Save the IT People from
* Property market in
Year 2001 -2004 was quiet Ok , People were able to buy Flats in reasonable
*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
--> 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
(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
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 .
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
one flat 1500 Per Sqft in Morning and 1800 Per Sqft in the
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.
.. Under Table ,can be managed easily .
Q. What will be the condition
If We are not able to Clear the Loan ?
--> Depends on individual
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
If two flats are in the same floor, then the builder cheats both the residents
do Builders cheat buyers? ... Let us see with a simple example
proposes a flat in a decent residential area.
Rate ( Unit Price
) - Rs. 3500 sft.
- Rs. 40 per sft.
EB and drainage
- Rs. 50,000
Covered Car park
- Rs. 1,25,000
- 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
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 -------
Total builtup area for 10 flats
- 10*1000 sft =
Construction cost per sft (
for normal specification) = Rs. 900 per sft
2) Total construction cost
- 10,000 * 900 = Rs. 90,00,000 --------------
3) Other expenses for the builder
- Rs. 20 per sft
= Rs. 2,00,000 .................
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)
= 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
= Rs. 8,00,000
2. Construction cost = Rs.
900 * 1000
= Rs. 9,00,000
3. Other expenses
= Rs. 2,00,000 ( approx)
= 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
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 .
the above mentioned calculation carefully, when you are about to buy a
flat pls keep this in mind.
Please read this carefully
it to all you know
them from debts
can stop the inflation