Team-BHP > Shifting gears


Reply
  Search this Thread
1,023,186 views
Old 20th March 2024, 00:26   #2971
BHPian
 
fast_elegance's Avatar
 
Join Date: Jun 2009
Location: Mangalore/Bangalore
Posts: 439
Thanked: 249 Times
Re: The Property / Real Estate Thread

Hi All, I am looking to buy a 3BHK flat in Nitesh Hyde Park just behind Meenakshi mall Bannerghatta Road. This is on their newest F block. The flat is not registered to the current owner yet and only has the assignment agreement. I checked with my bank (Axis) for the loan and they mentioned that the builder is black listed. The builder and the current owner mentioned that HDFC is providing loan for this property. I checked with HDFC and they are ready to provide loan. There is no OC yet for this block and also the other blocks D (handed over in 2019) and E (handed over in 2022). The builder POC mentioned that they are applying for OC for the 3 blocks (D, E and F) at the end of the year after the club house and other amenities are ready.

I am currently living in a rented flat in another block within the same campus and we really love the location. There are other apartments from other builders around, however, they are all quoting much higher for flats that are much smaller.

I am aware of the trouble current owners went through and some of the issues are still ongoing with this project. However, considering the location, size of the flat, upcoming metro, etc. this has a lot of advantages going for it.

My only concern currently is the builder reputation. Should I be worried or am I overthinking? Also, HDFC informed that I should initially get the assignment agreement under my name and then go for registration directly from builder. Is this a required step? Are there any other questions that I should be asking the builder or the seller?

P.S. I am yet to start negotiating the final price with the seller.
fast_elegance is offline  
Old 20th March 2024, 00:40   #2972
BHPian
 
Join Date: Mar 2018
Location: Thane - MH04
Posts: 595
Thanked: 2,305 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by fast_elegance View Post
Hi All, I am looking to buy a 3BHK flat in Nitesh Hyde Park just behind Meenakshi mall Bannerghatta Road. This is on their newest F block. The flat is not registered to the current owner yet and only has the assignment agreement. I checked with my bank (Axis) for the loan and they mentioned that the builder is black listed. The builder and the current owner mentioned that HDFC is providing loan for this property. I checked with HDFC and they are ready to provide loan. There is no OC yet for this block and also the other blocks D (handed over in 2019) and E (handed over in 2022). The builder POC mentioned that they are applying for OC for the 3 blocks (D, E and F) at the end of the year after the club house and other amenities are ready.
Is this property and the quoted price so great that you are ok to take this risk? I mean it is your money at the end but does it make any logical sense here at all if you take out emotions out of the equation?

Quote:
Originally Posted by fast_elegance View Post
My only concern currently is the builder reputation. Should I be worried or am I overthinking? Also, HDFC informed that I should initially get the assignment agreement under my name and then go for registration directly from builder. Is this a required step? Are there any other questions that I should be asking the builder or the seller?
Builder reputation matters 1% in the end. Assignment isn't mandatory but since your loan provider is recommending it, no harm in getting it done. Isn't a big deal I suppose except that in this case you will have to pay the builder the amount he demands for the change in assignment.

Question and the answer to those are unlikely to matter much. If you are sold on the property that is.

A ready property without OC and with other such building by same developer in same complex ... a serious RED flag in my book

But then, I am not living there. So this is purely your risk taking ability that will decide if you wish to buy this apartment.
sunilch is offline   (1) Thanks
Old 20th March 2024, 14:05   #2973
BHPian
 
Join Date: Jan 2015
Location: Amchi Mumbai
Posts: 243
Thanked: 983 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by fast_elegance View Post
Hi All, I am looking to buy a 3BHK flat in Nitesh Hyde Park just behind Meenakshi mall Bannerghatta Road. This is on their newest F block. The flat is not registered to the current owner yet and only has the assignment agreement. I checked with my bank (Axis) for the loan and they mentioned that the builder is black listed. The builder and the current owner mentioned that HDFC is providing loan for this property. I checked with HDFC and they are ready to provide loan. There is no OC yet for this block and also the other blocks D (handed over in 2019) and E (handed over in 2022). The builder POC mentioned that they are applying for OC for the 3 blocks (D, E and F) at the end of the year after the club house and other amenities are ready.
I would suggest not to get into this deal.
There are severe redflags in this project as you have mentioned yourself.

