Let's keep digging the
earth a little more (pun intended).
Do you really play squash, badminton, practice yoga, swim, jog everyday....I don't. The Gym in my complex is about 25 meters from my apartment. So is the swimming pool. I don't use the pool for 8 months in the year and the gym probably for 20 days in a year -that too when I get nagged by my better half. Instead I walk (definitely more than I gym), on the shaded roads in my colony, enjoying the beautiful morning light, breeze and the sight of the regular morning walkers. I sometimes semi-jog...(without having to furiously punch buttons as on tread-mills) and go up the incline just round the corner.
·
Why
do you really need to pay more? Want to be a Rajasthani Prince?
Seems to me, everyone
desires to be the guy who made it in life - Big house with a swimming pool,
two cars or maybe three (?) , LED TVs, Home theaters etc. Or
so, the advertisements put out by the builders would lead us to believe.
So whether you are
struggling to live within your four figure salary, or making two-ends meet with
your spouse also chipping in, or your retired father giving up his car....you
must buy that "dream house" ?
Do you really play squash, badminton, practice yoga, swim, jog everyday....I don't. The Gym in my complex is about 25 meters from my apartment. So is the swimming pool. I don't use the pool for 8 months in the year and the gym probably for 20 days in a year -that too when I get nagged by my better half. Instead I walk (definitely more than I gym), on the shaded roads in my colony, enjoying the beautiful morning light, breeze and the sight of the regular morning walkers. I sometimes semi-jog...(without having to furiously punch buttons as on tread-mills) and go up the incline just round the corner.
The point being...for
the majority of us, we really desire the amenities, but rarely use them....but
always end up paying for them.The maintenance bills for all these large complexes is
anywhere between 0.5% and 1% annually. Give or take a few. So next time you see
this super-luxurious condo with amenities matching the Rajasthani palace - THINK well. You
will be paying for that...Monthly...annually...along with the EMIs.
·
Is
the developer telling the truth when he says that he has no choice but to
increase the prices?
To a large extent this
is true. It costs money to build complexes. Funding is complicated.
Lenders like to
extract their pound of flesh. The Debt market ranges from 15% onwards
generally. Equity funding demands payback (IIR) above 26% from the builder.
Infrastructure funding is tough to get.
Govt approvals are
time consuming (therefore cost over-runs). Most state bodies are notorious for
rampant corruption. So the builder needs to go thru' all these challenges and
then deliver ensuring profits for himself and his stake-holders. Do you now wonder why projects get
delayed and property costs a King's ransom? Do you?
·
Does the buyer have choice? How can we make a better
decision?
Yes there always is a
choice. Buy what you really need. Save the rest of the money. Join a plush club
in the city for the rest. If you are a fitness freak join that hi-tech Gold's
Gym or Fitness First which has the latest equipments and like-minded members to
inspire. Much cheaper and you have multiple choices. Keep the change in your pocket. The jingle will be music to your ears over the years.
On the other hand if you do buy that extravagant house, (seriously) you will make "nobody" envious - they either do not or will not care; or can probably buy a more expensive property than you (without denting their pockets at all); or just plain and simple - just shrug and move on with their lives. However...you guessed it now ...You, will be paying for that house... Monthly ... annually ... along with the EMIs.
On the other hand if you do buy that extravagant house, (seriously) you will make "nobody" envious - they either do not or will not care; or can probably buy a more expensive property than you (without denting their pockets at all); or just plain and simple - just shrug and move on with their lives. However...you guessed it now ...You, will be paying for that house... Monthly ... annually ... along with the EMIs.
Till next time....mate.
As the most robust property market, Mumbai real estate is growing at an exponential graph. Today it is considered as the investors paradise which is attracting thousands of people every day.
ReplyDeleteReal Estate Companies in Mumbai
Brilliantly written, anjan. kudos to that agile mind you hide inside that egg of yours !!
ReplyDeleteFirst of all today I got to know the spelling difference between realty and reality.
ReplyDeleteKidding.
Second, after reading this I counted in my head my own usage of the swimming pool. Turns out less than 20 days a year. The gym story is a bit more successful at my end - so 40-50 days a year. But what percentage of cost of a super luxury appartment is governed by Gym and Club versus the location versus the interiors (floor, fittings & fixtures, paint). And if it is in a gated complex with high rises isn't the # flats per square meter govern the flat cost the most?
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ReplyDeleteDear Sanjay,
ReplyDeleteThanks for writing in. The key to understanding this is in the coverage efficiency and the amenities on that extra UDS you pay for. Every thing is added up - The extra undivided share of land (UDS)with parks, gym, squash court, club house (sometimes the area becomes a talking point - "Sir it's 27000 sq ft !"), community hall, jogging track, swimming pool - everything except allocated parking and your own flat area. This is sub-divided among the no. of flats. So if you do not use the amenities you end up paying for the handful who do!