Broaden Your Horizon - April 1 , 2006. Times Property (Times of India)

"Compromise on location if you have to, not on living standards or lifestyle for the family." - Chetan Narain

For a nuclear family, it is nearly impossible to get a home that gives value for money. In South Mumbai a two-bedroom apartment costs not less than a crore and in the suburbs, not less than Rs 40 to 50 lakh. Where can a family earning an average income invest or buy a property for future security and/or self-use?

We often get calls from clients with budgets of a crore or a little more with a requirement of a two-bedroom home between Worli and Colaba. It is amazing that a crore of rupees, which is a lot of money, that too after tax, does not buy much real estate. One of our clients, Mrs. Mehta, says, "I started looking around for a two-bedroom apartment in the Colaba area about four months ago with a budget of Rs 80 to 90 lakh. Nothing nice was available. Now my stretched budget is Rs 100-110 lakh, but still nothing is available". Both she and her family are very confused now. Her confusion is genuine, whether to further stretch it to Rs 120-130 lakh, buy a smaller place or move to the western suburbs.

The fact is, we need to broaden our outlook. The city has stretched itself to eastern/central suburbs and Navi Mumbai, which has better infrastructure than the western suburbs, which have stretched up to Vasai. For some reason or the other, however, we are glued to our comfort zones and are not looking beyond. It's a tough call when it comes to total relocation but it is equally important to plan your future keeping capital appreciation of your investment and future family needs in mind.

Our outlook will change with development. With the new airport planned in Navi Mumbai and the huge `Special Economic Zone' development on its way, the future seems to be promising in terms of self-use or investment. These new developments will create job opportunities within the region, giving relief of travelling long distance from home to work and back.

Navi Mumbai has better roads, railway stations, planned sectors for commercial and residential use. The rates are affordable compared to the rest of the city. One could look around the region, surrounding locations and beyond, keeping the foresight of growth that will take place there. The appreciation may be slow but it sure will happen. If all goes well that's a location to look out for.

The other location to consider would be Malad to Mira Road with a hope that the `Metro rail project' and road / sea connectivity take off and are completed without delays and hurdles.

My advice to folks looking for a `home' is: "Compromise on location if you have to, not on living standard / lifestyle for the family". This may not necessarily apply to commercial properties, though.

The advantages and benefits of such developments are enormous, affecting everyone:

Generation of additional economic activity

Promotion of exports of goods and services

Promotion of investment from domestic and Foreign sources

Creation of employment opportunities

Development of infrastructure facilities

Decongestion of cities.

Development in undeveloped and rural areas

The law laid out for `SEZ' has its fair share of economic advantages. The law states: "Any goods or services exported out of, or imported into, or procured from the Domestic Tariff Area by a Unit in a Special Economic Zone shall, subject to such terms, conditions and limitations, as may be prescribed, be exempt from the payment of taxes, duties or cess".

With `tax benefits' in planned zones and the right infrastructure to support it, development of `SEZ' is the right way to grow as a country.

BULLETS POINTS

With prices of homes in South Mumbai soaring, and the city having stretched itself, one needs to look beyond, into the suburbs

The future in Navi Mumbai is promising, with the huge airport and SEZ coming up

The other location to consider would be Malad to Mira Road , with the hope that the Metro rail project and road / sea connectivity take off