Hello friends,

Have been following the blog for a few months now and am really impressed with the quality of discussions here.
Didn't have money to spare earlier, but now ready to invest :)

Shortlisted Siddha Sphere Phase 2 - Galaxia for a 2BHK. In all initial communication over phone, the rep guys quoted 3.8K psf. Now during finalisation, they are adding floor escalation charges of 25 INR per floor, 2nd floor onwards and PLC charges of 50-100 INR per sq ft.

This is impacting my budget quite a bit.
Being a first time buyer with no experience in real estate, I have few queries -


1. Those who have already booked in Galaxia, did you have to pay these floor escalation and PLC charges on top of 'base rate' of 3.8K psf?
One guy in our Kol office booked a 2 BHK, end of June at 3.8K only - 10th floor SE facing :(


2. Is it advisable to move up and look for SE/ pool facing paying these extra charges OR stay low and book a modest appt at 3.8K psf rate?
OR invest the extra amount in additional area, like go for a 3BHK - 1st floor?

Being a 12 storied appt (2 addl. floors to be planned in future), the cost escalation for a 12th floor SE/ pool facing appt stands at -

Escalation for floor - 25 X 11 = 275 INR
PLC charges for SE and pool - 100 INR

-------------------------------------
Per sft rate shoots up to - 4175 INR

Which one fetches better return from an investment perspective - a 3800 or 4175 in same building?
In case it's a thumbs up for 4175 --> in comparative terms, which one's better - a floor above vis a vis a SE facing appt.?


3. Regarding parking, what should ideally one go for - Ground Covered Car Parking OR Covered Car Parking in MLCP? What are the pros and cons of MLCP over other? A savings of 50K in MLCP over Ground there.


4. Are there any better projects currently available in Kolkata, from an investment perspective?
My budget is on the lower side - initially 40L, but now stretched to 45L-46L, max 50.
No timeline as such. 3-4 years or until I need money for US higher studies. Will try to retain the property, if possible. Bong emotions :-|

Area preference, but NOT limited to -
A. City Centre 2, near MAR, or 4/ 6 lane extensions
B. Near E M Bypass in and around current and proposed metro connectivity.
C. Prince Anwar Shah Connector

Location and connectivity are the topmost priorities on my list. Can compromise a bit on SBU, but not on location.

Am I going right in my decisions? Any mistake you identify OR any project you suggest?

Waiting for feedback from real estate gurus like joydeepr1, gharondabhai, Sid basu, Debeswar, AbhiCCU, sandipRC, sumanb and others.

Apologies for bothering you with so many ques but nevertheless quite excited about my first project in RE.
I feel I am already very late in purchasing one and sometimes get bogged down with the hype and price-hike related to real estate in the city.

Happy home-hunting all!
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  • Hey Guys,
    Nice initiative to start a grp on fb. But i'm unable to find any frp. Please suggest.
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  • Hi All,
    I'm interested in Siddha Happy Ville at 211 bus route, chowmata, Rakarhat, Kolkata, a Project by Siddha group.
    I'm interested in buying flat in their phase-2 towers, like FERN or MINT for which they are saying me to book the desired flat by paying 15% and they will do the sale agreement in 2 months. But i ahve checked thru lawers that, thier approval may take more than six months.
    Please suggest shall i go ahead with booking the flat in MINT block or wait.
    Also those guys who have purchased flat in Azure, Aqua, Indigo or Sapphire blocks please suggest with the procedures they had to go thru and also about Siddha grp.
    I'm based out of Mumbai and your guidance would be highly appreciated. Please help. Many Thanks in advance!!

    Regards,
    Ankur
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  • @ppatra: So did you ultimately find the answers and have you booked any flat in S. Galaxia PII?
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  • Praveen, Bhowmickda, ppatra, RKAR78 : Thinking of bookign a flat in S. Galaxia P II. Have you all formed any common forum where I can discuss about this?

    Thanks,
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  • Originally Posted by bhowmickda
    Hi Pravda,

    They gave me a date for sale agreement around Oct mid.

    bhowmickda;, I was wondering if the sale agreement is done now.
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  • status of agreement

    I heard that the process of sales agreement has started, did any of you get any notification for Siddha ?
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  • There is a facebook group for Siddha Galaxia Phase 2. Request you all to join,

    https://www.facebook.com/groups/1482006992070971/
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  • Dear friends,
    Till now I have been enriched by the discussion going on Siddha Sphere II. I have also booked one unit in the project, however I am not very sure about the sufficiency of just two lifts for 8-9 flats per floor. Can somebody give his opinion?
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  • can anyone tell me what is the benefit if buyer book in the proj from NK agent rather than book from direct builder ? Also are they going to provide any freebies like free car parking or AC machine or any discount in puja occasion ?
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  • Originally Posted by abhijit007
    can anyone tell me what is the benefit if buyer book in the proj from NK agent rather than book from direct builder ? Also are they going to provide any freebies like free car parking or AC machine or any discount in puja occasion ?

    There's no free lunch in this world. And you're buying a property and not a mobile phone on sale day from Amazon. In this buyers market scenario first identify your suitable project in comfortable location. And Bargain!! I'm sure you can get your discounted price, Puja season or not. And with the money saved, buy those freebies at your ease and choice.
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  • Originally Posted by PxxDxx
    There's no free lunch in this world. And you're buying a property and not a mobile phone on sale day from Amazon. In this buyers market scenario first identify your suitable project in comfortable location. And Bargain!! I'm sure you can get your discounted price, Puja season or not. And with the money saved, buy those freebies at your ease and choice.

    I fully agree with the above posts.

