An interesting story to share -What do you think ?

A very close friend went thro a lot of confusions before settling for a flat. Since i was closely guiding him on his every move, i took his permission to publish his story. It all started with this school mate of mine who is IT for atleast 8 years now, started hunting for a flat in late 2007. He had the same confusion with expectations of realty market falling down, he was one of those guys who was trying to time the market.

He is currently in US, married with spouse too working here in IT. It made sense to make an investment now because of his plans to return back to India by 2011 when his visa expires. He works in Siruseri and his wife in guindy. The first confusion was location and the second was budget. Even though buying was not a problem, but repaying was and they had a budget of around 50 Lakhs for a 3 bed apartment.

While I was urging them to look into Velachery which i felt was ideal for both of them to travel to office and being a prime residential area,it was nice place to live. But price drove them back as any flat owner in Velachery bye pass road or main road was commanding a crazy price of 75 Lakhs. Prices quoted according totally crazy, which dettered my friend from Velachery. They were now even ok with a second hand apartment if it is on the bye pass road or velachery main road. Well lure of naidhu hall,rex fashions, tanishq, ratna cafe everything attracted them and they were ok with second hand flat in that area.

My friend came across a decent second sale flat in Sai Sarovar -Bye pass road built by Real Value promoters. The owner was quoting a price of 65 Lakhs. I was urging my friend to stretch a bit and go for it coz i felt it was worth its investment.

Then came DLF pre-launch out of no where.It was like a dream buy for them, Rs 2800 per sq ft and they thought everything should be over with in 43 Lakhs and why spend Rs 65 for a second hand flat of the same size. They acted quickly and one visit to DLF office in Chennai revealed the actual figures. When they calculated the actual cost for a 3 bed room flat it came to Rs 51 Lakhs including registration. But still 10 Lakhs lesser and with so many features which they were mesmerized, they gave a cheque of 4 Lakhs to block a 3 BHK flat in DLF.

My friends wife felt she can always change jobs and come to work in OMR if needed and they felt the need to settle on some thing quickly. So all this happened on Jan 14th, the first few days of DLF soft launch. While i was bit ok with their decision i was still not convinced of investing such a huge amount some 15 KM aways from my initial sugesstion of velachery. Meanwhile that flat in Sai Sarovar was still available and the owner was quoting a final price of 58 Lakhs all inclusive plus registration which adds up another 4 Lakhs.

On Jan 15th some good soul floated around DLF google map in one of the forums, which showed the actual DLF project location. Now other things including Tsunami rehabs center and location being 3 KM inside OMR came to known. This confused my friend as they thought its right on the main road and they were not aware of Tsunami rehabs there.They felt there was too much of comprise going for DLF and they cancelled their booking 2 days after they booked.

I again urged them to consider Velachery. A Second sale flat in Velachery cost 62 Lakhs. But the positve thing is its in a Damn good location. So many shopping ,schools other facilities near by. The flat is good rent fetching, a 3 BHK can easily fetch Rs 16-18K now which works out around 4 Lakhs pay back for the next 2 years. A new flat DLF has wait period of 2 years. The flat we were talking about had full furniture and electical fittings worth around 4 Lakhs.

A simple calculation titlted the decision in favour of Sai Sarovar. DLF costs 51 Lakhs, Wait time 3 years. Its inside OMR atleast 15 KM from Velachery, other problems including Tsunami rehabs centers, Approval pending etc. Once completed a wood work of atleast 3-4 Lakhs need to be done, which makes the total cost of ownership to Rs 55 Lakhs.

Considering Sai Sarovar, for 62 Lakhs you get a beautiful 3 BHK apartment, Wood work done, right on the heart of South Chennai, lot of schools, near Tidel ,OMR Guindy , DLF IT parks. So much of shopping options Naidhu hall, Nathella, Ratna cafe we hear Pothy’s, Chennai Silks are planning here for their own shops. The guide line value in Bye pass road is Rs 4000 per sq ft. Rent fetching and everything calculated it works same as DLF price wise and too much advantage location wise.

