My First Blog Post

Steps To Take Before Buying High End Property.

A High time to conduct your Due Diligence before buying a High End Property

By- Raghvendra P Singh ( Partner at ConceptLegal)

If you are an avid reader of the newspaper, I am sure you must be well aware that the affordable and mid-segment housing market was witnessing a downward trend between 2011 and 2013. However, another aspect is that the luxury realty was moving on a fast lane. 

Our country has witnessed Rs 10,100 crore worth of premium houses launched across the country in 2012 and mid 2013. As per recent reports, growth in the luxury segment can be attributed to factors, such as falling value of the Rupee and increase in the number of high net-worth individuals and NRIs. 

Influx of international lifestyle trends has also propelled demand for luxury homes. A 5,000 square feet apartment in the luxury segment can be priced anything between Rs 5 and Rs 30 crore, or more. When such an enormous sum of money is at stake, buyers must pay heed to certain factors before parking their funds in a luxury project. Is the layout practical? Prior to investing, one must understand the calculations of carpet area, built-up area and super built-up area since developers usually charge on the basis of the latter:

• Carpet area: The area within the walls of the apartment 

• Built-up area: Carpet area + area occupied by the walls 

• Super built-up area: Carpet area + built-up area + common areas 

While ensuring that the apartment has sufficient carpet area, it is imperative to ascertain that the social and private spaces are well demarcated. An owner of a luxury apartment is likely to have a big social circle. So, it is important to ensure that your guests do not have to traipse through your bedroom to use the washroom. Is the property free of disputes? Even luxury projects can be tarred by controversies. Illustrious brands, such as, Hiranandani Developers and DLF Limited, are embroiled in disputes; and some of their iconic projects have cases pending at the court of law. 

Therefore, it is of utmost importance to ensure that the developer’s building plan is not conflicting with the regulations prescribed by the local authority. Buyers much check whether the builder has sought the necessary approvals prior to entering into an agreement. Architectural brilliance While it is not unusual for developers in the luxury segment to select a reputed architect for their building projects, buyers must conduct a personal research on the same. A new building will look glamorous for the first few years but is bound to deteriorate with time. 

However, a solid foundation and an aesthetically pleasing exterior will ensure that it retains some value and not debilitate completely. Does the neighborhood complement your posh apartment? Consider, for instance, every time you look out of your high-end apartment, you see plenty of shacks. Will that unpleasant sight allow you to enjoy the beauty of nature? Buying a luxury apartment can be value for money only if your beautiful home overlooks a lovely outdoor space, may be a quaint little park or a pool. Better still, if the apartment interiors are open to natural light. This will not only add to your lifestyle but will also improve the resale value of your home. In-house features While your home might appear cosy, you must pay heed to the practical angle as well. For instance, having sufficient storage area and a good number of closets in the bedrooms might prove rewarding. You may also prefer double-pane, insulated windows to safeguard against weather (and at times, noise). If your apartment is on the top floor, having a double ceiling would be a good option. Ensure that the features you are paying for are not just cosmetic but has some real usage. For instance, a fireplace might add to a room’s appeal but it will have little use unless you are located in colder climes. Common area facilities 

A developer may offer plenty of facilities, such as a clubhouse, library, pool and fitness area. Since these facilities will increase your investment, you must enquire about the quality and maintenance factor. For instance, a gymnasium should have modern equipment, especially ones that you will not invest in for personal use. 

A pool will have to be maintained on a regular basis, failing which, might jeopardize residents’ health. Make sure that you do not compromise on the aforementioned points if you are shopping for a luxury apartment hoping that it will have lasting value.