    As any business runs on profit and not on charity. It further doesn't make any sense to buy a property worth lakhs for freebies. But if u were going to buy any project then consider buying it.
    Since there is an oversupply especially in rajarhat area people should also consider the payment plan schedules before buying especially if its an under construction property. I mentioned in other posts about risks of CLP if u are opting for home loans as it can cause unnecessary financial burden due to delays as most of the payment is taken in a short time.I'm posting this article

    Under the ‘Construction Linked Payment Plan’, the bank disburses instalments to the developer on your behalf for pre-decided construction milestones. Every time a certain level of slab is laid, the bank will release some percentage of the loan amount. These Construction-linked payment plans are tailored in such a way that by the time the last slab is laid, 95% of the unit’s price has been collected by the developer. The remaining 5% is demanded from the buyer when the developer offers possession of the unit. Only after the handover, will the buyer begin repaying the loan to the bank. His first EMI starts right after possession. However there is no relief as such for the home buyer. During the construction period of the loan, he is not just paying rent but also the Pre-EMI, which is the interest component of the loan.

    2. CLP allows Cash Windfall for Developers?
    The superstructure, which is the outer shell of a building, is the fastest and easiest part of the construction timeline. Usually within 12 months, the bare skeleton of an apartment building can be erected. And this amounts to just 25 to 30% of the project’s total cost. But every developer today collects almost 95% of the apartment’s cost till up to just the superstructure. Within one year he has collected a huge corpus of cheap, liquid cash that’s come to him not even in his name but in the buyers. So he has no liability as such. Raising this kind of money in today’s market through alternative sources is impossible for most due to high rates of interest. So while buyers assume the ‘Construction Linked Plan’ is helping them space out their payments, it is the builder who enjoys uninterrupted, assured, timely cash disbursals.

    3. Developers run CLPs like a Ponzi scheme?
    Home buyers have been claiming for long that there is no transparency and accountability in how developers utilise their instalments. There is no regulatory body to report to with their account books. There are no rules that define for what purposes the home buyer’s instalments can be used. Even the Modi Government’s version of the Draft Real Estate (Regulation and Development) Bill has replaced the provision of an escrow account with what it calls a ‘separate’ account. And they have brought down the mandatory reserve limit of funds from 70% to 50%. So in India, a developer is free to just erect the superstructure to serve as an eye wash to home buyers who want to see physical evidence of progress. And meanwhile he can divert the bulk of the funds towards buying new land assets or launching new real estate projects. In this new project he will hope to raise fresh money which in turn he will use to further his expansion plans.

    4. Why do CLP-funded Projects get stalled?
    This cycle gets disrupted when the market goes bust like it is today. Economic slowdown, high interest rates and several other factors can shrink sales. And if people are not buying homes, signing up for CLPs, how will fresh money be created? How will the developer keep his old projects running? How will he retain his contractors and labour for the new projects he has launched? How will he fund the internal-works of all the superstructures he has peppered all over the city? With his funding wheel punctured, he has no choice but to let his old projects where 95% of the money is in and superstructure ready to be indefinitely stalled.

    5. Is there a better payment plan for me?
    Representatives of various buyers groups say ‘Construction Linked Payment Plans’ must be redesigned. Structure the payments such that at least 40% of the price remains unpaid till after the superstructure. However all such schemes and plans are industry-driven practices and the buyer has little negotiating power to have it changed. The ‘Possession Linked Payment Plan’ or (PLP) on the other hand offers a more level playing field to the buyer. You pay 20 to 25% of the total cost on booking. And the balance is paid only after the possession is handed over. If the developer delays beyond the agreed period, you can invoke the penalty clause of your ‘Buyer’s Contract’ to seek damages. So the developer clearly has a lot at stake under a ‘Possession Linked Payment Plan’. However you must study the developer’s past records and must ascertain if he has all the mandatory approvals and clearances in place.
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  • PxxDxx; well said, one also tends to forget that in the business of getting freebies, you might not get the best flat in a project. Quite a few project get into the freebie mode once they sell off 60-70% of their inventory and they are clever enough to launch discounts and give away gifts while marking up the base rate :)

    Bargain all you want, but don't run after freebies!
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  • my sale agreement got signed this week .. I am about to pay the next installment as well ....
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  • Hi all,

    I have recently booked a 2.5 BHK in Galaxia Ph II but not sure if I have overpayed the builder. They charged me a base price of Rs. 4050/- but finally managed to get a 1100 Sqft 2.5 BHK on 7th Floor, Garden and South facing along with MLCP for 52.6 Lacs -- Not sure if I overpayed.

    Can anyone also let me know if they have already started the construction and they are now promising for a possession date of 2019 - Is this true ? They also said that if there is any delay, Siddha will pay 5% interest - Not sure how true this is ?

    I would like to sync up with any one who has booked a flat here in Galaxia. Please share your email address of contact number so that I can connect with you guys.

    Regards
    Ron
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  • Originally Posted by ronkhu
    Hi all,

    I have recently booked a 2.5 BHK in Galaxia Ph II but not sure if I have overpayed the builder. They charged me a base price of Rs. 4050/- but finally managed to get a 1100 Sqft 2.5 BHK on 7th Floor, Garden and South facing along with MLCP for 52.6 Lacs -- Not sure if I overpayed.

    Can anyone also let me know if they have already started the construction and they are now promising for a possession date of 2019 - Is this true ? They also said that if there is any delay, Siddha will pay 5% interest - Not sure how true this is ?

    I would like to sync up with any one who has booked a flat here in Galaxia. Please share your email address of contact number so that I can connect with you guys.

    Regards
    Ron


    Personally I feel for 2 bhk 53 lakhs is overpriced.

    They have started piling works, but not sure of your block. May be they will gradually start one by one. They will pay 8% of interest for any delay.
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