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What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

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What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

Last updated: October 3 2017
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  • #21

    #21

    Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

    Originally posted by maverick007 View Post
    May appear reasonably priced. But, 38% (400 sq ft) UDS shows just not a deviation alone; must have some unauthorised apartments to make the UDS so low. Just check what is the FSI allowed for a new building on the same street, you will understand the head room to gain/lose when it comes to redevelopment.
    The new buildings have an premium FSI of 1.95 for buildings built on abutting roads of 40-60'width as per CMDA rule amended in 2013 (which is 30% high FSI on ordinary below 30'wide road 1.5FSI).

    While calculating actual builtup area in all G+4 floors for This subject resale flat appartment building the actually achieved FSI is * 2.8.

    During my FSI Calculations found This standalone Appartment builder has already used future FSI in 2002 itself. Redevelopment @current 1.95 FSI has no great scope unless CMDA after 25-30 years amends FSI rules that upto seven floors / upto 30meter height buildings can be built on plots abutting roads wider than 45 feet.

    While reviewing my other considered resale flats @Turnbulls road-Nandanam, Brindavan Street-west Mambalam, I am surprised that even 34 years old Appartments built in good premium locations have an actual builtup FSI of 2.3 and hence a moderate UDS of 48%.
    Last edited August 27 2017, 11:58 AM. Reason: Spelling

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    • #22

      #22

      Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

      Are you saying the total saleable area of all the flats put together is at 2.8 times the Land area?

      If yes, it still means only 2.4 FSI and with common area load of 15% gets to 2.8. If 1.5 (with out premium FSI) is the present FSI they accord, then you can see how much of a hole it leaves when you redevelop. When a builder constructs a extra floor in a S+2 or G+1 set up, you lose 33%.

      Your builder did not avail the premium FSI instead he sold it as premium FSI through unauthorized flats

      Premium FSI even if availed to take it to 1.95 do not come free - you need to pay the GV equivalent land price for that. So, it is very clear that the juice usually left for redevelopment is zero or negative in this case.
      Last edited August 27 2017, 12:07 PM.

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      • #23

        #23

        Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

        Originally posted by maverick007 View Post
        Are you saying the total saleable area of all the flats put together is at 2.8 times the Land area?

        If yes, it still means only 2.4 FSI and with common area load of 15% gets to 2.8. If 1.5 (with out premium FSI) is the present FSI they accord, then you can see how much of a hole it leaves when you redevelop. When a builder constructs a extra floor in a S+2 or G+1 set up, you lose 33%.

        Your builder did not avail the premium FSI instead he sold it as premium FSI through unauthorized flats

        Premium FSI even if availed to take it to 1.95 do not come free - you need to pay the GV equivalent land price for that. So, it is very clear that the juice usually left for redevelopment is zero or negative in this case.
        Yes. I agree. Unless Bombay's current FSI 4 comes to Chennai in the next 15-25 years for residential redevelopment projects. That time too builders will violate for another floor.

        In Annanagar Shanti Colony, Only TNHB housing has good FSI and UDS but you know TNHB flats are undesirable for the location, building condition, construction quality and occupant quality matrix.

        Good private builders like Golden, Firm, Pushkar, India builders etc even though they give minimum deviations, they charge 25-30% as common area, also new 30% premium FSI @1.95 for 48feet road reduces UDS by 23%.

        I can only leverage these prevailing FSI flaunting, deviations to negotiate hard on final price. But from initial April 2017 published asking price of ₹9400/sqft the seller has revised it considering downtrending property prices, for my full white money transaction.

        My bad luck brought me 3%hike in registration charges which itself is about ₹3L which is useless. The present TNgovt is full of buffoons. I was hoping by end of August govt might rollback increased hike in registration fees.

        Ours is a society where rules are made only to be violated left, right and centre.

        Every stand alone building is home to violation of FSI rules, plan deviations first, buyers looking for new/resale flat buy violations for a premium.

        With very high bursting population There is always a less informed buyer next in queue ready to get a loan to invest / buy the properties in prime location giving a hoot to the inherent FSI violations, plan deviations.

        I am really tired of trying a proper, quality property.

        I remember in 1992 for honestly getting Electricity connection to our newly built independent home in Urapakkam, we waited over 9months, but after paying ₹250/- bribe @Guduvanchery EB office we got it in a week. We wasted 9months rent staying in rented home.

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        • #24

          #24

          Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

          Maverick,

          Surprised to see How TN govt's Registrar office allows Registration of properties when they see low UDS reflecting FSI violation?

          How TNEB connection, Metrowater connection are given and Govt property taxes are collected for FSI flaunting, plan deviating properties?

          Is this the new normal for property buyers?

          Other than low UDS resulting in reduced/nil redevelopment benefits after 25years is there anything to be checked in this case?

          what is Your opinion?

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          • #25

            #25

            Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

            Maverick, As per plan the structure must be S+3 but builder made it a G+4 structure with 15m max height. Now actual UDS 403sqft =(1065/16085)*6088
            Last edited August 27 2017, 07:42 PM.

