Human aspirations are directly proportional to the growing and improving financial conditions. We dream and aspire to own a pucca house when living in a kaccha hut, with time and hard work when our finances improve and grow, we move to the pucca place and start aspiring for a something more elaborate—each time, climbing the steps upwards on the stairs of success, our goals and definition of lifestyle change. As a victim of this human tendency, not often do we end up on the profitable side of the investments that we make. The saying, money comes and goes, applies only when we decide to make the most appropriate investment. With the onset of the pandemic when we found ourselves closed in our own houses, this aspiration to dream big and aim higher found its rightful place. According to a report by Financial Express, a recent report shows that millennials prefer buying properties and around 75 per cent of them aspire to buy a home in the next three years. The real-estate sector has not seen many spikes in the pricing of the residential properties in recent years due to the conducive and easily accessible home loan rates. The pandemic has exposed each one of us to a sense of insecurity and uncertainty of our future. It is during these times that we seek to find the best investment solutions that stay firm even with the changing economic demographics of the country as suggested by the report by Anarock Group that conducted a survey, about 92 per cent of the respondents of the study preferred to have a physical asset during these uncertain times. Owning real-estate properties or even investing in the real estate sector, be it directly or indirectly, offers a sense of security to the investors.
While we still venture out into the real estate market even in the pandemic conditions, the growing real estate sector is ballooning with the opportunities for the investors. Covid 19 has impelled the population staying away from their countries to reconsider their plans of investment in the residential real estate market. The demand is not only restricted to the luxury properties, but it also has expanded to the premium and super luxurious properties spread across the metropolitan cities namely, Bangalore, Delhi, Mumbai and a lot more. Early into the year 2020, reports and studies had predicted that the real estate industry is going to reach $1 trillion by the year 2030, thereby contributing to the 13 per cent to India’s GDP by 2025. This growing demands has not seen a decline with the onset of the pandemic but has seen significant growth as the investors have surged. It is mainly due to the sense of security that investments in real estate provide the investors with owing to it being an investment that potentially yields higher appreciation value.
Penthouses are the luxury apartments that come with a lot of luxurious amenities like swimming pools, Jacuzzi, private gym and many more. These apartments are located on the topmost floors of the select residential buildings. Penthouses are a symbol of economic status and reflect the lifestyle of the owner. They also are a signature investment that flaunts the status and brand.
But before investing in a penthouse which is a luxurious residential real estate, you should keep in mind the following pointers to ensure that the investment does not affect your profitability in the longer run.
Before investing in any residential property, the first thing that one needs to keep in mind is whether the location of the property is correct. Location matters more when it comes to leasing the property out for rent. It also affects the accessibility of the amenities like market, transportation networks, if not located in a prime location. Location is exceptionally crucial when it comes to residential real estate properties.
After makings sure that the location of the property is at a prime location, you should ensure that the penthouse comes as an inbuilt plan of the building constructed. At times, penthouses are added later after construction has been completed to increase the cash flow and profitability of the structure from the investors. Before buying the property, check the documents properly and confirm whether or not the penthouse was a part of the finalised building design.
Since luxurious apartments are located at the top of the buildings, the accessibility to the ground floor is dependent on the system of elevators. Make sure that the elevators are functioning correctly so that the elderly and the children can move with ease.
Before making any financial decisions, you should be sure whether or not the investment is going to bring in a positive cash flow. The profitability of an asset is directly dependent on the amount you are left with after investing. Not only that, penthouses need to be upon your affordability list as investments in them do demand a hefty amount.
The best option is to always have a legal and expert opinion before deciding whether or not to invest in a penthouse. There are a lot of policies and regulations that surround luxurious residential properties; having a specialist perspective would be a good idea. You can check with the local municipal corporation regarding the building and the property, and this would help you understand whether the property is well secured legally.
Always make sure to check and recheck the documents before making the final decision. Even if we do not buy a property to resell, being informed about the resale value of the property would reinforce and make your decision more lucid.
Penthouses come with various amenities, like the swimming pools, gyms, terrace and a lot more. Penthouses are also known for the luxurious amenities that offer rejuvenation, and a space to breathe with the sports, pools. Before investing in such properties, make sure that the recreational activities are easily accessible and are within reach.
Vasid Qureshi