Want concrete gains? Buy a 2BHK!
Homes with this configuration are not only the most popular choice among flat buyers but also ideal from a practical and financial point of view in the current scenario
If you really analyse the trends of real estate development in Mumbai, the number '2' has always been a key factor when it comes to positioning apartments. It's just a matter of looking at it from the home owner's perspective.
Initial format
When the concept of ownership flats was first introduced in Mumbai, the initial format developed was the one-room-kitchen, which basically was referred to by owners as 'two rooms.' Today these have been repositioned as condominiums and still do brisk business in projects coming up in the peripheral areas.
Gradual evolution
As the format evolved into the one-bedroom-hall-kitchen (a configuration still preferred by many entry-level home seekers), the concept was described by residents as a 'two room kitchen.' Cantilever balconies also started making an appearance around this time, providing a sit-out area of sorts for early morning tea and breakfast.
Privacy protector
Owning a 'two room kitchen' was considered to be a sign of having arrived, as the format included a separate bedroom for the couple. This ensured that their privacy remained undisturbed if and when relatives or extended family members came over to stay for a few days or weeks, a facility that condominiums didn't offer (unless the couple was ready to spend nights in the kitchen).
Phased purchases
The next step in the evolution was the two-bedroom-hall-kitchen, popularly referred to as the '2BHK.' In the beginning, this format was considered to be the second stage in the home buying process. Couples would first purchase a 1BHK or 'two room kitchen.' As and when their children began to make the transition from primary to secondary school, they too would begin scouting for a 2BHK.
Double application
The rationale in those days was that the children would have their own bedroom after reaching adolescence. It would also double up as a study room for late night sessions, mugging up notes before examinations (a point emphasised recently in the movie 3 Idiots where a parent points out that they installed an air-conditioner only in the child's room so that he could concentrate on studies).
Visible trend
However, over the past few years, while couples have been buying homes at a much younger age than before, they have also begun to skip the first step and straightaway book a 2BHK apartment for a number of reasons.
Cost considerations
First of all, high stamp duty and registration costs meant that the transition from a 1BHK to a 2BHK became prohibitively expensive.
Secondly, the brokerage payable on selling the 1BHK and at times, buying the 2BHK as well, added to the expenses considerably.
Plus, the rapidly rising real estate prices meant that the gap between a 1BHK and 2BHK would be quite significant by the time children grew up, almost as much as the initial price paid for the 1BHK.
Practical perspective
From a practical point of view, during the ten years or so between buying a 1BHK and making the transition to a 2BHK, the area would be fully developed, so finding a new construction meant relocating to a different locality.
Setting up from scratch at a new place entailed many challenges, from securing school admissions for the children (extremely difficult when they are in eighth or ninth standard) to identifying shopping facilities, reliable maids, drivers, etc.
Fiscal fundamentals
Also, if career advancement entailed shifting base completely to a different city, selling a 2BHK in prime locations is often easier than selling a 1BHK. The reason for this, being that given the high rates per sq. ft.; the profile of people buying resale flats tends to be quite higher than that of the original residents. , so they would insist on at least a 2BHK apartment.
Also, if the family wanted to retain the residence and give it on lease, corporate would also insist on at least a 2BHK format so that the executive residing there could bring his or her family along.
From a capital appreciation point of view also, a 2BHK apartment tends to fetch a proportionally higher resale price than an adjacent 1BHK in the same building.
Money matters
So from an economic point of view, it made sense for the couple to stretch themselves financially at the beginning and opt for a 2BHK right from the beginning itself.
The only question was, how would an entry-level home seeker, afford to pay the price of a 2BHK apartment? While the gap between a 1BHK and 2BHK in emerging areas is not that wide, it still requires additional funding.
Joint applicants
The solution was quite simple - a joint application by the couple (two persons) - with the husband and wife both being co-applicants. This ensured that the loan eligibility increased sufficiently to cover the gap between financing a 1BHK and 2BHK apartment.
For DINK (Double Income No Kids) couples, the second bedroom often ends up becoming a home office or a meditation/ prayer room. On a lighter note, it also comes in handy when couples do not want to sleep in the same bed after a fight!
