This article is more of a help to you than my expeirience .....give your feedback :-)
The moment I became self Dependent my first aim was to buy an apartment in Bangalore. Bangalore is the fastest growing city in Asia...but because of poor infrastructure and management it looks like it is degrading. But I feel that this is because of sudden growth and people now go abroad and start comparing with that kind of system. They were happy until they were here in India. Anyway by the time Metro and other public transport system get streamlined Bangalore will be the hapenning place for sure. So owning a property here is a great investment. Preferably a piece of land ...but the costs are too high for a common man. So, a 2BHK apartment was what I was looking for....but my parents had plans for a 3BHK. They thought they can settle down in Bangalore. But I was always against this ...as I knew the reality of life in Bangalore, where my parents would never feel comfortable. In an apartment what maximum they can do outside home. Also they need more social interaction which they enjoyed in our home town. But in Bangalore people hardly interact unless there is some purpose.
Anyway I never wanted to disappoint my parents. So I started looking for a 3 BHK apartment immediately after getting relieved from onsite duties in South Korea after 16 months. I started consulting my friends who had already purchased apartments. Also I registered in some websites like "99acres.com" and "magicbricks.com". I posted my requirement in the website as "Needed 3 BHK apartment, min 1400 sqft, According Vasthu, North and East part of Bangalore, Budget: 35-40L", Total Apt's in the building should bee maximum 16". I was not interested in huge apartment complex as I felt there wouldn’t be any privacy. In some of the huge apartments that I saw...I noticed that we usually have to pass in front of many others main doors before reaching or going out from our home....this I don’t like. Also we need to form a society and there will be additional cost for a Club, Gym, and Swimming Pool even if we don’t use those facilities. That’s main reason I was looking for a smaller apartment complex.
My father had enquired through his friends about some apt's in north Bangalore. He never believed in buying from any stranger....so he was going through his contacts. We found a contact and the builder had built a set of 2 and 3 BHK apt's in Kempapura, hebbal. My father arrived on a sat morning and the builder asked us to come to mekhri circle from where he was supposed to pick us up. He arrived on time and we reached the destination and had a look at the 3BHK apt ...we liked it very much and the location as well. It was well connected and well built. He quoted 42L for it...we started our negotiation and ultimately ended in 38L ...which was well within our budget. We were happy to find an apt of our liking in the first attempt itself. Friends had told us that it’s difficult and time consuming job. We thought we were lucky. My father went back happy and we started planning for the house warming date.
Anyway my father will never get satisfied so easily...he came back the next weekend. We visited the site again on our own. As the apt was still in finishing stage...workers were there and we saw every corner of the house that we had selected. We were satisfied. But when we started going around the site we spotted a board laid down by BBMP. We were shocked to see it....it was laid down to warn the buyers that the property is illegally constructed and the case is not resolved. Disappointed we returned to our home and called the builder who had showed the site. He said as if it’s very normal to get such legal notice when an apartment is being constructed. Anyway we did not want to take any risk. We dropped out. .....Here starts our journey for the search of an apt with a bad experience. Its been 6 months now... the apartment which I saw first is still empty without any occupants.....well we were lucky that we did not commit.
From then on every weekend of mine was dedicated solely to this purpose. Now, I was getting calls from builders through the website where I had registered. Every time they called me I fixed up the appointment and they used to pick/drop me at some point to show the site. This continued for a month but I was never satisfied ....Vasthu was not fine, sometimes locality, construction quality was an issue and some times legal issues. But within a month I realized one most important thing that its better to go to the site on your own...so that u can checkout the area and connectivity....Also you may find better apartments than the one u came to see. If you take the builders site visit ....u can’t go looking around. Also you get committed to the builder and if you like that apartment...you can’t negotiate much. Again you can find out the rates in other apartments being constructed or being sold in the surrounding areas.
