33.34 Which ticket size property should you go for?

A common question is what ticket size I should go for my property.

I have even seen numerous situations, 
Where young adults are looking to buy apartments worth 50-60L, plain vanilla ones, and even situations of people buying Villas for 5-6Cr.
Is one better than the other?
Is there a good range to go for?

The most straightforward answer is:
It will widely depend on four things:

• Type of Property
• Location
• Deal that you are getting.
• Your Investment goal

Simply just saying that you shouldn’t go for flats would be wrong.

Why?

• You might be getting a great deal.
• Or you might be using it for consumption.

Is there a rough idea to focus on?
I am very clear about the Goa Market. So, I will base my idea on the market here.
The exact property type would cost at least twice as much in Tier-1 or Tier-2 cities.

So, do your thesis according to the location from which you want to buy.

Ticket Sizes in Goa

Let’s look at five different ranges.

This should cover the majority of the cases:

75L - 1Cr

• This budget usually allows you to buy flats.
• Lands and villas typically don’t fall within this budget.
• Here, your exit options might be minimal.
• These are mainly rental or consumption units for the long term.
• It is crucial to understand the type of rentals that are allowed here.
• For example, the flat below allows me to run short-term rentals and serves as an office space. However, not all flats allow short-term rentals.

1-2 Cr

• This ticket price lets you get good, unique flats, even some villas.
• This primarily allows you to consume and rent the property for the short and long term.
• Remember, short-term rentals will get you a better rental yield than long-term rentals.

2-3 Cr

• At this point, you can start getting good Villas.
• Villa is much better in terms of price appreciation.
• This is purely because the villa supply can be increased slower than that of flats.

3 - 4 Cr

• This is an excellent market to enter. It caters to the premium segment, which is picking up.
• This can be seen on a macroeconomic scale as well.
• Villas in this space have good prospects in the long term.
• You can even consider the buy + build strategy here.

5Cr+

• At this point, you can look at mansions,
• Or you can buy and build on land on a bigger scale.
• This will increase your margins and witness excellent appreciation values.

The bottom line is:

• The Economy is premiumizing.
• So, own properties that tend to the rich folks.
• This will help you make a lot of money.

This can be seen from the graphic below, luxury Real estate is picking up.

The more premium your property is (the more unique it is), the better the prospects.
How do you identify such properties?

Source

• Akshat Shrivastava 16/30 days Newsletter.