Esteemed Members,
I am not sure I am posting this question under right category... Please move it accordingly if there is any forum violation from my side. Thank you.
We (3 friends) are planning to buy a 40 by 60 plot in Bannerghatta Road and construct 3 floors to occupy each person. Regarding this I have few questions in my mind as mentioned below:
1. How will the registration happens if we 3 buy a single plot?
2. How will the 3 persons get the housing loan? What is the easiest way to get the same without much hassles?
3. How can we start the construction cost among us if we are building the 3 floors. And how easy to a get a housing loan for the same? or do I need to go for a composite loan (land + construction)
4. Will it be possible to build without the help of a builder?
I have some more questions regarding the construction, will post them later...
Request you to please respond to above from your experience.
Registering a New Site through Group buying
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vsathishmybda
- Posts: 27
- Joined: November 23rd, 2010, 7:10 pm
Re: Registering a New Site through Group buying
Hi,
Firstly, Congrats for the thought of jointly purchasing a land and construction your home along with your friends.
Please find your answers inline:
1. How will the registration happens if we 3 buy a single plot?
[Sathish V] The land will/needs to be registered jointly on all the 3 friends names together.
2. How will the 3 persons get the housing loan? What is the easiest way to get the same without much hassles?
[Sathish V] This is the toughest part. Banks do not give loans for non-blood related persons. But you can try by having discussions with the Bank Higher Authorities. All 3 of you need to have a good credit history w.r.t your personal savings and good track record for any earlier/current loan payments.
3. How can we start the construction cost among us if we are building the 3 floors. And how easy to a get a housing loan for the same? or do I need to go for a composite loan (land + construction)
[Sathish V] If point 2 above is through, then most of the banks give only composite(land + construction) loan.
4. Will it be possible to build without the help of a builder?
[Sathish V] Did not get this point correctly.
Also please consider following points for group/joint purchase:
1. Land sale will happen for Current Market Price while Registration happens for Govt. price(Guidance Value - usually 50% lesser than Market price)
2. Banks give loan(part of composite loan to buy land) towards purchase of land only on the registered amount(Guidance Value amount) and that too they give loan anywhere between 60% to 80%(depends on the bank)
3. There may be situations where not all 3 friends can equally contribute to the entire loan since it depends on purchase power of the individuals. One of them's share of the loan may be lee, the other one's could be more. Under this situation, calculation of EMI becomes difficult.
4. You need to ensure that all 3 friends have equal share of land as well as their construction portion of their home in order to avoid complications in the future for the legal heirs.
5. It may happen that one of the friends may not have enough money of his share to start the construction compared to the other two. This could lead to complications.
6. For construction also Banks give loan anywhere between 70% - 80% and that too for certain parts of the construction(say foundation if iam correct) Banks does not provide any loan. So you need to have minimum 25%-30% of money from your own sources.
7. You need to find out first how many floors can be constructed legally on the land which is going to be purchased. This depends on many BBMP bye-laws parameters(F.A.R(Floor Area Ratio) , Height of the building constructed, Road Width etc.). If iam correct, for a 60 x 40 site, you can construct easily G+2 or Stilt(only car parking) + 3 floors.
8. As per my understanding(may be wrong; experts of this forum may comment on this) its better to avoid any home construction by any one of you on the Ground Floor, because, home is a immovable property and if one of you construct this immovable property directly on the land(Ground Floor), it may be deemed illegal and as per the registered land, the land is divided equally to all the three and not only to one friend. So ideally the Ground Floor needs to be equally shared by all 3 of you.
9. A problem may arise among friends as to who will take which floor. The higher the floor the better is the view and sunlight and air. If No lift provision is opted then it becomes difficult for the person who takes 3rd floor as he needs to climb 3 floors to reach his home. This may have adverse effects as age progresses. If Lift provision is made, then Lift cost and maintenance can become a piece of botheration. A new good branded Lift(4 person) may cost you around 4-8Lacs and correspondingly the maintenance cost rises as the age of the lift progresses.
