Noida has the LARGEST UPCOMING Inventory of Flats Of same segment (M.I.G) with Similar Specification...In ENTIRE NCR.

Never Before in History of NCR, such Oversupply has been seen

The numbers are Mind blowing.....This FACT was highlighted by me 2 years ago, but as usual many readers failed to fathom the gravity of it and are now stuck with Investment which cannot give either High appreciation Nor Good rentals.

But this could be an opportunity for Buyers who In spite of Major issues with Noida have still decided to buy a Flat for END USE (These major issues have been highlighted my me on numerous occasions and people will themselves see them unfolding in months and years to come)

But Since majority of Property on sale is in RESALE..How does one calculate the "Justified rate"


Read below and learn....READ CAREFULLY....Or Lose your hard earned money

1. This is BUYERS Time now, long gone are the days when Brokers would sell Projects on basis of Sentiment and Marketing like "Afeem".
Its HIGH TIME that Buyer understands this and NEVER FORGETS it when striking a deal.
YOU WILL Call the shots now....not the Broker...Not the Investor selling.
Its YOUR WAY of the Highway......LAKHS AND LAKHS of Inventory is coming up and Broker and Investor knows this VERY WELL that with every new Possession....his Inventory will get 1000s of Competition. If he doesnt sell.....he will have to Register his flat OR pay "holding charges".

If buyers doesnt register when builder offers possession...then he has to pay Holding charges to Builder.

Of course Maintenance at Rs.3 psf per month is AVERAGE now...and rentals will be LOW

This means Investor who FAILED TO EXIT at right time...IS SIMPLY IN A VERY TIGHT SPOT


2. Dont give BHAW To any broker or Seller...Quote your rates and STICK BY THEM....let him suffer....You are king now...Behave like one.....Dena hai to do..warna 1000 aur aayengey....No problems....Whoever Blinks first Loses...and with Lakhs of flats coming up....You as a Buyer certainly DONT Need to blink at al

3. REJECT ALL BROCHURES...All bullshit talk and fundas ....Talk "REAL" Estate. Talk about RATES IN PER SQAURE FEET OF CARPET AREA ONLY

This is VERY VERY Important and if you FORGET THIS...you WILL BE LOOTED...and You will regret in future.

LOADING is the FACTOR which is used to FOOL Buyers...Nothing Else....

Anyone comparing projects PSF of SUPER AREA...is a FOOL and IS BURNING his hard earned money.

Now coming to the point.......of how to determine whats ideal RESALE RATE....

- Resale Rate of PSF OF CARPET AREA in Ready to move, No issues, Fully developed, LOW Density Good sectors of Noida is 7500-8000 psf of Carpet area.

Now let say a Broker / Seller in one of these Pigeon hole Super dense societies with High Loading quote you a rate of 5500 psf all incl. with 35% loading....for a 1200 sq.ft flat
You will pay 66 Lakhs for 1200 sq.ft super OR with 35% loading ...Rs.8500 PSF per carpet area

THATS NONSENSE RATE and should be Rejected clearly...

Considering that these New societies are in semi developed sectors , have High density, and poor ratios of facilities and will DEFINITELY Age faster than low density.....Rate should NOT BE MORE THAN 7000-7500 psf of CARPET AREA IN ANY CASE

Meaning.....1200 sq.ft flat....35% loading....Carpet area...780 sq.ft
7000 psf Rate...55 Lakhs approx.....4600 psf super area
7500 psf rate...58 Lakhs approx.....4800 psf super area

ALL INCLUSIVE


- KINDLY NOTE...these are NOT THE RATES Imagined by ME....but RESALE RATES OF READY TO MOVE, Fully developed, Low density Societies, where registry can be done in day one...and no issues of NGT....and no 9 yr payment plan to builder....are EASILY AVAULABLE IN RESALE MARKET AT 7500-8000 psf Carpet area.....

And by NO MEANS....a 9 ft ceiling height, thin walls, 100 flats per acre with 1-1.5 car parking per flat.....4000 families sharing club and other facilties.....2 lifts for 100 flats...can compare with These Rock solid time tested Low density societies IN HEART OF MAIN NOIDA....nearby EXISTING Metro station and Developed Malls, facilties, etc


- Let me tell you..Majority buyers in Noida and Noida extn ARE SMALL TIME INVESTORS...I know as I myself was broker till 2012 working for a Top broker company in noida.
This statement is proved by the FACT that IN MAJORITY PROJECTS in Noida....you can get DESIRED INVENTORY EASILY.....


- With Upcoming Bridge between Noida 78 and Noida extenion its GUARANTEED that sector78 will be effected negatively. Noida extn IF COMPARED to Noida 78 offers same builders...same standard....and SLIGHTLY BETTER OPEN ROADS etc etc
At much cheaper rates....JUST 2-3 kms away NON STOP ROAD
Moreover Sector 78 is VERY DENSE...and with traffic from noida extn also to come there in futre...it will BE MOST DENSE SECTOR of Noida.....

