The demand for luxury apartments has spiked in the last couple of decades. The fondness for a lavish lifestyle, world-class amenities, a secured environment as well as increased spending power of the middle and upper middle classes has spurred demand for luxury apartments.
Here’s a list of things you should check before you splurge on an apartment with a fat price tag – especially considering it’s a huge one-time investment.
Is the paperwork in order?
Luxury comes at a price and hence, buying a luxury apartment means investment in crores. A typical luxury apartment can start at around Rs. 2 crores with no upper limit as such. So keeping in mind the fact that it’s a big one-time investment, you should be cautious before investing.
You need to ensure that the concerned property is free from any kind of legal dispute. Does the builder have all his permits in place from the concerned government authorities? Check if the building documents are in order to avoid any legal dispute in future. Most importantly, the property should be worth the money that you are planning to invest.
Location, location, location
The location of a luxury apartment is as important as its beautiful appearance. So check for the location of the apartment first, keeping in mind your commute to work, school and downtown as well. Also, it won’t hurt to scout around the locality in general and take stock of possible irritants like air pollution or sound pollution. Who wants to stay in an ultra-luxurious apartment with the sound of vehicles honking all night long or the drone of construction machinery at wee hours of the morning?
Everyone loves a little peace and quiet, so choose the location of your luxury apartment wisely.
Quality of construction
Before you invest in a luxury apartment, check the construction of the property. Have a word with the builder about the building materials used to ensure that good quality material went into the making of your potential home. Also check the amenities and facilities provided both inside and outside the apartment.
While it’s easy to be taken in by frills and fancy fittings, remember to be practical as well. Great interiors could also mean a lot of time (and money) spent on general upkeep.
Always remember to check on the price of luxuries provided both inside as well as outside – in the common area.
Appreciation in value
If you are planning to buy a luxury apartment only as an investment, then do a thorough calculation of its appreciated value in the next couple of years. Location, infrastructure, accessibility, builder’s value in the market and the increase in the land value are some essential factors which determine just how much your property will appreciate in value.
Also, do not forget the possibility of overall development in that particular area and the city as a whole. At times, the construction of a metro line or a renowned college or IT companies will affect the price rise in a particular locality. Be aware of the market conditions and the development plans in the locality before investing.
Also remember that the timing of an investment matters a lot. Getting the right property at the right time could make a lot of money for investors. So, if you are planning to sell your luxury apartment, wait for the right time to reap huge benefits and make the most of your investment!
Maintenance charges
Generally, luxury apartments have high maintenance charges as they include the cost of security, outdoor amenities, electric backup and other facilities provided at the apartment. So, in case you are planning to buy a luxury apartment only as an investment, these charges can increase your monthly expenditure.
Think about the maintenance charges involved and factor them into your monthly expenditure and budget. Luxury does not come cheap!
The final word
Buying a luxury apartment is a dream for everyone. But remember it comes with a considerable cost attached. Therefore, calculate thoroughly and investigate properly before investing your hard-earned money in one. Better safe than sorry when you are spending so much.
Additional reading: How to start planning for buying a house