1.is it advisable for entering in to joint venture
2.when we see the benefits for the land owner - its very negligible after taxes
can any one explain is this really profitable?
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  • @Vignesh... pls post additional details for RE experts and guru to pass on their suggestion. JV is definitely good. Only think you need to check the risk exposure and what you get end of the day. Also other thing that needs to be checked is the background of the person/firm with who you are entering into a JV.
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  • Originally Posted by vignesh3103
    1.is it advisable for entering in to joint venture
    2.when we see the benefits for the land owner - its very negligible after taxes
    can any one explain is this really profitable?


    JV is beneficial only if more of the below are met:
    1. Land is in the location even the owner can self-promote because selling is easy.
    2. More builders should show interest and there should be a race.
    3. At least, one known brand builder should show interest.
    4. Land should be 4800 sft or more.

    It will be more financially rewarding only if above are mostly met. It is not even worth working the numbers otherwise.

    Mav
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  • I got JV offer from a builder named Darshan constructions. Plot size was 2400 sq ft. It was possible due to premium FSI. Builder proposed to construct five 2 BHK units of sizes 1000 sq ft each and offered us 2 units in addition to 12 lakhs. Locality is Porur. It was a good offer but I didn't go for it as I'm not in a position to manage tenancy.

    If I were in India, I would have gone for it.
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    1.When you want to sell a plot for need of money

    2. When you have no money to construct a house

    you can go for JV

    When you go for JV you will get some 20 to 35 percent extra money (profit in lakhs ) and you dont need to bare any headache other than screwing the builder. But be care full before you fix the ratio beaware of this things

    a. how much squrefeet he is going to build
    b. land rate (your investment)
    c. calculate in such a way you get 20 to 40 percent extra than selling the land.
    d. never commit the builder without making a paper work for at least 3 days.

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  • ########################################################

    * You Have not mentioned the area of the property
    * what is the land rate
    * what is the flat rate
    * what is the frontage
    * what is the road width
    * approved or unapproved

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