Am I trying to be really smart? or I am just another wannabe around? I don't know!


Well, I am really new here, and I am in to get some suggestions/ideas about my 'dream home' plans. To brief about me and my earning power, I am 25, living in Chennai with my parents, working for an IT major and, earning around 50-55K rupees pm.

I want/wishfully think :) to buy a property in Chennai, not as an R2I but for my own residential usage. After seeing, analyzing the property rates, cost of living, proximity to places, I have decided to stick to the southern part of Chennai, particularly Madipakkam (Northern part - Sadhasivam nagar, Ram nagar north etc). The reasons are - The locality is quite good, close proximity to Velachery MRTS and Vijayanagar bus depot, closer to OMR, rates are kind of affordable*.

*Affordable - Here is my plan / definition
- There are CMDA approved lands available for approximately 55L to 60L per ground whose guideline value stands upto 45L to 46L per ground.
- I along with 3 friends of mine are planning to buy around 2700 sqft of land, register it sharing equally (SBI gives out 80% loan for the total land + construction)
and the repayment would be approximately 22 to 25K pm for my salary
- The plan is to build two 3BHKs in the first floor, and car parking + 2 2BHKs in the ground floor

I am in the process of seeing lands now. I checked with a legal advisor of a builder about how this is workable and got some very high level inputs from him - the abstract is that this is doable legally. From the perspective of the banker, also this is doable, and I might get a loan for 80% of the total cost involved. I am yet to check with the architect/designer on this.

I thought it would be nice to get some advice from experts, advaced RE investor people around - Kindly advice me on
1. Is this plan totally workable? Are there any major, legal or other vital points that I have missed out?
2. Is this the right period to do this? Since this is for my (same with the case of other friends involved) own usage, should I wait in to see the speculated downfall of the RE market?
3. Market rate for a flat in those areas is 3800 to 4000 Rs per sq. ft.
If I work out this way, I will have to spend 16L (64L land price + registration / 4) + 15L for construction (lets keep 1100 sqft for 1300 rs per sq ft) - total 31L Rupees for a 1100 sqft flat with 700 sqft of land in my name.
By this way, I will end up saving approximately 10L rupees with a larger land share.
4. Am I overlooking things anywhere?
5. What could be the potential problems in doing so - at this stage, or in the future?
5. Any suggestions / advice on how, what to do and what not do do is appreciated.

*Cheers*
Newbie
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  • Do wait and see

    As you have said, the are you are looking into is quite good as far as IT parks are located. Your salary is quite decent to invest in this kind of plan and also the bank would be lending this loan as you three are earning a decent salary.

    Just analyse the land prices and have everything done by a lawyer who is proficient in these matters. Because in the future you three must not have any legal issues.

    GOOD LUCK:)
    CommentQuote
  • Do not invest near IT parks or OMR areas in chennai. All these IT parks will be closed soon due to IT downfall
    CommentQuote
  • Dummy IT Park ?

    Originally Posted by Nataraajg007
    Do not invest near IT parks or OMR areas in chennai. All these IT parks will be closed soon due to IT downfall


    There were days when any 3-4 storey buildings were called as IT Park by Brokers and escalated the land price around the area.

    All those dummy IT Parks will vanish due to the slowdown in rental of office spaces . But Real IT parks will survive with minor slowdown but its true that we may not see growth atleast for the next two years.

    Cheers.
    CommentQuote
  • IT and Real Estate

    If IT falls then India's economy will hit to the bone. Every one will get effected.
    We need to be smart, dont believe this Broker or agent. They always will show you day dream.
    CommentQuote
  • Originally Posted by Nataraajg007
    Do not invest near IT parks or OMR areas in chennai. All these IT parks will be closed soon due to IT downfall

    So you want to buy there are a cheaper price? Nataraaaaaaaj?
    CommentQuote
  • Originally Posted by Nataraajg007
    Do not invest near IT parks or OMR areas in chennai. All these IT parks will be closed soon due to IT downfall


    Dear nataraajg007,

    I do not think all these IT parks will be closed due to downtrend in IT field. IT has become part of all businesses. There can be some slow down and cannot be an end. Indian IT sector will survive this and come out with some little scratches in another 12 to 18 months time. The boom will again come and RE guys/brokers/agents will prosper more and more and take the people for another long ride.

    ks2071746:)
    CommentQuote
  • Originally Posted by ks2071746
    Dear nataraajg007,

