Home Buyers Speak: For Bengaluru's Madhusudan Rao, A Home Must Be A 'Perfect Fit'
For information technology (IT) services management expert Madhusudhan Rao, an ideal home is what his grandparents had in Mysore, a structure built on an independent piece of land that meets all your requirements. To make his dream come true, Rao sold an apartment he had bought in Bengaluru's Electronic City and purchased a residential plot in the city. Rao and his wife plan to build their dream home here.
In an interview with PropGuide, Rao says that even if you are an investor, you should buy a home only if you would love to stay in it yourself. Edited Excerpts:
Q: You bought an apartment and later sold it to buy two residential plots. Did you buy your apartment as an investment?
Rao: I bought an apartment near the Electronic City in early 2014. As I later decided to build an independent home on a plot of land, I sold the apartment in early 2015 to fund my purchase. But, as my apartment was an under-construction project, I realised that it was easier to sell. Selling a ready-to-move-in apartment is easier than the one in a pre-launch stage.
Q: What were the challenges you faced while finding an apartment to buy?
Rao: Every family has a unique set of requirements and preferences. So, while there is an abundance of apartments in real estate hotspots like the Electronic City, it is difficult to find all the amenities that you need in one residential project. When you find such a project, it is likely to be very expensive. I and my wife grew up in Mysore, and our idea of an ideal home was based on the home in which our grandparents' lived in. This is why I decided to buy a plot and build an independent home.
Q: How much did your apartment cost? How did you finance the purchase?
Rao: Leading real estate developers have been constructing residential projects in this locality and it is difficult to buy a property here for less than Rs 4,000 per sq ft at present. However, at Rs 2,150 per sq ft, my apartment cost Rs 56 lakh in total. I made a down payment of Rs 14 lakh and took a home loan of Rs 42 lakh with State Bank Of India. Paying a home rent along with EMIs (equated monthly installments) for this apartment was not really feasible.
Q: Did you negotiate with the developer when the project was delayed?
Rao: Of course, I negotiated with the builder. The builder reduced the price to Rs 2,150 per sq ft, much lower than the prevalent property prices in the neighbourhood.
Q: Was electronics city your first choice?
Rao: No. I wanted to buy an apartment at the Sarjapur Road. But, property in Sarjapur Road is more expensive. So, I decided to go for the Electronic City, as it was closer to my office.
Q: What were your priorities while buying your apartment?
Rao: I am married, and have a child. I wanted to buy an apartment in a safe locality. I wanted more open space in the development so that my child have enough space to play. We like gardens and greenery. Some of our architectural preferences have to do with our grandparents' homes in Mysore.
Q: What were the difficulties you faced while selling your apartment?
Rao: My apartment was not ready-to-move-in and I bought it with a medium-size builder. Home buyers prefer to buy ready-to-move-in properties that are constructed by major developers. Also, the developer had committed to delivery the project by the end of 2015 but now has extended the time to August 2016.
Q: What would the advice you give home buyers and investors?
Rao: I think it is better to buy a ready-to-move-in apartment. In a ready-to-move-in apartment, you get what you see. However, if you are buying an under-construction apartment, buy it with a reputed builder. If your apartment is registered, you will find it easier to sell in future. You must also negotiate with the builder, if your project is being delayed unnecessarily. Apart from this, there have been cases of developers not giving all the amenities they promise. Make sure you get what you were sold on paper.