I started collecting the information about new apartments being constructed, apartments ready to occupy, apartments still on floor plan.....hmm its a huge ocean by itself. I browsed websites which I mentioned earlier, read news papers (TOI's Times Property is good), even attended couple of Property Exhibitions. Done it all....but was never satisfied. Almost after 2 months from the day of starting for an apartment search I came to know some trade secrets. I’ll detail them one by one. Some of them are my personal opinions :-)
Trade secret No.1: "All sold out except one"
Before I explain this let me tell one fact...every apartment complex has apartments of varying convenience, build, vasthu, door/balcony facing and ventilation. I mean some are located at appropriate place in the building and some or not. So it’s obvious that cost also varies. So now coming to the trade secret...all builders first try to sell the apartment that is not so well situated in the building and which is least liked by customers. So even if you are in favor of the locality, cost, construction quality the builder will disappoint you by saying that all apartments are sold out except one....and that one is the not conveniently located. But the builder projects it as the best one.
My suggestion here is....look into all the apartments in the building...select 2 or 3 apartments that you like and tell the builder that I’ll buy only these apt's with him. He may say it’s sold out....but I’ll bet you, u'l get a call from him within a week that "the person who had bought the apt earlier has decided to sell it, but for a higher price". Yes this will happen....When the builder has no other option he will try to sell for higher cost at least. So you so can go ahead and bargain to come down to your suitable price. I had bargained one apt for 8 Lakhs ...believe it or not :)
Trade Secret No.2: "Bargain Bargain Bargain"
Every builder knows that bargain will be involved, so they add an additional 2-3L cost to the apt well before. But the problem here is that there are some sound/rich parties who never bargain and settle to the cost the builder quotes. So this actually fixes the cost per sqft in that apartment complex. And for my surprise I have found that those rich parties are created by those builders only. Here I’ll like to mention about people who's job is to buy apartment's with the builders even before the building gets started to construct (Price will be low) and sell it when its completed(Price will be high). So usually you get to hear from builders that some apartments are blocked. It’s actually the builder himself sometimes.
Trade Secret No. 3: "Slow and steady wins the race"
Never get settled to an apartment very soon. Even if you like an apartment keep in touch with builder and keep postponing the booking by telling that ur parents need to vist or something else. Mean time look for some more apartments. But if the builder forces you too much then it means 2 things
1) Builder is in hurry to sell ...he may be short of funds. So good time to bargain
2) Builder has some issues with apartment ....may be legal. So you can clarify for it.
Case 1 is good ....Case 2, be careful.
Trade Secret No.4: "No time is bad time to buy an apartment of your liking".
If it’s your first buy and if it’s for your stay...you go and just buy it, don’t wait for the prices to come down or so. Rise and fall in prices of real estate affects only the builders and people who buy apartment for investment and not for one who wants to buy and stay in it. This is hard to explain ...but believe it, in the long run u'l never benefit from waiting for good time to buy.
Trade secret No.5: Adding 5-6 Lakhs to Builder's quoted price.
This is not a secret actually but a fact. But usually people tend to forget this. First thing you need to do before starting a search is fixing the budget for the buy. This budget should include the cost of the apartment + BWSSB, BESCOM & car parking charges + Registration cost + Interiors & Furniture’s + Miscellaneous.
For example,
If you’re total budget : 35.00 L
Then it should also include the following
BWSSB, BESCOM & car parking charges : 2.50 L (approx)
Registration Cost : 1.50 L (Depending on the area)
Some builders add these later during the finalization process ...so make it clear when they quote the price initially.
Interiors & Furniture’s : 4.00 L Min (Depends on your taste) **
Miscellaneous : 1.00 L (May be excluded)
** If you are relocating then you can reduce this a lot. I am assuming of setting up everything new..like Fans, tube lights, Geezer, Stove, Gas Connection etc. etc. Usually after buying the apartment you feel these costs as extra burden ....so to avoid this add these costs to your initial budget itself.
So now 35 - 2.5 - 1.5 - 4 - 1 = 26L is the price range in which you need to look for the apartment. I suggest you to fix to your budget and look in that range itself or else all things will go out of control and you will end up paying more than the actual cost of the apartment. Also, if you register to some website you mention your budget 2-4 L lesser than yours....coz builders will drag you there ultimately.
