myBDAsites.com

Please post all of the users reality while purchasing 30*40 SITE at BSK 6th Stage. Let us help people in making better choice and understand the market of much hyped BSK 6th stage

Yes. This will help buyers take right decision and will in turn have positive impact on development of the locality. Unrealistic and unfair prices are preventing development in this area.

I am actually interested in buying a plot here. Had been there last week. Not much changes since 2 years in terms of construction activities. Prices still hover around Rs. 2000 per sft. (quoting an example of a plot that is at least 1 km. from the 100ft road). One of the brokers blamed it on the landowners (erstwhile landlords in that area) now turned brokers who quote unrealistic rates in this area. With such prices this layout will remain a barren land for some more time.

--Murthy.

Hi, yes you are right, but I have a different view on this. Actually I won a BDA 30x40 site in BSK 6 10th Block, I bought this site some 5 years back for 18L. I really want to sell this site now and I am expecting minimum 28L excluding all expenses during selling process. My logic is that if I invest that 18L in a bank FD for 5 years now I will have atleast 27L (infact when I bought this site the bank interest rate were 9.75% to 10% . so I am quoting 28L for my plot. So Rs 2300 to 2400 is a reasonable price for this area.

arulPlotsale wrote:Hi, yes you are right, but I have a different view on this. Actually I won a BDA 30x40 site in BSK 6 10th Block, I bought this site some 5 years back for 18L. I really want to sell this site now and I am expecting minimum 28L excluding all expenses during selling process. My logic is that if I invest that 18L in a bank FD for 5 years now I will have atleast 27L (infact when I bought this site the bank interest rate were 9.75% to 10% . so I am quoting 28L for my plot. So Rs 2300 to 2400 is a reasonable price for this area.

I dont think its a good idea to compare returns on a real estate investment with FDs. Real estate unlike FDs is driven by demand-supply paradigm. The value of real estate continue to raise as long as there are more buyers than sellers (demand more than supply) and will start falling when there are more sellers than buyers (supply more than demand). A case in point. My friend had bought a site in anjanapura in 2007 at Rs 1650 psft. In early 2009 he lost his job owing to recession. He got a job in Pune and had to relocate as well as sell the site because he was in dire need of money. Then demand for real estate had also fallen hugely. After toiling several weeks, he found a buyer and sold the plot for Rs 1450 psft with a loss.
Also in another case a collleague of mine had bought a site in Vijaya bank layout behind IIMB for Rs 1300 psft in 2005 Now the prevailing rate there is over Rs 3500-4000 psft which is more than double his investment.
what I am trying to say is, your logic of quoting Rs 2300-2400 for site based on FD interest rate do not hold good. You will get a better price than that, if there is enough development in the area and location or will not even get back your investment if the location is poor and if there is no development around. I dont intend to offend you in any way, but just wanted to put across my thoughts. Comments are welcome.

I agree with sudhirts. I highly doubt anyone will pay Rs 2400 for a plot in BSK unless it happens to be on the main roads. When you sell your site, please post the experience so that we can get a first hand account of the selling process.

when people want to buy, they want at a reasonable/affordable price. While they sell, they expect a very fat price and many times it is more than the broker's quote in those areas.

if we consider the arul's scenario, if the same real estate market is in rocket zoom, does he expect the same Bank's FD Margin while selling his plot ??

Awesome, thanks Sudhirts. I got your point, forums like this really help to understand the people need and perspectives on the sellers. Well I am not a big fat guy with money and earn by selling a plot well the personal situations force me to sell this land, also I didnt forget I was a buyer some years back all sellers are not bad and money minded guys
The reason I compared with FD is simple. A common man like me want to sell a property I can see 1) the market rate and 2) Bank rate. See I don’t want to loose my money which I invested some 5 years back. I calculated the no loss price of this land for myself (based on bank rate) and I am clear on that figure (off course it is not 2400). Also I need to spend some money during the selling process which I am not clear about. If some one willing to take care of all the selling process money I can give it for my no loss price.
Pls feel free to write to me if you are really interested to by my land. aruljothi.r@gmail.com

arul

you can expect a descent price of Rs. 24 lakhs.
If u get anything above this price is a bonus.

Arul

If at all you are not in hurry and if you believe that your plot can give you good benefit in the future, you may hold on. I don't see there is any logic paying at least the FD rate.

After all, the investment in the land is kind of speculative and you can't ask the buyers to pay at least the bank value, as the market value is lesser than the bank (FD)value. As a buyer, I prefer the lesser rate, I don't mind if it is a market rate or bank(FD) Rate. As a seller if you bought the site at wrong price, how can you expect a buyer to repay for it ?

I am not sure 24 lakhs is a realistic price either. For that you would have to sell at more than Rs 2000 since BDA sites are smaller than 1200 ft for a 30x40. I will be glad if you can sell it for a higher price, however. It is just that I think the prices are more in alignment what this post says here

http://www.mybdasites.com/viewtopic.php?f=8&t=2152

Good luck. Please post your selling experience when after you the deal is done.