Krishnan PS, Apartment Resident
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What is the price of a 20 year old resale apartment in Valmiki Nagar, Tiruvanmiyur, Will old apartments appreciate
Q: I am planning to buy a 20 year old apartment in Seaward Road, Valmiki Nagar, Tiruvanmiyur, Chennai. This is a 4 BHK 2600 Square Feet Dupleix penthouse apartment with an unregistered 350 sft open terrace garden with enjoyment rights. The seller is quoting Rs 9200 / sft for the 2600 sft. The apartment is located close to the beach but does not have a beach / sea view. The UDS (land area) is 1650 square feet. The apartment complex is run down but the apartment on sale is in good condition with modest interiors. Prevailing prices for new apartments for similar type of apartments with better facilities are around Rs 12000 / sft. I would like to seek opinion and feedback from experts on the following 1. Is Rs 9000 / sft a good rate to buy a spacious dupleix penthouse as described above in that locality 2. Would there be a market for 20+ year old apartments 5 yrs from now in that locality 3. What could be potential prices for an 20+ year old apartment, 5 years from now in Seaward Road, Tiruvanmiyur that is renovated but lacks the modern bells & whistles Shall appreciate hearing back from experts on my queries

My replies to this discussion
Thank you all for your feedback, all very valid and very much appreciated. More info below This apartment wd be for personal use large / growing family reqts. Room sizes are 250 sft and it is not meant to be an investment. The apartment block is in reasonably good shape but requires renovation, painting, etc This 20 year old apt with 2600 sft super built up area offers 2100 sft carpet area. To get 2100 sft carpet area in new apt I need to buy a 3000 sft apt costing me Rs 4+ crores in this locality with a much lower UDS as against the pre-negotiation rate of Rs 2.4 Crores for the old apartment. I am happy to forgo new apt features Do members feel that 1. A re-sale 20 year apartment is a good viable option from an Potential future valuations Though I do not intend to sell it, but my biggest concern is re-sale interest and valuations Is Rs 9200 / sft a good price, or what would be a fair price 2. I should not buy this apartment Appreciate suggestionsThank you all for your feedback, all very valid and very much appreciated. More info below This apartment wd be for personal use large / growing family reqts. Room sizes are 250 sft and it is not meant to be an investment. The apartment block is in reasonably good shape but requires renovation, painting, etc This 20 year old apt with 2600 sft super built up area offers 2100 sft carpet area. To get 2100 sft carpet area in new apt I need to buy a 3000 sft apt costing me Rs 4+ crores in this locality with a much lower UDS as against the pre-negotiation rate of Rs 2.4 Crores for the old apartment. I am happy to forgo new apt features Do members feel that 1. A re-sale 20 year apartment is a good viable option from an Potential future valuations Though I do not intend to sell it, but my biggest concern is re-sale interest and valuations Is Rs 9200 / sft a good price, or what would be a fair price 2. I should not buy this apartment Appreciate suggestions
My comments to replies
Hi Mr Krishnan, There are certain challenges that a buyer of a resale flat may face. This could include lack of proper chain of documentation, especially in cases where the property has changed hands more than a couple of times in the past. If the property is over 18-20 years old, it is possible that it was never formally registered in the first place. Registering it at the current point in time would put the onus of paying the stamp duty in arrears on the buyer.
Thank you Mr Venu Gopal, payment of stamp duty arrears is a very good point that I had not thought about. Very useful indeed. Krishnan
14th November 2014

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