Team-BHP - The Property / Real Estate Thread

Quote:

Originally Posted by rki2007 (Post 2465073)

If you work out the price of construction cost , it is Rs.3785/- per sqft. Is this day light robbery. Overall cost per sqft is Rs.5000/- Seems to be a joke or what.

It's on par !

When the builder quotes, he quotes per sq ft of construction + land cost
By the time the other costs are added up, it does go up like that.

And when you compare the market prices, the market (resale) prices do not give a break-up (where as the builder does).

In this case, your resale price would be typically 5100 - 5300 + Regn

@ condor -----Sir the exact thing what i wanted to say was:-

The total cost works out to Rs. 94.34L agreed.

If you happen to see the other costs like car parking, other charges, maintenance deposit, club membership,Bescom charges, BWSSB charges,Legal charges -- all put together works out to be Rs. 9,56,214/-

The land cost maximum i think some 400-450 sqft will be the undivided share for which the asking price is Rs. 12,45,714.

The rest all of the amount to the extent of Rs.71,32,286 is only for construction which means that the cost of construction per sqft falls to be 3785/-.

I understand that the bifurcation given by the builder is for name sake and overall price per sqft for an apartment (a new culture is developed today) But still there should be a justification for the same. When you happen to work out the bifurcation there should be some meaning. Had this construction cost been Rs. 1750/- per sqft (a very premium price) still the cost of construction would have been Rs. 32,97,000 and thereby making the total cost of the flat to be close to 56L which would have been reasonable.

Quote:

Originally Posted by rki2007 (Post 2465514)

thereby making the total cost of the flat to be close to 56L which would have been reasonable.

In real estate, especially in Bangalore and Mumbai, nothing is reasonable. You either take it, or leave it. A few months/years later, when you see how much the current price is, you rue for not taking it earlier.

Quote:

Originally Posted by benbsb29 (Post 2465578)

Well said- historically look around- only 5% of the places around bangalore may have not risen much, but over the years the cost just goes up and up. Worst case- stagnates but then when it rises, it covers up for that period. The way this city is growing and traffic is- ALL want a place with least commute hence places around work areas- Ecity, ITPL, Baghmane, Manyata and EGL are going to be always up in value incl rental value for sure.

Quote:

Originally Posted by benbsb29 (Post 2465578)

Don't agree.

And Mumbai and Bangalore real estate are as different as chalk and cheese.

Quote:

Originally Posted by rki2007 (Post 2465514)

Had this construction cost been Rs. 1750/- per sqft (a very premium price)

How did you calculate 1750/- as a premium rate ? Even individual regular constructions workout to be more than this.

The builders may get material at cheaper rates. But they are also subjected to external, non-construction related pressures, the cost of which is always met thru the rates they charge us.

Quote:

Originally Posted by condor (Post 2466032)

Go to ACC Help - Calculators - Cost Calculator

and check for yourself. One can add 20-30% over this. this is the estimate for individual. For apartments the cost per sft of much more less.

It should not cost more than 1200-1300 per sft for apartment construction under any circumstances in Bangalore with all premium quality stuff

Quote:

Originally Posted by condor (Post 2467501)

You are still missing the additional, indirectly related costs there :)

Indirect costs do not amount to 500 extra per sqft.

And no builder will get into a development were the additional non-accountable cost adds to that much. That place is totally illegal or not worth the hassle.

Please remember the land masses on which the present day builders are building these massive residential complexes has been bought for peanuts. If you ever get access to the original papers you will be shocked out of your senses. For no reason this city is the most corrupt in India. As an example look up the latest father and son duo in jail. And this is the proverbial tip of the iceberg.

Quote:

Originally Posted by Captain Slow (Post 2465961)

I saw a listing in Todays TOI for a 1955 sqft apartment for 60L in R.T Nagar. I called up the number and got the details.
This turned out to be a 16 year old small apartment with no covered car parking, no lifts and only 2 bathrooms. :Frustrati said thank you and cut the call.

You call a 1955 sq ft appartment small? In Bombay, we'd be lucky to get something like that, and at a price of 60 L, most bombayites would consider it a steal.

Quote:

Originally Posted by Lalvaz (Post 2467548)

You call a 1955 sq ft appartment small?

I think captain meant the number of flats in the complex are few so the total size of the complex is small.

Just wondering is it worth buying a 16 year old apartment? Considering even the quality of construction to be okay, it will mean a third of its life is over. Am i right?

Its not that smaller apartment buildings are necessarily bad or have legality issues. My experience is other way round.
Usually in already developed residential layouts builders purchase 4-6 adjscent plots and construct a 4 story building there are very less approvals and legal hassals in these cases.
1. Layout plan is already approved and developed so no hassle with Agri- Residential conversion and related issues.
2. Up-to 4 floors Airport Authority of India approval is not needed.
3. Usually such buildings are in good area and BDA approved layouts.
4. If building has amenities such as Gym , partyhall etc then also builder hands them over to residents association and does not necessarily retain the clubhouse like bigger projects.

If you are purchasing a plot / apartment in a building in an area which is being newly developed then be very - very careful.

It is easy to say take lawyers help but the bitter fact is that it is very difficult to find a lawyer of good caliber who takes active interest in securing your interest despite paying 4-5 K rupees. There are two extremes at one end are high end senior legal eagle who will look at paper and say look son the terms and conditions are very much one sided so I wont advise a young man like you to get trapped and won't even charge you money for this advice but the problem is you can never buy any apartment going by this.
Other extreme end of spectrum are the lawyers who have just somehow done LLB and find it difficult to find clients , and their knowledge is poorer then yours.

More on this in next post