Need Advice on purchasing a plot

[deepaky]

Hi All,

I am planning to buy a plot. I have two options and i am really confused which way to go.

OPTION 1: I have liked a plot in AECS Layout (BDA approved layout) near bommanahalli. . But the owner is selling at 2700/- per sq. ft.
There are no much risks involved in this option compared to option 2 below but i feel this is bit costly.

OPTION 2: One of my not so close friend knows a developer who is coming up with new BDA approved gated layout near wipro office in sarjapur road. This layout is still in conceptual stage and will take 1 year for the layout to come up and then another year or so for the layout to become livable. He said that he would get me a plot in this layout at some discounted rate around 2000/- per sq. ft.
I would get this plot at cheaper rate and i am ready to wait for 2 years to construct house. But i am seeing these risks with this option.

1) I dont know the developer directly and hence there is risk.
2) My friend said that the developer would ask for advance amount for booking a plot in this layout. I feel this might be risky.
3) I cant construct additional floors and give house for rent compared to option 1.

Questions:
1) Which option should i go for?
2) Regarding option 2, i am worried if the developer retracts from his words and asks for more amount later on or doesnot give me the plot that i like. If i go for option 2, how should i ensure that i am not cheated later on.
3) How much advance can be given to developer to book a plot?
4) Whether receipt for the paid amount is ok or should i get it written on a bond paper?

Thanks in Advance

[jackalbda]

I would definitely suggest you option 1 only ,because of the following reasons..

1. What is the guarantee that the proposed layout in option 2 will get BDA approval ? The approval depends on so many things and many are probably out of the control of the developer himself. So even assuming that the developer is very genuine, leaves a big space of risk for you.
2. AECS layout in Bommanahalli is a reasonably good layout except for the fact that its underground water table is low.
3. Dont compromise on the genuineness of the title for a relatively smaller financial benefit. The financial hit that you might take now for option 1, will mostly be covered by the appreciation of the asset value, within a short time.
4. Last but not least, in RE deals, dont go with promises. Believe in what you can see or feel (!!) Promises are mostly kept as promises only , and generally not materialized in this side of the world !!

[englishpatient]

In my opinion, you should go for option 1. I am also buying plot in AECS but I got it for 2460/- Sqft in a good location. This week is the registration.Your plot is priced pretty high. Not sure.. why ?.

Well.. as for as gate community concern.. we cann't trust them. Look at the reliaable developer's layouts silver oak, lake dew and lifestyle. They are all priced 2500,3000 and 3500/- respectively. You check with any first owner of the layout, they will tell you what all hassles they went through till they get there plot in a pretty decent shape. They fought for almost 5-7 years. The developer told them that the layout work will be finished in two years..But it almost took 7 years. They will keep asking you more and more money. So best suggestion if you wanted to go for gated-community, buy the plot which ready to construct or occupy from the first owner. Why you want to undergo all the hassles,tensions.. just to save some amount of money.

[abhishekjain118]

@englishpatient and Others,

I am Abhishek and I am very much willing to buy site in AECS Layout..
I read your post so thought of talking to you in this regard.
Please spare couple of minutes to reply to my questions..

1. Can you let me know contact of any good broker who can get me a site ?
2. How must should I negotiate ? I heard people quoting 2600-2700 in that area..
3. Have you done all white deal ?? My budget is 8 L down payment and rest from Bank..(2.5kX1200=30L, 25% of which is 7.5L)
but if I need to pay in Black, my budget will be skewed.
4. If I like a site, how should I go further ? should I ask the owner for a copy of documents, so that I can show to Bank.. ?? What amount should I give to him as a security for docs ???
5. How much a broker will charge ??