So my suggestion would be to AVOID that region....Untill unless you have a ROCK SOLID Reason to be there and are willing to Face WORST DENSITY SECTOR living for some reason


- If project is too congested and too high towers and too close..then AVOID PARK FACING UNITS......better to go for road facing,etc units.....AND WITH PATHETIC Lift:flat ratio is most societies...AVOID HIGH FLOORS.....Lifts will HAVE ISSUES....for sure...in future
Ideal flat would be.....In such SUPER DENSE SOCITEIS...

Facing outside park, big road, plot sector between 2nd and 5th floor...Having Sun at least 2-3 hrs a day in winters.....You can easily verfiy this by site visit


ENJOY
Read more
Reply
131 Replies
Sort by :Filter by :
  • After a decade of nonsense, finally the buyers time has arrived and it is here to stay. Also ppl shud forget all nonsense talk that BJP govt will have positive effect on real estate. Middle class is BJP bread and butter, they will not destroy that. I can vouch for this after living almost whole life in gujarat. Yes, quality of life and value for money will def improve.
    CommentQuote
  • How to calculate selling price and the return on CLP plan when amounts and periods are staggered but final selling price is single lump sum?

    One way to solve the problem - for those not using loan - is to first re-calculate the cost of the property based on actual payments paid and adding to it an 8.5% compound interest to get the value of the payments made till the final payment date. After that total amount is available for the date of last payment, again inflate the cost at 8.5% compound interest from last payment date till today - and that is your purchase price adjusted for cost of funds at the highest safe return available in market (I used 8.5%)

    I used annual compounding of 8.5% for over 2 years, Semiannual 8.5% for 1.5 to 2 years, Quarterly compounding for 1 to 1.5 years and Monthly for less than 1 year.

    Once you have the present cost of the flat, you can compare with the market price and the difference is the profit - over and above a normal compound interest. Use a ROI calculator using the recalculated cost price and the selling price, using entire booking period of the flat and it will give a ROI.

    Add (or subtract if loss making) the ROI to 8.5% to get the actual return.

    I used this on one booking to get 8.5 (used monthly compounded) plus 10.3 ROI calculated (annual compound) = 18.8% (assuming present market price 65 lakhs) whereas with market price with 60 lakhs gives 8.5 + 8.8 = 17.3%.

    Another booking gives return of 8.5% at 4064 psf AI price. I think this is pretty close to market price. So only FD rate of return.

    Return is 12.5% if current price is 4812 psf AI Price. 12% if price is 4812 psf AI after one year. Return becomes 16.6% if price is 6042 psf AI after 1 year, 15.3% same price after 2 years. Return becomes 14% if price is 5347 psf AI after one year, 13.2% if same price after 2 years.

    Useful method to get a quick idea of returns. I hope there is no mistake. Once the present value is calculated at 8 .5% the mobile ROI calculator is enough to quickly input selling price minus last 2 payment amount to get ROI to be added ti 8.5.

    Can a macro on excel be made to automate this?

    If on loan, use the rate of interest of the loan instead of 8.5%.
    CommentQuote
  • Originally Posted by iforpunto
    After a decade of nonsense, finally the buyers time has arrived and it is here to stay. Also ppl shud forget all nonsense talk that BJP govt will have positive effect on real estate. Middle class is BJP bread and butter, they will not destroy that. I can vouch for this after living almost whole life in gujarat. Yes, quality of life and value for money will def improve.




    End users / Buyers time has DEFINITELY ARRIVED in Noida and IS THERE TO STAY

    Anyone DENYING that Noida has EXTRAORDINARY OVERSUPPLY is an "Existing Investor" who FAILED to exit at right time.

    BJP ho ya Congress....ya koi bhi party......Noida RE market is screwed for investors as LAND BANK has Already been sold to builders....who have already paid existing govt. to Make AS MANY FLATS as possible.


    The Middle Class spl Padhee Likhee Junta has the SELF DESTRUCTIVE HABIT of behaving like Bechara ALL THE TIME....and in doing so....they are screwed royally by everyone...


    GET RID OF THIS HABIT....at least in RE NOW

    This is BUYERS TIME....and he is King at the moment


    Its upto Buyer to be like a Moron and get screwed...OR...Use the Advantage Properly

    Tables have turned.......Brokers and Builders and Investors who Used to sell Inventory like AFEEM...and raise rates every other month...and proclaim all best units are gone now...are at the backfoot now...

    Remember how you would be made fun of by these chaps...."how you missed the bus" and "how you have no option but to pay premium"

    NOW its Buyers turn....To Play the game...

    MY SUGGESTION......

