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Need help with some advice

Last updated: June 20 2009
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  • Need help with some advice

    I am not an expert in real estate market analysis.
    I am a NRI and moved to US a year back. I have been looking for property in chennai for the past two years and was not balr to buy one due to the instability of the job market and Fluctuationin the real estate in chennai.
    So days are passing and still it looks very difficult to buy a property in chennai whole heartedly. It becomes even more difficult after me moving to US.

    Coming to the point, I have recently heard about a property in chennai, valasaravakkam. This is a 5 year old flat. Total Sq.ft is 1000. 2BHK. The house looks pretty good located ina decent place.

    Please suggest me whether i can buy a resale house in this location.
    Also please let me know what would be an idela price that i should pay for this property.

    I would alos like to know what would be the registration cost of this property.

    Appreciate your help/advice on this.
  • #2

    #2

    Re : Need help with some advice

    Originally posted by karthick View Post
    I am not an expert in real estate market analysis.
    I am a NRI and moved to US a year back. I have been looking for property in chennai for the past two years and was not balr to buy one due to the instability of the job market and Fluctuationin the real estate in chennai.
    So days are passing and still it looks very difficult to buy a property in chennai whole heartedly. It becomes even more difficult after me moving to US.

    Coming to the point, I have recently heard about a property in chennai, valasaravakkam. This is a 5 year old flat. Total Sq.ft is 1000. 2BHK. The house looks pretty good located ina decent place.

    Please suggest me whether i can buy a resale house in this location.
    Also please let me know what would be an idela price that i should pay for this property.

    I would alos like to know what would be the registration cost of this property.

    Appreciate your help/advice on this.
    Land cost in this area should be around Rs 1.5Crores per ground if the place is located close to arcot road and in a good locality.

    Comment

    • #3

      #3

      Re : Need help with some advice

      Thanks Nats.

      The propert is very close to Arcot road and the owner is chraging about 4400/Sq.ft. Not sure whether this is a reasonable price for a five year old building. Thoughts?

      Comment

      • #4

        #4

        Re : Need help with some advice

        Originally posted by karthick View Post
        Thanks Nats.

        The propert is very close to Arcot road and the owner is chraging about 4400/Sq.ft. Not sure whether this is a reasonable price for a five year old building. Thoughts?
        I assume you are talking about price of land! If that is right, then the price is fair, but you can yet try to bargain. I dont think any fool will sell below 1cr/ground i.e. 4000/sqft in this area. However documentation may or may not be good. Check that out. Again take time to read another post yday of mine, where I linked to a hindu article explaining why you need approved plots ONLY. So check out approval from DTCP or CMDA. If they are there then 4400/sqft is cheap and if that is not there I wont buy the property.
        PS. Incase it sounded confusing.... Well price of land in this area is available at 1c also, but those are what they call panchayat approved. That means that they are unapproved plots. If it is DTCP or CMDA approved they would command easily the 1.5C or more.

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        • #5

          #5

          Re : Need help with some advice

          Karthick,
          Make sure that you check on the documents (EC, Patta, approvals, supporting legal documents if any). Also check on the ground water condition if it is drinkable (very important), drainage and road size. If it is a house then check the house condition and neighbourhood. It would be good if you could check it for yourself. Otherwise get someone reliable to check if you are not available.

          As for the registration, for unoccupied land is generally 8-9% of the guideline value. You can get the guildline value from this site based on the locality.

          www.tnreginet.net/igregn/gvaluemainpage.asp?yr=2003

          Comment

          • #6

            #6

            Re : Need help with some advice

            Originally posted by vpsureshkumar View Post
            Karthick,
            Make sure that you check on the documents (EC, Patta, approvals, supporting legal documents if any). Also check on the ground water condition if it is drinkable (very important), drainage and road size. If it is a house then check the house condition and neighbourhood. It would be good if you could check it for yourself. Otherwise get someone reliable to check if you are not available.

            As for the registration, for unoccupied land is generally 8-9% of the guideline value. You can get the guildline value from this site based on the locality.

            http://www.tnreginet.net/igregn/gval...ge.asp?yr=2003
            Guideline value will be hardly 25% of the land value. So in Valasaravakkam the value I last remember was around 1000psft for land. That means either Karthick ends up paying 75% in black to the seller or pays regn. expense proportional to the white amount he pays while registering. In other words guideline value has nothing to do with registration tax, except that the guideline value acts as the minimum value at which registration can take place.

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            • #7

              #7

              Re : Need help with some advice

              Originally posted by Natarajg007 View Post
              Guideline value will be hardly 25% of the land value. So in Valasaravakkam the value I last remember was around 1000psft for land. That means either Karthick ends up paying 75% in black to the seller or pays regn. expense proportional to the white amount he pays while registering. In other words guideline value has nothing to do with registration tax, except that the guideline value acts as the minimum value at which registration can take place.
              as it is a resale flat you will have to register it as a flat and will have to pay for the building worth too.as far as the black money component goes
              you can register the flat at the transaction price or at the guideline value whichever is higher. or you can mutually agree to any price above the guideline value and get it registered.
              You can even register the sale amount as RS 1/- or as a gift all the subregistrar can insist is to write the 'market value' as the guideline value and pay the stamp duty on that.

              Comment

              • #8

                #8

                Re : Need help with some advice

                Thank you all for the reply. This is a resale appartment flat and the negotiation is going on. Nats sorry I didnt mention this clear in mt earlier post. Seller is ready to sell this for 4400/sqft. I am bargaining t osettle for 4200/sqft. Seller is not ready. So i am little confused here whether to accept what seller is quoting. I need to buy a property at the same time i dont wnat give a big proce id its not actually that worth. Also I dont want the future buyers in this area to curse me for increasing the rate.

                Suggestions??

                Comment

                • #9

                  #9

                  Re : Need help with some advice

                  ABK, I think he is talking about a land or a house not a flat! Or am I missing his meaning house means a flat!
                  I seem to believe in the old concept that house is a villa and a flat is a flat not a house, though it can be your home!

                  Comment

                  • #10

                    #10

                    Re : Need help with some advice

                    Originally posted by Natarajg007 View Post
                    ABK, I think he is talking about a land or a house not a flat! Or am I missing his meaning house means a flat!
                    I seem to believe in the old concept that house is a villa and a flat is a flat not a house, though it can be your home!
                    he says its a flat natraj

                    Comment

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