I am thinking of investing my savings( 75L) in real estate in & around OMR. I am planning on taking a loan for any additional investment( up to 75L), should i find a right opportunity. I am looking for a 20% return and so far have line up few options with a help of my friend.

1. 1 ground corner plot at Sholingalnallur behind a prithyankara temple for 90 L(asking price).

03/25 - My brother looked at the site and mentioned that it is too expensive for this area and values it around 70L. Is it a good buy at this price? The small builder next door to the plot has priced a SQ FT for 4500.

2. 1 ground plot at Siruseri for 1.20 C on OMR main road(opp to IT park - 40 frontage) with commercial opportunities.

03/25 - I also felt that this would be the best option. Does anyone know how much rent we can expect for a SQ FT in this surrounding?

3. 2 grounds behind Kamatchi hospital but 2 kms from main road(lic nagar) and costs around 1.40 C

03/25 - I am leaning towards this as the seller is willing to sell it for 1.30L. There is only one plot next to this and then it becomes a dead end. Also, the plot is only 700 meters from the 200 feet road ( 2 right after Kamatchi hospital) versus 2 Km as mentioned originally. Does this increase the value? I will certainly have an expert check the papers before buying it?

4. Ponmar( corner property) 2.5 grounds 1.1C

03/25 - I know people are interested in knowing the layout and so do I :), especially to use few peoples expertise in this area. I should hear back on this in a day or two so please be patient.

Thank you all for your opinions as i do value each one of your opinions so please continue your support till i lock in a plot.

Please let me know which one above is a right choice & most importantly why? thanks in advance..
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  • Originally Posted by thirumoorthi

    1. 1 ground plot at Chemmenchery behind a temple for 90 L
    .

    One thing to point out - A plot sharing a compound wall with a temple is considered bad vaasthu wise, so will limit your buyer pool. Just thought would point out.
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  • Go for Siruseri.
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  • Originally Posted by randomguy
    One thing to point out - A plot sharing a compound wall with a temple is considered bad vaasthu wise, so will limit your buyer pool. Just thought would point out.


    Sorry, the plot is 500 meters away from Sri Pratyangira Devi Temple.
    I should have mentioned in clearly in my original post.
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  • Originally Posted by thirumoorthi
    I am thinking of investing my savings( 75L) in real estate in & around OMR. I am planning on taking a loan for any additional investment( up to 75L), should i find a right opportunity. I am looking for a 20% return and so far have line up few options with a help of my friend.

    1. 1 ground plot at Chemmenchery behind a temple for 90 L
    2. 1 ground plot at Siruseri for 1.20 C on OMR main road(opp to IT park - 40 frontage) with commercial opportunities
    3. 2 grounds behind Kamatchi hospital but 2 kms from main road(lic nagar) and costs around 1.40 C
    4. Ponmar( corner property) 2.5 grounds 1.1C

    Please let me know which one above is a right choice & most importantly why? thanks in advance..


    My vote would be 2

    just out of curiosity what is ponmar land at 2.5Grounds at1.1C ?
    which layout ?
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  • Investment ideas for 1 to 1.5 crores

    Originally Posted by thirumoorthi
    I am thinking of investing my savings( 75L) in real estate in & around OMR. I am planning on taking a loan for any additional investment( up to 75L), should i find a right opportunity. I am looking for a 20% return and so far have line up few options with a help of my friend.

    1. 1 ground plot at Chemmenchery behind a temple for 90 L
    2. 1 ground plot at Siruseri for 1.20 C on OMR main road(opp to IT park - 40 frontage) with commercial opportunities
    3. 2 grounds behind Kamatchi hospital but 2 kms from main road(lic nagar) and costs around 1.40 C
    4. Ponmar( corner property) 2.5 grounds 1.1C

    Please let me know which one above is a right choice & most importantly why? thanks in advance..


    1. Any plot sharing a wall with temple or close and sharing a road is a big NO. You will end up losing half or more of the buyers pool later. Pratyangira Devi temple is also a big and busy temple, so do avoid it unless you have a very good alternate route for the plot.

    2. A good option and being on main road that has been expanded recently will make the plot very safe when we think of acquisitions. Just make sure the plot is not very close to the siruseri sipcot road and OMR junction. A flyover might come up here in future for sure. Commercial properties are very good for investment+ returns at the same time, but it comes with its own risk, so if you are an informed buyer, there is nothing better.

    3. LIC nagar has earned a bad reputation for having plots with double documentation, so please avoid it. Do not consider this unless you are getting a plot with clear documentation and for a steal.

    4. For such a budget, why do you want to think of ponmar? Ponmar has a very low entry cost out of all and definitely has a lot of headroom for appreciation,but you should be invested for a minimum of 4-5 years for bigger plots. I would suggest ponmar only if you are going to buy with your own cash. When it's a leveraged buy, look for something that can be liquidated very soon, ponmar will take a while. Just like SR I am also curious on the ponmar land cost you have quoted, which layout? Seems high...
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  • Originally Posted by cruise_1982
    1. . Just like SR I am also curious on the ponmar land cost you have quoted, which layout? Seems high...


    HHAHAHA
    you and i are here to learn the JUICY scoop
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  • Options 2 and 4 looks good. Option 2 still has a huge risk of road widening and you will have to put up a building soon, else it is easy for a property on main road to be encroached.
    Option 4, Ponmar might be your best choice among the ones listed.

    Getting loan for land is not that easy in the secondary resale market. But if you have another property that you can mortgage, it is the best and easiest option. Interest rates at little bit higher at 13% but you can take 1.5C whole and make a cash purchase. You can get better deals.

    If the seller wants a portion in black, which is the case always, you can register for minimum GV value and hand the rest in cash.
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  • Originally Posted by thirumoorthi
    I am thinking of investing my savings( 75L) in real estate in & around OMR. I am planning on taking a loan for any additional investment( up to 75L), should i find a right opportunity. I am looking for a 20% return and so far have line up few options with a help of my friend.

    1. 1 ground plot at Chemmenchery behind a temple for 90 L
    2. 1 ground plot at Siruseri for 1.20 C on OMR main road(opp to IT park - 40 frontage) with commercial opportunities
    3. 2 grounds behind Kamatchi hospital but 2 kms from main road(lic nagar) and costs around 1.40 C
    4. Ponmar( corner property) 2.5 grounds 1.1C

    Please let me know which one above is a right choice & most importantly why? thanks in advance..


    Option 2 (Commercial plot on OMR-Siruseri) is good but comes with a big risk of land accusation for road widening etc.

    Option 4 (2Gr corner poly at Ponmar) is good but the price is way too high, try and reduce the price and buy only if it is close to a main road (under 1kms) and the plot is on over 40ft road.

    Option 1 - 500mts behind prathiyangara temple is not Semmanchery. That is Sholinganallur. Only buy if investing on over 1.5 ground on 60ft road or 80ft road.

    Option 3 - I do not know much about LIC Nagar.
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  • Need all your suggestions till i nail a plot..for investment purposes..

    Please see my original post for the most recent update. Kindly request you to provide feedback in the same manner. Thanks in advance

    Originally Posted by Economist
    Option 2 (Commercial plot on OMR-Siruseri) is good but comes with a big risk of land accusation for road widening etc.

    Option 4 (2Gr corner poly at Ponmar) is good but the price is way too high, try and reduce the price and buy only if it is close to a main road (under 1kms) and the plot is on over 40ft road.

    Option 1 - 500mts behind prathiyangara temple is not Semmanchery. That is Sholinganallur. Only buy if investing on over 1.5 ground on 60ft road or 80ft road.

    Option 3 - I do not know much about LIC Nagar.
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  • By the way, are you planning to sell them in near term as I see you are borrowing money for this.
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  • Yes, i would construct apartments and sell them or hold the plot for a year and put them back in market based on the appreciation. For example, Madipakkam LIC Nagar property (40*120 dimension) might be a good buy because the market price is around 80L but i was told that it could be bought for 65L/Gr. In this case, i could sell it as land or apartment and make some significant money provided the documents are clear.



    Originally Posted by k11
    By the way, are you planning to sell them in near term as I see you are borrowing money for this.
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  • Option 1 and Option 2 seems good to me. Minds are not alike.

    You should buy in any place that you could sell or JV or build and cash out anytime after 1 year.

    You could also look at anywhere from Medavakkam to Tambaram Road less than a km from the road, always demand is there to these vicinity.

    two cents....

    Originally Posted by thirumoorthi
    Please see my original post for the most recent update. Kindly request you to provide feedback in the same manner. Thanks in advance
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  • Real Estate is always open for best return,
    No one in real estate will be a looser - if one has holding capacity.


    1. if u have time to manage, get s small plot, construct flats and sell it.
    2. If no time, get a small plot -- talk to small builders in that area (Where Ur plot is) they will construct and give you 50-60 % of profit. or one/two flats (Which they will sell for you)

    They will keep rotating your money.

    3. Talk with brokers -- purchase resale flats in distress sale and then after resale those====good money (If u can manage).

    4. Book few flats and resale them after lock - in period of 30-40% payment.

    5.If have time, purchase acres of agricultural land then make plots and resale.

    6. Invest in plots - never be LOOSER.

    7. Start blade business. (3-5% return per month)

    8. Hold the commodity (Oil, Food grains) etc during crop time and sale it after few month.

    9. be with big people (merchants/builders) - once they smell that u have money -- they will give you several ideas.

    All the best,
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  • I don't know if this is a good idea to buy and sell in short term. For long term, it might be fine.

    Land prices are already at record highs, Stamp duty and reg will take some money, interest costs are high, and on top if it, it is a slow market now prices might not move a lot in the next one year or so.

    You might already be buying at a peak, might not be easy to flip after one year.

    Builders will not do JV, if the location is not good. They avoid suburbs generally.
    Even if you build it yourself by hiring a contractor, if will be a challege to compete with townships on main roads and cheap price of apts. Big builders get land at dirt cheap prices, if you buy land at such high prices I wonder how you can compete.

    All your options look expensive to me, I do not have a lot of knowledge of interior areas.

    Lets take your Shols example.

    90L for land, 10L for Stamp duty, reg, brokerage, etc.
    You decide to build apts. Let's look at the numbers.
    In 1G, you can build four 900sqft 2-bhks max in a Stilt + 2 format.
    Construction cost for apts will be 1500*3600=55L.
    Construction cost for stilt will be 800*1800=15L.
    Incidentals like gate, motor, lift, etc will cost another 10-15L.
    Your construction bill itself is 85L. Add land costs of 1C, you are looking at 1.85C.
    Interest cost is another 15L, bringing the total to 2.1C.
    Now you have to sell each 2-bhk flat at 52.5L to breakeven. If you go through brokers, you need to shell out another 2-3L per apt bringing the total to 55-56L.

    Today you can buy an apt in Shols, main road for 50L in a big township with all amenities. A flat in Lancor, Ceebros, Appaswamy is around 5-5.5K. Why would anyone buy in a small builder apt when you have thousands of apts available in townships at cheaper price.

    I think you should carefully evaluate your options.
    Many people in forums do not understand how hard it is to make money as a builder nowadays.
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  • K11,

    The margins are really good when you buy , construct and sell apartments in a short time frame ( 6-10 months) and to do so, the property must be in a nice location which always demands a premium. When you construct houses where the land price is less, time to sell is very long and tedious process. Another point to note is when you sell quickly , your money is not locked so it can be vested in another project and construct the house with the buyers money(advance, bank loan, etc) . Here is an example, I buy a 20l property , construct , sell and make 40 Lakhs in 2 years time, now the land in the same area would cost 60 L wiping all my profit. Now I move again to a location where a land is 20 L but again take 2 years to sell. It’s difficult to make money unless you get in and get out quickly and lock the next property for a lower price.


