Hi Guys,

i am planning to finalize a deal. This is a new apartment (3bhk 1060 sqft)G+2 just 2 buildings from the madipakkam main road that is after reliance fresh.

The flat is 3200 / sqft
total comes to around 37 lakhs with car park and registration.
is it advisable for that sum in this area. The construction of property is good (demo houses).
The flat will be ready in 6 months.

Currently my rent is 17K after taking loan of 30 L i have to pay around 30K for 20 years.

Please advice, i was searching for a house which should be in centre and near to city. i dont want to go to other part of OMR at one complete side. Do you think its a good deal? i have seen houses in past 1 year and all 2bhk are nearing 40L or more.


Thanks
Krish
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  • Opting for a home loan? Check this first!

    Congrats krish..

    i would like to give my opinion on this..

    Instead of going for a appartment with a huge amount 37 L...u can opt for an individual house with 3 BHK.
    I will tell u how..

    u can get 1200 sqft land thoraipakkam (500 mts from OMR) with the price tag of 15 L

    In that u can very well construct ="http://www.indianrealestateforum.com/chennai/t-buying-a-new-duplex-flat-in-velachery-4387.html"]duplex type house. 3BHK, covered car park, with 1800 sqft

    if u look in the Construction cost ,it will come round max 1100 per sqft
    so that amount will be
    1100 X 1500sqft = 1650000(Cont cost) + 1500000 (Grnd cost) = 3100000 lakh

    So 6 lakh saved and u will get 1500sft big house.

    u can verywell do some interior design all so...



    ---------------

    ="http://www.indianrealestateforum.com/chennai/t-buying-a-new-duplex-flat-in-velachery-4387.html"] Still u want to go for an apartment..hear are my suggestions

    source from Rediff:

    Here are some of those pitfalls that you should be aware of and avoid.Look deep in your wallet before deciding the property
    So you have chosen and set your heart on a house that is perfect! But have you given some deep thought to whether your wallet will be able to handle your dream? Going for a house that you can't afford to pay for is like eating more food than you can digest. You end up with indigestion.


      Look closely at your lifestyle and financial capabilities.
      Plan for an unfortunate eventuality like loss of job or illnesses and ensure that your wallet will be able to take the pinch for a few months at least.
      Look at your other debt liabilities before going in for the home loan.

      Evaluate market conditions


        Understand the real estate market and evaluate if the property prices are stable and not likely to fall further
        Do your research on home loan interest rates, see if they are likely to decrease or increase in future depending on the existing market conditions, you may not want to lose out on a good deal because you jumped in too early

        Debt liabilities
        Having high credit card outstanding and a number of other loans, not only brings the eligibility for higher loan amount down, it also increases the burden of paying all of these debts off.
        If your home loan EMI is around 10% to 15% bracket of your income, it would be a smart deal. It would be even better if your total debt liability is within the 10-15% range, but normally, that is not the case, so try to pay off all your high interest/long tenure debts sooner.
        Increase the down payment
        When you go for home loan, you have to pay around 10% to 15% of the project cost and around 85% to 90% is funded by the bank or financial institution. If you have more than the required amount for 'down payment' then pay more, so that your required debt is reduced significantly.
        Always prepay
        Also, when you have any loan try not to extend the loan to its complete tenure. As and when you have excess cash, try to prepay. For example, you could prepay from your yearly bonuses or from your savings from the salary hikes that are expected to happen periodically.
        Prepaying can lower the tenure and help you save on interest. However, check with your bank from when you can start prepaying, as banks do not allow prepayment during the first six months or the first year of the loan period. Even when they allow prepayment after this time frame, there still would be a prepayment penalty attached.
        Just make sure the interest saved does not exceed the prepayment fee that you will need to pay the bank. As long as that is taken care of, prepayment is the best way to close a loan early and save significantly on interest.
        The family bank
        It is not essential to opt for the same bank that your brother took his home loan from. Well, brotherly love aside it is better to do your own searching in terms of the deals offered by different banks.
        Moreover, your brother's offer for the same loan amount and tenure could be different from what is offered to you, as the offers and interest rates vary according to the credit profile of the borrower.
        The offer that your brother got is according to his credit profile. So, it is always possible that you might be able to get a better deal from some other bank.
        The processing fee
        If you have nothing in writing from the bank, it is possible that you might lose the processing fee that you pay to bank in case the loan does not get approved.
        So, either you get something in writing from the bank or factor in all this money for these kinds of losses.
        The fine print
        Most of us just close our eyes and sign on the dotted line. What we forget to read are the clauses that are in fine print in the loan agreement. You need to understand the significance and impact of these various clauses before you sign the agreement.
        Some these clauses to watch out for include the force majeure clause and Reset Clause on Fixed Rates. Read more on these clauses ="http://business.rediff.com/money/2009/jan/23/perfin-taking-a-home-loan-beware-of-these-facts.htm"]here.
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully..
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully.
    CommentQuote
  • First of all if you are paying rent of Rs 17,000, that itself is high and can not be considered as bench mark.