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            • #26

              #26

              Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

              Hi RE Veterans,
              ​​​​
              After three rounds of hard negotiation, arrived at a Final unregistered price of ₹ 7400/sqft.

              Including 7% stamp duty 4%Registration, mandatory reconditioning works like interior painting, plumbing & bathroom fittings Replacement, Electrical works , Safety metal grills for balconies, car parking gates modification, safety metal grill door for the main entrance door, and polishing of entire flat marble flooring, etc final cost to be @8250/sqft for the well maintained, good quality construction, 15year old 2BHDK 1050sqft flat with 403UDS, carpet area 852 sqft, with lift, Wood work done at both bedrooms and Kitchen, and one reserved open car parking located on 48feet wide 9th main Road,Shanti Colony, Annanagar.

              Key positive advantages:
              Blue star bus Stop, Anna tower metro station are just 450meters walk, SMF hospital is 300meters, Anna tower park is about 600meters walking distance, surrounded by many schools, colleges, many veg eateries, shopping area.

              Main Dis Advantages:

              1)​​​​​​FSI violations by builder Top floor is extra built resulting in low 38% UDS.
              2)Cooum river north bank is * 300meters

              Registration must be done before end of September,2017.

              How the veterans find this deal? Your opinion please.
              Last edited September 6 2017, 09:26 PM. Reason: Added a point

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              • #27

                #27

                Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

                When building has violation then I would doubt your portion of UDS as well. Did you make sure that all the UDS add up to right lot size of the complex
                Last edited September 7 2017, 06:58 AM.

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                • #28

                  #28

                  Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

                  Valuation of your purchase is tricky as the flat building has unauthorised floors (two extra floors)

                  That means there are occupants/owners claiming share of the property UDS where technically they are not eligible.

                  well everything has a sale value approved or not.

                  Given that India is moving towards more transparency The under market is getting bogged down often.

                  example Recent Unapproved plot debacle.


                  yes there are some risks but you are paying cheaper price for taking on the risk.

                  The bottomine, in another 10-15 years when it come to sale for redevelopment if all owners concur with UDS share issues then all is well.

                  Good luck.


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                  • harima7619
                    harima7619 commented
                    Editing a comment
                    Excluding 15% common area Final FSI achieved by builder is 2.2, Asper 2013 premium FSI for 40-60feet road is additional 30% on 1.5 normal FSI which is * 1.95 FSI. Yes in this appartment,All 14 flats get pro-rata UDS & one reserved open car parking share including those in extra floor(s). Those extra floor flats have even paid the required penalty fine money to Govt depts for regularising their flats under a Govt Special drive scheme. Only risk is how much FSI CMDA will allow after 20years
                    Last edited September 7 2017, 10:56 AM.
                • #29

                  #29

                  Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

                  Originally posted by Economist View Post
                  Valuation of your purchase is tricky as the flat building has unauthorised floors (two extra floors) That means there are occupants/owners claiming share of the property UDS where technically they are not eligible. well everything has a sale value approved or not. Given that India is moving towards more transparency The under market is getting bogged down often. example Recent Unapproved plot debacle. yes there are some risks but you are paying cheaper price for taking on the risk. The bottomine, in another 10-15 years when it come to sale for redevelopment if all owners concur with UDS share issues then all is well. Good luck.
                  The builder's 2.583 FSI, after Excluding 15% common area Final FSI achieved by builder becomes 2.2, Asper 2013 premium FSI for 40-60feet road is additional 30% on 1.5 normal FSI which is at 1.95 FSI. Yes in this appartment, Each of total 14 flats in G+4 building get pro-rata UDS share plus one reserved open car parking each including those in extra floor(s). Those extra floor flats have even paid the required penalty fine money to Govt depts for regularising their flats under a Govt Special drive scheme. Key risk for adequately benefiting redevelopment will depend on how much FSI CMDA will allow after 20years and CMDA rule on the maximum permissible height of building on 48feet wide road. I hope the population density will force FSI levels get doubled in the next 15-20years from where I it is in 2017. In the year 2035 if CMDA approved FSI is enhanced from 1.95 to 3 and on 48feet wide road building height is enhanced from 15meters to 25 meters
                  Last edited September 7 2017, 03:17 PM. Reason: Added point

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                  • #30

                    #30

                    Re : What is The Market Price For a 15 Year Old 2BHK Flat In Anna Nagar, Chennai?

                    Originally posted by harima7619
                    How the veterans find this deal? Your opinion please.
                    You are buying this at 2012 price of Rs 6000 psft (discounted backwards)

                    You are buying this at 2014 price of Rs 6600 psft (same as above)

                    If you anchor the above at market prices of 2012 and 2014, it may look like a deal or even a steal. But, the fact is you would have made zilch at 2017 even at those prices adjusted for 7-8% of risk free bond returns.

                    I can cite many instances of above even in most prime locations of Alwarpet today.

                    My guess is, these 'great deal' occurences are going to be even more common in the coming years - if you plan to live, just bite the bullet. If you truly look at valuation adjusted for opportunity costs or even past bubble reversion to mean, your wait may turn out to be golden. My 2 cents.

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