-Abhi

[englishpatient]

Hi Abhishek,

It is difficult to find a good broker. I don't suggest you any broker. I went to the layout directly and spoke to couple of brokers.They showed sites. Some I liked and some i didn't liked. There are sites in the range 2200/- to 2600/-

Here is my suggestion:

1. Visit the layout and see the site if you have liked any.
2. Ask the broker to get the owner and site for the negotiations.After you satisfied with the price you pay him token advance and get all the xerox documents.
3. Send the documents for the legal opinion. Find a good advocate ( this is very important than finding a good broker ). A good advocate should be capable for telling you in and outs of the layout.
4. Gvt value at the AECS is 750/- so for 30x40 site you get 80% of the gvt value. i.e. 80 % of 1200*750 = 9 lacs. Rest you have to pay black.

I haven't regitered the site yet. It is under legal process. I have considered second legal opinion. During this, i found that the sale-deed and PC needs some rectification from the AECS. I have asked for the rectification from the owner.
Well,, the houses are already come-up. I am buying this site to start construction immediately.

[deepaky]

Thanks all for your suggestions. I have decided to follow your advice and go for site in AECS layout.

EnglishPatient - Can you please mail your mobile no or email id to me at deepak.yakkundi@gmail.com. I want to personally talk to you and take some suggestions.

[abhishekjain118]

Thanks englishpatient..
My dreams of owning a plot has been shattered..
I guess, for people like me, the best thing is to get a plot from private builders who get BDA approvals..
I came across 1 some 6-8 months back, in KR Puram.. he was then selling at 1500/- and in that case, I was getting 75% of 1200X1500 = 13.5L .. and I neeed to give only 4.5L from my pocket..
I missed the opportunity..
Is there a common place where we can info of such private builders who are selling plots in such layouts ??? Whenever I come to know about any such project, either everything is already sold or it has reached a really high rate.. e.g. reliaable projects, astro green park sold BDA approved plot, vishnu enclave in varthur etc.. and many more...
These guys generally don't advt also.. they go buy word of mouth...
-Abhi

-Abhi

[englishpatient]

Abhishek,

You need to be patient. You think, whatever happens is good for you. I really don't suggest anyone to go for private builder as a first owner. I think, what happened with you is good for you only.
There are lot of hassles one has to go through till you get all the required documents through pvt. builder ( re-read my fist-post to your query )

Look for other layouts like BEML, CANARABANK, GRUHALAKSHMI, HMT, JUDICIAL, BCC layouts...etc.. You can find all the necessary information in this forum itself.
Looking at your worry, i feel you are still in initial stages of your career. Try to invest in other forms also.. accumulate more money... You know what ? you cann't predict anything about real-estate.. Today it is booming.. tomorrow who knows.

I think, from past one month real-estate is taking a hit because of soaring home loan interests. Please consider my advice as a suggestion. I am not real expert in real-estate and also don't want to give any false attractions.

[bobi_march8]

Hello All and Abhishek,

Even I am looking to buy a plot in Bangalore. As you said my dream also to have a plot in Bangalore. I am trying this for almost one year and still now I couldn't get any thing and I am still searching. I am in the same place where I am at one year back. Even I have tried with lot of Agents also but not happy with what they have showed.

If you Identify any plot then please share with me also. It is like a great help for me.

Regards,
Siva.

[abhishekjain118]

Abhishek,
You need to be patient. You think, wha..............

Thanks for the advice.. yes I am aware of hassles with private layouts, like reliaable etc..
Although the one I was talking about in KRPuram, already had roads and drainages.. and it was small, only some 40 sites project.
(but your thing is also right that whatever was not there, we cannot predict when and how fast builder will provide that )
e.g. park, seperate transformer for the colony, Overhead water tank, and borewell..

well, I am 31 and in a constant pressure of buying a house as all of my frends and collegues are buying... Flat is the only option available..
Now I have realised that I have not saved enough in the last 7-8 years..
Sometimes, I feel, for us, the only option is to go to kaggadasapura, malleshpallya type areas and get a 2-3 BHK flat in an appt having 7-8 flats.

Thanks again..
-Abhi