    In that area flat should cost less than Rs 3000 per sqft in any case
    CommentQuote
  • Originally Posted by krish82
    Hi Guys,

    i am planning to finalize a deal. This is a new apartment (3bhk 1060 sqft)G+2 just 2 buildings from the madipakkam main road that is after reliance fresh.

    The flat is 3200 / sqft
    total comes to around 37 lakhs with car park and registration.
    is it advisable for that sum in this area. The construction of property is good (demo houses).
    The flat will be ready in 6 months.

    Currently my rent is 17K after taking loan of 30 L i have to pay around 30K for 20 years.

    Please advice, i was searching for a house which should be in centre and near to city. i dont want to go to other part of OMR at one complete side. Do you think its a good deal? i have seen houses in past 1 year and all 2bhk are nearing 40L or more.


    Thanks
    Krish


    ram nagar north (madipakkam )(there is one ram nagar north extn in velachery too).the rate 3200/- is reasonable. bargaining is not wrong. but the rates are higher with some other builders.BTW this is just rgd rates the actual site conditions should be ascertained.
    CommentQuote
  • Originally Posted by lovebird
    First of all if you are paying rent of Rs 17,000, that itself is high and can not be considered as bench mark.

    In that area flat should cost less than Rs 3000 per sqft in any case

    Yep you are right, i live in Velachery in 3BHK apartment. So a decent accomodation here is 15 k to 25 k in the main places. Thats the reason i want to buy the house.
    CommentQuote
  • Originally Posted by lovebird
    First of all if you are paying rent of Rs 17,000, that itself is high and can not be considered as bench mark.

    In that area flat should cost less than Rs 3000 per sqft in any case

    Everybody does not get a foolish landlord who will keep an idiot as tenant in W Mambalam for Rs 5K! Also people can afford different qualities of life. So if you can afford only 5K or maybe 500 others can afford Rs 1lakh as rent. Stop giving generic answers. Better to chirp lovebird or people will make you a loveless bird! Got it?
    CommentQuote
  • Originally Posted by krish82
    Hi Guys,

    i am planning to finalize a deal. This is a new apartment (3bhk 1060 sqft)G+2 just 2 buildings from the madipakkam main road that is after reliance fresh.

    The flat is 3200 / sqft
    total comes to around 37 lakhs with car park and registration.
    is it advisable for that sum in this area. The construction of property is good (demo houses).
    The flat will be ready in 6 months.

    Currently my rent is 17K after taking loan of 30 L i have to pay around 30K for 20 years.

    Please advice, i was searching for a house which should be in centre and near to city. i dont want to go to other part of OMR at one complete side. Do you think its a good deal? i have seen houses in past 1 year and all 2bhk are nearing 40L or more.


