Indian Real Estate Sector

Aditya_V · Post by **Aditya_V** » 21 Feb 2012 11:49

Singha wrote:
top doctors and lawyers also make big money here. and its easy for them to maintain multiple books in collusion with the CA and heavily under report their income. CA probably gets a cut of the proceeds saved.

Probably true, thats why most CA's who are ethical don't make the astronomical sums which society thinks CA's make. These small % who gets things done give the whole profession a bad name.

Bade · Post by **Bade** » 22 Feb 2012 09:05

Does anyone know the origins or real motivation for the restrictions on PIO/OCI holders from owning or purchasing agricultural land or even a farmhouse. Since there are limits to the quantity of ownership already in place (land ceiling act?) it makes no sense to restrict this further. Clearly this is not a British era rule, but came into effect post 1947 very likely. Was this to prevent the princely families from absconding and taking foreign citizenship as they were perhaps the largest land holders of all during that era, other than the zamindars ?

I am not entirely clear on the differences between the two categories of non-residential land mentioned in most places. A farm house is not a large estate running into multiple acres of plantation is my naive understanding. Some of the estates are long term land leases too is what one hears. Not sure though.

So what is considered a farm house in legal terms ?

SSridhar · Post by **SSridhar** » 22 Feb 2012 13:01

Yogi_G wrote:Learned maulanas, is it good time to buy real estate in Chennai? Well actually somewhere near Madhurantakam. Been out of touch with real estate prices for a bout 2 years now so plz let me know if I should seriously consider or wait for some more time?

Yogi_G, I think you should consider buying real estate now. The prices are only going to go up, IMO. The Chennai prices have not seen the downturn that Bengaluru has seen and from what I hear, the prices have started firming up. The NH45 is the next growth area and Chennai is expanding that way.TFWIW.

Yogi_G · Post by **Yogi_G** » 22 Feb 2012 16:37

SSridhar wrote:
Yogi_G wrote:Learned maulanas, is it good time to buy real estate in Chennai? Well actually somewhere near Madhurantakam. Been out of touch with real estate prices for a bout 2 years now so plz let me know if I should seriously consider or wait for some more time?
Yogi_G, I think you should consider buying real estate now. The prices are only going to go up, IMO. The Chennai prices have not seen the downturn that Bengaluru has seen and from what I hear, the prices have started firming up. The NH45 is the next growth area and Chennai is expanding that way.TFWIW.

Thanks Sridhar ji, points noted.

Gaurav_S · Post by **Gaurav_S** » 02 Mar 2012 11:16

Tata has officially launched its affordable housing in Ahmedabad yesterday. They doing this in conjunction with Arvind Mills. Price is somewhere around 8-10lacs for 1 BHK and 12lacs for 1.5BHK.

Flats will be allocated on basis of lucky draw. IMO lucky draw is a good idea so only genuine and needy ones get it. This will probably keep investors and dodgy agents away. To go in lucky draw one needs to fill form costing 200Rs.

More affordable housing needs to come up.

link

uskumar · Post by **uskumar** » 02 Mar 2012 23:44

To corroborate its claim the report states that “aggressive accounting approved by auditors, perpetuated and aided by investment bankers during the IPO process, the ill-informed media frenzy surrounding the IPO – have all contributed to the myth that DLF is a corporate pillar of India.” Ouch

link

Singha · Post by **Singha** » 03 Mar 2012 08:59

DLF is one of the goldman sachs of india .... too many hooks on the inside channel to be allowed to fail. they also have a readymade product to bribe people with - land or swank housing

VinayB · Post by **VinayB** » 04 Mar 2012 20:15

in previous page there was a discussion on NRIs and real estate in India. IMO there are no real numbers in India (unlike US where you get monthly, yearly trends on pretty much everything). Couple of areas in Bangalore, around 2007, the land rates were driven up in layouts with not a single house built and out of what the brokers said, it was NRIs who were expecting the next HSR in far off areas like Banashankari 6th.

