Around 300 buyers seeking to exit the DLF Garden City project converged at the DLF office on Saturday evening (28 March 2009) and refused to leave until DLF agreed to refund their money.
It seems only DLF did not factor the changing economic scenario, reducing costs of construction and lowering interest rates, when it had fixed the prices for its projects. They sited those reasons when they made a price cut recently.
All other builders were wise enough to forsee the problems and had priced their projects right. Some go to the extent of suggesting that reducing the prices can only result in reduced quality and hence they will not reduce prices in their projects.
Justifying the need to retain old prices seems to be a problem at hand for the builders. Either they need to come up with convincing answers on why they will not reduce the prices or they will have to bite the bullet.
Read about what some builders have to say..
Estancia Integrated Township, at Maraimalai Nagar, is all set to get an exclusive BSNL telephone exchange within the complex, enabling “Total Telecom Solutions” to all the residential units, as per the MoU signed between the promoters (L & T and Arun Excello) and BSNL.
The Economic Times
As per the MoU, BSNL would extend copper-optic fiber connectivity with 100 per cent redundancy to all buildings inside Estancia to deliver its services including voice and data services, high speed broadband, centrex facility, mobile services, wi-fi hotspots, MPLS-VPN and Internet lines.
BSNL would give the 1900 residents a deposit free telephone connection with STD facility and supply the telephone instrument free of cost.
Full article here [economictimes.indiatimes.com]
While the proposal of setting up telephone exchanges is an obvious necessity for such large townships in farther suburbs, it is always better to have provision for multiple players.
In our 10 year old apartment complex in Velachery, BSNL does have underground lines running to all blocks and into the apartments. Enabling a new connection in an apartment is as easy as plugging the phone into sockets (after the line is configured to go live).
But, all other lines including Hathway (cable internet), Airtel Landline, etc.,. have their wires hanging between blocks and running through windows into the residential units. So, it is important that additional concealed piping is made available for other competing service providers to route their land-line services, at a later date.
Hope such MoU-s do not have clauses for blocking out additional provisions for competing services.
The official press release on the MoU between L & T Arun Excello and BSNL adds..
‘We have signed around 100 such agreements with real estate developers so that they can offer a telecom-ready building to their customers,’ he added.
L & T Arun Excello will construct and offer BSNL 2,500 sq.ft building for running a telephone exchange on annual lease rent of Re.1. For the telecom giant it is a winning deal as the township project has 1,900 residential apartments, an IT special economic zone (SEZ), hotel, mall and other facilities.
‘We will recover our investment of Rs.60 million in a year’s time,’ said Velusamy.
Full Press Release here [indiaprwire.com]
Wow !! The six crores spent is to be recovered in a year’s time !!
That works out to billing each apartment nearly Rs.32000 / year or around Rs.2650 / month (considering 1900 residential units).
(This post is part of the discussion thread on L&T Arun Excello Estancia)
Friends, Many of you might be in the phase where you might consider investing in your own apartment. Since new apartments usually cost very high, you may consider purchasing resale apartments too. Here is a sample post with details of such a resale flat in Velachery (Chennai, India) posted in my company’s intranet blog.
My relative has planned to sell his flat at velachery.
Flat Details :
Total area : 865
Cost/square feet : 4500 (negotiable)
No of Bedrooms : 2 with attached toilet.
Flooring : Marbonite tiles.
Kitchen : Shelves, granite slabs,etc. (attached pooja room)
Balcony : available for one bedroom.
Flat opposite to Velachery(dhandeeswaram) Bust stand.
The flat is 5 years old.
Person for Contact : *****
Mobile : ******
Some questions/notes are specific to the quoted blog post, but can be generalized for any apartment purchase.
Is this flat on the main road side (facing the bus-stop) or on back side, which also has road access (If I remember right it is Karnam street). Concerns of noise and pollution – you cannot keep your windows open.
Does this flat have a car park ? If yes, is it reserved (mentioned in the document) ? If not, is it possible to park it on the roads ? (which I guess is not possible for this apartment – since one road is very busy and the other, on the back side, is very narrow)
How about 2 wheeler parking ?
Total number of flats in the block, how many in your floor ? Who are your neighbours ? You will be comfortable if you have people similar to you, rather than say a politician who has people visiting him always or say some noisy office is next door.
Does it have an association (at least informal) with a proper person (one among the flat residents) to take care of common facilities administration ?
What are the monthly maintainence charges ? (I think this flat has a lift -> more charges towards electricity. BTW, does this lift have license ? )
Water : Does it have metro water connection ? Is the bore water available ? Is there a sump for both water connections ? Does it have individual over-head tanks or a common one ? If it is common, is the water usage metered, what if one flat uses water irresponsibly ?
What are the total number of floors ? (G+2, I guess. If it is, does it have approval for the second-floor ?)
Is it suitable for families, in the sense, since it is on the main road commercial centers may have cropped up. So there can be an office functioning next door. Some may not prefer to live in such places. But some will be very much interested to buy and start their office or rent it out to offices (better returns, but again more risks).
What are the current rentals. If it apartment is already let out, what is the current rental and if this flat is not let out, what do other apartments in the same building charge as rent ?
What is the UDS (Un-Divided Share) of the land for this apartment ? What is the guideline value for the land ?
UDS * GuidelineValue –> what you are paying for the land, which usually should appreciate over time.
Total cost – (USD* GuidelineValue) –> the money you are paying towards the building, which usually depreciates over time after construction.
Sometimes the market value may be much lower than the GuidelineValue, it is in your best interest, that you raise it to market value when registering the sale.
Can all this be bought with white money or will a part of the amount have to be settled in black, if so how much ? Some owners might rarely demand in such a way, because the apartment would have been bought at 1/3 of the current price (around Rs.1500/sqft) so there can be a lot which can be taxed, so some will want part of the amount in black. But if the owner were to invest back in another apartment, he/she will not mind receiving full-white. But if the owner asks for black, it is not suitable for salaried professionals.
Is it already in a home loan ? If so, will the owner release it before sale for that does does the owner intend to use advance from purchaser ? If not, one option is to go in for a loan in the same bank and transfer the loan to the buyers name. It is hard to make this work, if the buyer is going in for a loan in another bank.
These are some of the questions I would have asked if I were to purchase that apartment. Some of them are generic enough for any apartment purchase. There may be more which I could have missed out, since it might be very obvious step (verifying encumbrance certificates) or may be I just forgot (please add your comments to this post). Hope you find this helpful.
Note : I am not a certified adviser in real estates, I am just sharing my personal experiences. Any decisions you take based on my posts are at your own risk.
Some Rights Reserved : Creative Commons Attribution 3.0 License