A Beginner's Guide to Different Types of Home Spaces | Kotak Mahindra Bank - Home Loan Stories

11 MAY, 2022

From the palaces that Maharajas of the past have owned to the modern apartments in metro cities that today’s working class live in, India’s housing structure is one with a lot of diversity. Differences in lifestyle, architectural influence, climate, culture, demographics, and financial power means that there are various types of houses that one can find across the country.

While some of the most common housing options include apartments, other well-known accommodation alternatives include bungalows, studio flats, row houses, and so on. To get a better understanding of residential housing, let’s take a detailed look at each type to learn about various housing spaces in India.

Bungalows

Bungalows are usually single or one-and-a-half-storied houses and are located at a distance from other properties. These places are usually more expensive as compared to flats as they are more spacious. Bungalows can be both traditional as well as contemporary houses and are mostly found in the non-urban areas of India.

Features of a bungalow

Most bungalows include a veranda as well as a parking space outside the house. These houses have a lot of scope for renovation given the spacious indoors and outdoors. Bungalows usually include low-pitched roofs and have an open floor plan.

Things to consider when planning to buy one

If you are someone who is very particular about your privacy and prefer a quiet life away from bustling neighbours, a bungalow could be an ideal choice. An apartment in a residential building, being a gated community, will have a lot of social amenities available. Societies arrange for a backup in case of a power failure. These are things that a bungalow owner needs to arrange for themselves, so keep this in mind before making a purchase, other than the fact that this type of residence could be comparatively expensive, and you might need some external financial support in the form of a home loan.

Apartments

Apartments in residential buildings are one of the most common types of homes that people live in across cities in India. One can choose to live in a 1 BHK, 2 BHK, 3 BHK, or an even bigger flat, based on their budget and preference. These types of residential buildings are becoming increasingly popular for the middle-class and upper-middle class population, especially in tier I and tier II cities.

Features of an apartment

Usually, with an apartment, there is no common wall with any neighbours. Most residential complexes have assigned parking spaces, play areas for children, and other amenities such as swimming pools and gyms.

Things to consider when planning to buy one

Before buying an apartment, make sure to inspect how particular the security is at the entrance of the residential complex. Focus on which floor your apartment is on, as elders could face a problem reaching home in case the elevator cannot be used due to a power cut. Buy the house only after ensuring that the property has all the required clearances. In case you plan to buy an apartment with the aid of a housing loan, make sure to check your EMIs using a home loan calculator.

Studio flats

A studio flat is a house with no separate bedroom. This type of flat is also called a one room kitchen apartment. With property prices being so expensive, a studio flat is a great option for those who are looking at economic alternatives. In fact, a lot of people buy studio flats and construct them into contemporary homes.

Features of a studio flat

Even though studio flats are compact apartments, they can still accommodate exquisite furniture and can be comfortable to live in. Living in studio flats not just helps budget-wise, but also when it comes to keeping things organised.

Things to consider when planning to buy one

While a studio flat is a great option for an individual or couple looking to save money, it might not be the most preferable option for a big family. If a studio flat is something that sounds ideal, make sure to buy one that is well-connected. Check whether public transportation is easily accessible and focus on the security measures of the building.

Row houses

A row house involves at least three or more houses lined up in a row. These houses are different units that share a common wall. This type of house is ideal for small areas, thanks to its vertical design that proves to be very efficient for tackling a space crunch.

Features of a row house

Row houses can be the ideal solution for those who are looking to enjoy the privacy of their own home while also living in a community. A row house owner can also enjoy a higher Undivided Share of Land (UDS) as compared to an individual owning a single apartment. Row houses are more frequently found on the outskirts of cities.

Things to consider when planning to buy one

There are multiple factors to consider before buying a row house. Location is a very important aspect as you need to ensure that the house has good connectivity. It should be close to your workplace, your children’s schools, hospitals, convenience stores, and so on. Next, it is also essential to consider space. Make sure to strike the right balance as per the size of your family. Lastly, when it comes to the cost of the house, do keep in mind that this might be a little more expensive than an apartment; however, its price is lower than that of a bungalow. The cost of the house will also depend on its area and connectivity.

Buying different types of home spaces

Finally, choosing a type of house comes down to the preference of each individual and their financial capacity, an important factor that influences their home loan eligibility. Let’s understand this with the help of an example.

Rohini, Rahul, and Subhash are three siblings who own a spacious bungalow in a non-metro city and have been living there together. Rohini and Rahul now have to move to other metro cities for work, and Subhash prefers to settle down with his family in a smaller setting. Since all the three siblings are now shifting, they prefer to sell the bungalow and split the money. Rohini finds it ideal to live in a studio apartment by herself. This move allows her to invest the remaining funds from her share of the bungalow’s sale. Rahul has also moved to another city for work but does not wish to go for a studio apartment as he plans on getting married soon. In this case, he prefers to buy a 1 BHK apartment with his share. Since Subhash already has a family and is not settling down in a metro city like his siblings, he found it affordable to buy a row house.

While some might prefer a bungalow, others might find a studio apartment to be a more suitable option. Do keep in mind that the price of each type of house is also influenced by the geographical area it is located in as well as its surroundings. For instance, a bungalow located on the outskirts of a city with low connectivity can actually be less expensive when compared to a 1 BHK in a metro city. This can be because the 1 BHK is placed in a prime location and offers the buyer modern amenities that the bungalow cannot. Now, whatever type of house that a buyer is planning to go for, they might be in need of financial support. For those requiring financial assistance, financial institutions offer home loan plans that help in arranging the funds to buy a house. Housing loan borrowers can also find lenders that offer attractive home loan interest rates with zero foreclosure charges.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.