One report in local paper - http://expressbuzz.com/cities/bangalore ... 67200.html

This local report claims that NRI investments (in what I assume to be flats) was 40% and now it is 60%. This is from SBI / CREDAI. I would assume that most builders will not sell all their stock - may be less than 50% at launch. And NRI investments are likely to be concentrated in 'reputed/premium' builders like sobha, prestige etc. so could be a higher % of those. Even at 40%, NRI demand alone would be able to propel prices.

NRI investments in real estate rise

BANGALORE: Property prices in the city continue to soar above the reach of ‘aam aadmi’ in the city. But Non Resident Indians have made the most of this, as their investment interests in real estate in Bangalore has risen in the last few years. Speaking after the inauguration of the State Bank of India (SBI) and Consortium of Real Estate Developers of India (CREDAI) realty expo in the city, organisers said that ‘outsiders’ were investing more and more into properties here, as it was a better option than many other cities in the country.
“United States and the Middle East investments here would amount to almost 80 per cent in the NRI category,” Secretary of CREDAI, Shankar Sastri said.
He added that Australia, New Zealand and Singapore were also emerging as lucrative markets for property investments in the city.
“Ten years ago the ratio was 40 per cent NRI and 60 per cent domestic. But now that has been reversed,” he added.
Adding to this, Chief General Manager (Bangalore) of SBI, Ashwini Mehra said that the city had a loan market outstanding in excess of `10,000 crore. He also said that two new Credit Processing Centres would be opened in Koramangala and Hebbal to ensure speedy clearance of home loans.
Mehra also said that the bank had launched online initiatives to showcase the various properties by the real estate body in the city and details were also available about the same.

Sachin · Post by **Sachin** » 15 Mar 2012 11:54

The slanting tower of Piza is consider as a "wonder of the world". Not to be left behind, Bangalore also have such a tilting tower

.
Neighbours watch in dread as 5-storey building tilts

But this "wonder" would not last long as the authorities have decided to demolish the building. From what I could make out this is a 5 storey building, made exclusively to be used as a Paying Guest accomodation (more like a "lodge" of the yesteryears). The target are the techies in the near by electronics city area. The few buildings next to this one are also these "lodges" popularly referred to as paying guest accomodations. In the eagerness to fleece IT crowd, looks like building safety norms and the quality of construction were all overlooked.

Singha · Post by **Singha** » 15 Mar 2012 15:41

> made exclusively to be used as a Paying Guest accomodation

there are many in areas like marathalli / BTM etc. probably ROI is more than leasing it out as a office or warehouse. the soil foundation must have been inadequate to support this structure...could be sandy mixed with water down there. even in outlying villages, more downbeat versions of these 1 room attached bath buildings are made to house construction workers on rent (the better paid ones like plumbers, electricians, guards, masons...)

vera_k · Post by **vera_k** » 04 May 2012 21:22

Real estate in Delhi-NCR is a bubble about to pop

Some detail on how real estate operates in India. Banks appear to be at risk too.

A builder can easily sell flats to investors at a token price of Rs 5 lakh for a Rs 1 crore property before the construction of a project begins. While the allotment of the flat would be in the name of the investor, the GPA ensures that the name of the buyer remains blank in the document, thus allowing the investor to sell the property further when the property appreciates in the next couple of months.

And what’s worse is that banks were earlier at a massive risk since the documents would get registered only after the competition of the project.

Yogi_G · Post by **Yogi_G** » 08 May 2012 21:45

So how is the local rowdy/politician led land grabbing in North India? I know its bad in Hyd, Chennai and BNG but is it a S.India phenomenon only? Anyone here who has gone through such a harrowing experience and how did you resolve it?

Yagnasri · Post by **Yagnasri** » 10 May 2012 11:32

Behenji did putchased one property I have arranged to be sold through court. Some fake name was used and all the other people were told to keep quite during auction which in fact took place in Mumbai courts.

shyam · Post by **shyam** » 11 May 2012 10:48

Mumbai Land Prices Set to Extend 15% Decline, Oberoi Realty Says

Yogi_G · Post by **Yogi_G** » 14 May 2012 19:55

Narayana Rao wrote:Behenji did putchased one property I have arranged to be sold through court. Some fake name was used and all the other people were told to keep quite during auction which in fact took place in Mumbai courts.

