how RE firms loot consumer!!

[duffyhair]

i got a mail from Purvankara and I had time to put this mail so that others can make out how RE firms are looting us..
Purva Skywood
Purvankara has launched a new project, Purva Skywood at Kudlu, Haralur off Sarjapur Road. Seven imposing towers that greet you from a distance. Thirteen acres of serenity that transport your senses to different world. 728 aesthetically designed 2,3 & 4 BHK apartments that range from 1285 sqft to 2382 sqft. Amenities that is straight out of a dream.

Purva Skywood at a Glance

* Location: Off SarjapurRd, Kudlu/Haralur, 4 kmsfrom ORR junction.
* Land Area: 13 acres (approx.) -728 units
* Floors: G+15, G+18 & G+20
* Type of Flats: 2, 3 & 4 Bedrooms
* Bank approval for home loans(expected): ICICI, HDFC, CITI, Axis, India Bulls, HSBC, Deutsche Postbank, LIC, SBI.


Size (sqft) Super Area (sqft) Rate (Rs./sqft) Basic Cost (Rs.)
2 BHK 1263 2920 36,87,960
2 BHK 1309 2920 38,22,280
3 BHK 1662 2920 48,53,040
3 BHK 1834 2920 53,55,280
4 BHK 2340 2920 68,32,800

Now, computation part :
728 units * 1263 sqft (considering all units as 2BHK for computation purpose)*2920/ sqft
= Rs. 272,16,13,440 or in short 272 crores!!
cost of land : 13 acres in SarjapurRd, Kudlu/Haralur, 4 kmsfrom ORR junction would be around 5 crore/acre at the max
65 crore
cost of construction @ rs.1,000 per sq ft
1263* 728 *0.7 (since carpet area is 70% of super area ) = 643642 sq ft.
643642 * 1000 = 64 crores..
additional costs = 10 crore (i know this is on higher end )
project execution cost = 2 crore
grand total = 141 crore..
considering a profit of 30% (which is again at higher end), the total project should hve been 141* 1.3 = 185 crore

but, they have jacked up the prices such that they would make a profit of atleast cool 150 crores on this project..
time for RE investors to ask for spilt up and ensure fair pricing is done..

[DenQuest]

Thatz one scary computation. Still they find takers for all their apartments !!!

[kumar_kumar06]

Thats Really Crazy, Thank you friend for bringing out calucalations, I hope it helps other people who are looking to buy homes can derive at exact cost,

I am vey happy that in bangalore IT and BT sector have grown trmendiously. But end of the day people will get good pay for there hard work, But they end up paying this money to this bulders and developers. In short and sweet if i want to describe the situation. Who got benifited from IT, BT means it developers, Builders, and A large Chunk of Shopping Mall.

Dear Friends we shoulnt forget any thing we buy not only House should be with in our limits Because no body knows what happens tomorow for our rainny days. A RUPEE SAVED IS RUPEE EARNED.

[msn1270]

Earlier days concept was, flats are cheaper and individual houses are costlier. Nowadays, there is not much difference between them. Customers are mesmerised by putting colorful ads in TOI. Already in many areas, the prices have already crossed the peak prices of the year 2007 even though the demand is not upto the expectation.

[abhi]

Thats Really Crazy, Thank you friend for bringing out calucalations, I hope it helps other people who are looking to buy homes can derive at exact cost,
...
Dear Friends we shoulnt forget any thing we buy not only House should be with in our limits Because no body knows what happens tomorow for our rainny days. A RUPEE SAVED IS RUPEE EARNED.

The calculations forget the time cost of money in India. At 10% interest rate, 7-10% official inflation, cost overrun can be significant over the course of the construction. The numbers are staggering, but it is also a lot of units.

A rupee saved is never a rupee earned because the rupee is depreciating fast. 10%inflation and no one is doing anything about it! If you keep too many rupees around, you would lose big. You have to buy something else with it like value stock or realestate -- at least as far as India is concerned.

[maheshv]

well said Abhi! no value for rupee, it should be converted into investments