Hi All,

I have seen 2 properties both in the 60 lakh category.
The first one is a 3 BHK (1400 sq ft) apartment in Vadapalani, just opposite to AVM studio. The area is fast developing and by 2009 will have a Pothys, Saravanna Stores and Prestige Mall nearby. All the places mentioned above are 2 mins by walk.

The other one is an independent 3BHK house in Rajakilipakam, very close to Kendriya Vidyalya. Its a duplex house built on 1200 sq ft . The built up area is around 1890 sq ft.

I would appreciate your comments on which property is advisable to buy and which will appreciate faster keeping in mind, the bad financial times we are in.

Thanks for your help.

-Raj
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  • Anything, but it should be already built

    A lot depends on what you want out of your investment.

    If you want it for personal occupation, location and convenience are paramount.

    Residential flats are easier to rent than bungalows. The smaller the easier.

    But in these times, all projects that are going to be constructed/completed after you throw in your investment are HIGH RISK.

    What ever you buy should already be fully built and ready for occupation.

    Investing in anything else over the next two to three years is going to be more dangerous than taking up employment with AIG or Lehmann brothers.

    Keep in mind that those guys putting up the flats aren't doing it out of love and affection for you. They love your only your money. Once their own galloping profits come under threat, they will leave you high and dry.

    The golden rule - What you can see and feel is what you can be sure you will get. The colour brochures and the dreams they sell will generally vanish with the wind - along with the promoters and your deposit.
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  • Good points but

    it never really answered my question....

    :( :(
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  • Surprisingly, you hadn't mentioned why you had chosen those two localities. If you are an IT guy and want to work in any of the IT companies in South Chennai, then God save you! The travel from Vadapalani to OMR/GST will exhaust you, stealing your valuable time with family. I've seen people whose married life fall apart due to this (Ofcourse, not only because of this reason, but this is one of the most important one). Under most optimistic scenarios, it takes 1.5hr in the mornings (start by 8:30-9:30AM) and about 2-2.5 hrs in the evenings(start by 6:00-10PM). Add to that delays due to rain-induced traffic chaos.

    Any other industry, I think is fine from Vadapalani, provided you are ok with the congestion and traffic.

    Flats are ok, if appreciation is not the focus, but security is.
    Bungalows are ok, if the focus is apprecition and area is good, security wise.
    Gated communities/townships much better as they provide advantages of both.

    -Raghav
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  • Well said ...

    Raghavan is a smart guy. Listen to him :)

    cheers
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  • I will Advice on the one in Vadapalani.

    In today's economical situations, it is advisable to own a property within the city limits and where you can get all the amenities at a stones throw.

    Vadapalani is the place you must invest in. It is well developed and well connected to the city. Most of the commercial centres like T.Nagar , Nungambakkam and similar places are quite reachable from here. The Cntral Railway station and the parry's corner are quite some useful places too.

    In the long run, this property will be worth more than what it is now.
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  • Very easy. Find out the UDS (undivided land share) in the Flat. Now calculate which land value in terms of price per unit of land x land area will be more in the next N years. Then take the built up area and start depreciating it at around 20% every year. Once this exercise is done you can compare the result and determine.
    As a thumb rule, I will invest ONLY in land and will buy the Vadapalani flat for convenience of living, certainly not for RENTING.
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