    1. DONOT Compare projects by SUPER AREA AT ALL....If any broker, investor, builder tells you about super area...tell them..."Show me SUPER AREA" physically then I will Keep in mind when comparing.....You dont have Faaltu money to pay for HAWA.
    You will COMPARE Effective rate psf OF CARPET AREA ONLY

    2. Calculate project EFFECTIVE RATE psf of carpet area as I explained before and Donot Pay anything more than that. Make OTHER BUYERS AWARE of this "Loading factor"
    SPREAD THE WORD......
    Remember how Builders, Brokers and Investors Would Send SMS, emails, whatsapp, Facebook, etc etc etc....to Create Faaltu HYPE ....
    Do the same now....Create Awareness......Let other buyers know.....
    Once buyers will know.....they will question RELEVANT THINGS....and then Effect will be seen more widely

    3. BE PATIENT.....Remember INVESTOR IS IN A TOTALLY SCREWED STATE NOW.....The More he wait....the More screwed he will be.....Every new project offering possession is an added competition......High Holding charges, High maintenance and low rentals Ensure its a tight situation for Investor. SO AS A BUYER you have all the time to WAIT and RELAX....No hurry.....The investor MAY give you ROSY BULLSHIT picture about his project, builder or sector is better and deserves better rates......Tell him....."Yeh offer hai...and its FOR TODAY....kal yeh bhi shayad na ho" :)


    4. Noida Expressway sector 144 side to Surajpur a Bridge will be constructed...MEANING Greater Noida Main sector near Moser Baer will be a mere 5 km STARIGHT road to sector 144.

    Noida 78 to noida extn bridge is already under construction...and will bring Sector 1 noida extn to Sector 78 just 3 kms STARIGHT ROAD

    All are M.I.G Segment...All are same builders and ALL are similar category...and just 3-5 mins away by car......

    BUDGET SEGMENT buyer WILL NEVER EVER IGNORE this FACT.
    So sellers will have a TOUGH TIME



    LASTLY......The MORE you spread the word....the More better for you as a Buyer......I have always adviced my clients who are Sellers of this category of Super dense Concrete jungles when exitting....Ki "Chipka do kisi bewakoof ko....business hai business...its not your job to educate him....roney do usko baad main...who bothers...if he doesnt care about his money...who should you"

    Now you decide....."do you want to be the FOOL" ?????



    ENJOY


    PS: I am Certain this Thread will not be responded to well and will be lost somewhere as this FORUM IS FULL of Existing Investors Who FAILED to take the right decision of exitting at right time and are now all over trying to justify how their project, their builder is still the ANDHON MAIN KAANA RAJA......:)

    Also Huge Broker presence is there.....

    But this thread is to THE MINORITY BUYERS who are genuinely looking for a Home for their familes.....

    My suggestion to them......BALL IS IN YOUR COURT......Educate as many people as you want.....LET THE END USER BUYER BE THE "RIGHTFUL" KING...

    Instead of wasting your time and energy over sending Useless jokes and faaltu posts....EDUCATE OTHER BUYERS ABOUT THE "LOADING FACTOR"....and "HOW TO COMPARE RATES PER CARPET AREA AND NEVER COMPARE USING SUPER AREA"

    Enjoy
    CommentQuote
  • Once again for the sake of Rookies....

    SUPER AREA....Is Used by builders to sell HAWA...and FOOL Buyers...

    CARPET AREA....Actual Usable area..which u can use and Includes Balconies. In simple words..its the area where you can PUT CARPET :)

    Ready to move societies in Main Noida which were constructed PRE-LOOT ERA of 2008 onwards....have a STANDARD loading of Max. 25%
    There is HUGE availability of such Flats in Noida, Greater Noida and Ghaziabad STILL..
    One ca search net to verify same


    THE Super dense concrete Jungles made after 2009 are having a LOADING OF 35% Average....

    THIS IS OPEN LOOT...and here is how....


    - 1000 Sq.ft super area RTM flat in Main noida with Loading 25%.
    Rate psf of super area offered....6500 psf

    - 1000 sq.ft super area UC , nearing possession Concrete Jungle flat in Undeveloped sector with loading 40%
    Rate psf of super area offered ......5500 psf

    To a ROOKIE the 2nd option looks Cheaper....BUT IS IT ????

    Lets see

    -1000 sq.ft super area....25% loading....means CARPET (Usable area) of 750 sq.ft
    At 6500 psf rate super area...cost is 65 lakhs....
    so rate psf carpet is 65 lakhs / 750 = Rs.8670 psf of CARPET AREA

    Now the 2nd one...

