Online
Buy the same house for less!Team Wealth
Wednesday, January 30, 2008 
THREE things are so essential to the fabric of life that they ought to be free: food, shelter, water.Personally, I would add an iPod to this list also. But let's leave that aside for now. Of these, one and three, if not free, are available at reasonable rates everywhere. Unless, of course, your daily food requirement constitutes a five-course gourmet meal and you drink only Evian! The killer is Number 2 -- shelter. That seven-letter word is not as simple as having a roof over your head. It comes with a multi million industry that is unscrupulous, unorganised and highly volatile. Colleagues of mine, corporate sharks in the boardroom, have been reduced to tears while buying a house. People charge what they feel like. It is maddening. How do you identify the right price for a property? What are the checks to ensure the property is not overpriced? We spoke to Ramesh Nair, Local Director, Jones Lang LaSalle Meghraj, Chennai, to put some method to the madness. 1. The two-hour rule "I plan to buy a flat in Mulund West (northcentral Mumbai), near Nirmal Lifestyle (a mall). The builder is quoting around Rs 5,000 per square foot. Is this rate realistic?" asks Ram. Ram can identify the right price by following the two-hour rule. Nair suggests that you spend at least two hours a week on research. Drive around the neighbourhood, learn market value, check competing projects and make appropriate offers, review relevant articles and gather information on deals in the market at regular intervals. 2. The formula for the right price If you thought the time to learn equations and formulae is behind you, think again. While buying a house at the right price, look for an annual investment yield of 5 per cent to 7 per cent for residential properties in India. The formula to calculate investment yield is: Investment yield = Expected net annual rent x 100 (Deduct property tax from the annual rent to arrive at the net annual rent. Add stamp duty and registration charges to the purchase price to arrive at the total purchase price.) Photograph: Associated Press/Elaine Thompson also read
conversations on wealth
Ratings for this story (11 votes)
     GOOD! Rate this story
Would you like to comment on this story?
|
advertisment recently read in Invest
 Buy mutual funds, cheap
Kapildeo Singh | August 26, 2008 No entry load on direct mutual fund purchases.
wealth picks
 ITs all happening in Trivandrum
Knight Frank India Research | January 29, 2008 Thiruvananthapuram, the capital of the state of Kerala, has more than just tourist destinations. It is now fast becoming a IT hub.
most popular
most e-mailed
most rated
|
|||||||
kentmss at 05-Sep-08 20:52
Site Map | About Us | Feedback | Contact Us | Advertise | Bookmark | Disclaimer | Privacy Statement | Terms of Use | Careers
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.