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- Originally Posted by fmifmi...... This desperation is just to save my money without eaten away by inflation. Should I go ahead now or wait for next year during my next vacation/leave to Chennai ? Please guide me ...
From whatever little experience I have, I think one should never buy a property in haste. I see that you have a sizable budget. There should be several options at that price point, and time constraint should not lead you to a mistake you will regret. Can't you invest in the name of your parent, or buy with a POA in their name, or some sibling residing here?CommentQuote0Flag
Originally Posted by fmifmi
...... This desperation is just to save my money without eaten away by inflation. Should I go ahead now or wait for next year during my next vacation/leave to Chennai ? Please guide me ...
My own experience I was searching for the property since 2006 in central chennai and never able to rationalize the price. I was in Chennai specifically in early 2009 to take advantage of post crisis. But sellers never bulged with my price and returned to abroad without closing the deal. fast forward to the year, I plunged into buying old apartment. I came to know there is no way you can find a dream house in chennai that meets all the criteria such as price, bigger size, good social infrastructure near by, hospital, schools, 2 car parks, visitor car parks, no road noise etc...
Finally decided to force myself to buy decent old apartment. Guess what, since I bought another one sold last week in the same complex with very similar size of my apt but with price 10% more!
Over engineering some time deter taking the decision. As long as you can afford it and meets your minimum criteria go ahead for it. No way in RE you can find right price!CommentQuote0Flag
- The Hindu : FEATURES / PROPERTY PLUS : Shift to buyer
Here is the first article in last few years which shows realistic down trend in Chennai RE. Although this might not translate into reduced costs, it would atleast make sellers think twice before saying "X builder is quoting 5 K so we are quoting 4.9k" and other types of money swindling in the name of "value for money".
I guess we buyers should hold for a while and make sellers come to us. This may help in price corrections. If buyers keep showing positive signs, this trend will only stagnate existing prices and then again move up in favour of sellers.CommentQuote0Flag
- Nice article, but I wonder where get their numbers from.
If they are using their sale listing to determine the prices, then I find it hard to accept. There is always a difference between listing price and selling price in resale property. The difference might be less in down market as seller might not exaggerate. But that does not mean closing price is down.
Makaan has very few listings of Chennai market. Magic Bricks/99 acres is much better. Even IndiaProperty has higher number of listings. Hindu PP/Times are best source as sellers pay money to list so they might not overvalue their flat.
Also in new developments, supply and demand dictates the price. If OMR has a ceiling of 5K means the developer (big projects) cannot price higher at 10K irrespective of the features.
Prices might stagnate for a while, that does not mean price reduction.
If there is a price reduction there will be a demand uptick. There are enough people who are not on market seriously but will jump in if there is a good deal.
If the prices are low, developers will not launch new projects, making the demand increase anyway.
So there will be always a balance between supply and demand. More often the demand side of the equation always tends to have upper hand.CommentQuote1Flag
- No speculation key to Chennai realty’s affordability
Absence of speculation by investors and the rise in property sales in the affordability segment has made Chennai’s residential market quite resilient to the looming threat of global economic turmoil, said a report by property research firm Knight Frank.
The city has observed healthy sales level with the vacancy level in the residential market recorded at 31 percent as stability in the market since 2010 has instilled confidence in end-users to proceed with their purchase decisions.
Nearly 42 percent of the absorption in FY 2012 has been in range of Rs 25 lakh to Rs 50 lakh,
followed by the range of Rs 50-75 lakh at 23 percent. More importantly 14 percent of the residential units launched in FY12 belonged to the Rs 50-75 lakh ticket sizes, catering to the needs of the upper mid-end segment.
For full article please click : No speculation key to Chennai realty’s affordability | FirstpostCommentQuote0Flag
- Hmm. well .. my 6 months of property search says that.. affordability always does not translate to value for money at least in Chennai RE. I am mainly talking about the 35-50 L segment.
This represents many who settle down for lower sized apartments like 900 sf or they settle down very far off from city by sacrificing their original requirements and these may not even be worthy apartments. Why this happens is because they are scared of losing out on the dream of buying a house in Chennai , where the current prices, in no way reflect the actual demand.
Even in other categories like 50-75L people are stretching themselves by 10-15 L more than budget by squeezing every ounce of their loan eligibility. Hardly 20 % of the buyer purchase using their huge savings or profit from earlier sold property..
So this kind of demand is not good as this doesn't mean "Buyer isnt speculative" this means "Buyer is scared of never being able to buy a house". I have seen atleast 20 instances in various projects where booked flats get release due to rejection of loans. On further analysis this might be a bigger number.
A builder near Inner Ring road (near Velachery) quotes his apartment as 7K where as the rate is 4.5K to 5 K . He told me the reason is its a premuim project. I asked what is so premium.. Will we have facilities like fully furnished flats, jacuzzi , parks etc. He immediately said we are open to negotiation. Then i repeated my question. He said sir that is the going rate in that area and we have a small park and we are premium.
