A template which can be applied any where
1. In this one I will with a real example try to offer a template with which you should approach investing in real estate. If you can follow it to perfection chances of doing well will improve.
2. The project is om apartments in sector 112 Dwarka expressway.
3. Rera certificate:- Most important thing. Without seeing this never put money. Do not listen to Sir aajayega. Soft launch hai. Price will increase then. Here builder name and project details are given. And max possible time to deliver project is there. I will put up rera certificate for this Project. See how it looks
4. Location:- Rera has tightened all loopholes. Have done article on it. This project is in sec 112. 1 min from dwarka expressway. Opposite commercial sector 114. Which will be like sec 29 õf Gurgaon. Next to that is sector 115 which is institutional and will have offïces like sec 44 of gurgaon. It will have a stadium and hospital also. See original ink signed document of government. I will be putting the same after write up. Go in great detail to see things. All break down of residential, commercial, roads etc in that.
5. Price point:- Price for 2 bhk is approx 24 lakh. For a flat there are 2 costs. Land plus construction. Here flat is carpet area of 670 sq ft. Which is equivalent of 1000 sq ft super area. Normal construction cost is 2000 to 2200 rs per sq ft . So here you are getting almost at construction cost. How builder makes profit
6. Construction technique:- is mivan technology here. In this aluminium frame work is used and even walls are of concrete. No seepage or paint issues. All pipelines are seperate and hidden. Life of flat is 120 years plus not 30 years.will post a picture of same .
7. Trigger event :- Dwarka expressway completion will be trigger for price escalation Note for any place the trigger thing should be on and not too much futuristic. People have invested here since 2007 but actual construction started in march 18. Next February it will be ready.
8. Job opportunities:- Sec 114 and sec 115 will house lot of offices. Already huge chintel office building capable of taking 1500 employees ready. A lot of Delhi offices will shift this side because most there in congested and dilapidated condition. Janakpuri ones. Also with dwarka convention centre will be at 5 min distance. It will be ready in 2022. And jobs generated would be 2 lakh plus. Diplomatic enclave at 7 min distance.
9. Connectivity :-T3 airport is 10 to 15 min signal free. Lesser than any place in dwarka even. once underground tunnel comes up which will be min 4 years hence it will be 5 min then.
10. Layout of flat:-Pareena om Appartment affordable housing Gurgaon flat layout Is pretty basic but good for 2 bachelors or a young couple. quite airy and adequate windows and sunlight.
11. Add On:- 2 acres park. No affordable has it till now. Only 4 towers instead of normal 8. So open space is more. No maintenance per month for 5 years as per government policy. Also gst applicable is 1 percent only instead of standard 5 percent. Incentive of loan also.
12. Investment rationale:- below the cost of innova you are getting a flat. If you try to make 2 rooms 1 hall 2 bathroom 1 kitchen 2 balconies in a small time where land is yours, I bet it cannot be constructed in less than 24 lakhs. So in equity market parlance you are getting it below book value. This should be s big factor in deciding purchase.
13. Rental Yield:- Akin to dividend yield in shares rental yield is a benchmark or go no go criterion for property purchase. Here expected rent for 2 bhk 3.5 yrs hence is 20 to 24 k for fully furnished. Nearest project 1 km away 1 room kitchen thats all fully furnished is 11 k today..so it is a conservative estimate and not hawa baazi. This translates tó 9 to 10 percent yield.Furnishing cost of 1 to 1.5 lakh factored in. Do not buy for investment if property gives below 6 percent. Sìmply not worth it. Such properties will not escalate . Because cost of funds is 8 percent and with tax rebate it becomes 5.5 percent so for cash flow positive 6 percent is criterion.
14. Some rules:- to reduce speculation government has put a rule that property cannot be sold till 1 year after possession. Also you can purchase only one such flat as it is linked with aadhar. Limitation because govt does provide subsidy to builder as waive off in taxes on profit and on development charges.
Draw for it has happened. Only few select units left which have come after cancellation since people applied more than or some other reason .
15. Rating:- I would give 4.5 stars out of 5 for this one.
Main usp is location. And see this from pure investment purpose not for end use.