Hopefully these secrets/facts will be handy to you....but these may be more applicable during the time when I was searching for an apartment.....where the real estate market was bit slump. I think this favored bargain...but builders may be more rigid if market is in boom. Coming back to my experience.....After 4-5 months of my search all the 3 BHK's that I had seen were going beyond my budget. No doubt I had seen 3BHK's in my budget but usually the area was not so good in all cases. So in a decent locality 3BHK's usually start at 45L and above. But our liking was not yet satisfied. Then slowly we started pushing our budget from max 40L to max 45L. Once we reached 45L our search continued and now the builders with whom we came in contact started showing good apartments but the cost was 50-55L. So always the builder pushes your budget further...that’s why I suggest fixing a budget and don’t deviate from it. So, now I started convincing my father about going for 2BHK itself and also started looking for 2BHK as well.
One more small warning to buyers regarding Pent House and Duplex house. These are usually constructed illegally without the approval from any authority. there is a restriction on the height of the apartment...so whatever is built beyond that height is illegal. Builder can help you get it reguralized but its always a risk. The undivided share of land that is registered to the buyer along with apartment will not be included in case of pent house and Duplex house in most cases. Some banks even dont grant loans to such houses.
Then one day I went for a search on my bike in East Bangalore ...Kasturi Nagar, Banaswadi etc., which is well connected to all IT Hubs in Bangalore except Electronic City and Global Village on Mysore road. As I was passing by I saw board hanging from a small apartment "2BHK apt for sale". I went and enquired...surprisingly I found the apartment owner itself staying there. There were 7 apt in total including one pent house for owner and one other 2BHK apartment also was occupied by the owner. Out of remaining 5, 2 were already sold-out and 3 were yet to be sold. The main thing that attracted me towards that apartment was the huge & beautiful garden that it was facing and that too a musical fountain garden. I was pretty much sure that, among the 3 available the owner would say that the garden facing apartments are sold-out. But to my surprise one 2BHK apartment facing the garden was still available. Also surprisingly the cost was also well within out budget and they reduced to 35L from initial 38L. But the compromise was to settle for 2BHK. This garden facing apartment was located near to very good locality ...HRBR layout, just 1km from ring road, 12km from my office and whitefield, perfectly build as per vasthu, and above all owner was himself staying there. After a long discussion with the family we decided to buy it....finally I found the apartment on my own without anyone's help. so today I am the proud owner of a 2BHK apartment in Bangalore.
The moment I became self Dependent my first aim was to buy an apartment in Bangalore. Bangalore is the fastest growing city in Asia...but because of poor infrastructure and management it looks like it is degrading. But I feel that this is because of sudden growth and people now go abroad and start comparing with that kind of system. They were happy until they were here in India. Anyway by the time Metro and other public transport system get streamlined Bangalore will be the hapenning place for sure. So owning a property here is a great investment. Preferably a piece of land ...but the costs are too high for a common man. So, a 2BHK apartment was what I was looking for....but my parents had plans for a 3BHK. They thought they can settle down in Bangalore. But I was always against this ...as I knew the reality of life in Bangalore, where my parents would never feel comfortable. In an apartment what maximum they can do outside home. Also they need more social interaction which they enjoyed in our home town. But in Bangalore people hardly interact unless there is some purpose.
Anyway I never wanted to disappoint my parents. So I started looking for a 3 BHK apartment immediately after getting relieved from onsite duties in South Korea after 16 months. I started consulting my friends who had already purchased apartments. Also I registered in some websites like "99acres.com" and "magicbricks.com". I posted my requirement in the website as "Needed 3 BHK apartment, min 1400 sqft, According Vasthu, North and East part of Bangalore, Budget: 35-40L", Total Apt's in the building should bee maximum 16". I was not interested in huge apartment complex as I felt there wouldn’t be any privacy. In some of the huge apartments that I saw...I noticed that we usually have to pass in front of many others main doors before reaching or going out from our home....this I don’t like. Also we need to form a society and there will be additional cost for a Club, Gym, and Swimming Pool even if we don’t use those facilities. That’s main reason I was looking for a smaller apartment complex.
My father had enquired through his friends about some apt's in north Bangalore. He never believed in buying from any stranger....so he was going through his contacts. We found a contact and the builder had built a set of 2 and 3 BHK apt's in Kempapura, hebbal. My father arrived on a sat morning and the builder asked us to come to mekhri circle from where he was supposed to pick us up. He arrived on time and we reached the destination and had a look at the 3BHK apt ...we liked it very much and the location as well. It was well connected and well built. He quoted 42L for it...we started our negotiation and ultimately ended in 38L ...which was well within our budget. We were happy to find an apt of our liking in the first attempt itself. Friends had told us that it’s difficult and time consuming job. We thought we were lucky. My father went back happy and we started planning for the house warming date.
