Factors to consider before buying an apartment

[Truely_Desi]

Hello guys,

I am planning to buy a flat in Delhi and in one of the Tier III city in UP-Parsvnath (still in construction phase for next 2 yrs). I have some doubts over the options to choose for, would you please guide me to decide pro and cons for the following options:

1) Choosing b/w High Rise and Low Rise building
2) Advantages of Corner and park facing buildings
3) Covered and uncovered parking
4) Payment plan - Down payment disadvantages if any?
5) Floor preference for Low rise building
6) Floor preference for High Rise building

I would really appreciate your inputs and helping me deciding based on above factors. I am buying this for investment purpose and would R2I only after atleast 3-4 years.

TIA,
-TD

[back_in_des]

I am planning to buy a flat in Delhi and in one of the Tier III city in UP-Parsvnath (still in construction phase for next 2 yrs). I have some doubts over the options to choose for, would you please guide me to decide pro and cons for the following options:

1) Choosing b/w High Rise and Low Rise building

Larger social network in large apartment complex. Kids have many friends to play with.

2) Advantages of Corner and park facing buildings

Privacy of your balconies if you are on higher floors. Apartments facing other apartments have no privacy.

3) Covered and uncovered parking

Definitely covered. Protects car against light, dust and rains. Easy entry and exit during summer and rains.

4) Payment plan - Down payment disadvantages if any?

Invariable builders slip schedules. So, more down-payment means more money locked in with builder and lesser incentive for him to complete the project.

5) Floor preference for Low rise building

It's personal. Typically I avoid ground (relatively more insects, rats, etc) and top floor (too hot in summer).


6) Floor preference for High Rise building

Again it's personal. Typically I avoid ground (relatively more insects, rats, etc) and top floor (too hot in summer). More privacy, more air and more light higher the floor you are. At the same time, builders have a floor rise premium which increases with each floor, so you pay for it. Also, your reliance on elevator increases higher you go.

[Desi_by_Nature]

Floor preference for High Rise building

My first preference would be the second floor from the top.

[Truely_Desi]

Thank you Back_in_Des & Desi_by_nature for your inputs.

I would appreciate more inputs from other guys in the forum.

[Truely_Desi]

Payment Plan:: Down PAyment - I am interested in paying in full as the amount is under 20 L (for the APT in UP) and I get 10% discount - Any comment on this.

[back_in_des]

Payment Plan:: Down PAyment - I am interested in paying in full as the amount is under 20 L (for the APT in UP) and I get 10% discount - Any comment on this.

When is the proposed completion date?

[Truely_Desi]

@Back_in_Des:: The proposed completion date is September 2009 (Complex: Parsvnath Pratibha- Moradabad-UP).

[back_in_des]

@Back_in_Des:: The proposed completion date is September 2009 (Complex: Parsvnath Pratibha- Moradabad-UP).

It doesn't make sense to get 10% discount for 100% upfront payment for an apartment 2 years away. If it was 6 months away and realistic chance of completing on schedule, it would make sense.

Annual fixed deposit returns are approximately 9-10% these days. So, you would be making more than that (even after paying taxes) in FD than from the 10% discount from the builder. Over 2 years, mutual funds can also give far better returns (usual risk disclaimer applies).

Besides, if you find a buyer for your apartment and wish to take profits and exit in the middle of constructions, your gain will be on the payments made until that date, which will be a higher %age RoI compared to full payment.

Lastly, if the delivery of the apartment is delayed, say by a year, which is not abnormal, you lose interest income on that money.

My 2c.