Ideally atleast for the blocks D and E he should have got the OC, no reason to not get it unless something fishy, residing in an flat without an OC is virtually illegal.
Also do keep in mind even if you get the registration done you cannot get the khata transfer without OC
Gaur is offline   (2) Thanks
Old 20th March 2024, 14:16   #2974
BHPian
 
Naetik30's Avatar
 
Join Date: Mar 2013
Location: Bangalore
Posts: 332
Thanked: 1,225 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by fast_elegance View Post
Hi All, I am looking to buy a 3BHK flat in Nitesh Hyde Park just behind Meenakshi mall Bannerghatta Road...

I am currently living in a rented flat in another block within the same campus...


I stay near Nitesh Hyde park. Some info for you - The construction on Nitesh Hyde park started somewhere around 2010/2011. This was the same time that my builder started our project. FYI - I moved in to my flat in 2014 March. Nitesh was no where near completion. The builder pretty much stalled construction for several years. I have a direct view of Nitesh from my balcony and it was a sad sight to see for so many years.

Residents in the first two blocks were living in the midst of barricades. Even the first block was not properly painted externally and looked terrible. Please be careful.

EDIT: Just noticed that you are a tenant in that building. Definitely surprised you are interested.

Last edited by Chetan_Rao : 20th March 2024 at 14:37. Reason: Trimmed quote.
Naetik30 is offline   (3) Thanks
Old 20th March 2024, 17:20   #2975
BHPian
 
fast_elegance's Avatar
 
Join Date: Jun 2009
Location: Mangalore/Bangalore
Posts: 439
Thanked: 249 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by sunilch View Post
Is this property and the quoted price so great that you are ok to take this risk? I mean it is your money at the end but does it make any logical sense here at all if you take out emotions out of the equation?

Builder reputation matters 1% in the end. Assignment isn't mandatory but since your loan provider is recommending it, no harm in getting it done. Isn't a big deal I suppose except that in this case you will have to pay the builder the amount he demands for the change in assignment.

Question and the answer to those are unlikely to matter much. If you are sold on the property that is.

A ready property without OC and with other such building by same developer in same complex ... a serious RED flag in my book

But then, I am not living there. So this is purely your risk taking ability that will decide if you wish to buy this apartment.
Thank you sunilch. The quoted price is reasonable for the property considering how much the others around are quoting. There are red flags and the only reason for considering was the size of the flat and the location.

Quote:
Originally Posted by Gaur View Post
I would suggest not to get into this deal.
There are severe redflags in this project as you have mentioned yourself.

Ideally atleast for the blocks D and E he should have got the OC, no reason to not get it unless something fishy, residing in an flat without an OC is virtually illegal.
Also do keep in mind even if you get the registration done you cannot get the khata transfer without OC
Thank you Gaur. Yes, there are red flags and I was thinking that the OC is a common issue with many apartment buildings in Bangalore. Thank you for highlighting the khata transfer issue.

Quote:
Originally Posted by Naetik30 View Post
I stay near Nitesh Hyde park. Some info for you - The construction on Nitesh Hyde park started somewhere around 2010/2011. This was the same time that my builder started our project. FYI - I moved in to my flat in 2014 March. Nitesh was no where near completion. The builder pretty much stalled construction for several years. I have a direct view of Nitesh from my balcony and it was a sad sight to see for so many years.

Residents in the first two blocks were living in the midst of barricades. Even the first block was not properly painted externally and looked terrible. Please be careful.

EDIT: Just noticed that you are a tenant in that building. Definitely surprised you are interested.
Thank you Naetik30. I have been living in the area (Nobo Nagar) from 2012 and have seen the construction pace and how slow everything moved with this property. We moved into the E block of this property post covid (2022).

F block is supposedly their premium block, the size of the flat and location is what got me and my wife interested.

Thank you for all the inputs. I will discuss with family and make a decision on this. Mostly drop out of the deal.
fast_elegance is offline  
Old 20th March 2024, 17:44   #2976
One
BHPian
 
Join Date: Apr 2021
Location: Mumbai
Posts: 245
Thanked: 1,228 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by sumeethaldankar View Post
What is the safest way to let out an apartment on rent to a tenant? I am aware of the rent agreement etc but what if the tenant refuses to move out from the property if the landlord needs the apartment back? I have seen cases where disputes ran for decades before the tenant vacated the premises? How can one avoid such situations?