    Thanks
    Krish

    Very good deal if the property is really completed and handed to you. Remember prices in Siruseri are at 4200psft and idiots are considering buying it!
    CommentQuote
  • Thanks

    Thanks for your replies,
    i have been hunting for a house for past 1year, But a min 2 BHK is told as 30 L+ in faraway places, where you dont even have a shop to buy a water packet (forget water bottle).i was sick of searching , even the construction quality for the price asked is not good.i have considered Doshi in perungidi , but a 935 sqft 2 BHK is coming close to 42 L +, apart from that there are heavy charges for maintaince.. swimming pool etc...

    i know Ram Nagar may get water logged, but its far better to travel from /to siruseri or mahabalipuram daily.

    krish
    CommentQuote
  • Originally Posted by krish82
    Thanks for your replies,
    i have been hunting for a house for past 1year, But a min 2 BHK is told as 30 L+ in faraway places, where you dont even have a shop to buy a water packet (forget water bottle).i was sick of searching , even the construction quality for the price asked is not good.i have considered Doshi in perungidi , but a 935 sqft 2 BHK is coming close to 42 L +, apart from that there are heavy charges for maintaince.. swimming pool etc...

    i know Ram Nagar may get water logged, but its far better to travel from /to siruseri or mahabalipuram daily.

    krish


    Dear friend,

    Having lived in a 3 bed flat, better go for a 3 bed flat rather than looking for a 2 bed flat. If it is independant house with 2 beds, it can be a different matter as you always have the choice of buiding more rooms later. Better not select a water logging prone area. Even if it going to be a few days of water logging, please do not opt for it. The difficulties one with the family members will experience in such water log situations cannot be written down fully and one who has experienced will tell real tales. You can even think of a little away place if all other major considerations/facilities are satisfactory there and better go for a 3 bed flat.

    ks2071746
    CommentQuote
  • Krish,
    My suggestion in to get a piece of land in the localities that satifies you and build a house to your taste. That will work out cheaper and will have stronger asset value your generation and future generation. Places that seems remote today will be congested and developed in a few years time.
    You can build G+1 and stay in one floor and rent out the other which will provide you additional income. Or you can build a duplex house. Buying a apartment might seem nice now but as time goes buy the old look of the apartment will be a turn off. Having a landed house gives you the advantage for face lifting the look when it fades off. Think about it.
    CommentQuote
  • Originally Posted by krish82
    Yep you are right, i live in Velachery in 3BHK apartment. So a decent accomodation here is 15 k to 25 k in the main places. Thats the reason i want to buy the house.


    companies are terminating employees.

    All rental rates are coming down.

    Only fools & Nu(a)ts will be ready to pay higher

    If you want to buy the flat, do not pay more than Rs 3000 per sqft
    CommentQuote
  • Originally Posted by zngrfix
    Congrats krish..

    i would like to give my opinion on this..

    Instead of going for a appartment with a huge amount 37 L...u can opt for an individual house with 3 BHK.
    I will tell u how..

    u can get 1200 sqft land thoraipakkam (500 mts from OMR) with the price tag of 15 L

    In that u can very well construct ="http://www.indianrealestateforum.com/chennai/t-buying-a-new-duplex-flat-in-velachery-4387.html"]duplex type house. 3BHK, covered car park, with 1800 sqft

    if u look in the Construction cost ,it will come round max 1100 per sqft
    so that amount will be
    1100 X 1500sqft = 1650000(Cont cost) + 1500000 (Grnd cost) = 3100000 lakh

    So 6 lakh saved and u will get 1500sft big house.

    u can verywell do some interior design all so...



    ---------------

    ="http://www.indianrealestateforum.com/chennai/t-buying-a-new-duplex-flat-in-velachery-4387.html"] Still u want to go for an apartment..hear are my suggestions

    source from Rediff:

    Here are some of those pitfalls that you should be aware of and avoid.Look deep in your wallet before deciding the property
    So you have chosen and set your heart on a house that is perfect! But have you given some deep thought to whether your wallet will be able to handle your dream? Going for a house that you can't afford to pay for is like eating more food than you can digest. You end up with indigestion.


