Joint venture with a builder on 60 X 40 site

[sateeshpnv]

In most parts of Bengaluru, it is better to sell the plot instead of going for joint development if you intend to make money by selling the individual units.

If you intend to get rental income, it might make sense.

With (semi) approved plan:
1. 4800 sft of which you can sell 2400 sft (assuming 50:50). With great difficulty you can get Rs. 3000 per sft in such multi unit homes (now-a-days being called as apartments)
2. registered JD means capital gains will get counted from the date of JD. So, if project completes and you sell within 3 years, tax implications are high
3. You might actually end-up making lesser than selling the plot

Without plan approval and with severe violations (not recommended):
1. 8000 sft of which you can sell 3600 sft (assuming 45:55). I doubt if buyers will pay more than Rs. 2500 per sft for such homes
2. Legally difficult - no joint development agreement feasible
3. high chances that project gets stalled in between
4. dedicated transformer will cost a ton
5. a few floors in such buildings become very difficult to sell
6. You might make a few bucks, but at the mercy of the builder

[prabhu422p]

Sateesh,

I am planning for rental income.Don't want to sell individual units.

Thanks
Prabhakar

[pvr59ksl]

Hi Prabhakar,

We live at Kumaraswamy Layout near 15E bus terminus.

[prabhu422p]

Thanks for the info.

[ShashiDeshpande]

Hello

The minimum plot dimension for apartment complex to be 4000 sft. Otherwise getting OC, individual katha etc could be a nightmare.

[prabhu422p]

One of the builder approached JD for 11000sft.Of these 11000sft my plot is 61.5x40=2450sft .After discussions the builder proposed 62:38(Builder :Land owner) ratio and 5Lakhs good will for each 60x40 site.Can you please let me know if any one has given plots for JD.My plot is on Kammanahalli road off Banneraghatat road,2kms from Meenakshi mall.

Thanks
Prabhakar

[Hesh_Mysore]

Hi Prabhakar,

I have been in a similar situation and I did consult my lawyer and what I came to know was, joint ventures are very risky and was advised not to go into joint ventures for small dimension sites. The agreements and stuff need to be done very carefully to safeguard the owner. I was told that charges would be a lakh plus for drafting a very strong agreement and not sure if the builder would agree for that. All in all after looking into it and also based on what you get out of it, the joint venture would nearly be the same amount of what you would get when you sell the property outright. Also if something happens in between during construction, you are stuck in between with no resolution. Just my opinion.

[prabhu422p]

Thanks for ur response.

[baruc2003]

Hi,
What if I am constructing on my own site? I am right now constructing grnd+three on a 30x61 plot with lift. Currently painting, tiling works are going on. Intially I was thinking of rental income from it but later thought to sell the entire building. Is is possible to sell this floor wise? Because there are more buyers for less amount than the building cost. My house comes near hennur cross 3.5kms from manyata techpark and projected rental value is 80k per month. The building has 2 units per floor and ground floor stilt parking.
waiting for ideas.
Thanks,
Bharath

[pvr59ksl]

In my area lot of apartments are coming up on 40x60 sites and nobody is building individual houses on such sites. Can somebody through light on the latest rules for building apartments in 40x60 sites ? How about joint venture ?