Studio apartments! Something big is happening in something small!

Till some years back, buying a house meant buying nothing less than a 2BHK. Anything less was a compromise or at best an small investment not worth considering beyond a point. Times then were about staying with the family, all three generation under one roof. And buying property meant a big thing for the family with careful planning of finances to fund everything from kids’ education to elder’s medication- besides the property itself.

And then came the age of the millennials when they came of age. With so much change in mores, means and moralities in the span of a decade-and-a-half, the youth today have its goals set, which not surprisingly doesn’t include roots they way they did a generation back. They know their parents are well provided for, and the generation before then almost departing the world. Responsibility to them means their immediate needs and comforts. In their line of thoughts investments mean something that’s modest and doesn’t stretch them for ages, and something that preferably pays for itself ASAP.

So was born the idea of pre-leased studio apartments with loads of bells, whistles, hooters and what have you. And it’s attracting the Gen Z and millennials like honey attracts bees. Among their USPs, the following stand out:

• Low investment

For their location and what they assure, and given the size of studio apartments in general, the investment in almost all the cases is in the range of INR 25 to 30 lacs. This may seem high when seen from the perspective of things bigger at the fringes of a Tier II city, but when seen from the perspective of its location and promise (of returns), it seems reasonable, and something that sits quite pretty in the pockets of Gen Z and millennials. With something coming from parents, some savings and competitively-priced loans, this is one investment that’s most ideal for those starting off and not wanting too many hang-ups.

• Assured loans from banks and financiers

With most pre-leased studio apartments being in localities that afford the right opportunities for rentals, and given the profile of people (Gen Z and millennials) applying for loans, banks too remain gung-ho about disbursements with not many reasons for holding back. Add to that the initial sum in most cases coming from parents and millennials themselves, banks in most cases are doubly sure of their investments being in safe, paying hands. In all, financing the first “dream-home” isn’t all that tough if one thinks of pre-leased studio apartments.

• Assured rentals for a reasonable time

For buyers, the biggest carrot besides decent capital appreciation, is assured rentals for years. Lease period in the case of pre-leased studio apartments fall in the range of 5 to 7 years. If timed and planned right, a buyer can, within the lease period, pay off the entire loan and enjoy an unending stream of rental income, the dream of a generation which despite being young have seen times like slowdowns and lockdowns when incomes come to a grinding halt for no mistake of theirs.

• Full guarantee of asset’s upkeep

Pre-leased studio apartments come assured with iron-clad agreements on asset maintenance and upkeep. What it means on the ground is that homes leased to long-team leasing companies becomes the latter’s responsibility. They paint, maintain and clean the place from time to time – unless the apartment has inherent and deeply entrenched structural problems that require a lot of digging and breaking.

This is music to the ears of millennials, wary as they are of commitments of most kinds.

• Minimum strings attached

If this seems too good to be true, be assured it is! What you get is what is written on the documents. With clear as day terms and conditions being put forth to home buyers, chances of getting caught-up in grey areas just doesn’t exist- something that suites Gen Z and millennials to the T!

Times were when we lamented about the past, and how gloriously simple they were. For a change, times are getting better in the present, and is likely to be so in the future. It’s something to do with common needs coming together to form a common good.

If you want to know more about prelease properties or any kind of properties, do get in touch with me!