      Look closely at your lifestyle and financial capabilities.
      Plan for an unfortunate eventuality like loss of job or illnesses and ensure that your wallet will be able to take the pinch for a few months at least.
      Look at your other debt liabilities before going in for the home loan.
      Evaluate market conditions


        Understand the real estate market and evaluate if the property prices are stable and not likely to fall further
        Do your research on home loan interest rates, see if they are likely to decrease or increase in future depending on the existing market conditions, you may not want to lose out on a good deal because you jumped in too early
        Debt liabilities
        Having high credit card outstanding and a number of other loans, not only brings the eligibility for higher loan amount down, it also increases the burden of paying all of these debts off.
        If your home loan EMI is around 10% to 15% bracket of your income, it would be a smart deal. It would be even better if your total debt liability is within the 10-15% range, but normally, that is not the case, so try to pay off all your high interest/long tenure debts sooner.
        Increase the down payment
        When you go for home loan, you have to pay around 10% to 15% of the project cost and around 85% to 90% is funded by the bank or financial institution. If you have more than the required amount for 'down payment' then pay more, so that your required debt is reduced significantly.
        Always prepay
        Also, when you have any loan try not to extend the loan to its complete tenure. As and when you have excess cash, try to prepay. For example, you could prepay from your yearly bonuses or from your savings from the salary hikes that are expected to happen periodically.
        Prepaying can lower the tenure and help you save on interest. However, check with your bank from when you can start prepaying, as banks do not allow prepayment during the first six months or the first year of the loan period. Even when they allow prepayment after this time frame, there still would be a prepayment penalty attached.
        Just make sure the interest saved does not exceed the prepayment fee that you will need to pay the bank. As long as that is taken care of, prepayment is the best way to close a loan early and save significantly on interest.
        The family bank
        It is not essential to opt for the same bank that your brother took his home loan from. Well, brotherly love aside it is better to do your own searching in terms of the deals offered by different banks.
        Moreover, your brother's offer for the same loan amount and tenure could be different from what is offered to you, as the offers and interest rates vary according to the credit profile of the borrower.
        The offer that your brother got is according to his credit profile. So, it is always possible that you might be able to get a better deal from some other bank.
        The processing fee
        If you have nothing in writing from the bank, it is possible that you might lose the processing fee that you pay to bank in case the loan does not get approved.
        So, either you get something in writing from the bank or factor in all this money for these kinds of losses.
        The fine print
        Most of us just close our eyes and sign on the dotted line. What we forget to read are the clauses that are in fine print in the loan agreement. You need to understand the significance and impact of these various clauses before you sign the agreement.
        Some these clauses to watch out for include the force majeure clause and Reset Clause on Fixed Rates. Read more on these clauses ="http://business.rediff.com/money/2009/jan/23/perfin-taking-a-home-loan-beware-of-these-facts.htm"]here.
        Instead of ending up in a financial hellhole it is better to take some time out to read through the loan agreement carefully.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.

        Thanks very much for your Response. But can you tell me how far will it be in OMR, i dont want to live very far in OMR... there are no shops in Siruseri near sipcot. Once me and my friend went there in a bike bcos the roads were not good and couldnt find a drinking water shop when we were thirsty. 30 L + in these places will not be a good deal i think.
    CommentQuote
  • Originally Posted by lovebird
    companies are terminating employees.

    All rental rates are coming down.