Needless to say, they were now not confused even when Purva came with a pre-launch offer of Rs 2800 and registered their flat in one of the most happening location in Velachery for Rs 62 Lakhs all inclusive.

At the end of day, i felt Happy they took the right decisions. What do you feel. Is it right decision by them.Nothing can be done now but they were eager to hear from fellow readers. Where would you invest if your spouse happen to work in guindy and you in siruseri and looking for a place which makes the travel easier for both and with good living options?

24 Comments

  1. mahesh

    I think you friend made a right decision. Instead of buliding castles over air on people like DLF WYSWIG is always better.

  2. K.R.Rangarajan

    I think Chennaites don’t know much about DLF.They are among the few top builders in the country.When they take up any project they not only maintain quality but also change for good the surrounding environment.One cannot rule out OMR becoming the future hot spot of Chennai.See how Gurgaon near Delhi transformed where you find many DLF projects.Time only will tell whether this friend of yours has taken a wise decision.May be he will regret for buying a second hand flat built by a mediocre chennai builder.

  3. Rahul

    Think 50 lakhs is a lot for a used apartment in 2008. He should have gone for the DLF one. I dont think he should be much worried about tsunami resettlement. In india we will surely find ghettos. If he says, it is far inside from the main road, that is a valid reason. The OMR main road is complete now , they may start next phase. He is going to take more time to reach his office from velachery than from DLF. He may not get 15k rent now in velachery as the rain water remains stagnant in some places. He was looking at the short term interest of getting rent instead of the long term goal. This seems like a mistake to me. If he wants short term money he can buy some vacant plot. Should have gone for DLF.

  4. sukanya

    Rahuk/ Rangarajan,

    One thing is for sure, you haven’t visited velachery bye pass road or did not have seen Sai Sarovar in Velachery. There is absolutely no water stagnation in bye pass road and it is commercial A class road in the tnreginet.net and current guide line value is Rs 4000 per sq ft. I own a 2 BHK in SIS meridian and i get a rent of 11k.

    Uday, i think ur friend made a good decision considering that you need to travel one way and your wife needs to travel towards city. The place is perfectly place in the middle to travel either ways and facility wise Sai sarovar is no way inferior

  5. Rahul,

    This is for long term as they wanted to stay there for life. Rent is just a short term gain for them as they are in US and they enjoy the rent till they occupy.

    Mr.Rangarajan, Real value is no mediocre builder. I am sure you are not from chennai or you are not staying in chennai.just check out realvalue.in and talk to their current owners and you should know about them. Expect for school, most of their projects have every facility right from Gym, piped gas, power back up, automatic lifts, water treatment etc etc which most builders give them.

  6. Raj

    But still no comparision between real value & DLF.

    As Rangarajan Said, I too feel OMR will be the hotspot in chennai 3 years down the line.

    It is my guess, But velachery too has its importance. But looking at the requirement, DLF would have been better if both are employed in software.

    In velachery the future growth will be limited, as the connecting roads are very narrow. OMR will take out the charm from Velachery (again my guess)

    We see the traffic after 8:30 in the morning and after 6:30 pm in the evening in velachery. It is worse.

    The traffic in Delhi – sarita vihar, NOIDA crossing, Gurgaon entrance are worst. Chennai is much better off.
    The point is since OMR is widened and traffic will flow & DLF location is ideal as it is away from road (Away from noise and dust )

  7. Ashu

    Personally, I would have preferred DLF bcoz of the following…

    1) I’ll enjoy the pleasure of using the brand new home for myself, which I would be buying for the first time in life. (i’m not sure what will be the plight of sai sarover apt after various tenants use it for 3 yrs)

    2) Since his wife is working in IT, its not a permanent job in Guindy & she can happily shift to any of the companies on OMR or Siruseri IT park(which will be fully functional by 2011) and by 2011 nobody is sure that Guindy office stays there or it may even shift to Siruseri.

