Announcement

Collapse
No announcement yet.

Real Estate Scenario in Chennai

Collapse
X
Collapse

Real Estate Scenario in Chennai

Last updated: December 17 2008
45 | Posts
7195 | Views
  • Time
  • Show
Clear All
new posts

  • Tina
    started a topic Real Estate Scenario in Chennai

    Real Estate Scenario in Chennai

    Hi All,

    I am new to this forum. I would like to know the RE scenario in Chennai...
    I had purchased an apartment in Ambattur, in Aug 2007(one of the worst mistakes i had made). It costed over 38L for 1250 sq.ft. The builder was supposed to hand over the flat in Sep 2007. But he did so only in Oct 2008 :-((. I was paying a lumpsum amount as EMI throughout this period without any return.

    Now, due to the slump, its very difficult to find a tenant also. There are nearly 45 flats in that building, which are unoccupied(without being able to find a tenant). I work for an IT company, which adds to the pressure that is mounting up.

    Please suggest, if I can sell the flat now, for a no-loss-no-gain situation. I fear that the longer I wait, the loss may be higher.

    Waiting for all of ur valuable suggestions.

    Regards,
    Tina

  • Guest's Avatar
    Guest replied
    Originally posted by arin_12 View Post
    You looser post in In Some Common language. Dont write this language as this is alien for many reader.
    This is Chennai realestate forum. Tamil is not alien here and if it is alien to you, you will find lots of difficulties with many land documents in Tamil nadu as they are written in Tamil. Finally an idiot like this who will complain against Tamil and in particular Thirukkural should be banned from this board.

    Leave a comment:


  • replied
    yeskrish is right. Chennai is fully controlled by Builders cartel to jack up prices and the population is not willing to wait! FII's funds are misused to hold prices by this catrtel

    Leave a comment:


  • yeskrish
    replied
    so many articles are fine.
    the ground reality in chennai is not this!

    Leave a comment:


  • Guest's Avatar
    Guest replied
    http://economictimes.indiatimes.com/Markets/Real_Estate/Planning_to_sell_property_Do_it_now_before_correct ion_sets_in/articleshow/3752830.cms

    Leave a comment:


  • Guest's Avatar
    Guest replied
    Planning to sell property? Do it now before correction sets in
    24 Nov 2008, 2340 hrs IST, Preeti Kulkarni, ET Bureau








    MUMBAI: As talks of an impending crash in property prices gather steam, the policy to be adopted by home-seekers is clear: wait and watch. The right

    time and price are a few months ahead, say experts. However, if you are at the other end of the spectrum, that is, if you happen to be a seller, the reverse is true.

    Time is ripe for those planning to put their residential property on the block, say property consultants. This might be your best chance to get a fair price before correction gains ground. In fact, some experts believe that correction has already seeped in, with certain locations witnessing a correction as sharp as 25%.

    “If one is able to sell the property for a reasonable sum, this is the right time to sell it and cash out,” said Pankaj Renjhen, managing director (Mumbai) of property consultancy firm Jones Lang LaSalle Meghraj. “For old properties in particular, the prices are better at the moment, so it’s time to look for the best options and make an exit,” added Aditi Vijayakar, director, residential services, Cushman & Wakefield.

    Is this the right time?

    Your decision cannot be dependent on the market conditions alone — your objective should be the prime determinant. If the
    house property is held solely for investment purposes, you need to take into account the market drivers pertaining to the location of the property. If economic drivers such as malls, IT projects or infrastructure enhancements are planned in that location, the value will appreciate and you can afford to wait. However, holding on to the property is advisable only if it is financially feasible.

    Otherwise, go ahead with the sale. In the case of properties that are not likely to witness any major developments in the vicinity, you should look to exit soon. If you are determined to hold on, you should be prepared to wait for at least 3-5 years, failing which, you could incur a loss. Similarly, if you are planning to sell your house with the intention of upgrading to a better-equipped home, your decision should be based on the location and inherent value of the property.

    Buyer’s credentials

    It’s better to seal the deal only after making sure that the buyer has got the home
    loan sanctioned. “In the current scenario, getting a home loan sanctioned may not be an easy task. You wouldn’t want to be stuck with a buyer struggling to arrange for the entire amount after making a part-payment,” noted Ms Vijayakar.

    Also, if possible, you should insist on a demand draft as against payment by cheque in order to eliminate any risk of default.