This project has its compound "on the banks of Velachery Canal" and hope they dont call it lakeview apartments :) . I am sure inspite of being close to proposed rail station, this canal may be an obstacle in future resale etc. But he said there is a great demand for this! Again this project will face unrealistic demand which does not mean Chennai is back on this legs :-)
I agree with demand for rare options like Hiranandani or ceebros where the buyer get value for money. But these G+2 builders with stinky apartments and zero sunlight blocks, quoting exorbitant prices, which get booked like a Ceebros apartment, is not due to the increasing demand exactly but to avoid losing out of the race completely.CommentQuote0Flag
- I dont even want to talk about the 1 Cr+ segment. It just represents the rich-getting-richer concept.CommentQuote0Flag
- I would stay away from Small builder apts. For them, land parcels are hard to acquire, then they cannot make money from volume and also pay high interest costs.
Under 50L (4-5K per sqft), new apts in the city is pretty much impossible.
If the land cost is 1.5C per ground, that translates into 2500/sqft on the apt price just for the land (2 FSI, 40% UDS assumed). Construction even at the lowest quality costs 1600, interest costs another 1000 (in JV the builder saves a huge % of interest costs). Developer wants atleast 1000/sqft in pure profit. So they cannot sell an apt for 5K, they will price it closer to 7K. In JV, they will price it at 6K.
Thats why most of the builders are going for JV. They avoid paying interest to the bank for land. The construction costs mostly would be funded by buyers down payment.
Most of the units are bareshell so you need to spend another 1000/sqft on interiors anyway.
I would suggest looking for resale apts at that type of price points.CommentQuote0Flag
- 1000/sq.ft for interiors? That seems very steep.
I was estimating a max 10L for wooden furnishings (mostly shelves and lofts) and a few holders/stands on the wall here and there for a 3BD apt. I thought 10L was a high estimate. Am I out of reality or you are talking about exotic furnishings?
EDIT: Actually on a 1000 sq.ft carpet area, 1000Rs, translates to 10L, so it doesn't seem that bad.CommentQuote0Flag
- Yes, Random guy. I am referring to 2-bhks. On bigger apts the costs come down. 10L is a bare minimum. 12-15L is good estimate.
For 20L you can get sample flat type of finish.
Kitchen Cabinets - 2.5L Min to 6L well appointed one.
ACs - 40K for each, 4 of them costs 1.6L
Kitchen Appliances - Stoves, Oven, Chimney - 10-20K each
Fridge - 40K to 1L
Washing Machine, Dishwasher - not common as you might bring one - 25-30K each
Cubboards - 50K atleast for each bedroom - 1L
Living room woodwork - 50K to 1L
False ceilings - 1-1.5L
Light fixtures - 50K-75K
Bath shower rods/cabins/fixtures/hangars - 1L for 2 baths
Paints customized - 50K
Wall papers, wall hangings, accessories - 50K
The list goes on and on.
People do not realize how much they spend.
That includes me too.CommentQuote2Flag
- Sample flats generally have very expensive kitchens decked out with top of grade appliances.
They might alone cost 10-15L for a small unit and 20-25L for a big kitchen.
I saw a high end (heard it was poggenpohl) kitchen at a sample flat in Hyd.
I believe it costs 80L by itself.
Buying a flat? Don't get carried away by the sample - Economic TimesCommentQuote1Flag
- Nice article portraying how we are cheated by buiders
K11 thank for sharingCommentQuote0Flag
- 20 lacs for furnishing a 3BHK is outrageous! Even if we use all made in Italy fittings, hob and hood, use homogenous tiles imported from Italy and go for built-in wardrobes, study tables, shoe racks the cost will be much lower in Singapore.
But then as the saying goes, India is only country where the upper crest of the soceity call themselves middle class!CommentQuote0Flag
- For 20L, it is not possible to have italian products.
You can have stuff imported from China/Sri Lanka/Malaysia with that kind of budget.
You have german kitchens in India, they cost 50L upwards with all the appliances and fixtures. Poggenpohl has stores in Bangalore and other cities, I hear 1C is not common for a german kitchen.
The Kitchens that you see in a mid grade sample apt complex costs 14L.
I am renovating my place, so what I have said is true. You should visit a kitchen store to see.
If you add up the costs that I mentioned, it is easy to hit the budget ceiling.
Furnitutre costs a bomb too. I haven't even come to that.
A decent leather sofa costs 90K-1L (China Import). Bedroom sets costs 1.25L. Dining etc......
If you want the sample flat type of finish, you need 20-25L minimum.
We do not realise the value of what we put in the house sometimes costs as much as the construction cost itself.
India is not cheap, but atleast nowadays you get all the best products from around the world available to you.CommentQuote1Flag
- In Singapore we have 2 kinds of italian fixtures:
-Italian brand but made in China: quality is same but is cheaper due to lower shipping cost, but some people (includes me) are worried about quality of workmanship and avoid them.
-Italian brand, made in Italy: obviously costlier due to demand and shipping cost.
I'm sure German brands are much more expensive, I'm happy to know the kind of choice we have in India these days, but worried about the price :(CommentQuote1Flag