Couple of weeks back I was looking for buying a property in Chennai’s IT City where the builder was offering a house at Rs 2000/- Square Foot.
The house was big and reasonable. At present only the plinth is there and nothing above the plinth. My Father was against my buying the house due to many reasons. Latter based on his inputs I realise the following.
Thought the builder is promising the house by Mid 2011, the term Mid is not quantified to a month. Mid can be any thing from February to November of 2011. When I asked the Builder representative for a specific date of hand over he kept on telling me that the building will be handed over by mid 2011.
The builder is expecting aprox 70% of the payment post completion of structural work and the payout happens mostly in 2009. My assessment says the builder will likely hand over the building in October 2011 which also means I will have to live in a rented house till October 2011 i.e the next 22 months.
If I Pay 70% of the cost the builder is expecting then I will be paying about 30 Lacs to the Builder and the interest of about 6 lacks to my banker. Apart from that another 3 lacs will be paid by me as house rent which means I will payout 10 lacs which has no value. Looking at this equation it looks wise to look for a house even if costs 4-6 lacs more in cost and buy that as
a) My payout of interest is for the house where I am living
b) I will not be paying the Rent any longer
c) There is no uncertainity on Builder delivering the flat in Mid 2011
Just think. There is Other Side of every thing. A different view point.
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