So with a single person bidding wont the auction be called off?

Manish_Sharma · Post by **Manish_Sharma** » 01 Jun 2012 10:18

Folks I got 16.50 lacs in white to invest. I'm looking to invest for around 3 years time and make profit. I'll be grateful for any ideas/suggestions.

sum · Post by **sum** » 01 Jun 2012 10:24

^^ Upto what age can a apartment fecth decent value before it starts depreciating rapidly?

I might be purchasing a 6-7 yr old apartment but it is in the good/developed area of HSR Layout in Bengaluru where demand might always be there. It is for my own use but what would be the recommended max usage i could have with this apartment before trying to sell it if i need to recover atleast my initial investment and before it becomes un-saleable ( currently getting it at 36L)?

Singha · Post by **Singha** » 01 Jun 2012 11:21

it depends on a the level of maintainence and quality of construction and exterior finishes. if you look at 10 yr old sobha apts here, still rock solid and clean with no real visible signs of wear and tear internal or out. whatever is broken is replaced quickly and to spec. the wealthy residents have the means to ensure no corners are cut.

things get progressively downhill from that level...to what extent varies from case to case and depends not just on the builder but on the residents also - a building full of owners will be more caring. if its just renters esp careless badboy batchelors passing through they wont maintain it well.

I would say you have a 5 yr window to move out and get into a 3BHK in a flat with common amenities if you want to marry and raise kids. kids need a pool and space to play and a clubhouse with gym for fitness is a good thing to have around. on the other hand if you can strech yourself and expect your wife to earn and contribute (ie first fix a earning wife and then the flat), skip this halfway house and buy a 3BHK even if its a more farther location like say hosa or harlur road or sarjapur road.

Singha · Post by **Singha** » 01 Jun 2012 16:00

you guys want a chinese style creeping takeover. my suggestion was go for the juggler vein.

sum · Post by **sum** » 01 Jun 2012 16:56

^^ Thank you maulaners for the suggestions.

Marten wrote:On the contrary, he should buy A house (any house), get the registration/stamp duty waived from his tax, use the 150K interest for a couple of years, and get a renter in if he doesn't want to live there.

What does regisration/stamp duty waived from tax mean?

Guess would have to follow suggestion (1) of Singha-saar and utilise the space for 5 years before i can think of the next level since even the current amount is in strech category and aiming higher will ensure the strech turns to snapping onlee .

Maybe even selling the place for the current buying price( assuming no appreciation/depreciation) after 5 years will ensure that ~50-60% of downpayment for next place is taken care of and so no steep loans then...

SaiK · Post by **SaiK** » 11 Jun 2012 19:55

buying an used apt? what is the procedure? the owner asks for a token money in advance? how much should one pay? is that location dependent or people have a set of standards? what documents one should verify before giving advance?

rahulm · Post by **rahulm** » 12 Jun 2012 13:03

It pays to be careful buying any property in India. Generally, its safer (note I did not safe) if dealing with the big name players. The process and terminology differs in every state. From my own lessons, the following may help:

The guiding principles are to establish proper title (note I did not say ownership) of the property, rule out any legal heirs who could "drop by" later and ensure there is no debt or lien (encumbrance) on the property.

Also, take the time to understand that an "Agreement of Sale" is not the same as a "Sale Deed".

I am amazed by the number of people buying properties and lawyers conveyancing properties for people on an "Agreement of Sale". People are oblivious to the fact that this document does not establish title to the property. It merely gives you possession of the property. You could take the position that possession is 9/10 of the law but this in my opinion is unwise.

An Agreement of Sale has its place when buying off the plan or a relatively new property where the developer genuinely needs time to complete the formalities required to execute a Sale Deed.

There should be no reason for a 1st sale on an older property or 2nd hand property to be bought on an Agreement of Sale. Become suspicious if the developer/seller for such a property is pushing an agreement of sale and avoiding a sale deed.

If financing through your bank, then you can rest assured the bank will do all the hard work as its their money on the line.