Thanks.
As far as I am aware, in Mumbai, the practice of a Leave and License agreement which is registered is sufficient to ensure safety. There are no tenancy rights created and eviction is never an issue.
One is offline   (1) Thanks
Old 20th March 2024, 18:28   #2977
Distinguished - BHPian
 
Rajeevraj's Avatar
 
Join Date: Aug 2011
Location: Bangalore
Posts: 4,631
Thanked: 17,792 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by fast_elegance View Post

I am currently living in a rented flat in another block within the same campus and we really love the location. There are other apartments from other builders around, however, they are all quoting much higher for flats that are much smaller.

I am aware of the trouble current owners went through and some of the issues are still ongoing with this project. However, considering the location, size of the flat, upcoming metro, etc. this has a lot of advantages going for it.
If the quoted rates are significantly lower than other similar properties around, that is definitely a red flag. Nitish has been in a lot of trouble. Thir project in Bellandur started in 2010-11 and has been stuck for the last 10+ years. Now I see someone else has taken over and is attempting to complete.

While the builder reputation is not critical, based on the problems they have had, I am not sure if you can trust the quality of construction and any major issues that come up that needs builder to be involved may also be a problem.

Above all, not getting the OC means that there are unresolved issues. In todays times, it is better not to buy a flat without an OC assured.
Rajeevraj is offline   (1) Thanks
Old 20th March 2024, 20:54   #2978
BHPian
 
fast_elegance's Avatar
 
Join Date: Jun 2009
Location: Mangalore/Bangalore
Posts: 439
Thanked: 249 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by Rajeevraj View Post
If the quoted rates are significantly lower than other similar properties around, that is definitely a red flag. Nitish has been in a lot of trouble. Thir project in Bellandur started in 2010-11 and has been stuck for the last 10+ years. Now I see someone else has taken over and is attempting to complete.

While the builder reputation is not critical, based on the problems they have had, I am not sure if you can trust the quality of construction and any major issues that come up that needs builder to be involved may also be a problem.

Above all, not getting the OC means that there are unresolved issues. In todays times, it is better not to buy a flat without an OC assured.
Thank you Rajeevraj. The quoted rate is not significantly lower but is reasonable. The quality of construction on the budget blocks (A - E) is nothing to write about, however, F block seems to be slightly better. OC is an issue and I am discussing this over and will mostly back out from this deal.
fast_elegance is offline  
Old 20th March 2024, 23:52   #2979
Senior - BHPian
 
Sebring's Avatar
 
Join Date: Apr 2011
Location: Dubai/Bengaluru
Posts: 3,627
Thanked: 11,306 Times
Re: The Property / Real Estate Thread

Avoid Mantri as well. There is one project on Kanakapura Road, Govt had to intervene and hand over the incomplete project for residents to complete. Their costs doubled but at least they got a flat. Such news is scary.
Sebring is offline   (1) Thanks
Old 21st March 2024, 00:05   #2980
BHPian
 
fast_elegance's Avatar
 
Join Date: Jun 2009
Location: Mangalore/Bangalore
Posts: 439
Thanked: 249 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by Sebring View Post
Avoid Mantri as well. There is one project on Kanakapura Road, Govt had to intervene and hand over the incomplete project for residents to complete. Their costs doubled but at least they got a flat. Such news is scary.
Yes, Mantri is also blacklisted with Axis bank and they are not providing any loan for Mantri properties.
fast_elegance is offline  
Old 21st March 2024, 13:01   #2981
BHPian
 
Dieseltuned's Avatar
 
Join Date: Sep 2012
Location: Bombay
Posts: 718
Thanked: 1,174 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by Raj1008 View Post
Wondering if someone can help with perspective.
I have an apartment in lokhandwala andheri and talks are on for redevelopment.
The proposal being discussed now is offering 60% extra floor space. However for a cash out they arent offering anything more than market rate. Does anyone know if that’s a norm or am I being hustled
I don’t want to go through the trouble of waiting for it to be developed and sell later.
I understand this is a more than a month old post, but still here are my 2 cents.

Since I also am in the western suburbs and have seen many redevelopment projects (Every lane in Borivali / Kandivali / Malad has an ongoing redevelopment). 60% seems unrealistic. Max I have heard of is 35 % to 40% depending on land parcel and number of existing residents. May be I am wrong !

I myself sold off my properties as my building was 35 years old and was planning for a redevelopment and bought a brand new property by adding some of my own money. Its been 5 years now we are living peacefully in our own home and my old building is still under redevelopment, thank god we moved out. Personally I would not touch a redevelopment property in Mumbai. Its not only about the builder but even after possessions are given there is always a discord among "original" and "new" buyers in that project. Yes these discriminations also exist.

