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THE PRICE TRAP- LOCATION DAMAGING THE MYTHS ABOUT LOCATION This is said that in real estate 'it's all about Location, Location, Location'. Frankly, it is not necessarily. Even though important, it isn't and may never be the onlyrequirements for taking Real Estate Investments decisions.

Myth #1: Buy/Invest in property near to a highway A place which is usually oversold is the one with immediate gain access to an important highway, for example a national highway. This kind of may incorporate some benefit for a commercial property but doesn't


add much for a residential property. In fact, having a home near to a main carriageway (such as NH 8 or Dwarka Expressway) can be a nuisance due to the non-residential traffic, especially commercial vehicles and freight traffic (trucks, trawlers, tractors, oil tankers and so on). For instance, moving of Godrej Frontier in Sector 80, Gurugram onto NH8 and jostling with 16-24 tyre trawlers could be very stressful for a morning hours’ office commute. Also, while it might be convenient for entrance into an Apartment compound from a single side of the highway, it can be extremely painful if getting close from the other area and need to take a U-turn. For e.g. if you are heading from Cyber city to Ambience Lagoon during evening office hours, the U-turn under the Rajokri Flyover can make you spitting fire.

Myth #2: Buy/Invest in property facedwith a park or open areas A very interesting component of property price is the Preferential Location Charge (PLC). All of us seem to bedesire for homeswith unblocked view of parks, water bodies and so on and the real estate builder is somewhat more than happy to place a premium on providing you such some. Though does the additional repayment lead to improved comes back on your investment? Not really! The exclusive good thing about this preferred location is the fact it is resale may be to some extent easier all other items being equal. Consequently, until you arebuying the property for self-use, it might not be profitable to buy a flat at a higher cost due to the applicable view PLC.


Yet another PLC you should be vary of is the floor PLC. In addition to the ground floor and the topmost floor, buyers in secondary market loathe paying reduced for any other floor.

Myth #3: Buy/invest in property with good immediate connectivity An additional location usually oversold is one with 'better present connectivity'. In other words, anything being constructed on an existing well-constructed street is assumed to be better than those on adjacent 'undeveloped' or 'under-developed' locations. A good example is Sohna Road, Gurugram. At one moment in time it was considered a much better location than the unconstructed stretch of the Southern Peripheral Road (SPR). However, width of Sohna Road is less than 60% of the designed SPR stretch, which means Sohna road will experience slower traffic in comparison with SPR in future.

WATCH OUT FORLOCATION TRAPS 1)It is not advised to buy real estate properties, especially residential, in close area to a main carriageway. 2)Do not get influenced by immediate ease of connection. It is suggested to consider the long-term capacity of those highways. Modern-dayfavored road may become narrow tomorrow and the present 'kuchcha' travel routemay turn away to becomelarger road as the master plan. 3)Do not pay premiums for PLC. The impact of PLCs continues to reduce over time and supplementarymarket buyers are usually extremely price sensitive. Thus, if the concept is to hold for a longer time, it would be suggested to never buy modelswith PLC costs.

The price trap  

Real estate consulting firm offering services for real estate consulting-commercial property, residential property. we help you take best in...

The price trap  

Real estate consulting firm offering services for real estate consulting-commercial property, residential property. we help you take best in...

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