    3) DLF apt value will easily double by the time its completed just solely on the fact on that DLF tenants are pre-approved for Padma Seshadri school enrollment (for which every year there will be 2-3 km queue on the chennai roads)

    4) Instead of shelling 60 lakhs on sai sarover apt, which would get him 3 lakhs on rental income over the next 2 yrs,
    he can wisely invest 80% of that amount on buying some plot on OMR and spend 20% on DLF initial payment.(actual EMIs will start only after apt is ready). By the time DLF apt is ready, he would have gained handsome amount on OMR plot he bought 2-3 yrs back.

    5) The bad effects of low-lying areas will be known only when incessant rains hit Chennai, which is a remote possibility, but cannot be overruled either.

    6) My personal observation is that being close to shopping malls,famous shops etc. will only add to monthly expenses & having the luxury of car, it wont be difficult to reach places like Adyar on 6-lane OMR.

    Anyway, this is purely from my point of view..we need to respect each individual opinion(whether its a bad or good decision).

  8. Sumana

    Hello there.

    I am in software like many people and wanted to purchase a flat in city side and hence considered the option of booking an apartment in Adyar,Besantnagar,Valmikinagar and on OMR. But to our knowledge the rates they quoted were too much and we thought of going for a second hand flat. We got to know about a second hand flat of RAMANIYAM in 2nd Seaward road ,Valmikinagar for 75lakhs and excluding registration. It was 9 years old flat and we were almost into buying as we liked it very much..The flat condition was very good and people were also nice with 2 flats in each floor . Though the budget was more we thought of extending our limits …. Then we consulted a friend of ours whose father is into construction from past 40 years. His office is in Tnagar . He suggested us that not to go for second hand flat as anyway in future if we can consider only like 9 plus years and not a new one. Even if we have to sell we should consider the fact of second hand. So he suggested us to buy on OMR but not too far from city and where rent is also fetched highly. Then he only guided us to buy in Perungudi and we spoke to few builders and considering the fact of quality and reputation we booked DOSHI ETOPIA. Drainage pipes are being laid and in front of this project there is Jains Anumita …..and Bhaggyam is coming up……I just want to understand whether this is a good choice???? Pl let me know…

  9. chand

    Sumana,
    Which Ramaniyam project was it and what was the sq.ft area (for 75lakhs)?

  10. Sumana

    Hi Chandru,
    It was on 2nd seaward road and area is 1300 with 3 bhk. I dont know the name and I just now went and asked my relative who stays in the same area ..they are saying that the rate is more…Donno which is true……..75 is without registration and they say instead of paying money for a 2nd hand flat,I can go for a new one with more area and other amenities…So I am considering Doshi as the amenities are more incl cctv and modern amenities…also project would be over by this yearend and I can rent out ASAP. The project they haf put is opp to Jains Anumita and Bhaggyam Elite. What do you suggest???????? Let me know after going thr this link…..
    http://www.doshihousing.in/flash.htm

  11. Sumana

    Hi,
    It is Ramaniyam Lakshmi and in 1st Seaward Road and not 2nd Seaward Road.

  12. Sumana,

    My 2 cents, you are paying for location and some for the flat. I understand you are going to rent it out, but now a days all builders are delaying the project.

    So i am first of all skeptical about Doshi ability to finish the project by year end. second, did u check if there is smokes coming out near by from the garbage buring. Is the smell around the house good?.. i Know the garbage burning in perungudi is affecting the air around.

    Did u check if its affect you. What price are you buying a doshi for, I see they are cost around 65 Lakhs.Builder is good but check if location is good. I was looking at Anumita in 2005 for 24 Lakhs, now the same flat is 50 Lakhs.

    Perungudi, thoraipakkam has appreciated well. You are buying at current high. Why not spend the same for good location flat.
    Watch out my article tommorow, I just got to know about a very good flat for sale in Velachery bye pass road for 62 lakhs. Excellent one, Just wait for day for more details

  13. chand

    Sumana,
    We have booked a flat last month in a new Ramaniyam project just near the location you have told (in ECR).The price is same for this under construction project what u are paying for the second hand flat. Send me ur mail id and I will give you more info.