I personally would cash out rather than getting stuck in a redevelopment for more than half a decade. I have seen people waiting for their new homes even after 11 years of vacating their property to builders for redevelopment. All builders offer cashout at current market rate unless you are able to hard negotiate a deal.

Regards
Diesel

Last edited by Dieseltuned : 21st March 2024 at 13:02.
Dieseltuned is offline   (2) Thanks
Old 21st March 2024, 13:06   #2982
BHPian
 
jigar1791@gmail's Avatar
 
Join Date: Oct 2020
Location: Mumbai
Posts: 181
Thanked: 845 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by Dieseltuned View Post
I myself sold off my properties as my building was 35 years old and was planning for a redevelopment and bought a brand new property by adding some of my own money.
Hi @Dieseltuned,
I have a query around property agreement and LTCG component. Thought I'll check with you since you have made a sale-purchase transaction and may have navigated LTCG adjustment.

BACKGROUND
* We currently reside in a 3BHK in Borivli (Daulat Nagar, to be precise), which is owned by my parents (both their names are mentioned in the agreement).
* The current valuation of the house is approximately 2.5 crore, and we plan to sell it to move into a new residence.
* We intend to purchase the new property by booking an under-construction unit with a reputable builder in Borivli (Mahavir Nagar). The completion of the project is scheduled for June '27, with possession expected in December '26. The new property's agreement will include my father's and my name.

WAY FORWARD
* We plan to execute the purchase agreement for the new property in April '24 and sell our current residence in December '26 (after receiving possession of the new property).
* The agreement for the new property will be in both my father's and my name.
* The home loan for the new property will be in my name. After selling our current residence, we aim to close the loan by December '27.

Regarding LTCG calculation
We anticipate that approximately 40-50 lakh will be taxed as LTCG (20% of the profit from the sale of the current property) when we sell our current residence.

ADVICE NEEDED
We seek clarity on whether there's a possibility to reduce the LTCG component by having the new property's agreement (in April '24) solely under my name, and then having my father sell our current residence in December '26.

Is there a way we can avoid/reduce the LTCG slab in the above transaction?
jigar1791@gmail is offline  
Old 24th March 2024, 21:18   #2983
Distinguished - BHPian
 
ninjatalli's Avatar
 
Join Date: Jul 2011
Location: Bangalore
Posts: 3,823
Thanked: 15,827 Times
Re: The Property / Real Estate Thread

Has anyone gone through the process of sale deed / house registration (for a new / resale flat) in Bangalore? Trying to understand the effort and time taken if one attempts to do this on our own (without a lawyer / intermediate to "assist").

Searched online for experiences; but found only one of 2014: Bangalore property registration - No Bribes.html.
ninjatalli is offline  
Old 24th March 2024, 22:02   #2984
BHPian
 
Join Date: Mar 2016
Location: Bangalore
Posts: 99
Thanked: 78 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by ninjatalli View Post
Has anyone gone through the process of sale deed / house registration (for a new / resale flat) in Bangalore? Trying to understand the effort and time taken if one attempts to do this on our own (without a lawyer / intermediate to "assist").

Searched online for experiences; but found only one of 2014: Bangalore property registration - No Bribes.html.
I recently registered a plot, but via an agent. However he mentioned that the appointment booking and data entry (buyer and seller info, DD number) are all online via the new Kaveri website. Stamp duty has to be paid online and an appointment fixed based on availability. Then we have to go to registrar office at the appointed time to complete the formalities. It took about 20 minutes in registrar office for me, but it was probably smooth because of the agent.

A bit OT, I have obtained many encumbrance certificate and certified copy using the new Kaveri website. It is smooth and simple.
vinodh_eee is offline   (1) Thanks
Old 25th March 2024, 06:54   #2985
BHPian
 
deep_bang's Avatar
 
Join Date: Mar 2007
Location: Bangalore / Boise
Posts: 892
Thanked: 1,279 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by jigar1791@gmail View Post
Is there a way we can avoid/reduce the LTCG slab in the above transaction?
There may be a way. Your parents could execute a gift deed and gift their current house to you. This essentially means you bear the capital gains coming out of selling the old property. There will be some cost in executing the gift deed but should be way less than actual LTCG. You then need to execute the sale deed to sell it to the new buyer. Since the deed is executed by you, you will bear the capital gains and that could help you offset the taxes as you are now investing in a new apartment/house. This is not legal advice but you can explore this option and pros/cons around it.

Last edited by deep_bang : 25th March 2024 at 06:56.
deep_bang is online now   (1) Thanks
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright 2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks