My friend has booked an apartment in Lancor Lumina. He was very happy and told me that they are good in quality and transparency etc etc. He got shocked when he was receiving their sale agreements due to the differences between the brochure and agreement. He is seeking experts advice whether to continue or cancel the booking.

1. Total number of units 504 in 8 acres. the UDS is around 27% (In brochure). but they are planning to build 2 or 3 floors in each towers. so it will be more than 900 houses in 8 acres land. (they are waiting for approval) Think about the UDS value?

2. they said the maintenance cost will be around 3 Rs (they have 100% power backup). but in the agreement they have split it into (EB cost 3.25rs + Diesel cost). since they are proving 3 a/c to all units, this variable cost will be more.

I feel, Lumina is not suitable for investment purpose. What are experts suggestions??? Shall I ask him to cancel his booking?
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  • People are indeed avoiding such gated communities due to exorbitant maintenance charges and it is not going to get any cheaper as we move forward. In OMR, for Water, Deisel, STP, Piped Gas etc...alone costing a fortune to live there.

    Only option is renting it out to group of bachelors(10 or 12 in a 3 bed apartment) who can pool money to live in such an expensive environment.

    Typical 3 Bed Room rents between anywhere Rs15,000 - 25, 000 (semi-furnished) and add another Rs 6000 - 8000 as maintenance charges, you probably end up paying Rs 23-33K Per Month for Rent.

    If you live in your own apartment, situation is even worse, your EMI + Maintenance charges will not allow you to sleep every night....forget alone other charges being levied by the Association for using the facilities etc....

    These gated community is good ONLY for investors, so long it is under construction without any recurring cost associated(which is why they do not complete projects), while they can make money by transferring the ownership and create hype in the market by coming to the forum and keep increasing the rates every week.
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  • The thing is they have not disclosed any of these ( change from 7 floor to 9 floor and separate diesel cost) during booking to my friend? I think, Lancor is good builder and all are sailing in the same boat. It is ridiculous to pay around 10k as maintenance in Guduvancherry area.
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  • I would not book in any gated communities after seeing and experiencing all problems....In Chennai Gated Communities are a big failure in my opinion. Only NRIs who wants to make billions by changing hands from one to another can benefit. For end-use these are real waste of money and energy....These becoming more like stock market.
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  • Experts!! Ravi, L4L, Economist Mavericks and others any comments on this project?

    Is it common to charge diesel cost apart from maintenance charge? what do you think UDS value?
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  • Diesel will never be included in the maintenance and it will be based on actuals...given the power situation in TN;one would go bankrupt if they include it to fixed maintenance. I think this is just the beginning; townships and gated communities in omr beyond shols will face the music soon. I have gone thru this in ggn and 8000 was quite normal in summer months 9 yrs back.
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  • Diesel costs depend on the number of hours the genset was run for and is a variable. Some months you run it more, in some you use less, and when and if the TNEB supply sustains the demand you wont run it ever and costs associated are directly related to the use whereas other maintenance charges are well anticipated and budgeted in advance and hence it is fair to charge diesel costs apart from maintenance
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  • i stay in ayanavaram ,maint is 5000,no diesel charge separate
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  • In our apartment in Thiruvanmiyur, we use diesel for genset backup. It varies month to month, maintenance is fixed amount and diesel cost is managed using money collected. If there is a steady shortfall, maintenance will be hiked.
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  • Even if there is a power (Voltage) fluctuations to maintain lift operation, GenSet is kept ON for almost 24 X 7 basis in some communities....This is like almost Rs 12 Lakhs per month in some cases(average)
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  • Seriously guys, im questioning the very basis of even buying a house / flat in chennai now :)
    Exorbitant Diesel costs, Water costs plus regular maintenance around 6 to 8K
    and still folks here are claiming Flats are better investments and this ever increasing inflationary environment this means devaluing Rupee, higher diesel costs, higher per tank lorry water cost
    How do you guys think this maintenance cost nightmare is justifiable for an investor ? Will he /she prefer to keep a barbed wire fenceing or stone fencing on a property and safeguard it
    or
    Pay through the nose during vacancy plus brokerage for tenancy and high turn over ratio and occasional rogue tenants
    For an NRI its a no brainer IMO
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  • Power, water, security, etc are basic necessities, so cannot be avoided.
    Living without them becomes a nightmare in hottest month of the year.

    Other choice is to live in City which has better facilities. But you will still have a one hour power cut. Inverter can be used inside the home, but generator is essential as the taller buildings need elevator, pumping water, etc.
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  • Originally Posted by subbulaxmi
    1. Total number of units 504 in 8 acres. the UDS is around 27% (In brochure). but they are planning to build 2 or 3 floors in each towers. so it will be more than 900 houses in 8 acres land. (they are waiting for approval) Think about the UDS value?

    2. they said the maintenance cost will be around 3 Rs (they have 100% power backup). but in the agreement they have split it into (EB cost 3.25rs + Diesel cost). since they are proving 3 a/c to all units, this variable cost will be more.

    I feel, Lumina is not suitable for investment purpose. What are experts suggestions??? Shall I ask him to cancel his booking?


    Always ask the builder about FSI. Avoid projects with premium FSI.

    This project has low UDS, 27% is low compared to around 32% we see.

    Wide 100ft Rds - 2.5 FSI - Around 29-34% UDS.
    Narrow 40ft or 60ft Rds - 1.5 FSI - Around 50-55% UDS.

    High FSI = Low UDS = High Density
    Low FSI = High UDS = Low Density

    Anything less means the loading is high, that is it has less carpet area%.

    If you like the area look at other projects as well.
    Estancia customer are satisfied.
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  • Maintenance cost of 8000 pm is certainly high for apartment priced 30-40 lakhs, what about buyers of apartments priced 80 lakhs and above? If they make fuss about paying 8000 pm, they don't deserve to buy such an apartment.

    In Thiruvanmiyur 2 BHK apartment rent in 2003 was 7000-1000. Now a good apartment with genset backup, car parking facility, security, intercom, etc... easily commands a rent of 25k. An 3 BHK in Lancor trafalgar was asking 50k rent.

    Now compare this with a rental unit of individual house in Thiruvanmiyur or an apartment with only 2 wheeler parking. Rent will most probably be 10-15k only if I'm not wrong.

    So you recoup maintenance charge. You pay peanuts you get monkeys.
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  • Originally Posted by k11

    Estancia customer are satisfied.


    True statement, the quality of residents and tenants Estancia is attracting is very high. It has become a preferred residence of expat community, I'm talking about white men.
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  • Thanks experts. I have a very big question regarding rental and apartment appreciation. Is it worth buying regarding these two factors?
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