Otherwise, get hold of a good lawyer. Use somebody else's effort here. Banks are choosy and picky. Try and get one of the bank empaneled lawyers to do the conveyancing for you.

Token amounts vary across states, can be negotiated and should be given only AFTER your lawyer has reviewed the documents and gives you the green signal to pay a token amount. Even then, it's best to have the lawyer handle the entire transaction.

A token amount is supposed to take the property off the market.The issue here is you get nothing tangible for giving the seller money (except a receipt). The seller holds the aces. S/he can choose to dishonour the deal if s/he finds a better offer and return your token amount. If you find a better deal, you can't just walk away because you got nothing, no leverage since you have paid the token.

I recommend doing the deal in one hit with no token amount. It is possible.

If you pay the token amount before your lawyers review and then decide to backtrack for whatever reason, it can be very painful trying to get the token amount back, if you ever get it back. One worthy seller dismissed this whole lawyer review process as humbug and suggested I had gone crazy paying lawyers.

His view was, why do I need lawyers when the property is here standing in front me. Just pay him the money, sign a piece of paper and move in!

Property records and systems in India (like many others) are horribly broken and malpractice is rife. You couple this with legal system that for all practical purposes is non-functional (20- 30 years to settle a case is non-functional in my book) and the risk multiplies.

As a rule, lawyers in India are a law unto themselves. Few return calls if ever. Mostly, you have to chase after them and be grateful they grant you an audience - which is their attitude. Even fewer will honour appointment times and have the courtesy to call you if they can't make it. And you have to pay them for this privilege.

People land up in trouble buying property because they get emotionally attached and then logical considerations take a back seat.

All this is my mileage. I am sure your mileage and of others who read this will vary

SaiK · Post by **SaiK** » 12 Jun 2012 20:06

that was a good post rahulm, thank you very much.

Bade · Post by **Bade** » 12 Jun 2012 20:39

Rahulm has highlighted the most important point, always involve a bank with a loan even if you actually do not need one. I used a local bank loan from India, though I would have got a better rate on a home equity line from massa, specifically to make sure that all papers are in order, regarding title of property etc. Since I did not have a trusted person or even a lawyer to depend on, this was the best option to insure against any obvious issues with the property.

Singha · Post by **Singha** » 12 Jun 2012 22:04

while banks will do some checking via their legal teams , when it comes to big builders remember the same banks advance loans of 100s of cr to biggies and sometimes even enter into JVs like hdfc property fund is doing with sterling developers for villa grande in blr. they have a vested interest in not having any of the biggies fail and causing 100s of cr losses.
however if its a used property or buying from a smaller builder they might do their work more honestly.
SBI also has a reputation for being pretty TFTA on documentation. not sure how far thats true now that they operate on a more P&L basis.

sum · Post by **sum** » 12 Jun 2012 22:23

Bade wrote:Rahulm has highlighted the most important point, always involve a bank with a loan even if you actually do not need one. I used a local bank loan from India, though I would have got a better rate on a home equity line from massa, specifically to make sure that all papers are in order, regarding title of property etc. Since I did not have a trusted person or even a lawyer to depend on, this was the best option to insure against any obvious issues with the property.

I still wouldnt be 400% sure since as per people in that industry, most of the banks ( esp Sarkari) pay peanuts to the lawyers whom they employ for legal opinion and so, even the lawyers dont do a thorough enough job and just do how much they are paid for.

There have been multiple cases where bank approved properties have turned out to be big duds with lots of legal issues etc. So, it is definitely better than nothing but wouldnt say its foolproof

hnair · Post by **hnair** » 12 Jun 2012 22:51

rahulm-saar's post is accurate.

Good lawyers are a must for buying property in India. They have good networking and can sniff out risky properties quite fast. Be ready to spent upwards of 10k Rs on lawyer fees for a good lawyer (references are vital), to scrutinize a deal, before going ahead. Nothing is foolproof, but at least this way, you get no-nonsense opinion about titles, heirs etc.

eg: lawyer of mine was inquiring about kids with mental-issues etc amongst a joint ownership property I was interested in, who got the property as inheritance deed. Seems differently-able members gets judicial support (justifiably) in case someone decide to sue on their behalf. I would never have figured that out by myself.

