Homing in on bare facts
Photo:R.ESWARRAJ
On the rise:Need-based apartments.
I want to buy a flat in Bangalore,for my family and for investment purposes. But I find the going rates (approx Rs. 75 lakhs for new two bedroom apartments) hard to justify and also a bit for a stretch for me, as I am the single earner in my family. What do you suggest?
Ashish Gupta
One alternative that you can consider is buying a used/resale apartment. Just like resale cars, resale apartments are often available at prices that are less than their intrinsic value, thanks to the stigma attached with buying used stuff in our country.
A rational decision maker, instead of being bothered by such superstitions, can take advantage of the situation to negotiate a sweet deal.
In fact, “the charm” of buying “new”, is one of the key attributes that builders exploit to earn high margins. The same charm factor also results in faster depreciation of new apartments during the initial years. Considering the overall lifespan of a building, as long as the construction quality is good, a 10 year old apartment is going to be in no poorer shape (structurally) than a new one. Yet, the former, would be available at a substantial discount.
