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Pune Procedure of Buying a Resale Flat

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Pune Procedure of Buying a Resale Flat

Last updated: January 6 2016
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  • #11

    #11

    Re : Pune Procedure of Buying a Resale Flat

    Originally posted by confusedUser View Post
    Hi All,

    i bought a flat which i am now planning to sell. I have some confusion as to the amount of money i will be receiving.

    The details are as follows:

    1. Bought flat at 2250psf rate ---Cost 22 lakhs approx ---850 sq ft area
    2. Cost under CLP Plan --- 25 lakhs approx
    3. Payments Made till Date ---17 lakhs

    Rate being Offered 2700psf

    2700*850 = 2295000
    Other costs+ Parking = 240psf + 1.5 lakhs = 354000

    Total Selling Cost = 2295000+354000 = 2649000

    Total Profit = 2649000- 2500000 = 149000

    I took a loan and pay a monthly EMI of 10000 approxy (for last 1 year or so).

    So if i deduct Broker commission and EMI from the Total Profit then it looks i will not be making any profit in this sale.

    Can somebody shed some light on this????
    Where did the 2500000 in total profit come from? Also, don't forget to add the rent saved/earned + tax benefit to the equation.

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    • #12

      #12

      Re : Pune Procedure of Buying a Resale Flat

      Originally posted by confusedUser View Post
      Hi All,
      i bought a flat which i am now planning to sell. I have some confusion as to the amount of money i will be receiving.

      The details are as follows:

      1. Bought flat at 2250psf rate ---Cost 22 lakhs approx ---850 sq ft area
      2. Cost under CLP Plan --- 25 lakhs approx
      3. Payments Made till Date ---17 lakhs

      Rate being Offered 2700psf

      2700*850 = 2295000
      Other costs+ Parking = 240psf + 1.5 lakhs = 354000

      Total Selling Cost = 2295000+354000 = 2649000

      Total Profit = 2649000- 2500000 = 149000

      I took a loan and pay a monthly EMI of 10000 approxy (for last 1 year or so).

      So if i deduct Broker commission and EMI from the Total Profit then it looks i will not be making any profit in this sale.

      Can somebody shed some light on this????
      Buying base rate=2250/sqft
      Asking base rate=2700/sqft
      Transfer fees to be paid to the Builder for transferring the Flat on the buyers name=X/sqft
      Lets say the transfer fees=75/sqft
      Premium you will get=2700-2250-75 = 375/sqft
      Buyer (or his bank) will give you premium= 375 * 885 = 331875
      Buyer (or his bank) will give you the amount you paid so far = 1700000
      Buyer (or his bank) will have to pay to the builder as per the CLP as agreed originally between you and the builder (which includes the Car parking, other costs, registration cost, ST VAT etc)
      You will pay Builder= 75 * 885 = 66375
      Lets say You pay Broker commission, 30000 (some % of profit)
      Your profit is 331875 - 30000 = 301875
      % = 301875/1700000*100 = 17% (this is total profit, as you didnt tell when you booked flat and what is your CLP so far for this 17L, I cant calculate CAGR)
      This is your profit before adjusting the interest you paid to your Bank so far
      You didnt say how much you took loan from your bank, and how much is the interest rate and what is the tenure, so we cannot calculate how much interest you paid so far, and how much principal amount has already been deducted.
      Lets say you paid 90000 interest so far (as interest part will be more in the initial years)
      and 30000 is paid towards principal so far.
      Your total profit will be 301875 - 90000 = 211875
      % = 12%
      You can close your Loan with this 1700000+ 301875 = 2001875, to repay your loan outstanding, which will be your (Loan amount - 30000 (principal paid so far))
      Rest is yours. Enjoy!
      You made a decent profit, with some lessons learnt!

      Comment

      • #13

        #13

        Re : Pune Procedure of Buying a Resale Flat

        Buying a Resale Property - Need Guidance

        Dear Boarders,

        Please help me with things to check for before buying a resale property.

        Suppose the agreed value is 'x' when can the agreement be done in the buyers name.

        If the seller has a loan on the existing property - can I transfer the loan/ should I get a new loan.

        How much money should I pay before the seller can transfer the property.

        Rgds,
        Aplusk
        Last edited by MANOJa; January 5 2016, 09:57 PM. Reason: Text formatting.

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        • #14

          #14

          Re : Pune Procedure of Buying a Resale Flat

          Pune : Steps to Buy a Resale Property

          Hi All,
          Have gone through previous threads but need some clarity -

          So if I want to buy a resale property -
          1. Check Documents
          2. Pay Token Amount and take receipt
          3. Provide documents to lawyer (original or photocopies, I guess photocopies)
          4. Approach bank and apply for loan (They will need original documents, right ?)
          5. Sale deed

          So when should I pay 20% of my part to owner? (Property is not mortgaged).
          Does lawyer verify original documents or he can work with photocopies.

          How can I find good property lawyer?

          Comment

          • #15

            #15

            Re : Pune Procedure of Buying a Resale Flat

            The steps you mentioned are pretty much good.

            Give a small token which is is refundable if the legal advisor tells you not to buy the property.

            Yes, you must have a legal adviser.

            I generally deal with Adv Prasanna Darade in Bhuvneshwar colony, Near Abhimanshree society or Adv Anil Sardesai on Prabhat road. These are suggestions of the names.

            Some people prefer to also give a legal notice in the paper which is a good idea and I would recommend it, just in case there is any problem on the property. Your legal adviser will do this.

            Also make sure the current seller has no outstanding with builder esp the VAT money which was an issue a while back. So also he should have NOC from the society for which he should pay any charges society asks. This we you are eliminating uncertainties.

            Hope this helps. Wish you all the best.
            Last edited by MANOJa; October 14 2015, 10:58 AM. Reason: Text formatting.

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            • #16

              #16

              Re : Pune Procedure of Buying a Resale Flat

              I think there are few steps missing

              1) Shouldnt there be an agreement for sale done while giving token anount listing conditions for sale, dates and payment procedure
              2) Also you will need to check outstanding dues, society maintenance, property tax pending
              3) Get a no dues certificate from society
              4) Not sure whether a non encumberance certificate is needed.
              5) 20% cheque is handed over along with bank's cheque at registration office during registration. Bank will have its agent come there and will handover. Original documents are handed over at the same time during registration
              After resale there will be some additional steps
              6) Need Share certificate transfer needs to happen (not sure when this is done)
              7) Electricity meter needs to be trasnferred in your name.
              8) Not sure what needs to be done for property tax bills to come in your name in future

              This is my experience based on a sale I did in Bangalore. Not sure if Pune has some additional steps.

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              • #17

                #17

                Re : Pune Procedure of Buying a Resale Flat

                Thanks

                Thanks all for your helpful replies.

                One confusion -

                When I went in SBI they said I need to do agreement to sale and then Sale deed.
                But someone said to me for resale flat only sale deed is required.
                Last edited by MANOJa; January 7 2016, 08:16 AM. Reason: Text formatting.

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                • #18

                  #18

                  Re : Pune Procedure of Buying a Resale Flat

                  Hi All,

                  Few more queries

                  If there are multiple sellers, how do we provide cheques ?

                  Can we give in the name of single seller or distribute among all (2 sellers)?

                  What about TDS, I read that we need to deduct TDS for both the sellers, is it 50-50 division or can be different also?

                  Does bank give DD in the name of single or all sellers?
                  Last edited by MANOJa; January 5 2016, 09:57 PM. Reason: Text formatting.

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                  • #19

                    #19

                    Re : Pune Procedure of Buying a Resale Flat

                    Any feedback on services of proptiger to buy a resale flat?

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