Know the benefits of budget apartment investments

If you are a person who likes quality goods at an acceptable or even cheap price, you are not alone. You are like most of us – middle or higher middle class.


Whether it’s an item for the kitchen or kids, for personal wear or a mobile phone, a watch or even a T-shirt, we look for a sale or a place where the goods are cheaper.

When it comes to buying a home which costs in lakhs, can our approach be different? In fact, we would be  more careful. But also not compromise on quality.


The home-buying market comprises primarily of people interested in budget homes. These are affordable, have better availability and offer more choices. Among the companies in the R E industry, developers catering to the middle-class segment far outnumber the upmarket counterparts. 


Recent trends in the real estate development industry shows that even high-ticket developers are now adding affordable homes to their product range. This is because the high-end homes are slow in sales and have less takers. As a business decision, the prospects seem far better for the budget home market segment.


Let’s look at the key benefits:


AFFORDABILITY  -  On the outset, this customer segment has a fairly good idea of the specific amount of funds within which he can invest in a home. He has planned, saved and even has worked out all his liabilities of a loan etc.


Home loans are easier to avail. Banks are eager to lend While he has ready funds for the advance payment. his home loan from the bank will not be a huge amount. His re-payment schedule will be shorter and easier to manage.


Today some developers even offer attractive schemes where even EMI’s are paid by the seller.


Pre-launch offers are some of the best options to get quality home at a lower price. An added advantage is the fact that you can select the best apartment, since the canvas is wide open with all units available. Indeed, this would be a double whammy for the conservative spender.


A judicious investor would have looked at all options carefully, and make his move at the right time.    


LOWER MAINTENANCE COSTS -  A budget apartment costs less obviously due to the size. The entire sight also may not be very big. Over and above that common areas are likely to be less in numbers or area. This obviously means that maintenance costs also are kept at a lower side. When you compare the modern amenities that you use in the premises the amount for maintenance can be justified without a big impact on your budget. Of course, a wise home buyer would factor in the maintenance cost in his financial plans before buying a budget home. 


INCOME FROM RENTALS -  Some home buyers plan to rent out the apartment for the initial period. This makes good financial decision since the additional funds can always be used many of the things you sacrificed to buy the apartment – such as a family vacation, FMCG items, jewellery, etc. It can also help meet any sudden and new demands such as medicare etc.


The rental  market has always been dominated by budget homes. Renting out is easier since there is a much larger demand for the same. The constant floating population, people coming to the city on work, new job seekers, etc have widened the rental market.


EASIER TO SELL -  Demand for affordable homes is significantly higher than for large higher-end homes. If a budget home buyer is in immediate need to purchase a budget home, he is ready to invest in a re-sale unit.


BETTER RE-SALE VALUE – If for some reason you decide to sell your unit, you have the added advantage to sell it at prevalent appreciated market value. Even in an adverse market conditions, it is vastly unlikely that a resale value will be less than your purchased cost. Since buyer groups will be large, it would be easier to find the right buyer to get more value for your money.


A TANGIBLE NVESTMENT – There can be no doubt in the fact that an investment in a tangible asset is always better than others assets such as stocks, etc. While fluctuations dominate the stock market as well as the real estate market, the ownership of your tangible  brick & mortar unit is always there with you. And at some point in time, you always have the option to sell it right. Whereas, an investment like, say mutual funds, your entire money can be wiped out in a very adverse market situation. This obviously makes an investment in budget home a lower risk.


These are just a few of an investment in budget homes. Today the options are many for the same. Due to current pandemic issue and the general economic conditions, even bigger apartments are being sold at a more affordable price, whether re-sale or new. Buying a home is a planned effort. Judiciously done, it can be a remarkably rewarding venture.