Selling can be a bit more relaxed

Bade · Post by **Bade** » 12 Jun 2012 23:15

Sum,singha et al. while buying stand alone plots or even in an enclave the risk does get higher. But for enclaves, since BIAAPA/BDA type approvals and processes are involved there is some insurance though not 100% fool-proof.

Shouldn't the risks be even less when buying flats from big builders on greenfield projects ? Land issues (inheritance, title, ownership) all resolved before building starts are given by the local body ?

Singha · Post by **Singha** » 13 Jun 2012 06:21

yes big builders are somewhat safer and 'cleaner' in that pov. bigger the proj more approvals they need in place. they wont sign sale aggreements usually before approval to commence construction is in place.

Sachin · Post by **Sachin** » 13 Jun 2012 11:29

Singha wrote:SBI also has a reputation for being pretty TFTA on documentation. not sure how far thats true now that they operate on a more P&L basis.

I guess many more of the nationalised banks also follow the same strict practises. They pretty much asks for all sorts of proofs before even deciding whether to give a loan or not. I feel many new generation banks skips the stringent process. The borrower is happy at the quick turn around time, but may get into trouble at a later point of time.

hnair · Post by **hnair** » 13 Jun 2012 21:41

big builder to friend during sales pitch - "no funky money allowed saar"
big builder to friend during sale deed - "kindlee adjust, saar"
big builder to friend during handover - "some more saar, green-zone payoffs"

Doesn't matter who the seller is or the banker is, you got to set expectations at the beginning itself

rohitvats · Post by **rohitvats** » 13 Jun 2012 23:28

Please bear in mind two-points -

(a) Generally, the developer needs all the permission from the concerned development authority before officially launching the project. In Bangalore, DLF had run into trouble with BDA couple of years back because of this. But - people start getting calls for 'early-bird' offers before all this happens. The builders/brokers offer discount - the pre-launch price as it is called. Though banned by Supreme Court, it is a wide spread practice. The apartment/plot is offered at a discount to the price at which it will be launched - a buyer stands to make money by locking at pre-launch price. The status of approvals at this stage are not known. When a bank like SBI endorses a project for giving loans to prospective buyers, it does all the paperwork with respect to approvals and other related stuff.

However, there are grey areas here. For example, in Gurgaon, the permission from Ministry of Environment and Forest (MOEF) constituted panel is must before fully launching any Group Housing or Township Project. And this permission is taken after all the others are received from the development authority. But there is a catch - a builder can launch 200K sq.ft of the project built-up area W/O MOEF clearance. A builder pre-launches a part of this component --> sells it to punters or investors with deep pockets --> formally launches this 200K as Phase 1-->shows strong demand (as part of it has already been taken up by punters) --> increase in price of Phase 1-->frantic buy by mango-abdul (After all project has strong demand + he sees everyone talking about it) --> further increase in prices-->more frantic buying--> Phase 1 sold.

Big advertisement in news paper - "Phase I sold, Grand Success". What no one tells you that he has sold <25% of the project but generated enough hysteria and price appreciation for Phase 2. If you buy in "Phase 1" of such project - there is inherent approval risk and you'll need to play with your money.

(b) On buying old apartments - please engage a good lawyer to do proper legal due diligence. He will look up the ownership documents and mutation records at the registrar's officer and look for encumbrances, if any. Please don't be penny wise and pound foolish in this case. Compared to the property value, the fees a lawyer will charge is pittance.

SaiK · Post by **SaiK** » 14 Jun 2012 04:10

my seller was a private layout maker (broker - some mujib rehman/need to verify name).. but he had this land converted from 3 parties - lingasamy, doddaiah, munizamy etc.. now, I have a problem that some nazar lazer guy is also claiming to be bought the same land from the 3 parties, converted and allocated land to people.

jesus!

Sachin · Post by **Sachin** » 14 Jun 2012 11:26

Marten wrote: Bangalore land records must be amongst the worst kept, and if the seller is a local Reddy, then the risk of such an event increases exponentially (purely from recent experience - no offence intended to any individual/community).

