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Should I Buy an Apartment on the 30th Floor? Evaluating Pros and Cons

By Finserv MARKETS - Jul 31,2019
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Home Loans and ULIPs – Finserv MARKETS

Dizzy Heights at a Premium

Where you choose to live is a personal decision based on individual preferences. In the case of high-rise buildings, there is no definitive answer on which floor is best. Buying an apartment on the 30th floor will no doubt attract a premium price. So can you afford the floor rise cost?

Those who have been investing in high return ULIPs made available online on sites like Finserv MARKETS may still be able to pay for such indulgences with the benefits they earn. But if you are planning to avail a home loan make sure your decision to live on the 30th floor is the right one for the entire family as there are many pros and cons.

Pros:

  1. Clean air, lack of noise, freedom from pests and a great view.
  2. Peace and solitude to pursue a quiet life away from the madding crowds.
  3. Added benefits of luxurious living with the latest technology, architectural design, fittings and even a garden, patio and walkway, if it is a penthouse.
  4. Status symbol and location landmark.
  5. Superior quality of construction with a super strong foundation built with imported materials using the latest technologies.
  6. Extra precautions for fire safety, earthquake and emergency evacuations including wet risers at floor level with individual sprinklers for each home; level 5-6 construction in level 3 seismic zone and extra wide staircases and refuge floors.

Cons:

  1. Premium charges that may necessitate a huge home loan.
  2. Isolation from people, ground level features like gardens, walkways, pools, sports amenities.
  3. High cost –nearly 25% more than low rises in the same locality due to high quality, imported materials
  4. Lesser living space or usable area as more space is used to build support for the structure to be held up.
  5. Longer construction period which extends the hit you take on savings. This is because deductions on home loans for under construction projects under the Income Tax Act, Section 80C bears only Rs 30,000 for under construction projects.
  6. Higher fire insurance premium, and higher maintenance costs including repairs and operation of multiple banks of lifts. An average lift height is limited to 500 metres; challenge for sick and elderly if lifts develop a snag.
  7. Higher energy costs due to the use of glass and double glazed windows to minimize the impact of sound and heat.

What you should not neglect as you take the elevator ride to high-living is that it is one thing to buy a physical property with a plethora of sophisticated amenities and quite another to live the high life.

An ET Wealth survey found that one out of every three Indian home buyers is sinking in more than 50% of his total savings into the down-payment of a home! Is that really advisable? Even with the best home loan rate. Let us take an illustration.

Thirty-one-year-old banker Shashank in Gurgaon took a huge loan to buy a swanky apartment. On moving in, there was a sea change in lifestyle: shopping at the malls, dialing for home delivery of food and visiting gyms, beauty parlours and spas. Home decor, clothes, foreign vacations to keep up with the neighbours followed. As his debts increased, Shashank realized he had only bought himself a lot of grief.

Final Word: If you are still sold on the idea of living in the clouds, do check out the best home loan rates on Bajaj Finserv products offered at Finserv MARKETS and promise yourself you will not neglect to save for other life events. Try to get an optimum mix of support from home loan and returns from ULIP to fund a modest home and use the ULIP benefit for top-ups like high-end amenities and higher floors with a view.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522