I hope i have covered some very basic concerns which may arise.
Note: All above comments are as per my understandings. I may be wrong.Experts of this forum can correct me if iam wrong. Please do your due diligence in enquiring with many other people regarding the same.
BR,
Sathish V
Firstly, Congrats for the thought of jointly purchasing a land and construction your home along with your friends.
Please find your answers inline:
1. How will the registration happens if we 3 buy a single plot?
[Sathish V] The land will/needs to be registered jointly on all the 3 friends names together.
2. How will the 3 persons get the housing loan? What is the easiest way to get the same without much hassles?
[Sathish V] This is the toughest part. Banks do not give loans for non-blood related persons. But you can try by having discussions with the Bank Higher Authorities. All 3 of you need to have a good credit history w.r.t your personal savings and good track record for any earlier/current loan payments.
3. How can we start the construction cost among us if we are building the 3 floors. And how easy to a get a housing loan for the same? or do I need to go for a composite loan (land + construction)
[Sathish V] If point 2 above is through, then most of the banks give only composite(land + construction) loan.
4. Will it be possible to build without the help of a builder?
[Sathish V] Did not get this point correctly.
Also please consider following points for group/joint purchase:
1. Land sale will happen for Current Market Price while Registration happens for Govt. price(Guidance Value - usually 50% lesser than Market price)
2. Banks give loan(part of composite loan to buy land) towards purchase of land only on the registered amount(Guidance Value amount) and that too they give loan anywhere between 60% to 80%(depends on the bank)
3. There may be situations where not all 3 friends can equally contribute to the entire loan since it depends on purchase power of the individuals. One of them's share of the loan may be lee, the other one's could be more. Under this situation, calculation of EMI becomes difficult.
4. You need to ensure that all 3 friends have equal share of land as well as their construction portion of their home in order to avoid complications in the future for the legal heirs.
5. It may happen that one of the friends may not have enough money of his share to start the construction compared to the other two. This could lead to complications.
6. For construction also Banks give loan anywhere between 70% - 80% and that too for certain parts of the construction(say foundation if iam correct) Banks does not provide any loan. So you need to have minimum 25%-30% of money from your own sources.
7. You need to find out first how many floors can be constructed legally on the land which is going to be purchased. This depends on many BBMP bye-laws parameters(F.A.R(Floor Area Ratio) , Height of the building constructed, Road Width etc.). If iam correct, for a 60 x 40 site, you can construct easily G+2 or Stilt(only car parking) + 3 floors.
8. As per my understanding(may be wrong; experts of this forum may comment on this) its better to avoid any home construction by any one of you on the Ground Floor, because, home is a immovable property and if one of you construct this immovable property directly on the land(Ground Floor), it may be deemed illegal and as per the registered land, the land is divided equally to all the three and not only to one friend. So ideally the Ground Floor needs to be equally shared by all 3 of you.
9. A problem may arise among friends as to who will take which floor. The higher the floor the better is the view and sunlight and air. If No lift provision is opted then it becomes difficult for the person who takes 3rd floor as he needs to climb 3 floors to reach his home. This may have adverse effects as age progresses. If Lift provision is made, then Lift cost and maintenance can become a piece of botheration. A new good branded Lift(4 person) may cost you around 4-8Lacs and correspondingly the maintenance cost rises as the age of the lift progresses.
I hope i have covered some very basic concerns which may arise.
Note: All above comments are as per my understandings. I may be wrong.Experts of this forum can correct me if iam wrong. Please do your due diligence in enquiring with many other people regarding the same.
BR,
Sathish V
Re: Registering a New Site through Group buying
Thank you Sathish for your detailed response.
In fact I was having the same questions where you added few more points for my understanding. I thought to add those question in my 2nd set of questions.
Once again thanks for your response.
In fact I was having the same questions where you added few more points for my understanding. I thought to add those question in my 2nd set of questions.
Once again thanks for your response.