    Now, let’s take Shols example and rework it,

    90L for land, 10L for Stamp duty, reg, brokerage, etc. – Agreed ( 1 C Landing cost)
    In 1G, you can build four 900sqft 2-bhks max in a Stilt + 2 format. – Agreed
    Construction cost for apts will be 1500*3600=55L. – Agreed
    Construction cost for stilt will be 800*1800=15L. – Agreed
    Incidentals like gate, motor, lift, etc will cost another 10-15L. – This is included in the construction cost of 1500(no lift)
    Your construction bill itself is 70L. Add land costs of 1C, you are looking at 1.7 C.
    Interest cost is another 15L, bringing the total to 1.85C.
    Total saleable area (selling 4320 sq ft for Rs 4500)

    1080 sq ft apartment( includes common area)
    4
    4860000
    19440000
    Car Park
    4
    200000
    800000



    20244000
    Net profit
    20244000

    1.85
    1744000

    Again, if the area is good, people will buy quickly so you don’t have to lock up your money long term and net better profits. If you have 2 buyers in three months which is not unrealistic since you have priced $1000 less than the market, then you interest payments could go down significantly. If things improve , and price moves up to 5000, then the profit would be around 40L.

    This is why I like Pallikaranai more, but it may become a tough sell

    Land Cost



    Land
    2
    6500000
    13000000
    Registration Charges


    572000
    Commission


    260000
    Others


    195000
    Sub Total (a)


    14027000




    Construction cost



    Planning sanction cost


    221000
    Construction cost 1.5 FSI includes common area
    7200
    1400
    10080000
    Other Development charges (Compound wall, Sump, Septic tank, OHT, Grill Gate etc.,)
    1440
    1100
    1584000
    Water & Draiinage and EB


    600000
    Advt expenses



    Other expenses (Consultants and others)


    390000
    Sub Total (b)


    12875000




    Total Cost (a+b)


    26902000




    Salable area 15% common area


    8640
    Cost per sq.ft


    3113.65741
    No.of Flats


    8
    Approximate area per lot


    1080
    Cost per unit
    1080
    4000
    4320000
    Cost per unit
    1080
    4200
    4536000




    Total sale - Option A
    8
    4320000
    34560000
    Total sale - Option B
    8
    4536000
    36288000




    Profit - Option A


    8258000
    Profit - Option B


    9986000

    --without taking car parking into account. With car parking you can add another 10 L

    I really value your opinion and look forward to hear back from you.




    Now you have to sell each 2-bhk flat at 52.5L to breakeven. If you go through brokers, you need to shell out another 2-3L per apt bringing the total to 55-56L.

    Today you can buy an apt in Shols, main road for 50L in a big township with all amenities. A flat in Lancor, Ceebros, Appaswamy is around 5-5.5K. Why would anyone buy in a small builder apt when you have thousands of apts available in townships at cheaper price.



    I don't know if this is a good idea to buy and sell in short term. For long term, it might be fine.

    Land prices are already at record highs, Stamp duty and reg will take some money, interest costs are high, and on top if it, it is a slow market now prices might not move a lot in the next one year or so.

    You might already be buying at a peak, might not be easy to flip after one year.

    Builders will not do JV, if the location is not good. They avoid suburbs generally.
    Even if you build it yourself by hiring a contractor, if will be a challenge to compete with townships on main roads and cheap price of apts. Big builders get land at dirt cheap prices, if you buy land at such high prices I wonder how you can compete.

    All your options look expensive to me, I do not have a lot of knowledge of interior areas.

    Lets take your Shols example.

    90L for land, 10L for Stamp duty, reg, brokerage, etc.
    You decide to build apts. Let's look at the numbers.
    In 1G, you can build four 900sqft 2-bhks max in a Stilt + 2 format.
    Construction cost for apts will be 1500*3600=55L.
    Construction cost for stilt will be 800*1800=15L.
    Incidentals like gate, motor, lift, etc will cost another 10-15L.
    Your construction bill itself is 85L. Add land costs of 1C, you are looking at 1.85C.
    Interest cost is another 15L, bringing the total to 2.1C.
    Now you have to sell each 2-bhk flat at 52.5L to breakeven. If you go through brokers, you need to shell out another 2-3L per apt bringing the total to 55-56L.

    Today you can buy an apt in Shols, main road for 50L in a big township with all amenities. A flat in Lancor, Ceebros, Appaswamy is around 5-5.5K. Why would anyone buy in a small builder apt when you have thousands of apts available in townships at cheaper price.

    I think you should carefully evaluate your options.
    Many people in forums do not understand how hard it is to make money as a builder nowadays.
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