Property builders

[DellaBullock]

Leading real estate developers are launching its commercial IT units. There are relatively untapped commercial markets and its easy accessibility from any where makes it a lucrative investment option for domestic as well as multinational companies. Designed by renowned architect it has been designed on an eco-friendly pattern and provides for an infrastructure platform that is customized to meet all the needs of the IT industry. Apart from state-of-the-art offices, these IT units also boast a 3 level basement parking system, a spacious cafeteria as well as a health club and spa.

Demand from retail sector on the rise with six malls under construction, and several foreign chains planning stores in the city. Kochi city is likely to witness a shortage of apartments in the near future. The growth in the construction of flats in and around Kochi city does not match with the development of the city in the next five-six years. The city and its suburbs requires flats to the tune of 20,000 -25,000 units by 2010, but the actual number being built may be as low as 4000 -5000 in two years. This will lead to a crisis in one of the fastest-growing cities in India as far as residential complexes are concerned. The mismatch between demand and supply has caused a steep rise in prices too. According to Property Builders in Tripunithura, cement price has gone up to Rs 260 a bag from Rs 180 a bag one year ago. Similarly, the price of river sand has increased to Rs 40-45 per cubic ft from Rs 28 per cubic ft in last May. Price of 20mm granite chips is available now at Rs 29 per cubic ft against Rs 16 per cubic ft. Steel prices have increased to Rs 32 a kg from Rs 27 a kg while burnt bricks now cost Rs 3.50 a piece against Rs 2.20 in last May. Sales are taking place as high income group professionals in the IT and other sectors are interested in investing in flats ostensibly to reduce the income-tax burden as well as to reap the benefit of property appreciation. According to him, many non-Keralites professionals are also investing in flats here as they expect the rates to go up further in the coming years.

[Emery Steph]

I'm about to buy a victorian house. When I viewed it, it had holes in the roof (water pouring through) and holes in the walls, (which were in the meantime patched up) and it needs new central heating, new windows and rewiring. It also suffers from rising damp......It was dumped on the market at asking price 349.000, by a vendor, who himself bought it just two months ago for 250.000...Any property experts out there? What offer would you make? What's going on? (I assume the vendor is related to the estate agent, by the way, they both have the same surname). Could you recommend a website or property forum, where I can get more info? Thanks a lot....

[admin]

Originally Posted by Emery Steph

I'm about to buy a victorian house. When I viewed it, it had holes in the roof (water pouring through) and holes in the walls, (which were in the meantime patched up) and it needs new central heating, new windows and rewiring. It also suffers from rising damp......It was dumped on the market at asking price 349.000, by a vendor, who himself bought it just two months ago for 250.000...Any property experts out there? What offer would you make? What's going on? (I assume the vendor is related to the estate agent, by the way, they both have the same surname). Could you recommend a website or property forum, where I can get more info? Thanks a lot....

Your offer should be based on the in good repair market value less necessary improvements and repairs. I would suggest that you have an agent pull comparables for the property's location then have contractors go out and give estimates on repairs to the property.

Once you have the market value via comparables subtract the contractor estimates and make an offer of 80% of that number. This should give you plenty of room for any unexpected repairs and most likely a chance to turn a profit.