Are builder floorapartments a good Idea for only Investment Purpose ?
Builder floor properties are more commonly known for end use consumption and for personal enjoyment and not just for investment as this is a myth amongst many. In case for investment, there are many ways to make a good buck in it, such as buying a 3 or 4 BHK apartment in a niche colony like Greater kailash (GK) 2/1 or Defence Colony or even Hauz Khaz for 5 Cr (hypothetically) which is old enough to be purchased at a discounted price, the trader can then sell it to a potential buyer who has to invest in a property for his capital gains till a certain price.
Another strategy to make money by investing in Flats and apartments of builder floor properties would be to purchase the under construction property, now this would benefit the buyer the most as he would be buying a brand new and up to all modern standard designed floor with a discounted price, this one also benefit the buyer with the payments terms as all the payments will not be that immediate but rather in parts or as sometimes the buyer and builder get into a payment plan called construction linked plan. Once the building is completed and once the possession is handed over, the buyer can take advantage of the discounted price and flip it in the market to another seller and can re-invest his profits again in an under construction building.
There are few things which the buyer should be careful about during purchasing the flat in an under construction building, few of the things are the title report and the paperwork, the construction quality, the commitment of timely delivery and in some cases if he is a believer of Vaastu, whether his building Is vaastu compliant or not
Another Point to consider to which an investor could make a quick profit in his builder floor is by adding more value to the property, especially in the case of a third floor with terrace or a basement with ground floor. For example : adding more value on the terrace by putting up a terrace garden, or a pergola for sitting area or a swimming pool around the per-ferie of the boundary so that one could get a good view from the top or even adding an additional room for his personal use such as lounge with home theatre with bar counter or a gym or an additional bedroom. In the basement one could make it a party hall for small gatherings, additional bedroom with a separate pantry, movie hall lounge as basements are wide open, gyms rooms with steam and sauna, etc.
As regarding the rest of the floors without terrace and basements one can think of a lot of things to give it more value, the investor can always create more space for crystal and beautiful designed lights, can add wallpapers, green walls in the front balcony and rear balcony, topping up new and latest kitchen counters and equipments and wardrobes or can also give the floors to be fully furnished with all the modern and trendy furniture along with all the electronic items somebody would need.
Adding any of these additional ideas into their floors can make the value of the property go north and the investor can sell the floor with better premiums.
Another important point to consider is that an investor could take advantage of his long term investments and sell at a higher price after certain years as Real Estate mostly appreciate due to certain factors like Inflation, increase in circle Rate, Increase in price of construction material like cement, steel or even in the case of labour getting more expensive or land prices increasing in the area due to strong demand in the vicinity because of which floors will also be sold expensive then this depends mainly on location, government developments around that location, increase in commercial activities like more number of shops coming up, more offices being taken on rent around the area, etc.
Considering the Land availability In South Delhi’s it is almost full and sold at premium as South Delhi being the most posh area of Delhi, once can certainly conclude the fact that a builder floor property of any kind of 3 or 4 BHK Luxury floors in south Delhi can not only be enjoyed for personal use enjoyment but also for the purpose of investment to gain out maximum returns. During the course of the long term capital gain, once can also let the property on rent for to get rental income as well as enjoy the appreciation of the value of the investment.