How is valuation done for resale cidco flats in Airoli, Navi-Mumbai?

Q: I am told that for cidco flats agreement value is not considered for loan amount. The amount is much less than 80% of agreement value..

Parikshit padture,

8th September 2014

Buying property in Navi Mumbai

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Eligibility :
2 years continuous service in the Municipal Corporation of Greater Mumbai
He/She must be the member of the Bank
Monthly Bank recoveries should be regular (Non-Defaulter)
After deducting loan installment he/she must retain net amount 30% of his /her gross salary in hand.
Repayment Period- Maximum 20 years or remaaining service in the MCGM whichever is less.

Arup rajan, Mumbai

16th February 2015

Comment

HI,
90% of Agreement Value or Market Value will be considered for sanction whichever is less than Rs.20,00,000/- and 80% of Agreement Value or Market Value will be considered for sanction whichever is from Rs.20,00,000/- to Rs.50,00,000/-, but net salary of the member will also be considered while sanctioning housing loan in comparison with the above Agreement Value and Market Value whichever is less.

Arup rajan, Mumbai

16th February 2015

Comment

Hi,
It is just a simple calculation: if a flat gets sold 3 times in 5 years, its cost will be 50% up with all these duties and other exps:

Example – take a flat value of 50 lacs, you have to pay every time around 6% stamp duty+registration, 2+2% brokerage (both side), around 1.5% cidco transfer, 25K society transfer, 20K legal exps, other documentation charges like notary, photocopying etc. all this will add up to Rs. 6.5 lacs which will get added on compounding basis on every sale.

Anuj Gupta, Mumbai

12th February 2015

Comment

Hi Parikshit,
Typically, while buying a house, one suddenly realizes that the budget has gone out of control completely because additional costs have to be incurred. Let's look at these different costs in a real estate transaction.
Basic costs,
Stamp Duty: 5% - varies across states,
Brokerage: 2%,
Parking charges: Rs 3-10 lakhs,
Water connection and electricity deposit,
Maintenance: Rs. 5-15/sq-ft. and upwards depending on the type of property,
Legal fees and litigation costs,
Interest cost: If you have taken a home loan,
Wear and tear,
Registration charges: Rs 0.3 lakhs,
Home Insurance etc.

Sunil Joshi, Mumbai

11th February 2015

Comment

Dear Arup,
My query is regarding the valuation of old property (like a flat more than 12 yrs old) done by banks (when buyer applies for a home loan) for calculating the loan possible for such flat. I guess they use some ready reckoner rates issued by Maharashtra govt and further apply depreciation as per life of the property. I would like to know the exact procedure/ calculation of this valuation.
I am informed by brokers/ real estate agents that the flats are sold at much higher price than the bank valuations hence the loans possible for such flats is much lower.

Parikshit padture,

9th September 2014

Comment

HI,

Long-term capital gains: 22.66% if sold after 3 years
Short-term capital gains: 33.99% if sold before three years.
People are often clueless about their exact real estate returns earned over a period of 10,15 and 20 years. If you have ever made a real estate purchase, calculate the returns that you have earned over the past 10 and 20 years after factoring in the various costs incurred and taxes (if you had to sell it today).

Arup rajan, Mumbai

9th September 2014

Comment