Subbu

I am planning to invest in Chennai and make few bucks in the rising real estate market. Basically planning to start off by constructing one building with 6 apartments and sell them off, but am not sure which is the right place to buy the land and start the construction. Appreciate all for your time in advance.

srikant

Hi Subbu,

It’s good idea to invest in Chennai…. Real estate market in Chennai is growing much more rapidly than any other cities in south India. I am also going to plan to invest in Chennai …
http://www.indianrealtynews.com/real...duce-gold.html
Above is link of news article where you can find on going rates in Chennai and give you some brief idea on real estate market in Chennai
I hope this link help you to invest in better way in Chennai
Thanx
Srikant

tpalani

Subbu/Srikant,

I have gone one step head of you guys and found some property to invest.


thanks
Palani

victoryguru

Dear Mr subbu,

I do not know whether this topic is still active. Nevertheless, I post my views.

In several newly developing areas of Chennai, apartments are not so hot. With Chennai growing horizontally, many people want to own only Individual houses. It is better to plan ur investments accordingly.

vguruprasad

Sonia

victoryguru writes:
Hey! that sounds interesting. Can you please let us know a bit more on this trend and nevertheless we would like to know the reasons behind this.

Because at times when apartments seem to rule the housing trend, why are people in Chennai showing preference for individual homes. And aren't indidividual homes costlier than apartments.

Of course, I'm not very sure about the property prices in Chennai. Would love to know more........

raguraam

Subbu,

I had similar ideas. One of the issues that bothered me was how would you handle the money and taxes? Let me explain what iam talking about

Let us say(all the numbers are hypothetical and simplified my calculation)

Cost of land - 20L
Cost of construction(6apts@500sqft each-say 700Rs/sqft) -21L
Total cost = 41L

When you sell the apartments assuming you get 10L each
Total revenue=60L

Profit = 19L and you would have to pay taxes for it. Not only this, even though you had paid 20L for the land, the registered value might be just 5L, which means Your total cost on paper will be 26L.

So you have to pay more taxes since your profit will be higher(on paper).

Have you thought about this issue? Can someone clarify this?

Rajicon

I have done some research. You can insist on doing all white. That is what most of the mnc do.

raguraam

You mean when you buy land?