K Sathya Anand bought his first house in Perumbakkam because he strongly felt that investing there would always yield good returns.
Homes have always been a great form of investment. Rarely does it depreciate or fail to yield good returns. It was this aspect of homebuying that appealed to K Sathya Anand. Nearly a decade ago, at the age of 41, he purchased his first house and had expected a good return on his investment.
“Conventional forms of saving do not yield good returns. Take fixed deposits – it doesn’t provide enough returns that would help sustain you, especially in an age where the cost of living keeps increasing. The returns increase in proportion to the inflation. If the cost of living increases, so will the rental income,” says Anand, the Vice-President of a global financial technology company.
Elaborating on why he purchased a 3-BHK flat in Perumbakkam, he says, “We wanted to buy a house that was in close proximity to OMR because there would be good returns in terms of rent there. This house fulfilled all the criteria, and it is also close to other important industrial parks and offices. Our house is located within a villa community, which has a serene and calm environment.”
Though he expected good returns, he opines that the price of the apartment has not appreciated much in the last 10 years. “I expected a good return on my investment. However, that does not seem likely. Having bought the house at Rs 3500 per sqft, it has only appreciated to Rs 4,100 per sqft. And if I intend to sell to potential buyers, they would expect a discount. In the process, I wouldn’t get a good return,” says Anand, adding, “This was the only thing that I did not foresee.”
Ranjitha G, Times Property, The Times of India, Chennai