Caution for BANGALORE property buyers...courtesy IT people

Please read this carefully.. Send it to all you know & Act quickly..Save them from debts!

We can stop the inflation

* 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 Lachs 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 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 ?
Fool 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 will 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 stop 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.
>>>
>>>