    Make your contract airtight

    You need to be aware of your rights before acceding to all the demands of the buyer. For instance, it is typical for buyers to insist on indemnity provisions in the sale deed or a separate deed of indemnity, although the seller is not under any legal obligation to provide for the same. The indemnity provision allows the buyer (indemnified person) to recover from the seller (indemnifier) any loss or liability incurred in case of any defects in seller’s title to the property or any breach/misrepresentation. This is in view of the fact that unlike the US, there is no concept of title insurance in the Indian
    real estate market.

    If you agree to provide an indemnity bond, you should negotiate and limit the extent of indemnity, both in terms of amount and time. Vikram Shroff of law firm Nishith Desai Associates said: “In the conveyance deed, the seller needs to mention that the property is being sold on an ‘as is where is’ basis and he/she should not be held responsible if the property does not meet the buyer’s requirements.“ Sandip Mukherjee, executive director, PricewaterhouseCoopers, said:
    While signing the sale deed, you need to be aware of the fact that the transaction value mentioned in the sale deed or the amount considered while paying the stamp duty – whichever is higher – determines the
    capital gains tax payable.”

    Keep the papers ready

    From the buyers’ perspective, the sanctioned building plan, building completion certificate and occupation certificate
    are the key documents to be verified. “It is important not to be confused by a multitude of official-looking documents. Only these three documents are of true significance,” said Mr Renjhen.


    Reinvest before it’s too late

    To avoid paying the long-term capital gains tax, it’s imperative to reinvest in another residential property within the specified period — new property has to be purchased one year before or within two years of the date of sale.

    If you are planning to construct a house, it has to be constructed within three years from the date of transfer. Alternatively, the amount, not exceeding Rs 50 lakh, can be invested in NHAI and REC bonds within six months.



    Leave a comment:


  • arin_12
    replied
    Originally posted by Natarajg007 View Post
    U may not understand anything but for the benefit of the rest, I will quote this from thirukkural.
    எப்பொருள் யார்யார்வாய்க் கேட்பினும் அப்பொருள்
    மெய்ப்பொருள் காண்ப தறிவு.
    Who is a loser the world knows. Cheers.
    You looser post in In Some Common language. Dont write this language as this is alien for many reader.

    Leave a comment:


  • Raghavan.aiyangar
    replied
    Dear Friend Natraj,
    I tried to be neutral and honestly checked all your arguments. But looks like you're a bit too much carried away by unrealistic optimism. You've assumed things and arriving at another assumption! But unfortunately buyers are not that ignorant/innocent these days.

    You'd mentioned prices are not dropping and wont come down. But all the RE ads show otherwise. One simple example is- There was no flat available * or around Sholinganallur for any price less than 3500/sqft in 2007. But now there are many projects for <=2700/sqft. Still there are much less takers. Look at Goldman sach’s report published today (24th Nov 08). The report predicts another 30% drop from the current levels.

    While being a broker is not something bad but is just another profession, an IITian doing this, actually brings suspicion that you may not have even gone to IIT during rainy season!

    Leave a comment:


  • harikri66
    replied
    Welldone Nataraj!

    Well done Nataraj!


    Originally posted by Natarajg007 View Post
    U may not understand anything but for the benefit of the rest, I will quote this from thirukkural.
    எப்பொருள் யார்யார்வாய்க் கேட்பினும் அப்பொருள்
    மெய்ப்பொருள் காண்ப தறிவு.
    Who is a loser the world knows. Cheers.

    Leave a comment:


  • Guest's Avatar
    Guest replied
    Originally posted by ajijac
    So your relative is also a loser like you in order to teach substandard students like you?
    Did'nt he get a better place to teach?
    You are really amusing me like a joker in a ring with your false assumptions. Now you assumed that I am a rich tamilian. LOL. Keep on amuse us please. I understand your value in this forum like Vadivelu and Senthil in tamil movies. we need little substandard comedy to relax ourselves .
    Anyway,I never claim that I am smarter than anybody but I am sure that you are a stalker and a looser.
    I wonder how your family bear with you loser.
    U may not understand anything but for the benefit of the rest, I will quote this from thirukkural.
    எப்பொருள் யார்யார்வாய்க் கேட்பினும் அப்பொருள்
    மெய்ப்பொருள் காண்ப தறிவு.
    Who is a loser the world knows. Cheers.

    Leave a comment:

Have any questions or thoughts about this?
Working...
X