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Old 19th April 2009, 00:52   #76
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Default queries welcome

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Old 20th April 2009, 12:36   #77
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Lightbulb Free Solicitation | Residential RE Matters

Fellow TBHP Members:

In further clarification to my earlier post, I would like to state that being a RE Consultant myself, I would be pleased to address your queries and concerns regarding Residential Real Estate
  • Valuations
  • Transactions
  • Rental
  • Investment Decisions
  • Person Tax Implications
  • Home Finance Matters
  • etc.

yours truly,

btirthankar

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Old 20th April 2009, 13:34   #78
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What do you think about the new affordable housing project of MVL coming up in Bhiwadi - MVL Indihomes ? You must have seen front page advertisements of the same?
800 sq ft (Super Area) - 9.38 lacs all inclusive. (top floor).
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Old 20th April 2009, 18:16   #79
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Default Some facts

Quote:
Originally Posted by DCEite View Post
What do you think about the new affordable housing project of MVL coming up in Bhiwadi - MVL Indihomes ? You must have seen front page advertisements of the same?
800 sq ft (Super Area) - 9.38 lacs all inclusive. (top floor).
See, Generally

Carpet Area=80% Built Up Area
Built up area=70% Super Built Up Area

So the easy way out is:

Market Value Method:

So You are actually getting a 400 sft carpet area apartment which may be just 1BHK. So the effective sft. rate is Rs. 2500 per sft.
Compare it with the market value and take your call.

and/or

Rental Value Method:

Find out the rental value, it can fetch and will that rental accumulated over 10 years be equal to the 9.38 lakhs. If Yes, the investment is OK.
As a Rule of Thumb.

If you want to do detailed ROI and Financial Analysis, that will take time and you will have to factor in the interest cost on home loan, monthly maintenance, property taxes and tax savings u/s 24(b) and 80CCC of the Income tax Act.

Now find out the realistic possession date. Generally it is 1.5 times to 2 times the duration as committed by developers. So factor that into your investment (gross the price you are paying now with the appreciation rate that the market accepts) (Eg: if you are paying 2500per sft now and possession is a year later and the appreciation is 10% p.a., then your acquisition cost is actually 2750 per sft.)

Last edited by btirthankar : 20th April 2009 at 18:19.
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Old 20th April 2009, 20:44   #80
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Man that was really an eye opener.
Thanks for sharing those facts. Will keep that in mind.

BTW, whats the difference between Build up area and Covered area?

Last edited by DCEite : 20th April 2009 at 20:55.
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Old 20th April 2009, 21:03   #81
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This one is for Bangy guys .. Can any one tell me whats the current rate going on in East Bangalore I mean in around ITPL ..... Real estate guys are quoting around 2300 - 2700 + lot of other things ......

Please help me if you have any idea .. PM me if you have some property in mind too ...
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Old 20th April 2009, 23:44   #82
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Quote:
Originally Posted by DCEite View Post
BTW, whats the difference between Build up area and Covered area?
Covered is part of Built Up. Built up may be open areas like parking lot, lobby, walkways, parks etc.
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Old 21st April 2009, 00:40   #83
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Default Financially un-viable investments are not always dud.

Quote:
Originally Posted by DCEite View Post
Man that was really an eye opener.
Thanks for sharing those facts.
Ok, another lesson: Financially un-viable investments are not always dud.

Now after all your detailed analyses etc. if they show a loss. BUT you still go for the investment

- for reasons unavoidable. (Like as if its your dream home, or basic shelter, or V. good Location etc.)

- Then that loss that you are making is the cost that you pay for the conveniences (Like as if its your dream home, or basic shelter, or V. good Location etc.)

Remember: Gone is the AGE when 'properties always appreciates'

There will be scenarios when even if the property appreciates in value and you strike a deal at the end of say 'n' years, the interest cost on loan, monthly maintenance, property taxes when factored in over the 'n' years might actually make you suffer a Loss.

Last edited by btirthankar : 21st April 2009 at 00:42.
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Old 21st April 2009, 01:08   #84
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To all the pundits out there, what do you feel about investing in property right now? by investing, i also refer to buying a home for staying, and not purely as a means of investment.

Do you feel prices have dropped to their minimum, or is a further correction possible?
My observation is that the prices havent fallen as much as people say it has, its just that builders are now willing to negotiate, rather than being adamant.

Opinions, guys?
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Old 21st April 2009, 02:06   #85
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Quote:
Originally Posted by benbsb29 View Post
i also refer to buying a home for staying, and not purely as a means of investment.

Do you feel prices have dropped to their minimum, or is a further correction possible?
My observation is that the prices havent fallen as much as people say it has, its just that builders are now willing to negotiate, rather than being adamant.

Opinions, guys?
First of all let us segregate the 'offers' that you have into Primary and Secondary Markets.

Primary - are New and Unbuilt Apartments

Be Careful. Prices have not actually fallen in realistic terms, no matter how much they claim to have reduced or how much they give away as goodies.

Reason: The exorbitant prices the builders paid for the land is still factored into the prices.

Secondary - Resale Apartments
are Best Bet for Home Hunters as Prices have visibly dropped
  • Ready possession possible
  • Chances of Getting a Distressed Seller
  • Realistic Valuation (due to homogeneity)
But resale deals are ideally the least disclosed ones. So talk the least about your potential sale/purchase deal to local friends and local neighbors. Believe in your self and use your head in deciding.So serious homework for due diligence is necessary.

Just post your requirements on leading property portals and also search google for individual deals. As far as possible, avoid Brokers.
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Old 21st April 2009, 10:05   #86
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@btirthankar, hats-off, your posts are of excellent quality

You said carpet = 80% of built up. And built up = 70% of super built up.

Most builders in Mumbai sell a saleable area, which I think is super built up.

So based on above calculations, carpet = .8*.7 = 56% of saleable? i.e. a 44% area is shaved off?

Builders lie that it's only 28% from top.

Thanks
Amit
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Old 21st April 2009, 11:36   #87
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@btirthankar,

I want to invest in Real Estate. Was exploring Emilia floors being offered by Vatika Group at NH-8, Gurgaon. What do you think about that investment?
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Old 21st April 2009, 12:11   #88
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@btirthankar,
<quote>
Find out the rental value, it can fetch and will that rental accumulated over 10 years be equal to the 9.38 lakhs. If Yes, the investment is OK.
As a Rule of Thumb.
</quote>

Somehow this doesn't make sense to me. Here is my logic, please correct me if I am wrong:
Property price =~ Loan amount =~ EMI for say 20 years.
We all know EMI is always a lot higher than rent one pays for any given property.
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Old 21st April 2009, 14:49   #89
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Yes Builders interpret Built Up area in a manner that you feel comfortable. And Yes 44% is shaved off.

If u look from the other side, The poor guy after all is incurring costs within and beyond the 4 walls of ur home and he has to recover the costs from you.

Last edited by btirthankar : 21st April 2009 at 14:59.
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Old 21st April 2009, 14:56   #90
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The very fact that EMI is higher than rent, is a sign of market imperfection. Now if you say factor in price appreciation over decades, but who has seen the future.

This recession is fact enough.

The 10 year rule of thumb is a tried and tested method in the USA.
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