    I do not think all these IT parks will be closed due to downtrend in IT field. IT has become part of all businesses. There can be some slow down and cannot be an end. Indian IT sector will survive this and come out with some little scratches in another 12 to 18 months time. The boom will again come and RE guys/brokers/agents will prosper more and more and take the people for another long ride.

    ks2071746:)

    Show pity on me by not writing to Nataraaaaaaaaj.... ROTFL.
    CommentQuote
  • Couple of days back, I heard a conversation between a tea master(supposedly a RE broker) and the annex petty shop owner(maybe a wannabe RE broker)

    RE Broker was talking to the other guy about the land prices that have gone down in Nanganallur, Keelkattalai and Pallavaram (seemed to be the areas which he used to deal with). The broker was detailing about a piece of land little more than 1 ground in Nanganallur which was quoted 1.05C some 8 months back that was offered upto 95L was refused by the owner that time and the owner is now trying to sell the ground by 75L and no genuinely interested people these days.

    About the keelkatalai area, the broker said that he finished a ground which used to go for 50L during the hyped period for 30L.

    I aint sure about the proximity, basic infrastructure and anything about the physical location. This is what the RE Broker was just rambling.

    Does this show any pointers that the prices are settling down to a modest rate?
    CommentQuote
  • patience friends

    Dear gone-mad,

    If we assume that what the tea-master said was indeed true,then
    you may end up buying the madipakkam property you were planning
    to buy on your own without roping in three other friends if this trend continues:) .Anyways,
    as it is clear that prices are definitely not rising it is prudent to wait
    in the sidelines and watch the action for some more time...good luck
    to all prospective buyers.

    regards
    unlikely:D
    CommentQuote
  • Originally Posted by gone_mad
    Couple of days back, I heard a conversation between a tea master(supposedly a RE broker) and the annex petty shop owner(maybe a wannabe RE broker)

    RE Broker was talking to the other guy about the land prices that have gone down in Nanganallur, Keelkattalai and Pallavaram (seemed to be the areas which he used to deal with). The broker was detailing about a piece of land little more than 1 ground in Nanganallur which was quoted 1.05C some 8 months back that was offered upto 95L was refused by the owner that time and the owner is now trying to sell the ground by 75L and no genuinely interested people these days.

    About the keelkatalai area, the broker said that he finished a ground which used to go for 50L during the hyped period for 30L.

    I aint sure about the proximity, basic infrastructure and anything about the physical location. This is what the RE Broker was just rambling.

    Does this show any pointers that the prices are settling down to a modest rate?


    never consider a quoted price as market price.the market price is something at which transactions have taken place.quotes remain quotes.
    i have some interests in these areas. I have not recieved any offers for -less than a transacted price-(i.e market price).but there is no growth for the past 4 months.
    CommentQuote
  • Originally Posted by gone_mad
    Am I trying to be really smart? or I am just another wannabe around? I don't know!


    Well, I am really new here, and I am in to get some suggestions/ideas about my 'dream home' plans. To brief about me and my earning power, I am 25, living in Chennai with my parents, working for an IT major and, earning around 50-55K rupees pm.

    I want/wishfully think :) to buy a property in Chennai, not as an R2I but for my own residential usage. After seeing, analyzing the property rates, cost of living, proximity to places, I have decided to stick to the southern part of Chennai, particularly Madipakkam (Northern part - Sadhasivam nagar, Ram nagar north etc). The reasons are - The locality is quite good, close proximity to Velachery MRTS and Vijayanagar bus depot, closer to OMR, rates are kind of affordable*.

    *Affordable - Here is my plan / definition
    - There are CMDA approved lands available for approximately 55L to 60L per ground whose guideline value stands upto 45L to 46L per ground.
    - I along with 3 friends of mine are planning to buy around 2700 sqft of land, register it sharing equally (SBI gives out 80% loan for the total land + construction)
    and the repayment would be approximately 22 to 25K pm for my salary
    - The plan is to build two 3BHKs in the first floor, and car parking + 2 2BHKs in the ground floor

    I am in the process of seeing lands now. I checked with a legal advisor of a builder about how this is workable and got some very high level inputs from him - the abstract is that this is doable legally. From the perspective of the banker, also this is doable, and I might get a loan for 80% of the total cost involved. I am yet to check with the architect/designer on this.

