Saturday, January 10, 2009

Who is responsible for the unaffordable rates of residential and commercial properties in Pune?

Thanks to Promoters and Builders Association of Pune (PBAP) president and chairman of Kumar Builders Lalitkumar Jain for revealing the truth!

Important questions you should ask while negotiating the property rates:

Oh! PBAP is giving us important points which we could use while negotiating property rates!

Till recently, we thought, property rates are driven by the demand and supply rule. PBPA tells us it is not so. There is some logic and rational reasoning behind property rates and PBAP tries to justify the per sq. ft. real estate price by giving bifurcation. Now, it is our duty to ask specific questions and get ourselves satisfied that the quoted property rate is totally rational and rock bottom!

For example - if the salesman says "property rate is Rs. 3,000 per sq.ft." then you should ask him "OK. Out of Rs.3000, how much you are charging for the state government's stamp duty on development agreement between you and the landlord?"

Mr. Lalit Kumar Jain tells us that per sq.ft. Rs. 400 go to various charges levied by the state government, PMC and centre. Now, it's your duty to ask how much goes under each head to the respective authority and ask the builder to show the necessary document or proof.

In short, PBAP says days of "property rate + parking charges + amenities charges (or club membership or infrastructure charges) + MSEB charges + society formation + legal charges + stamp duty + registration charges" are over. Now, there is more transparency. You have the right to know the details of "per sq.ft. property rate"!

Property buyers in Pune real estate market, if you do not ask these questions, remember only you are responsible for paying unreasonable property rates and PBAP would not feel shy to announce this in the press conference!
To read more, please, visit - PBAP demands cut in stamp duty, opposes ready reckoner rates

Smart property buyer's check list:

I think we should start making a list of important points we should consider while booking a flat and a list of questions we should ask to the builder while negotiating the property rate. Please, share your points and questions in the comments and make this conversation more useful for the property buyers in Pune. (Comments Policy)

Related Story:

Property rates in Pune real estate market

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