Anyway my father will never get satisfied so easily...he came back the next weekend. We visited the site again on our own. As the apt was still in finishing stage...workers were there and we saw every corner of the house that we had selected. We were satisfied. But when we started going around the site we spotted a board laid down by BBMP. We were shocked to see it....it was laid down to warn the buyers that the property is illegally constructed and the case is not resolved. Disappointed we returned to our home and called the builder who had showed the site. He said as if it’s very normal to get such legal notice when an apartment is being constructed. Anyway we did not want to take any risk. We dropped out. .....Here starts our journey for the search of an apt with a bad experience. Its been 6 months now... the apartment which I saw first is still empty without any occupants.....well we were lucky that we did not commit.
From then on every weekend of mine was dedicated solely to this purpose. Now, I was getting calls from builders through the website where I had registered. Every time they called me I fixed up the appointment and they used to pick/drop me at some point to show the site. This continued for a month but I was never satisfied ....Vasthu was not fine, sometimes locality, construction quality was an issue and some times legal issues. But within a month I realized one most important thing that its better to go to the site on your own...so that u can checkout the area and connectivity....Also you may find better apartments than the one u came to see. If you take the builders site visit ....u can’t go looking around. Also you get committed to the builder and if you like that apartment...you can’t negotiate much. Again you can find out the rates in other apartments being constructed or being sold in the surrounding areas.
I started collecting the information about new apartments being constructed, apartments ready to occupy, apartments still on floor plan.....hmm its a huge ocean by itself. I browsed websites which I mentioned earlier, read news papers (TOI's Times Property is good), even attended couple of Property Exhibitions. Done it all....but was never satisfied. Almost after 2 months from the day of starting for an apartment search I came to know some trade secrets. I’ll detail them one by one. Some of them are my personal opinions :-)
Trade secret No.1: "All sold out except one"
Before I explain this let me tell one fact...every apartment complex has apartments of varying convenience, build, vasthu, door/balcony facing and ventilation. I mean some are located at appropriate place in the building and some or not. So it’s obvious that cost also varies. So now coming to the trade secret...all builders first try to sell the apartment that is not so well situated in the building and which is least liked by customers. So even if you are in favor of the locality, cost, construction quality the builder will disappoint you by saying that all apartments are sold out except one....and that one is the not conveniently located. But the builder projects it as the best one.
My suggestion here is....look into all the apartments in the building...select 2 or 3 apartments that you like and tell the builder that I’ll buy only these apt's with him. He may say it’s sold out....but I’ll bet you, u'l get a call from him within a week that "the person who had bought the apt earlier has decided to sell it, but for a higher price". Yes this will happen....When the builder has no other option he will try to sell for higher cost at least. So you so can go ahead and bargain to come down to your suitable price. I had bargained one apt for 8 Lakhs ...believe it or not :)
Trade Secret No.2: "Bargain Bargain Bargain"
Every builder knows that bargain will be involved, so they add an additional 2-3L cost to the apt well before. But the problem here is that there are some sound/rich parties who never bargain and settle to the cost the builder quotes. So this actually fixes the cost per sqft in that apartment complex. And for my surprise I have found that those rich parties are created by those builders only. Here I’ll like to mention about people who's job is to buy apartment's with the builders even before the building gets started to construct (Price will be low) and sell it when its completed(Price will be high). So usually you get to hear from builders that some apartments are blocked. It’s actually the builder himself sometimes.
Trade Secret No. 3: "Slow and steady wins the race"
Never get settled to an apartment very soon. Even if you like an apartment keep in touch with builder and keep postponing the booking by telling that ur parents need to vist or something else. Mean time look for some more apartments. But if the builder forces you too much then it means 2 things
1) Builder is in hurry to sell ...he may be short of funds. So good time to bargain
2) Builder has some issues with apartment ....may be legal. So you can clarify for it.
Case 1 is good ....Case 2, be careful.
