I am looking for a property in resale. and need some advice on planning my financials for that.

I'd try to explain the scenario:
First, since its a resale property, there is some payment already made to builder by the current owener. say Rs 100
Second, current owner would want premium in dark colored money. Say Rs 100
Third, I may need to pay from pocket above two components, plus(+) few forthcoming installments to the builder, in case there is issues with the bank in disbursing the loan. etc. Lets assume each installment is Rs 20.

I do not want to end up in financial crisis/mess, and hence want to know some rough formula to calculate how much cash in hand I should have before going into any such transaction. What else should I consider etc.

Appreciate any suggestion.
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  • in optimum situation with bank disbursing loan( Infact if its a UC project with few inslt. gone the project would already have bank approvals from a few) you need to have cash equal to

    1. colored money + 20% of property valuation ( the bank can fund other 80)

    2. in case disbursement is an issue than you have to have in addition

    the total inst. paid by seller( becomes entirely self funded then) plus money for atleast next two inst.( will give you about 5-6 month time)

    Just a suggestion....

    select a project only if it has bank disbursement in place and prefereably from a bank of your choice... it will make your life and choice much easier...

    good luck!!!!


    Originally Posted by moh_maya
    I am looking for a property in resale. and need some advice on planning my financials for that.

    I'd try to explain the scenario:
    First, since its a resale property, there is some payment already made to builder by the current owener. say Rs 100
    Second, current owner would want premium in dark colored money. Say Rs 100
    Third, I may need to pay from pocket above two components, plus(+) few forthcoming installments to the builder, in case there is issues with the bank in disbursing the loan. etc. Lets assume each installment is Rs 20.

    I do not want to end up in financial crisis/mess, and hence want to know some rough formula to calculate how much cash in hand I should have before going into any such transaction. What else should I consider etc.

    Appreciate any suggestion.
    CommentQuote
  • Thanks

    Thanks AmitMM.
    I've read in some other threads where people invested in original booking, and had to pay few initial installments from pocket. I know this is a different case.. but just for information.
    Second, bank guys do not specifically tell till what floor they are disbursing. They would insist on applying for loan first and then check as per property papers. But in that case I end-up paying processing fee etc.
    CommentQuote
  • few points

    in original booking ou have to contribute atleast 20% before bank contributes( sometimes even more as it takes time for some projects to get bank approvals)

    i resale you are contrbuting 20%+ colored initially so bank can in fact pay the seller the balance if the payment made is more than 20%.

    also banks approve projects in toto and not till X floors.... if they are funding they will fund entirely unless some builder/project related changes happen...


    Originally Posted by moh_maya
    Thanks AmitMM.
    I've read in some other threads where people invested in original booking, and had to pay few initial installments from pocket. I know this is a different case.. but just for information.
    Second, bank guys do not specifically tell till what floor they are disbursing. They would insist on applying for loan first and then check as per property papers. But in that case I end-up paying processing fee etc.
    CommentQuote
  • Please answer following scenario:-

    Suppose, we are buying a flat worth Rs 35 lakhs.. appreciated amount is 2 L only.. So, do we need to pay 20% of 33 lakhs + 2 L to buyer first.. and then bank will loan us for rest of 80%.. means we need total 8L in liquid amount to get it in resale..

    Please point me out if wrong anywhere...I am novice in buying/selling flats..

    Regards,
    Sidhu
    CommentQuote
  • Originally Posted by sidhurana
    Please answer following scenario:-

    Suppose, we are buying a flat worth Rs 35 lakhs.. appreciated amount is 2 L only.. So, do we need to pay 20% of 33 lakhs + 2 L to buyer first.. and then bank will loan us for rest of 80%.. means we need total 8L in liquid amount to get it in resale..

    Please point me out if wrong anywhere...I am novice in buying/selling flats..

    Regards,
    Sidhu



    hello sidhurna , bank will give 80% of the white , i.e if u are showing all 35 lacs during the deal then 28 l will be funded by bank ,
    in case u are paying 2 l, appreciated amount in cash (coloured money ) then u will get loan of 80 % on 33 lacs i.e. 26.4 l,

    one more imp thing banks are not giving loan on registration so make sure u have abt 10% in hand well before for registration charges and misc charges if any ..

    thanks and rgds
    Manish N.
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  • Some more inputs:

    In case premium amount is e.g. 50% of original cost (e.g. 50 L is original cost & premium asked is 25L). One can take loan in following way:

    Self Margin: 15L
    Loan amount: 60 L

    Based on what value is considered of flat on paper, banks can give loan from 80% (in case value is 75L) to 120% (flat value is 50L). You will find some banks (mostly private) who can provide loan up to 120% of original cost assuming they value the property @75 L. This way under construction flat can be re-sold to new buyer at original cost.

    Only challenge you will face is meeting the expectation of coloured component demand of seller.
    CommentQuote