    Only fools & Nu(a)ts will be ready to pay higher

    If you want to buy the flat, do not pay more than Rs 3000 per sqft

    No body can predict future. I have friends who are earning good in abroad during Recession.
    Recession is a cycle, which may come again, but a loan is for 20 years. If we are not caught in recession now, we may in future. No middle class saleried person with family can easily save around 20 L + for downpayment and buy. Even if i have 20 L downpayment i would go for better house in better places and not in madipakkam,so the loan risk will again be the same. 2002 i was not earning much but a decent flat in velachery was only 20 L, today the 3BHK i stay in velachery is 70 L +. I dont know weather after 10 years flats in velachery may become 4 crores + at that time even if i earn 1 lakh a month i will not be able to buy it.

    But one thing is sure, if the industry improves the real estate fellows will raise their rates including the losses they are accuring now.
    Krish
    CommentQuote
  • Dear friends,

    Most areas in Velachery and Madipakkam are water log prone areas. It only depends on what amount of rain comes. But people still prefer to go to these areas for 2 reasons: (1) Higher appreciation over the period ( 2) Higher rental possibility due to nearness of IT companies.

    ks2071746
    CommentQuote
  • Originally Posted by zngrfix
    Congrats krish..

    i would like to give my opinion on this..

    Instead of going for a appartment with a huge amount 37 L...u can opt for an individual house with 3 BHK.
    I will tell u how..

    u can get 1200 sqft land thoraipakkam (500 mts from OMR) with the price tag of 15 L

    In that u can very well construct ="http://www.indianrealestateforum.com/chennai/t-buying-a-new-duplex-flat-in-velachery-4387.html"]duplex type house. 3BHK, covered car park, with 1800 sqft

    if u look in the Construction cost ,it will come round max 1100 per sqft
    so that amount will be
    1100 X 1500sqft = 1650000(Cont cost) + 1500000 (Grnd cost) = 3100000 lakh

    So 6 lakh saved and u will get 1500sft big house.

    u can verywell do some interior design all so...



    Who told you that a 1500 sq.ft land costs 15 lacs in Thoraipakkam which means Rs.1000/-per sq.ft. Which era are you from.

    Thoraipakkam costs Rs.3800/- to Rs.4500/- per sq.ft depending on location, construction and builder reputation. Still I would not recommend to buy in Thoraipokkam as it has some water logging problem in rainy season and also is quite far away. If you want to buy groceries etc nearest reliance fresh or heritage is all the way up velachary that too via OMR traffic.

    Who told you that a 1500 sq.ft land costs 15 lacs in Thoraipakkam which means Rs.1000/-per sq.ft. Which era are you from.

    Thoraipakkam costs Rs.3800/- to Rs.4500/- per sq.ft depending on location, construction and builder reputation. Still I would not recommend to buy in Thoraipokkam as it has some water logging problem in rainy season and also is quite far away. If you want to buy groceries etc nearest reliance fresh or heritage is all the way up velachary that too via OMR traffic.

    Who told you that a 1500 sq.ft land costs 15 lacs in Thoraipakkam which means Rs.1000/-per sq.ft. Which era are you from.

    Thoraipakkam costs Rs.3800/- to Rs.4500/- per sq.ft depending on location, construction and builder reputation. Still I would not recommend to buy in Thoraipokkam as it has some water logging problem in rainy season and also is quite far away. If you want to buy groceries etc nearest reliance fresh or heritage is all the way up velachary that too via OMR traffic.

    Who told you that a 1500 sq.ft land costs 15 lacs in Thoraipakkam which means Rs.1000/-per sq.ft. Which era are you from.

    Thoraipakkam costs Rs.3800/- to Rs.4500/- per sq.ft depending on location, construction and builder reputation. Still I would not recommend to buy in Thoraipokkam as it has some water logging problem in rainy season and also is quite far away. If you want to buy groceries etc nearest reliance fresh or heritage is all the way up velachary that too via OMR traffic.
    CommentQuote
  • u just read my message from top once again.

    i told that 1200 sqft for 15L....its only the grnd cost.

    can u tell me some areas in chennai where there is no water logging probs ?
    CommentQuote