  14. Sumana

    Hello again.
    Thanks Uday and Chandru for timely response. Just for information I would like to let u know……When I found out the projects which are going to be over within this year I found some 2 or 3 projects in Perungudi as other area are not that good(I mean on OMR) as of now and are not developed much. I consulted Landmark TIARA and the price they are quoting is 4300 per sqft. Also I enquired Bhaggyam and they said that flats got booked some 1 month back for price of 4000 per sqft. I was awestuck as they are too much. I am preferring Perungudi or near Perungudi because I can comeback and even stay in this area as my office is in CTS,Perungudi. I visited Doshi site and enquired about work and etc …They are in their roof stage for penthouses. They are talking about 3900 per sqft. As I told you my friend’s father is saying that after 3 years everything will change and from this year end I can even earn rent which is not possible in Hiranandani or whatever as their completion date is 2011. I shall consider Uday’s point …Nowadays builders tend to extend their handing over date like megabudget movie………..But realestate is roaring…………Thanks for your inputs…….I shall look for Ramaniyam and Velachery as you said… and with above points is it worth considering Doshi??? How would be appreciation after 3 years???? Also I could not find any smoke or garbage foul smell in the site…….My email id is sumanaprem@gmail.com

  15. Viji

    Hi, Is Ramaniyam a reputed builder in Chennai? How is their quality of construction. Thanks.

  16. Suja

    Chand, Can you also give me details on ramaniyam project. My id is sujals14ATgmail

  17. Ramesh

    Okay . This could be the same case as the flat currently in sale . I would say this transaction was purely at loss of the seller eventhough the market value will increase , I would say the apt will not cost more than 52 lacs.If the buyer had bought thru agents then definitely its not worth more than 52 .The ads coming out in this blog are totally sold by sellers agents and the agents would do nuts for the buyers .

  18. Ashok

    Why no one is mentioning about the BIG gutter that runs just in front of these apartments in Bye Pass Road. SIS and Sai Sarover has this huge (at least 10 ft) dtich right in front and it stinks to even park the car there for a few minutes. How can one even think of purchasing a flat there. If the crazy prices were not a deterrent, this ditch sure would be.

    Today is Magic bricks, one person had an ad for SIS Meridian apartment. Cost : 7000 rs per sq ft. Can you even imagine it? I was amazed.

  19. 7000 is one hell of a crazy price. The owner is too greedy. It is good apartment but Velachery is yet to see 7000 for a second sale.

  20. RS

    Hi,
    Any body booked a flat in Dwaraka Apts in Anna Nagar promoted by Ramaniyam Builders? I found some contradictory available status on their web site. Does any one have idea pl. share it. And also when it will be completed?

  21. Prem Kumar

    I sent them 3 emails asking for what’s available in Ramaniyam, didn’t get any response. I believe it will be completed in Dec’2008 as per their website.

  22. Nazeer

    Hi

    This is just for you’re awareness, please don’t buy flat through local builders always try to stick with branded builders…

    I have got my flat in vadapalani,Chennai after a long hassles & buzzles with “Shri Hari Builders” (local builder) He did not delivered on time, Since I don’t have any way , I entered and stayed without electricity & water supply for more than 40 days..

    They were collected 50 thousand for EB and Water Supply, but I got my EB Connection only after 26 moths after entering into my flat, and the builder forced us to pay extra registration charge 10 k to each person to get the connection again. From innocent they tried to collect 25 k..

    If we asked the builder what happen to the existing subscription to EB connection?
    No answer.

    The most annoying matters is he never pick up our call, and if we try to contact any supervisors, they claim we are not working anymore with “Shri Hari Apartement” but actually they were working on another site for cheat others..

    So be aware, don’t get cheated. I know the pain of getting a flat in Chennai…

    Regards
    Nazeer. B

  23. ambika

    nice decision. Ceebros orchid and few others are commanding 7500  per sq feet.

    not a bad decision to buy at 4k. looking at the history , prices are only increasing

Leave a Reply