Quote:
Originally Posted by sachasauda
An investor who booked at very initial stages of product launch paid Rs. 2700 (BSP) + Rs. 150 (Lease Rent + IFMS) only. At that time their were no add on charges like parking, PLC, IDC, etc. as these were introduced later on. This early investor has thus paid Rs. 2850 in a phased manner over the past 36 months as the payments were construction linked. For the sake of convenience, lets assume that these payments were made every three months and the last instalment of Rs. 185 (5% of BSP + Rs. 50 of IFMS) is yet to be paid. Now instead of investing in this property, had the investor kept it in Fixed Deposit, it would have earned him a return of say 8% per annum. Since investing in real estate is a risky proposition, it is a standard norm that return on a reasonably OK property should be double of the return from FD. Lets say a return of 15%. Lets also compound this return say at a quarterly rest. Based on these parameters, back of the palm calculations would show that a premium of Rs. 788 per sq. ft.would give this early investor a return on more that 15% compounded on a quarterly basis. Other charges like Service Tax, Transfer Fee, etc. are ofcourse over and above this premium. Now is'nt this a decent return which any genuine seller will look for and any genuine buyer will be willing to pay ?

Real estate and share market do not follow maths,FDs follow maths, Think of a person when he bought at 2850, 3 years ago when Noida future,express way future was not sure,he took area risk,then project will be completed and that too on time or not.It is very easy to comment when project is almost complete ,think about those project who were booked at that time and construction has not started.Noida extension as available now at 3000/ ,how many of us have guts to buy today,say in coming 3 years prices go to 5000/ psf,we can not calculate on mathematical formula,there is no price for risk