Small Units Make Exits Easier
Just five years into his job as an analyst in Bengaluru, Vincent John wanted to make a small investment. His peers and family seemed to suggest that buying a 3BHK might be better, considering there wouldn't be any restriction for space in future. John is confused whether to go small or opt big.
Here's what you should keep in mind before you plan on an investment:
Determine the objective
Know whether you are putting in your money as a pure investor, for rental returns or for end-use. For each of these, the kind of investment you are making will vary. For example, if you are looking at a house with an intention of leasing it out, make sure that the property is bought in a place where there is regular demand. Localities that boast proximity to business districts and colleges are more likely to attract potential tenants.
Whether buying for end-use or for rental yield, do mark one important aspect of opting for home. A clean, socially and physically equipped neighbourhood will work well for you. This means that if your locality is accessible, has hospitals, schools and provision stores in the vicinity chances are that you have made a careful investment. You may also be able to strike a good deal because tenants and buyers alike look at these determinants.
Weigh your budget
Sanjay Balachandran was looking at end-use and in the next three-four years, he knew he would require a 3BHK. However, he settled for a 2BHK at Hinjewadi. Two years into marriage and kids, he realised that perhaps another Rs 5 lakh at the time he purchased wouldn't have made much of a difference but buying a bigger home now meant disturbing his finances.
Like Balachandran, most of us try to save money. Is it saving in the real terms or would you have to compromise on certain comforts? If you are looking at end-use, weigh your priorities and your spend alike. Would you be buying another house? Would a smaller house mean compromise? Would a little bigger house in a better locality mean disturbing your finances? Realty portals today give out all the information you need to settle down on the house. Make use of these to arrive at the right one.
Why small is better
Smaller configurations make for easier exits. In Pune, more new homes are being launched in the markets which are slightly smaller in sizes. This makes it easier for the unit to move quickly in the market. “Buyers were sitting on the fence just because they wanted to see a price correction. Bigger units in no way can be cheaper because construction costs are high. 2BHKs are good if you are considering leasing it out especially with job centres around. This ensures that those looking at shared flats do not have to run around too much to pool in a higher rent and at the same time if one is looking to sell, the price sounds affordable when compared to bigger units,” says Qasim Khan, broker, Realty Today.