Seth Developers has launched a new project " VASANT OASIS". This project is located on Borosil Plot on Marol GHS road. Followings are the room sizes available,

1- 2BHK
2- 2.5 BHK
3- 3 BHK

Total no. of towers are 16 nos (G+14) with one commercial building. The prices are as follows,

1- BSP 9,850/ PSFT
2- Floor Rise 50/ SQFT
3- Car Park - 5,00,000/
4- Development Charge - 14/ PSFT
5- Corups Fund - 200/ PSFT

Would appreciate comments from sr. members on this project.
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  • Originally Posted by Swades
    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
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  • 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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  • Originally Posted by CAinvest
    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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  • 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
    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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  • 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%
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  • 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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  • 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 :D
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  • 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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  • Originally Posted by Swades
    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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  • One of my friend has booked in Daffodil (Says it is phase III of the Project). Can experts throw some light on the pros and cons of phase III of this project.

    He has already paid 20% to the builder. He purchased a 2 BHK @13500 psf.

    What is advisable - to hold on to the investment OR cash out after 2 years of lock in.
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  • 13.5psf is good price, although market may see correction in next two years, will pick up post then. It will definitely give good returns in the long run...

    However people looking to buy, will suggest to wait for 6mths more and then try bottom fishing...
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  • Thanks Akki. But if u could help me with the approvals in place for Phase III, I wud really appreciate !!!
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  • Originally Posted by anujrvg
    Thanks Akki. But if u could help me with the approvals in place for Phase III, I wud really appreciate !!!


    Its quite surprising that your friend has paid 20% to the builder and has no direct communication channel with the CRM department of builder to get such details (regarding approvals, timelines etc)?

    Anyways the Phase 2 and 3 buildings have CC for basement and podium. In Phase 1 there are 4 buildings with approvals till terrace and 2 buildings with approvals till 20th floor. The next set of approvals will come latest by Jan 2016 so we will know till what floor are the approvals available in the revised CC.

    Also, can you let us know when did your friend make this booking and when would his 2 year lock-in period expire? If it is expiring in the next few months then there is no point in selling the flat right now. As per my knowledge and understanding there are three critical factors which will have to be considered to get decent returns in this project
    1) Pace of construction of Phase III buildings (Daffodil is currently in excavation stage)
    2) Pace of completion of Metro III (currently only bids are received)
    3) Pace of completion of other projects (Sevens, Rainforest, Proxima etc) in Marol so as to reduce the oversupply of similarly priced flats (~ 2cr to 3cr) within this micromarket

    Once the above three developments are truly underway only then will we see some significant appreciation in this project or Marol micro-market in general. Also, it wouldn't hurt if the overall macroeconomic condition also improves in which case it will be less time consuming to execute the sale transaction. Currently one has to wait for at least 6 months to get a transaction completed in the secondary market at these price points (2cr and above).
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  • Vasant oasis construction photos as of july 2015 .
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  • Hi saikan; really appreciate the photo updates -- kindly request you to add Bldg 19 -Zinia photos --Thanks again!
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