jackdon

I am living in 1RK flat on rent GB Road, Thane west. It used to cost me 4000 per month(Kind owner ).

He is now selling that flat for 21 lacs built up area 350 sqf. I am confused should I buy it or should wait & buy 1 bhk after 2 years or so.

My sal is 40k. Not much saving, so i have to arrange money for down payment from friends who are read to chip in. Here are the two scenario I can think of:

1. Buy this 1RK flat for 21 lacs somehow & payback friends money in year or two.
Upside: I will own a home
Downside: i will be tied down to this place.

2. Rent 1BHK flat for 6500/- pm & think of buying flat after 2 years

Please help me decide.

Sharpj

21 lacs for 350 sq feet.. translates to 6000 Rs psf.. I think it is too high for a 1RK in GB road Thane..

Prices will keep rising.. you can wait for another 6 months before jumping into buying

joe2010

He may be referring 350sqft in carpet area. In such a case it may work out to 4200-4500 only (assuming 35-40% loading which translates to 500sqft built-up area). If so, it is a good deal because 2years from now he will have to pay at least 8000persqft and that too for 650sqft minimum for a 1bhk flat. This would require at least 55lakhs, a very big investment for someone earning 40k/month, without any supplementary income. I think the property may be old and that is the reason, the owner is selling at this price. My advise would be to buy the place since he is apparently happy with the place. Later, if the property is taken up for re-development, the developer may give you rent until he delivers the place. In either way it is affordable for someone like you. It is really difficult for a middle-class Indian to buy a decent accommodation in any of the metros. What do you think, Sharpj?

Sharpj

Well, if it is a old property.. it will not have so much loading.. and he has mentioned that 350 sq feet is the built up area.. Rate according to me is very high..

About the future.. it is impossible to predict..
Do not buy based on any future things to happen.. be it some highway or airport or redevelopment plans.. All these can change if the government changes or there are changes in FSI or other rules..

I think he should buy now.. if it is for self use.. if the rate is good.. even after 2 years.. it will always be a challenge to buy a 1 BHK or 2 BHK after 10 years.. If the price is stagnant probably the market is not so good and you feel uneasy.. if the market is great.. so will be the RE prices..

It is always a personal choice.. If you are taking a debt.. and borrowing from your friend.. please understand you will be repaying both and also all other regular inflationary prices.. and it is always a stretch.. and so make sure the price is right.. because in any eventuality if you have to sell.. you should be able to recover the price paid.. buy on the current price and not on any future price..
In Mumbai.. I do find prices are quoted based on future prices.. which is crazy..