Trade Secret No.4: "No time is bad time to buy an apartment of your liking".
If it’s your first buy and if it’s for your stay...you go and just buy it, don’t wait for the prices to come down or so. Rise and fall in prices of real estate affects only the builders and people who buy apartment for investment and not for one who wants to buy and stay in it. This is hard to explain ...but believe it, in the long run u'l never benefit from waiting for good time to buy.
Trade secret No.5: Adding 5-6 Lakhs to Builder's quoted price.
This is not a secret actually but a fact. But usually people tend to forget this. First thing you need to do before starting a search is fixing the budget for the buy. This budget should include the cost of the apartment + BWSSB, BESCOM & car parking charges + Registration cost + Interiors & Furniture’s + Miscellaneous.
For example,
If you’re total budget : 35.00 L
Then it should also include the following
BWSSB, BESCOM & car parking charges : 2.50 L (approx)
Registration Cost : 1.50 L (Depending on the area)
Some builders add these later during the finalization process ...so make it clear when they quote the price initially.
Interiors & Furniture’s : 4.00 L Min (Depends on your taste) **
Miscellaneous : 1.00 L (May be excluded)
** If you are relocating then you can reduce this a lot. I am assuming of setting up everything new..like Fans, tube lights, Geezer, Stove, Gas Connection etc. etc. Usually after buying the apartment you feel these costs as extra burden ....so to avoid this add these costs to your initial budget itself.
So now 35 - 2.5 - 1.5 - 4 - 1 = 26L is the price range in which you need to look for the apartment. I suggest you to fix to your budget and look in that range itself or else all things will go out of control and you will end up paying more than the actual cost of the apartment. Also, if you register to some website you mention your budget 2-4 L lesser than yours....coz builders will drag you there ultimately.
Hopefully these secrets/facts will be handy to you....but these may be more applicable during the time when I was searching for an apartment.....where the real estate market was bit slump. I think this favored bargain...but builders may be more rigid if market is in boom. Coming back to my experience.....After 4-5 months of my search all the 3 BHK's that I had seen were going beyond my budget. No doubt I had seen 3BHK's in my budget but usually the area was not so good in all cases. So in a decent locality 3BHK's usually start at 45L and above. But our liking was not yet satisfied. Then slowly we started pushing our budget from max 40L to max 45L. Once we reached 45L our search continued and now the builders with whom we came in contact started showing good apartments but the cost was 50-55L. So always the builder pushes your budget further...that’s why I suggest fixing a budget and don’t deviate from it. So, now I started convincing my father about going for 2BHK itself and also started looking for 2BHK as well.
One more small warning to buyers regarding Pent House and Duplex house. These are usually constructed illegally without the approval from any authority. there is a restriction on the height of the apartment...so whatever is built beyond that height is illegal. Builder can help you get it reguralized but its always a risk. The undivided share of land that is registered to the buyer along with apartment will not be included in case of pent house and Duplex house in most cases. Some banks even dont grant loans to such houses.
Then one day I went for a search on my bike in East Bangalore ...Kasturi Nagar, Banaswadi etc., which is well connected to all IT Hubs in Bangalore except Electronic City and Global Village on Mysore road. As I was passing by I saw board hanging from a small apartment "2BHK apt for sale". I went and enquired...surprisingly I found the apartment owner itself staying there. There were 7 apt in total including one pent house for owner and one other 2BHK apartment also was occupied by the owner. Out of remaining 5, 2 were already sold-out and 3 were yet to be sold. The main thing that attracted me towards that apartment was the huge & beautiful garden that it was facing and that too a musical fountain garden. I was pretty much sure that, among the 3 available the owner would say that the garden facing apartments are sold-out. But to my surprise one 2BHK apartment facing the garden was still available. Also surprisingly the cost was also well within out budget and they reduced to 35L from initial 38L. But the compromise was to settle for 2BHK. This garden facing apartment was located near to very good locality ...HRBR layout, just 1km from ring road, 12km from my office and whitefield, perfectly build as per vasthu, and above all owner was himself staying there. After a long discussion with the family we decided to buy it....finally I found the apartment on my own without anyone's help. so today I am the proud owner of a 2BHK apartment in Bangalore.