Many of us are pained by project delivery delays. Every month of delay threatens to convert our best investment decision into a nightmare.
Customers should be very much clued into the costs of finance and how a decision to buy an unit under construction carries certain risks. Every year in construction would effectively add Rs 150 per sqft cost of a typical flat (Assuming ticket size of 50 lacs and you have paid 50% of the amount in the first 8 months). No matter whether the delivery was done on time after 2 years (Rs 300 more) or delayed by couple of years and delivered after 4 years (Rs 600 more) - the calculation should hold good. By adding RS 150 per year from the time of booking you can arrive at the break even cost. I have kept it in the high range to comfortably cover the agony and hardship going through the construction cycle.
The end price including interest costs would be on par with the costs in the micro-market of new launch projects at the delivery. The only positive is that you can land an unit of your choice. This is true of good markets like Bangalore but not necessarily Hyderabad in 2013-14 season.
P.S. The best scenario in current market is to buy finished units, we are sure of the product and returns from the project.
Customers should be very much clued into the costs of finance and how a decision to buy an unit under construction carries certain risks. Every year in construction would effectively add Rs 150 per sqft cost of a typical flat (Assuming ticket size of 50 lacs and you have paid 50% of the amount in the first 8 months). No matter whether the delivery was done on time after 2 years (Rs 300 more) or delayed by couple of years and delivered after 4 years (Rs 600 more) - the calculation should hold good. By adding RS 150 per year from the time of booking you can arrive at the break even cost. I have kept it in the high range to comfortably cover the agony and hardship going through the construction cycle.
The end price including interest costs would be on par with the costs in the micro-market of new launch projects at the delivery. The only positive is that you can land an unit of your choice. This is true of good markets like Bangalore but not necessarily Hyderabad in 2013-14 season.
P.S. The best scenario in current market is to buy finished units, we are sure of the product and returns from the project.
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