
- Location: Choose a site where apartment sites are less. Again, this in accordance with the principal of Demand and Supply. Examples are Falcon, Marbella Grand, La Parisian. Out of all these I feel La-Parisian is better because it has limited flats and sizes to suit different pockets. All these flats are a good option for investment because of their location. Not only these will fetch good appreciation but when the International Airport start operating on full throttle, they will command good rentals as well.
Falcon view is already fetching 5% rentals, much better than commercials in cities like Ludhiana, Patiala, Sangrur, Bathinda.
Another project which beats rest all others in location is Beverly Golf Avenue. It faces Golf Range and is actually Zero ‘0’ Km from Chandigarh.
As far as the location of the flat, buy a green facing unit and the one which gets maximum sunlight.
- Size: 2 BHK and 4 BHK (near 3000 Sqft) or very spacious 3BHK + servant (more than 2300 Sqft) are less available as compared to standard 3 BHK of sizes 1550 Sqft to 1850 Sqft.
- Layouts: good easy to use layouts with spacious bedrooms. If drawing room is compromised it is ok but Bedrooms and Kitchen should be spacious. See the sizes from the drawing in the brochure and not the sample flat. Sample flat is made to look spacious as it will have Queen size double beds instead of King size beds, there will be no door in the entire sample flat and only light colours are used.
Flats don’t fetch profits is a myth. You only have to keep the above points in mind. If possible, buy a flat in the initial stages and sell just before possession. In a span of nearly 3 years the developer would have revised the prices 3-4 times. Take advantage of it.