Affordable homes can actually be a luxury to the buyer
Jun 03, 2017 Home Trading Steps
Countries across the world are emphasising on the affordable home segment to meet the rising demand of homes. Countries like India and China where the demand for properties are on ever rise due to the increasing population, affordable housing is finding its place in the real estate market.
For instance, you have to churn out almost Rs 50 lacs for a decent apartment in the city for a 1 bhk or 2 bhk flat. But if you move towards the fringes of the city, you might have to pay half the amount for the property with similar amenities. And it might turn out to be a luxury buy for you.
1. Saving on the property:
The government set the targets for the affordable housing and generally developers stay away from these projects. It’s the government who starts and finishes them in the only for the sole purpose of making the profits. The projects use only the basic requirements and follow the minimum standards for the projects. The makes it extremely costly for the buyers to afford such properties. Also, if the quality of the materials used for such properties is not good, then the life of the property will be less as well. These properties might as well be less resilient to the natural calamities like earthquake, floods etc.
The amenities provided in such properties are low as well just to cut the cost of construction. The buyer, in turn, will have to get them all done for his own self-use.
2. Commuting distance:
You might have to travel hours from your home to your workplace back and forth. This might take a toll on your health and take most of your time commuting. Also, if the property is in the remote location then there are chances that the transportation will not be as smooth as it will be in the city. You might have to drive your pocket, which will burn a hole in your pocket, or change few transportation modes to reach your destination, which will be very tiring.
Countries across the world are emphasising on the affordable home segment to meet the rising demand of homes. Countries like India and China where the demand for properties are on ever rise due to the increasing population, affordable housing is finding its place in the real estate market.
For instance, you have to churn out almost Rs 50 lacs for a decent apartment in the city for a 1 bhk or 2 bhk flat. But if you move towards the fringes of the city, you might have to pay half the amount for the property with similar amenities. And it might turn out to be a luxury buy for you.
1. Saving on the property:
The government set the targets for the affordable housing and generally developers stay away from these projects. It’s the government who starts and finishes them in the only for the sole purpose of making the profits. The projects use only the basic requirements and follow the minimum standards for the projects. The makes it extremely costly for the buyers to afford such properties. Also, if the quality of the materials used for such properties is not good, then the life of the property will be less as well. These properties might as well be less resilient to the natural calamities like earthquake, floods etc.
The amenities provided in such properties are low as well just to cut the cost of construction. The buyer, in turn, will have to get them all done for his own self-use.
2. Commuting distance:
You might have to travel hours from your home to your workplace back and forth. This might take a toll on your health and take most of your time commuting. Also, if the property is in the remote location then there are chances that the transportation will not be as smooth as it will be in the city. You might have to drive your pocket, which will burn a hole in your pocket, or change few transportation modes to reach your destination, which will be very tiring.
What is the store for buyers?
As an investor, you might have bought the property as a temporary investment idea and you hope to load it off as soon as you find a good deal for the property. One thing that holds true is that the properties in the outer skirts of the city face less price raise as compared to the ones in the city. The properties in the middle of the city see much better appreciation. As compared to the last five years, the real estate in India has seen a very less appreciation.
For instance, you have to churn out almost Rs 50 lacs for a decent apartment in the city for a 1 bhk or 2 bhk flat. But if you move towards the fringes of the city, you might have to pay half the amount for the property with similar amenities. And it might turn out to be a luxury buy for you.
1. Saving on the property:
The government set the targets for the affordable housing and generally developers stay away from these projects. It’s the government who starts and finishes them in the only for the sole purpose of making the profits. The projects use only the basic requirements and follow the minimum standards for the projects. The makes it extremely costly for the buyers to afford such properties. Also, if the quality of the materials used for such properties is not good, then the life of the property will be less as well. These properties might as well be less resilient to the natural calamities like earthquake, floods etc.
The amenities provided in such properties are low as well just to cut the cost of construction. The buyer, in turn, will have to get them all done for his own self-use.
2. Commuting distance:
You might have to travel hours from your home to your workplace back and forth. This might take a toll on your health and take most of your time commuting. Also, if the property is in the remote location then there are chances that the transportation will not be as smooth as it will be in the city. You might have to drive your pocket, which will burn a hole in your pocket, or change few transportation modes to reach your destination, which will be very tiring.
Countries across the world are emphasising on the affordable home segment to meet the rising demand of homes. Countries like India and China where the demand for properties are on ever rise due to the increasing population, affordable housing is finding its place in the real estate market.
For instance, you have to churn out almost Rs 50 lacs for a decent apartment in the city for a 1 bhk or 2 bhk flat. But if you move towards the fringes of the city, you might have to pay half the amount for the property with similar amenities. And it might turn out to be a luxury buy for you.
1. Saving on the property:
The government set the targets for the affordable housing and generally developers stay away from these projects. It’s the government who starts and finishes them in the only for the sole purpose of making the profits. The projects use only the basic requirements and follow the minimum standards for the projects. The makes it extremely costly for the buyers to afford such properties. Also, if the quality of the materials used for such properties is not good, then the life of the property will be less as well. These properties might as well be less resilient to the natural calamities like earthquake, floods etc.
The amenities provided in such properties are low as well just to cut the cost of construction. The buyer, in turn, will have to get them all done for his own self-use.
2. Commuting distance:
You might have to travel hours from your home to your workplace back and forth. This might take a toll on your health and take most of your time commuting. Also, if the property is in the remote location then there are chances that the transportation will not be as smooth as it will be in the city. You might have to drive your pocket, which will burn a hole in your pocket, or change few transportation modes to reach your destination, which will be very tiring.
What is the store for buyers?
As an investor, you might have bought the property as a temporary investment idea and you hope to load it off as soon as you find a good deal for the property. One thing that holds true is that the properties in the outer skirts of the city face less price raise as compared to the ones in the city. The properties in the middle of the city see much better appreciation. As compared to the last five years, the real estate in India has seen a very less appreciation.
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