    I thought it would be nice to get some advice from experts, advaced RE investor people around - Kindly advice me on
    1. Is this plan totally workable? Are there any major, legal or other vital points that I have missed out?
    2. Is this the right period to do this? Since this is for my (same with the case of other friends involved) own usage, should I wait in to see the speculated downfall of the RE market?
    3. Market rate for a flat in those areas is 3800 to 4000 Rs per sq. ft.
    If I work out this way, I will have to spend 16L (64L land price + registration / 4) + 15L for construction (lets keep 1100 sqft for 1300 rs per sq ft) - total 31L Rupees for a 1100 sqft flat with 700 sqft of land in my name.
    By this way, I will end up saving approximately 10L rupees with a larger land share.
    4. Am I overlooking things anywhere?
    5. What could be the potential problems in doing so - at this stage, or in the future?
    5. Any suggestions / advice on how, what to do and what not do do is appreciated.

    *Cheers*
    Newbie

    great tips. I enjoyed reading this
    CommentQuote
  • Originally Posted by abk
    never consider a quoted price as market price.the market price is something at which transactions have taken place.quotes remain quotes.
    i have some interests in these areas. I have not recieved any offers for -less than a transacted price-(i.e market price).but there is no growth for the past 4 months.

    What you said seems to be the truth! Prices seem to have stopped rising, but people have quoted fancy figures. Nanganallur for 1.05c is more a want and I dont think it was that costly any day there. Nanganallur is like a developed cheri in the midst of nonsense with a road that is so choked that u can die of asphyxiation. That someone took it for 95L must be another view and today 75L is yet another view. Ideally price there in the peak was around 80-85L for the best of the areas for a ground. So there really was no fall.
    CommentQuote
  • In Nanganallur if any buys at Rs 75 L per ground, he is a fool. It will drop to Rs 50 L in the current year
    CommentQuote
  • Im in House Hunt for my Family

    Im Trying to Buy my first own Dream House for me and my family


    Well, I am really new here, and I am in to get some suggestions/ideas about my 'dream home' plans. To brief about me and my earning power, I am 24, living in Chennai with my parents, working for an good IT company (verizon) and, earning around 32+K rupees pm.

    I jumped into house hunt thinking :) to buy a property in Chennai (5 Kms Radius from Guindy) , not as an Investment but for my own residential usage. After seeing, analyzing the property rates, cost of living, proximity to places, I have decided to stick to the Localities (5 Kms from Guindy)

    Airpot Road Left Airpot Road Right
    ------------------------------------------------------

    Pallavaram Pammal
    Nanganallur
    Pazhavanthagal
    Madipakkam
    Ullagaram
    Medavakkam
    Alandur


    Porur Road Right Porur Road Left
    -------------------------------------------------

    Manapakkam Mowlivakkam
    Nesapakkam Madandapuram
    Jafferganpet Mugalivakkam
    Ramavaram Nandampakkam

    The reasons are - The locality is quite close to IT Industries which are in Guindy (Current One) , OMR (May need in Future),
    Also It looks comparably cheaper.

    Here is my plan / definition

    My Total Budget is 20 Lakhs+.

    - The plan is to build two 2BHKs with car parking in atleast 1000 sqft to 1800 sqft.
    - If Im getting Land, I should buy not more than 12-14 Lakhs for 1000 to 1800 sqft.
    - If Im getting Individual House, The Total Cost (land + building) should not be more than 22 lakhs.

    This is my capacity. Because Im the Only One who earns in my family to take loan and buy home. I approached SBI and got an approval almost for 20 Lakhs at 9.25% P..A.

    I am in the process of seeing lands now. I saw some lands in kovur which costs 24 L per ground. Reasonable rate Also Negotiable near Porur. But Im Confused that

    * whether RE prices will fall in 2009.
    * Is this is the correct time to buy. (Bcoz being cheaper)
    * Will these localities will gives access to all important localities having transport, schoools, Colleges, Hositals, Shops.

    I thought it would be nice to get some advice from experts, advaced RE investor people around - Kindly advice me on

    Am I overlooking things anywhere?

    Whhat could be the potential problems in doing so - at this stage, or in the future?

    Any suggestions / advice on how, what to do and what not to do is appreciated.

    *Cheers*
    Arasu
    CommentQuote
  • Originally Posted by Nataraajg007
    In Nanganallur if any buys at Rs 75 L per ground, he is a fool. It will drop to Rs 50 L in the current year

    If you are so wishful i thinking why not say it will drop to 50K in a couple of years! ROTFL
    CommentQuote