    1000 sq.ft super area....40% loading....Carpet area....600 sq.ft
    At 5500 psf Super area....cost is 55 lakhs....
    rate psf of carpet area is.....55 lakhs / 600 =Rs.9166 psf


    So NOT ONLY you chose a Highest density Project.....In Semi developed sector....which is earmarket for Hhigh density.....and has lower ceiling height......Has thinner walls....Has Poor lift:flat ratios....Has less car parking.....Higher maintenance.....Poor ratio of facilties
    offered per flat.....Issues with sunlight and Ventillation...construction all around

    BUT ALSO A MUCH HIGHER RATE.......

    So Stop being a BECHARA and use advantage PRACTICALLY :)
    CommentQuote
  • Mr zohaib fundamental flaw in ur calculation is that u assume no loading in old sectors

    Sent from my Nexus 5 using Indian Real Estate Forum mobile app
    CommentQuote
  • pls read again and calculate urself

    rtm societies in best sectors of noida and gnoida are having loading between 15-15%

    while pigeon holes in concrete sectors which are earmarked as super dense have loading between 30-45%

    WITH A HIGH POSSIBULITY OF FURTHER INCREASE UPTO 7-8% AT TIME OF POSSESSION :)

    enjoy
    CommentQuote
  • Originally Posted by zohaib2012
    pls read again and calculate urself

    rtm societies in best sectors of noida and gnoida are having loading between 15-15%

    while pigeon holes in concrete sectors which are earmarked as super dense have loading between 30-45%

    WITH A HIGH POSSIBULITY OF FURTHER INCREASE UPTO 7-8% AT TIME OF POSSESSION :)

    enjoy


    Super area based selling should be banned. In logix blossom county 4 bhk+serv size is 1875sqft. Room size is not bad. Kasa isle 4 bhk+serv size around 1900sqft. But ats oh 3bhk+serv size is sold at 2150sqft with room size quite average. Builder just creating concrete jungle with no open space. So agree with zohaib. End user evaluates price on the basis of carpet area and open space. Do not just go with the name of the builder.
    CommentQuote
  • No true zohaib not true at all. I live in one such old society and loading is 25 %. Stop misleading people.

    Sent from my Nexus 5 using Indian Real Estate Forum mobile app
    CommentQuote
  • mr.tony....kindly prove ur statement...how i am.incorrect :)
    CommentQuote
  • Problems with less loading for large carpet area:

    1. No downstairs lobby
    2. Narrow corridors. Too many doors opening in small corridor area
    3. Narrow stairs

    High carpet area flats make good rental flats. Because less price for smaller area but rent is same as larger 2 or 3BHK. Usually it is difficult to get rent for higher specifications.

    Most people want better space outside the flat for self use.
    CommentQuote
  • Good thread zohaib. Dont worry about low replies on the thread. End users are silent but at the same time very alert and definitly reading all the posts with these kind of useful knowledge with interest. Keep up the good work!
    CommentQuote
  • @zohaib2012 , please give your opinion about plot options in G Noida and ext. There are people who want to buy plots but Noida is too expensive. Say like with budget of 90 L - 1 cr, what could be the option? Not 60 m in Noida please.
    CommentQuote
  • Very Useful Advice, Posted in GGN Forum Also for End Users Benifit
    CommentQuote
  • Originally Posted by Venkytalks
    Problems with less loading for large carpet area:
    1. No downstairs lobby
    2. Narrow corridors. Too many doors opening in small corridor area
    3. Narrow stairs
    High carpet area flats make good rental flats. Because less price for smaller area but rent is same as larger 2 or 3BHK. Usually it is difficult to get rent for higher specifications.
    Most people want better space outside the flat for self use.




    PROBLEMS with less loading ????

    mr.venky....i suggest you visit the pre 2007-08 societies in.noida and greater noida and then comment

    This was one of the lamest comment i have read trying to justify a builders flaw and greed !!!!!

    and dear if most people want more outer space for use then ALL THE SUPER DENSE CONCRETE.JUNGLES ARE A BIG NO FOR THEM

    as 4000 families sharing 1 lakh sq.ft club

    4000 families pools sharing 3 pools


    100 families sharing 2 lifts


    IS A JOKE

    now pls justify this by saying that it will promote more social life ;)


    and NO...Buyers NOW dont have to "compromise" as they have.more than enuf low density rtm options in main noida in SAME budget

    enjoy
    CommentQuote
  • Originally Posted by meragharonda
    @zohaib2012 , please give your opinion about plot options in G Noida and ext. There are people who want to buy plots but Noida is too expensive. Say like with budget of 90 L - 1 cr, what could be the option? Not 60 m in Noida please.



    In random.order

    - swarn nagri
    - co operative societies like nsg, ntpc anandam
    - ansal golf links 1

    DONOT EVER.COMPROMISE.ON LOCATION

    DONOT VENTURE. FAR AWAY FROM PARI CHOWK

    Stay within 2 kms of pari chowk

    best region is right side of pari chowk when coming from delhi, behind nri city
    CommentQuote