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Vasant Oasis by Sheth Creators in Andheri East, Mumbai

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Vasant Oasis by Sheth Creators in Andheri East, Mumbai

Last updated: February 24 2021
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  • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

    Sounds a great deal. Pressurise the builder as I have heard builder has some select investors to whom he had assured exit and giving NOC to them. I also heard a one of those near closure as well.

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    • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

      Originally posted by Swades View Post
      Thanks for your insight Soarer. Yes, it is definitely high risk high gain game. Cash component is nonnegotiable terms of the seller. Had negotiated from 23k to 22k carpet including transfer charges, parking & floor rise but its still risky bet until developer NOC is secured
      22K carpet including transfer charges, parking & floor rise sounds too good to believe : )


      I was in negotiation with Builder last month directly and final base rate quoted was 14K, all inclusive on 10th Floor that too in Phase 3 was coming to 28K on carpet.

      22K seems good 20% discount that too in Phase 1, I believe.

      If you manage to close the deal at 22K all inclusive looks like you have broken the ice for So called 'Correction'

      Regards,

      KK0099
      Last edited July 20 2015, 02:10 PM.

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      • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

        your comparison of 22-28k, thus 20% discount is mathematically not correct. he will still have to pay stamp duty and brokerage. plus tax forgone on cash component...when he sells the flat in future, he will either have to ask for cash (in which case, again the sale price will be discounted too) or pay taxes (which with "indexation disadvantage" will only be more and more)...Roughtly, I think it is correct to say 10% cash discount which is generally the case for investor flats....its a different ball game and not meant for all...

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        • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

          Originally posted by CAinvest View Post
          your comparison of 22-28k, thus 20% discount is mathematically not correct. he will still have to pay stamp duty and brokerage. plus tax forgone on cash component...when he sells the flat in future, he will either have to ask for cash (in which case, again the sale price will be discounted too) or pay taxes (which with "indexation disadvantage" will only be more and more)...Roughtly, I think it is correct to say 10% cash discount which is generally the case for investor flats....its a different ball game and not meant for all...
          The 22K price also does not include the developer NOC (which can be as high as 5% if the investor selling the flat is not known to the developer). Also in such transactions the buyer also has to pay 2% brokerage charges in case the buyer does not have direct access to the investor. Forgoing 30% tax benefit on 30% of the transaction itself is 9% of the actual flat value.

          All in all even a 10% discount pointed out by CAInvest is on the higher side if all the above factors are taken into consideration. That too is possible only for people who have access to over 50 lacs in hard cash. And mind you, there is a lot of risk in paying up cash in under construction projects. A buyer will demand at least a 10% net discount for taking on such higher risks.

          "its a different ball game not meant for all" - very aptly summed up.

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          • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

            Dear CAinvest,

            Hope you mean 20% discount may be mathematically correct but may be basis of 22K & 28K are not on same page!

            You are right 28K of mine included Govt. duties and Taxes, net to Builder was at 163.6 Lacs including Society formation & up front maintenance for Carpet of 637.
            To be precise Base rate was 14,250 so actually Rate was 25.7K without ST,VAT & SD

            So at 22K excluding government dues, discount comes to 14.4%

            Also I think people who go for this kind of Buying (Cash component) have numerous ways of saving (?) Taxes and if your 1st two initials of ID to be taken seriously you know better than me

            Cheers,
            KK
            p.s. all above is said in good spirit don't take it personally





            Originally posted by CAinvest View Post
            your comparison of 22-28k, thus 20% discount is mathematically not correct. he will still have to pay stamp duty and brokerage. plus tax forgone on cash component...when he sells the flat in future, he will either have to ask for cash (in which case, again the sale price will be discounted too) or pay taxes (which with "indexation disadvantage" will only be more and more)...Roughtly, I think it is correct to say 10% cash discount which is generally the case for investor flats....its a different ball game and not meant for all...
            Last edited July 20 2015, 03:07 PM.

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            • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

              See the calculation below discount is 6% which is under assumption (as the person said 22k includes builder noc charges, fr and car park).


              (I)Investor flatCommentRate 22,000 Includes NOC, FR, ParkCarpet (Sq ft) 820 Sub total(A) 18,040,000 Cash 5,500,000 White 12,540,000 Stamp 689,700 5.5% stamp. No VAT / STBrokerage 180,400 2% to be sharedSub total(B) 870,100 Total(A) + (B) 18,910,100 Capital gains tax forgone(C) 1,815,000 30% tax with 1.1 indexation (pessismist assumption)Total(A) + (B) + (C ) 20,725,100

              (II)
              Builder flatSaleable area (Sq ft)1310Rate14250FR50Floor 10Car park700000Agrt value 20,022,500 Stamp, vat, sT etc 2,002,250 Total 22,024,750

              (III)
              Discount-5.9%
              Last edited July 21 2015, 02:19 PM.

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              • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

                Hope we are not trying to prove there is nothing called 'Correction' : )

                Not sure about others but I have one irrational belief regarding RE investment, 'Others can correct but not the Project I have invested in will go only north

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                • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

                  Fingers crossed In correction, both investor and builder rates will go down...Don't worry, I am too quite optimistic about this project..Prices must shoot up by atleast 10-15% immediately after possession (pessimist view)....JVLR/ L&T Emerald is already 20%+ premium.....new launches like kanakia, shapoor, etc in the same area are already selling at 14-15k base rate for possession after 4-5 years....btw, I heard the builder has already increased the base rate and the FR now is 75...like you, I am too hopeful prices will correct except for my investments

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                  • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

                    Its definitely not correction at this level. Entering at negotiated number 22k is not profitable at all for the buyer. For breakeven after all taxes, loan interest & inflation, price need to higher than 25k hypothetically. Further resale value will always be lower than developer price. Its long journey for any gain.

                    Can anyone clarify on maintenance charge per sq ft?

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                    • Re : Vasant Oasis by Sheth Creators in Andheri East, Mumbai

                      Originally posted by Swades View Post
                      Its definitely not correction at this level. Entering at negotiated number 22k is not profitable at all for the buyer. For breakeven after all taxes, loan interest & inflation, price need to higher than 25k hypothetically. Further resale value will always be lower than developer price. Its long journey for any gain.

                      Can anyone clarify on maintenance charge per sq ft?
                      Maintenance is charged at 6 psf on carpet for the first 18 months. After that the society will decide the charges. One can easily expect the charges to be much higher than 10 psf on carpet going by the current charges levied by societies in similar projects.

                      Prices of ready to move gated community projects in nearby Chandivali and Andheri E are already upwards of 30,000 psf on carpet. So one can safely assume Vasant Oasis to reach a similar price point once the project moves closer to delivery early next year (for Phase I that is). Also, once construction of Metro 3 starts it will help this project as well since Marol Naka (just 1.2 km from Vasant Oasis) will be the intersection for Metro 1 and Metro 3 and will provide seamless travel to East, West and South directions.

                      The risk obviously is the never ending delay in this project and the construction and remaining approvals for Phase II and Phase III buildings. For Phase I the risk is relatively lower as the 6 buildings are nearing completion and OC should come anytime in 2016.

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