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Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

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Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

Last updated: September 7 2015
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  • #31

    #31

    Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

    Originally posted by Dipti View Post
    I am getting a deal in Tirupati Campus for ready possession 2 BR flat. As there is no Completion certificate, I have to pay 2.75% service tax on agreement value. I have to stretch my budget for this flat and EMI would be 40% of our (me n my husband's) take home salary + almost all savings will dry-up. the only factor pushing us for this deal is the availability of the same type of flat after 2 years. As we know rates will be stable till there are no signs of huge salary increments. We want to own a flat in Vishantwadi area as its closer from our workplaces + has some good schools nearby (my husband's company just 3 kms from here). We are ready to take resale (0-5 yrs old) flat. We have seen some resale flats in this area, problem is, there are very few societies in this area. Mostly are like standalone buildings. So most flats we don’t like and the flats which we like owners are quoting like anything, seems not interested in selling.
    So If I do not stretch my budget I think I will lose the flat of my choice, and if I stretch I know I have to compromise in my expenses.

    Can you help me in solving my dilemma?
    I find your reasoning for buying this house lame. Since you are open for re-sales why are you ruling out the possibility of getting a re-sale flat in Tirupati Campus itself 2 yrs down the line?

    Regarding financial I would let you decide on your own.

    Just keep the below points in mind.

    1) Prices are almost back to the peak of 2008 and are struggling to rise further, indicating these prices are highest to what Pune can digest.

    2) Builders are still doing all kinds of frauds/cheating, no law to punish them. Since you are buying ready posession this is taken care of, but not 100%. Unless society is formed and sales deed is in place, builder risks are not over yet.

    3) Typically I would buy where I can put 50% down and loan for the rest amount, and still have some cash in hand for unplanned emergencies. Since you are exhausting all your savings keep in mind that once you have EMI over head, building up savings again is very difficult. If it took you 5 yrs to build current saving, After loan it will take you ~10 yrs to build the same kind of savings, considering inflation even more yrs.

    4) I presume you have kids and you are aware of kind of expenses kids have.

    Do not get desperate to buy home, unless all the bells whistle in your heart, do not buy. This is the one of the biggest purchase one does in life, so do not take even 1% chance of some thing that might be bothering you.

    Good luck to you.

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    • #32

      #32

      Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

      The following are the data posted by you about your personal and financial situation:
      1. Young couple
      2. You are in IT, husband in non IT
      3. DINK
      4. Lets say both contribute 50 - 50 to gross take home pay.
      5. Home loan rate of interest taken at 12% - currently floating rates are around 10%, so you are doing a worst case scenario at 12%
      6. EMI will be 40% of take home, which means one persons salary will completely go to pay EMI.
      7. You have a good amount of inherited savings in case of emergency

      You need to ask yourself the following questions:
      1. Do you plan to take a 1-2 year break from work in the next 5 years?
      2. If yes to Q 1, does your husband see his salary rising by 50% - 100% in the same 5 years?
      3. If yes to Q 1 and no to Q 2, are you willing to use inherited savings to prepay part of your home loan and reduce EMI?

      If Ans 1 is no, then be go ahead and buy
      If Ans 1 is yes, but Ans 2 or Ans 3 is yes, go ahead and buy
      If Ans 1 is yes, and Ans 2 and Ans 3 are no, do not buy.

      Comment

      • #33

        #33

        Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

        Originally posted by realacres View Post
        Dipti,

        You said that the project is ready poss but the builder hasn't received the OC as yet. Then why not book today & make the agreement once OC is received by the builder? This way you can save ST of 2.575%. Ofcourse, the duration between booking & agreement should not be more than a month.
        Hi Real,

        As service tax decision is yet pending in court. I will be giving post dated cheque to builder. And I am going for SBI home loan. So it will take around 1 month or more time to get the loan sactioned. Builder is ready to wait till the loan is sactioned and will be going for registration after we get the saction letter from bank. So I am getting at least 1 month time. But not sure weather OC will be done in this time period.

        Is there any way, we can avoid ST in such case? I have not yet done the booking.

        Builder is saying that project is approved by SBI. Does this mean I dont need to worry about the property documents, all the documents are verified and there are no issues so SBI has approved it. Or is there any chance of not having NOC or so???
        Last edited August 4 2010, 10:59 AM.

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        • #34

          #34

          Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

          Precautions

          Originally posted by Dipti View Post
          Hi Real,

          As service tax decision is yet pending in court. I will be giving post dated cheque to builder. And I am going for SBI home loan. So it will take around 1 month or more time to get the loan sactioned. Builder is ready to wait till the loan is sactioned and will be going for registration after we get the saction letter from bank. So I am getting at least 1 month time. But not sure weather OC will be done in this time period.