Just another point to add on to the claim that "Karnataka is a state in which any thing can be got by bribery". Again, I am not painting every one with the same brush. But bribery is is the IN thing in the state.

Singha · Post by **Singha** » 14 Jun 2012 11:49

*shiver* my plot is in a layout originally formed by a group of employees in a big PSU here, and then a marketing agency also sold some of the other plots there. the guy I purchased from was the 1st buyer of plot, i am the 2nd. it was a BMRDA approved layout and the lawyer I engaged diligently made the seller go and bring in all old khatas, encumbrance certificates and what not to the extent where he was bitching and moaning about it. he had to get some docs from the sub registrar office and some from the village panchayat office(where I also pay annual taxes now). i have the prop tax receipts, the original sale deed, the original khata and ofcourse all the older papers of the place incl the bmrda approval copy.

hope the 'hawks' and 'have-nots' dont pounce on me. so far 2 people have built large well guarded homes in the property and live there, rest is empty. the mkting agency/developer is owned by a former MP and seems to have a check gate and guard onsite, and is still selling some other plots there...they have some boots on the ground atleast.

rohitvats · Post by **rohitvats** » 14 Jun 2012 12:12

^^^The good thing is that the employees would have formed a cooperative housing society and got the land allocated directly from the government or taken the same from the market. All the legal due diligence would have been in place before they got the approval and license from the BDA. While in Bangalore, I did not come across ownership issues in such layouts floated by societies floated by the employees - and there are many such layouts. Singha, it is actually the job of the lawyer to go and inquire for documents at the sub-registrars office.

rahulm · Post by **rahulm** » 14 Jun 2012 13:42

The property has red lights all over it. I would very wary of buying such a property.

Land records in all of India are a mess. Along my property journey, I have learned much to my horror that government records provide presumptive title not proof of title. Believe it or not, none of the state provided (certified& stamped) documents guarantee title to the property which is why somebody can drop by your house and demand a share. The State has abdicated its responsibility of providing guaranteed property title even though it has a monopoly. Truly a sad state of affairs which needed fixing in 1947.

Fact that goon's can come in and just beat people up for having bought land on the basis of government documents and through government processes is frightening.

Personally, India shining cannot be just about headline economic numbers. For me, it will truly start shining when we have governance. Land and legal reform (as with many others) are urgently needed.

I can't get my head around Indian property values. To me prices seem inflated. Buyers simply disregard poor to no infrastructure (dirt roads, irregular water supply augmented by tanker water from questionable sources, open defecation within 100-200 metres, mountains of plastic garbage all around and on the drive in and out).

Somewhere along the line I had missed the new definition of Lifestyle which is now:

a) style seems be all about a 4 wheeler in covered parking & marble flooring - that too in the bathroom so that grandparents can slip and fracture limbs on the slippery surface but marble flooring is a must and.

b) life is all about being alive which is clearly an achievement because the family survived their journey in the "4 wheeler" in last night’s traffic and no one came calling to their home to lay claim to their property and beat them up. There you have it – I now have Lifestyle. God bless.

I gently suggested to 1 gent after his father slipped and injured himself on the wet bathroom marble floor that maybe he could consider non slip tiles. After some silence he told mumbled something about having to maintain his "status".

So dad can go to heaven (only after going through wet marble bathroom floor hell first) but "status" has to be maintained at dad's cost. I question his concept of "status" living surrounded by garbage and human faeces

Majoring in minor and inconsequential matters, I say.

Another good friend of mine last year bought and joined 2 adjacent brand new flats to create a customised mansion in Pune complete with nice balconies, informal & formal dining, a bar, open plan living+kitchen & a walk in wardrobe in a big sized master bedroom. Paid a fat price for it and then spent good money to furnish it up in real style. Flat is very nice.

There is one minor problem in this paradise he built for himself. On an afternoon/evening sitting in one of the lovely balconies sipping afternoon tea, one is assaulted by the odours from the Phursungi garbage dump about 8 kms away as the pigeon flies.

