Jai
Jagannath,
( This inestimable
piece of article is shared across by Mr. Bibhudutta Raj )
Real Estate price hike is known open robbery from IT guys by brokers
/ whoever it is and it's not only Flats / Real Estate, IT guys
undergo open robbery from all rich shop owners / a person who wanted
to become rich as fast as possible... The salary whatever we get,
it's our hard-earned money, most of the times sitting in the night,
away from family functions, friends, etc...but all our money or most
of the money are going to someone who just takes advantage of our
stressful life (both mentally and physically) and our new western
life style. I do not find anything wrong in having a US / UK life
style, but many open thieves (starting from Ministers to our local
Restaurant owner) just swindling all our "legal money" and as we do
not have any other choice becoming poor / debtor day by day.
Well most of the price hikes are just unbelievable and there is
absolutely no justification. We guys already pay big taxes from our
salaries and go on paying other taxes too (starting from Hotel
Sangeetha "Vadai" to Scotch in a bar), it's time to think and pledge
ourselves that we stop spending just for one month. Reason(s) why we
should stop spending alteast for a month:
1. 70% of the IT guys occupies the restaurants.
2. 80-90% of the IT guys goes to coffee shop, hang around places,
bakeries, etc.
3. Most of the IT guys go to Sathyam complex, Movies
If we stop going / spending just for a month, their business
automatically goes down and they would have no other choice except
to bring down the price, that's what happened when IT industry was
slow down three years back.
Somehow directly or indirectly we are responsible for this unjust
price hike and now, only we could prevent this open robberies,
please add your comments or experiences and keep forwarding this
email to all your known people, I am sure even if 25% of us realizes
and acts accordingly, it could and would make lot of difference to
us.
(let's try and prevent unjust price hike)
Talking about Property market. Property market in Year 2001 -2004
was quiet Ok , People were able to buy Flats in reasonable rates.
Year 2005 -2006 , Some of the well known builders started the rates
boom , flat which was at the cost of Rs.900 Sq Ft now became 2200 to
2800.
Q: Are there any additional facilities ?
--> No Same Scheme/Area , Flat sold at 10 Lacks Now selling at 25
Lacks .
Q: Why Property increased so High ?
--> IT people competition to buy sweet home ..
Q: Who is going to Benfit from this Property Boom ?
--> Only Builders and some of the Politicians
Q: How is the Bank's support on Home Loans ?
--> Last Year , Bank gave the loan's at flexible mimimum rate,Now
Banks has sufficient number of customers , (Trap) Slowly Banker's
increasing interst at % 0.5 every month . IT People Who bought house
for 22 Lacks for 20 Yrs , Now became 23 Yrs with raise of 0.5 %
Q. How some IT people can face the problems in Future ?
--> Companies are Project Based , If Projects are not there then
People will not be there .
Q. IT salaries are high in Market , How much actually IT-people
getting in Hand ?
--> People, Who bought house of 22 Lacks to 40 Lacks They need to
pay EMI 15,000 to 35,000 for 20 Yrs. If Bank keeps same interst
rates . Suppose Salary is 35- 40 K Per Month, 20K will be the EmI
Q. Is there any "Terms & Condition or Processes to increase rates" ?
--> No , Depends on Buiders Greediness . Every builder follows the
different strategies Builder sold one flat 1500 Per Sqft in Morning
and 1800 Per Sqft in the Evening , There are no records maitained ..
Q. Who made builders smart & greedy ?
--> Greedy IT people. No body is asking , Flat was sold at 12 Lacks
, Why now 24 Lacks ?
Q. Is Corporation water & MESB available to all schemes ?
--> Some of the area don't have the Corporation water at all ,
People surviving on Water Tankers. ** MESB .. Under Table ,can be
managed easily .
Q. What will be the condition If We are not able to Clear the Loan ?
--> Depends on individual capabilities
Q. What wiil be the actual 'area of living' or carpet area if the
builder proposes 1000 sft?
--> The actual carpet area will be 800-850 sft only. The common area
is also included in the proposal. If two flats are in the same
floor, then the builder cheats both the residents by collecting How
do Builders cheat buyers? ... Let us see with a simple example
Builder XXXX proposes a flat in a decent residential area.
Rate ( Unit Price ) - Rs. 3500 sft.
Registration - Rs. 40 per sft.
EB and drainage - Rs. 50,000
Covered Car park - Rs. 1,25,000
Corpus fund - Rs. 50000.
For a 1000 sft flat ( 850 sft carpet area ), the approximate cost
will be Rs.37,65,000. In the same plot area ( measuring 2 grounds)
the builder would have constructed 8 or 10 flats.
Let us see how a builder earns his profit
Total sales for the builder - 37, 65,000 *10 = 3, 76, 50000 ( 3.76
crores)
Cost of the land - Rs. 40 laks per ground
1) Total cost of the land - 80 lakhs for two ground ------- A
Total builtup area for 10 flats - 10*1000 sft = 10,000 sft
Construction cost per sft ( for normal specification) = Rs. 900 per
sft
2) Total construction cost - 10,000 * 900 = Rs. 90,00,000
-------------- B
3) Other expenses for the builder - Rs. 20 per sft = Rs. 2,00,000
................. C
Total expenses for the builder = A+ B+C
= Rs. 80,00,000 + Rs.90,00,000 + Rs. 2,00,00
= Rs. 1,72,00,000 ( 1.72 crores approx)
Total Sales = Rs. 3.76 crores - Rs. 1.72 crores
Total profit of the builder = Rs. 2.04 crores.
Let us see the share of each resident
1. Cost of land = Divided share among the other 10 residents
= Rs. 80,00,000 / 10
= Rs. 8,00,000
2. Construction cost = Rs. 900 * 1000 = Rs. 9,00,000
3. Other expenses = Rs. 2,00,000 ( approx)
Total = Rs. 19,00,000 ( Nineteen lakhs)
The total share for each resident is Rs. 19,00,000 ( Nineteen lakhs
only ) but he pays Rs. 37.5 laks for the flat.
Q. How We can stop Builders -Property Boom ?
1) IT People should think about buying flats for atleast next 1-2
Yrs .
2) Onces rates are reasonable , With some legal process get the
Booking .
3) Check Facilities, Convince, Road Approach, schools & Mainly
co-operation water
4) Ask Questions If I buy 1/2 BHK at 12 to 30 Lacks , Do I get
reasale value in future?
5) Today you are capable for paying 1000 -3000 maintains per month ?
Will will be the same case after 20-30yrs after retirement .
6) In All, Don't stretch more to get the more & more loans other
wise it will create unnecessary pressure and tension .
7) Read the above mentioned calculation carefully, when you are
about to buy a flat pls keep this in mind.
We can stop the inflation .
Regards
Nilachakra
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