          Is there any way, we can avoid ST in such case? I have not yet done the booking.
          Though the issue is pending in court, it doesn't necessarily mean that the result will be in the favor of builders....so be prepared for worse & expect for the best. If no ST, good for you, if not you need to put about 2.6% aside.

          To avoid ST, best to but flat having CC before 1st July 2010 so irrespective of court's verdict, you are safe. Btw, as builder is ready to wait for 1 month, it means that there are no buyers in large nos. else he wouldn't have waited for so long.

          Builder is saying that project is approved by SBI. Does this mean I dont need to worry about the property documents, all the documents are verified and there are no issues so SBI has approved it. Or is there any chance of not having NOC or so???
          It depends as in several cases after the project is approved a new building comes up on TDR which may not be under the perview of the bank guys who sanction a project. In cases where there are multiple phases, the builder may show letter for wing A but may not be able to do so for say wing D.

          In some cases, the builder bribes bank chaps & gets the sanctioning done...so some builders specifically tell you to approach a certain bank only.

          When you are putting in lakhs of rupees, why not spend another 5-8k on a good lawyer?? Please don't be 'kanjoos' on fees given to lawyers. Buying a flat without legalities is like buying a Ferrari with Chinese tyres.
          If you are happy, you are successful.

          Comment

          • #35

            #35

            Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

            Thanks real. Yes to cross check the documents even I will go some other bank (bank which has not approved the project) and will put the loan case there as well.

            Any pointers to good property lawyer in Pune? I am asking to my friends who bought home but nobody has approached lawyer for buying home.

            Comment

            • #36

              #36

              Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

              Originally posted by Dipti View Post

              Any pointers to good property lawyer in Pune? I am asking to my friends who bought home but nobody has approached lawyer for buying home.
              If thats true, thats very serious,I think I said this point about Punekars(including me) - we are not street smart. I know many of them but dont want to recommend you here, I want you to take the loan to good conservative PSU bank, and for them who is lawyer and talk personally to him, this way, you are making sure there are no loop-holes.

              I did the same, the lawyer asked me some 3000 Rs EXTRA for a 360 degrees kind of the property check, which even the banks dont do, I paid but it was very useful !

              Comment

              • #37

                #37

                Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

                Originally posted by Dipti View Post
                Any pointers to good property lawyer in Pune? I am asking to my friends who bought home but nobody has approached lawyer for buying home.
                And then later when buyers are in fix, blame the builder. If the 'bakra' does 'kathak' in front of 'kasai', why blame the 'kasai'?

                I feel Puneties in general have different things about loss & profit. They feel saving 5-8k is profit, without thinking that this is a premium which is really worth to secure investment of lakhs.
                If you are happy, you are successful.

                Comment

                • #38

                  #38

                  Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

                  Originally posted by pcpune View Post
                  If thats true, thats very serious,I think I said this point about Punekars(including me) - we are not street smart. I know many of them but dont want to recommend you here, I want you to take the loan to good conservative PSU bank, and for them who is lawyer and talk personally to him, this way, you are making sure there are no loop-holes.

                  I did the same, the lawyer asked me some 3000 Rs EXTRA for a 360 degrees kind of the property check, which even the banks dont do, I paid but it was very useful !
                  Yes pcpune, this is good idea. Anyways I am approaching bank, so I will pay to the bank lawyer some extra money and will ask him to do the verification.

                  Comment

                  • #39

                    #39

                    Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

                    Originally posted by realacres View Post
                    And then later when buyers are in fix, blame the builder. If the 'bakra' does 'kathak' in front of 'kasai', why blame the 'kasai'?

                    I feel Puneties in general have different things about loss & profit. They feel saving 5-8k is profit, without thinking that this is a premium which is really worth to secure investment of lakhs.
                    I think, that we Indian trusts banks a lot. If bank is saying no problem in property docs and loan is approved NO WORRIES. So if bank is approving loan people dont bother much. Even if I have not been reading this forum, I would have trusted the bank BLINDLY.

                    Comment

                    • #40

                      #40

                      Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

                      Originally posted by realacres View Post
                      And then later when buyers are in fix, blame the builder. If the 'bakra' does 'kathak' in front of 'kasai', why blame the 'kasai'?
                      ha HA HA.... In my mind i pictured a Bakra doing Kathak in front of Kasai... very funny indeed...

                      Dipti, ppl have given you very good analysis on this forum. I dont have much to add.

                      Just that very ecently a friend of mine who had taken home loan told me "Never ever buy house on loan". He lost his Job and is struggling hard to find a job which pays him as much.

                      Altough above is an extreme view and one has to take some proporion of loan. Unfortunately, we mosty think "This will never happen to us/me" but life is uncertain and can get cruel at times.

                      VK

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