I am posting this for my neighbour who needs ur help in deciding to buy a property in Nungambakkam, Chennai... My neighbour right now lives in a rented independant house... She has joined her 3 year old daughter in Good Shepherd and her husband's business is in Chetpet, so they have decided to buy an apartment in Nungambakkam itself so that will be easy for her daughter to commute to school... Her budget is around 1 crore itseems... She looked for four to five apartments there and everything was above 1.15 crores... Finally yesterday she found an apartment in Sterling Road, Nungambakkam... It is an apartment built for NRI's but there are other people too staying in it... It is 1207 Sqft with an UDS of 700+... There are 10 apartments in the building... This one is on the first floor itseems... The maintenance is too good, does not look like its 15 years... It has a covered car park, 24/7 security with intercom, power back up, elevator... The apartment is located in a good area just off Sterling Road... She is planning to give it on rent for a year.. People say that it will fetch her 30,000/-pm... After a year or two, she is planning to move into the apartment(I think her current lease in the independant house ends only after a year)... They are asking for 9500/-per sqft which comes upto 1,14,00,000 but my friends husband has asked for 1 Crore... If in case, the seller is willing to give it for 1 crore, is it worth buying this apartment is what my friend wants to know or should she look out for other properties... She says its very difficult to get one in that area for less than 1.15 crores... And also when they asked some people they said like apartments in this area have a resale value even if they are 30-40 years old, it seems... Is that true??? Please answer this query so that she can finalize this... Thanks in advance...
I got a unit off in this area in late 2010. Price have gone up significantly compared to 2009, especially in the high end market. I saw a big high end unit in Pycrofts garden at 2.6 in mid 2010. Now another unit there has been listed at 4.5 in yesterdays Hindu. 1200 sqft with 700 UDS. If it is in a good street, 1 Cr seems to be good deal. If it has good interiors, you could pay a bit higher too. Rents are one of highest in the city here.
Thanks for the quick reply K11... From what u have said, I feel my friend can go ahead but then her only worry is about the "Number of years"... It is 15 years old... Is that not a problem in that area?? People seem to be telling her that apartments in that area fetches a good resale value...
I agree with k11.. it is a good deal. but ask them to check the legalities before going ahead. There are a few people who are always on the look out for 15/20 year buildings for the purpose of redevelopment. there has been a lot of FSI changes and in case of giving for a redevelopment they get a little bigger area and some money if they like.. if the building has been maintained well, then she can go ahead.. but the value after 15 years is the cost of the uds and a depreciated value on the building. suppose the current new flats are at sale for xrs/sq.ft then the asking rate can be 20-25% lesser..or if you are a smart negotiator, 30% which is real difficult. all the best.. let her also go with her gut. looks a sweet deal
Thanks for the reply Shanvy... I can forward all ur replies to her... She too wants to go ahead with this but then she was only worried about the number of years... She asked me for some suggestions but I did not wanna give her any as I dont know much and it wont be right to give some suggestions just for the sake of it because 1 crore is a huge sum of money... So, I told her that I will post it here and then let her know... Now, I feel she can confidently go ahead with this deal... It seems that the current rate in that area is like 2 crores for brand new flats and the surrounding areas its more than 1.15C... They cannot afford that much so they have decided to go for this... I have seen this apartment a few years back and it looked well maintained and when I spoke to her yesterday she told me its still the same, looks like a new apartment, very well maintained...
Check out legal, all outstanding dues to be paid and also cross check with the association if any, talk to the watchman, how the apartments are, also about the people..you don't want a nice apartment with non-cooperative neighbours..if everything falls into place, go ahead.. all the best to your neighbour
Thanks so much for all the extra information dear... Sure, I will tell her to ask her husband to check everything before going for it... Will let u know what she has decided... Thanks once again...
I prefer old apts if they are in good condition ( in CBD). Here is why. You get good locations, nice streets. Now builders doing new projects at Tirumangalam are referenced as Anna Nagar, NM road Choolaimedu as Nungambakkam, eastern RA Puram as boat club, etc. Done to charge higher rates. Good UDS. FSI was 1.5 or less before. Now you can go higher to 2 if the road width is higher. Carpet area. In new units, your built-up area includes club house, gym, swimming pool, etc. You will have to pay a few lakhs for things you do not use. In a small building, this adds up to a lot. This is where builders make a killing. Free FSI areas (lobbies, lift, water tank, stairs, etc) and low FSI areas (Gym, balconies, private terrace) are charged full price. You lose 30% or more due to this loading. My 1800 sqft old apt is bigger than 2400 sqft DLF unit and 2200 TVH unit. You will need to spend money on new units anyway for furnishing and interior. Very few builders like DLF give modular kitchen, lights, etc. Finally, Price.... You can get very good rates. Old units are priced much lower.
Thanks a lot K11 for giving so many infos... I forwarded ur posts and Shanvy's to my friend and also sopke to her over the phone... They also enquired a few people in and around that area and everything seems to be good so far... I think tomorrow her husband is going there to enquire about the neighbours, know more about the maintenance and all other things... The seller is not in place it seems, they will be back only on the 29th, so her husband might go to the seller's place on 30th to negotiate the price... I only wish everything goes well and they are able to finalize this deal... Will keep u both posted... Thanks once again...
Re: Buying an old apartment in Nungambakkam... Hi, I just recently read a message in this forum regarding purchase of old apartment of Nungambakkam. The suggestions/ideas shared are fantastic. I request advice and clarification on this. I have seen a 2 BHK apartment in Nungambakkam, 17 years old, the owners are quoting Rs. 5800/- per sft. which works out to Rs. 37 Lacs. Because of the locality (nearby railway station, market, schools, transportation etc), I want to buy for the purpose of staying here. Please advise: * whether it is advisable to buy this property. * whether the rate of Rs. 37 Lacs is worth it. Anyway I am going to negotiate with the owners. But please let me know to what extent I can bring the price down. Because after taking over, I definitely need to spend some amount on minimum modernizing, minor repairs. * what would be the life of the apartment (there are totally around 40 units in that particular apartment/colony) * Suppose if I want to let this out, what could be rental returns ? * What is the current market rate for such a 17 year old apartment. * *
