Where Is My Home?
Where Is My Home? It's A Question Thousands Of Home Buyers
It's a question thousands and thousands of home buyers are grappling with....the last few years saw a bull run for developers as they clocked over 100% profits and developers splurged quite literally, not only on their Mercs and BMWs, but in acquiring land and more land--announcing, dream-like projects. Projects that made chaotic city living seem like a dream if you were paying as much as you would for a condo in Manhattan developers tried to make up for the exorbitant home prices by throwing in the frills golf course facing; gym; pool you name it and you got it!
Any way, as the euphoria of a booming economy petered out a bit, home prices continued to soar... obviously, the developer was and is trying to make you pay for your home and your neighbours too...
Cost of construction for a developer is Rs 1.500/sq.ft this is not including the land costs.
Developers who hoarded land years back, of course, got it very cheap. So, I am not including that cost. Yet, the cheapest selling price you can get today is about 3,000-3,500/sq.ft. This is probably a home in the back of the beyond.
Currently, homes in the upcoming Commonwealth Games village in New Delhi are going for as much as Rs 15,000/sq.ft. So, there is money somewhere, we just don't know where.
The dichotomy is so apparent, as the country's largest developer DLF faces customer ire over project delays, it is also sponsoring the Indian Premier League.
RBI went ahead and cut some key interest rates on Tuesday, though marginally, but to their credit, they are doing their bit but developers want the government to do even more... interest rates should come down to single digits, they say.
Clearly, the ball is now in the court of the developers, and they can do a lot more than waiting outside the office of the Planning Commission (India's economic institution that plans the country's five-year plans real estate does not feature as a priority sector in the 11th Plan ) to bring the consumer back...
Firstly, come out clean: Days of ambiguity and tall promises seem to be over; consumers are coming together and they want answers.
Secondly, reduce prices: price correction, as developers like to call it, might have happened but clearly it's not driving the consumer.
Thirdly, deliver what's promised.
And the rest, as an expert on our show pointed out, competition will take care of...
It's true..there are too many regulations that developers have to battle with but surely that's no excuse for lack of transparency.
Consumers, as a developer pointed out, research for two months before going out to buy a lap top but when we go out to buy a home we don't even bother to truly understand the terms of the agreement.
This is what consumers need to watch out for: penalty clauses; date of delivery; down payment; construction-linked plan (in fact, your construction-linked plan should also include the finishing work). DLF, for instance, has a track record of building some nine floors in a week - that's a floor a day -- but interiors and finishing touches go on and on for years.
Source: utvi.com
It's a question thousands and thousands of home buyers are grappling with....the last few years saw a bull run for developers as they clocked over 100% profits and developers splurged quite literally, not only on their Mercs and BMWs, but in acquiring land and more land--announcing, dream-like projects. Projects that made chaotic city living seem like a dream if you were paying as much as you would for a condo in Manhattan developers tried to make up for the exorbitant home prices by throwing in the frills golf course facing; gym; pool you name it and you got it!
Any way, as the euphoria of a booming economy petered out a bit, home prices continued to soar... obviously, the developer was and is trying to make you pay for your home and your neighbours too...
Cost of construction for a developer is Rs 1.500/sq.ft this is not including the land costs.
Developers who hoarded land years back, of course, got it very cheap. So, I am not including that cost. Yet, the cheapest selling price you can get today is about 3,000-3,500/sq.ft. This is probably a home in the back of the beyond.
Currently, homes in the upcoming Commonwealth Games village in New Delhi are going for as much as Rs 15,000/sq.ft. So, there is money somewhere, we just don't know where.
The dichotomy is so apparent, as the country's largest developer DLF faces customer ire over project delays, it is also sponsoring the Indian Premier League.
RBI went ahead and cut some key interest rates on Tuesday, though marginally, but to their credit, they are doing their bit but developers want the government to do even more... interest rates should come down to single digits, they say.
Clearly, the ball is now in the court of the developers, and they can do a lot more than waiting outside the office of the Planning Commission (India's economic institution that plans the country's five-year plans real estate does not feature as a priority sector in the 11th Plan ) to bring the consumer back...
Firstly, come out clean: Days of ambiguity and tall promises seem to be over; consumers are coming together and they want answers.
Secondly, reduce prices: price correction, as developers like to call it, might have happened but clearly it's not driving the consumer.
Thirdly, deliver what's promised.
And the rest, as an expert on our show pointed out, competition will take care of...
It's true..there are too many regulations that developers have to battle with but surely that's no excuse for lack of transparency.
Consumers, as a developer pointed out, research for two months before going out to buy a lap top but when we go out to buy a home we don't even bother to truly understand the terms of the agreement.
This is what consumers need to watch out for: penalty clauses; date of delivery; down payment; construction-linked plan (in fact, your construction-linked plan should also include the finishing work). DLF, for instance, has a track record of building some nine floors in a week - that's a floor a day -- but interiors and finishing touches go on and on for years.
Source: utvi.com