He knew about his before he bought the property as we discovered this odour on of our pre-sale inspection trips. I was to have bought a flat with him here but politely declined and told him why. He did not care.

I did not see the value in investing my money when the same or less amount of money can buy me something similar elsewhere without the garbage issue.

And I don't even want to get started on the general finish of properties. Gypsum is the builders saviour as it can be applied over all imperfections. It lasts long enough for a grand house warming and then for some more time after which chasing the builder for defect rectification becomes the new full time job.

Even branded builders seem unable to waterproof walls and ceilings. What does matter are Jaguar or "equivalent" fittings, European chimney hoods and Italian main entrance door. And the market swallows all this lock, stock and Italian door lock barrel. The Jaguar or "equivalent" fittings look and function like railway station taps after the bore well (little to no municipal supply) supplied water have finished leaving calcium and other mineral deposits with a vengeance.

People just don't seem to care about these issues so property seems overpriced to me and clearly I am a minority.

rahulm · Post by **rahulm** » 14 Jun 2012 14:57

Yes, in the Magarpatta vicinity but not Magarpatta which is not bad actually.I had a look but was put off by other reasons.

Here is a tidbit about Magarpatta city's origins. The first properties were sold under the open blue sky by Mr. Magar himself thus " I am Magar, this is my patta (parcel or belt) and so this is will be called "Magarpatta City". The club house will be here and the swimming pool there, he grandly declared pointing in different cardinal directions. The rest is history.

Bade · Post by **Bade** » 14 Jun 2012 19:46

rahulm, keep posting on these topics. I too agree that real estate is overpriced a lot all over in India. People even have come with reasons why that is not so, but I find it hard to buy. Flats in all cities and towns are priced 4 times higher than they should be, considering median income of people living there from declared sources. But the market is so distorted that the only players are those with undeclared incomes that needs to be invested somewhere. In the long term if this continues, in most cities property ownership will be limited to the chosen few by the broken system and a very large majority will be renters. Most who invest their undeclared sources of income, are happy with whatever rental income they can get. In Delhi, Mumbai and Bengaluru it is high relatively speaking to smaller cities, though it still does not warrant an investment in apartment from a steady income motive.

Theo_Fidel · Post by **Theo_Fidel** » 14 Jun 2012 20:05

The land title issue is a state subject IIRC. GOI demanded states issue guaranteed titles w/ a title insurance for JNNURM and any grant money. I believe Bihar passed a clutch of lows to gets its grant money to reform land holding and disputes. Part of what is fuel its boom was legal land reform.

WRT leaky roofs/walls it is a recurring problem with every flat I have looked at. People don't understand that concrete is NOT water proof folks. A concrete ceiling is porous like a sieve. All concrete building must have a weather proof layer installed, either clay tiles with lime mastic, or a lime mortar finish or a Mangalore tile roof. The first thing I do is check the roof, so many builders economize here. I saw one without and visible means of drainage except the external staircase so water flooded down it.

The other thing I check is how things like the balcony, windows etc are fitted together. Every time I go to India I hear another person fixing their balcony because of inadequate design of the concrete cantilever. Finally check the electrical system. Turn on ALL the lights and equipment. Half the flats I went to immediately blew a fuse. Another bunch betrayed a strong burning smell within 2 minutes due to weak wiring.

RahulM, I am not sure the smell is from the trash dump 8 kms away. I have driven past the dumps in Chennai and other than the days they set a fire you can't really smell anything even 2 kms away. The Kodungaiyur Dump in Chennai is just 1-2 km away from Chennai central, 2.5 km from the Secretariat and 6 kms from Anna nagar! Yet the smell does not overwhelm. If you ever visited Chennai central by train you passed within 1/2 km of the dump! The source of you friends problem is likely to be much much closer. We had a horrible problem with smells near my dad's house until we discovered that a couple of guys were running a illegal tannery 1 km up stream of the creek. Everytime they would dump the creek would stink it up for the entire neighborhood. After much litigation both folks were put out of business and the smells have disappeared and I can smell my moms 40 foot Jasmine creeper/tree!