Homes with this configuration are not only the most popular choice among flat buyers but also ideal from a practical and financial point of view in the current scenario
If you really analyse the trends of real estate development in Mumbai, the number '2' has always been a key factor when it comes to positioning apartments. It's just a matter of looking at it from the home owner's perspective.
Initial format
When the concept of ownership flats was first introduced in Mumbai, the initial format developed was the one-room-kitchen, which basically was referred to by owners as 'two rooms.' Today these have been repositioned as condominiums and still do brisk business in projects coming up in the peripheral areas.
Gradual evolution
As the format evolved into the one-bedroom-hall-kitchen (a configuration still preferred by many entry-level home seekers), the concept was described by residents as a 'two room kitchen.' Cantilever balconies also started making an appearance around this time, providing a sit-out area of sorts for early morning tea and breakfast.
Privacy protector
Owning a 'two room kitchen' was considered to be a sign of having arrived, as the format included a separate bedroom for the couple. This ensured that their privacy remained undisturbed if and when relatives or extended family members came over to stay for a few days or weeks, a facility that condominiums didn't offer (unless the couple was ready to spend nights in the kitchen).
Phased purchases
The next step in the evolution was the two-bedroom-hall-kitchen, popularly referred to as the '2BHK.' In the beginning, this format was considered to be the second stage in the home buying process. Couples would first purchase a 1BHK or 'two room kitchen.' As and when their children began to make the transition from primary to secondary school, they too would begin scouting for a 2BHK.
Double application
The rationale in those days was that the children would have their own bedroom after reaching adolescence. It would also double up as a study room for late night sessions, mugging up notes before examinations (a point emphasised recently in the movie 3 Idiots where a parent points out that they installed an air-conditioner only in the child's room so that he could concentrate on studies).
Visible trend
However, over the past few years, while couples have been buying homes at a much younger age than before, they have also begun to skip the first step and straightaway book a 2BHK apartment for a number of reasons.
Cost considerations
First of all, high stamp duty and registration costs meant that the transition from a 1BHK to a 2BHK became prohibitively expensive.
Secondly, the brokerage payable on selling the 1BHK and at times, buying the 2BHK as well, added to the expenses considerably.
Plus, the rapidly rising real estate prices meant that the gap between a 1BHK and 2BHK would be quite significant by the time children grew up, almost as much as the initial price paid for the 1BHK.
Practical perspective
From a practical point of view, during the ten years or so between buying a 1BHK and making the transition to a 2BHK, the area would be fully developed, so finding a new construction meant relocating to a different locality.
Setting up from scratch at a new place entailed many challenges, from securing school admissions for the children (extremely difficult when they are in eighth or ninth standard) to identifying shopping facilities, reliable maids, drivers, etc.
Fiscal fundamentals
Also, if career advancement entailed shifting base completely to a different city, selling a 2BHK in prime locations is often easier than selling a 1BHK. The reason for this, being that given the high rates per sq. ft.; the profile of people buying resale flats tends to be quite higher than that of the original residents. , so they would insist on at least a 2BHK apartment.
Also, if the family wanted to retain the residence and give it on lease, corporate would also insist on at least a 2BHK format so that the executive residing there could bring his or her family along.
From a capital appreciation point of view also, a 2BHK apartment tends to fetch a proportionally higher resale price than an adjacent 1BHK in the same building.
Money matters
So from an economic point of view, it made sense for the couple to stretch themselves financially at the beginning and opt for a 2BHK right from the beginning itself.
The only question was, how would an entry-level home seeker, afford to pay the price of a 2BHK apartment? While the gap between a 1BHK and 2BHK in emerging areas is not that wide, it still requires additional funding.
Joint applicants
The solution was quite simple - a joint application by the couple (two persons) - with the husband and wife both being co-applicants. This ensured that the loan eligibility increased sufficiently to cover the gap between financing a 1BHK and 2BHK apartment.
For DINK (Double Income No Kids) couples, the second bedroom often ends up becoming a home office or a meditation/ prayer room. On a lighter note, it also comes in handy when couples do not want to sleep in the same bed after a fight!
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