BBMP Plan - Registered Architect contact

[tvsh]

Kindly find the attached pdf, giving a justification of the ROI on your investment.

Revert if you have any doubts or kindly share your justification, so that my FD money can be STARTED for utilisation of the building.

Meharnath,

Your assumption of Rental income increase by 50% is incorrect. Rent increases lot more over a period of 20 years.

I have computed the ROI based on 7% increase of rent per year. I have ignored the income tax as the tax rates varies depending on an individual.

After a certain number of years, the ROI of Rent handily beats the ROI on fixed deposits. There are certain risks associated with each of them. Occupancy may not be 100% in case of rental assets and interest rates on fixed deposits keep varying and is very hard to predict what the interest rates would be after say 5 years.

ROI-Rent.pdf

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[rmahi99]

You are right tvsh. We cannot just assume 5% is the rental increase year on year. With this kind of inflation, it is not sustainable. My friend had constructed 2 1BHK house about 5 yrs back, rental at that time was 4500rs each. Today the same house is 8000/-. It means almost 75% increase in 5 years. 15% increase annually.

[rmahi99]

Met with the engineer and he directed to one of the registered engineer for plan preparation.
1) Engineer initially asked for 3K, but when I said multi dwelling units are required he said that will cost more
2) Finally agreed for 4K
3) But he says if it is a multi dwelling units, AEE will not be the approving authority, the plan needs to be put it online and it has to get approved from DC office. ( I was under impression that all the plan needs to be put online isn't it?)
Anybody has any idea on this, please share. This will help in next steps
4) Is only 4 units is allowed as per BBMP byelaw (60*45 measurement), he says bribe money will be 8K per unit. Is it so much??