Joint venture with a builder on 60 X 40 site

[karyganeshan]

Hi All,

We own a 2400 sq.ft land in Bangalore and would like to construct a small apartment complex in that plot.

Can anyone please guide on the process, based on similar experience.

1. what is a reasonable no. of units that can be constructed, i.e is there a limit on no. of floors that can be built ?
2. How is the % share of units between us and the builder decided ?
3. The property was acquired by us around 8 years ago, does capital gain tax apply to this sale of the units ?
4. Finally, Other than signing agreement papers with the builder, is there any other approval / registration requirements that are needed from authorities.

Thanks

[shashikoundinya]

Hi Ganeshan,
I was going through ur question Joint venture with a builder on 60*40 site,Did u get any reply on this, I am facing the same question,problem now, if u r through this will u please share ur ideas, experience and intricacy involved in Joint project

[rajesha07]

Hi, i dont have much idea on this.. But one of my cousin is working on this field. Right now 6 to 8 projects are going on . Most of are big apartments.. They are having more then 300 workers.. His name is Devendra- 9035293433.. you can get the details from him..

[Ravi h.g.]

Hi karyganeshan,

on 60X40 site, Apartment plan sanction --you wont get it.

1.number of floors depend on FAR, for this we need to know ur road width( FAR starts from 1.75 and increases)
11.5mtrs initial, if u leave more setbacks u can go upto 15mtrs height.

2. joint development : it depends on you and builder, u are providing raw material--land, builder will get plan sanction , construction cost, sales etc. its ratio, mostly 60(builder):40(ratio) or 50:50-----depends on location,

3.capital gains on 8 years property, sit with ur auditor.

4.In your agreement with builder, u make sure he gets all concerned authority clearances, etc

u can construct basement(full parking) + 3 floors. 2 units in a floor, but u cant sell each unit as apartment, u have to sell entire floor wise.

minimum 4000 sft is needed if the property is with in ring 2 as per building bye laws. go through the Bangalore-Development-Authority-Zoning-Regulations-RMP2015.


regards,
ravindra kumar hg

[karyganeshan]

Thank you Ravi hg. for all your inputs.
Can you pls elaborate your point on - " but u cant sell each unit as apartment, u have to sell entire floor wise" ?

@shashikoundinya , I did get some replies from agents/builders and am in process of discussion with a couple of them.
Most of the initial points are like Ravi has said .i.e total built up area that can be developed based on the width of road, the no. of kitchens that will be sanctioned on a 2400 sq ft plot, what will be price/sq. ft that a apartment is likely to fetch based on location ect....
Athough, finally it does comes down to the agreement of a ratio. This will decide if its worth while entering in to a JD with builder , as opposed to say just selling the plot.

Thanks
Karthik

[Ravi h.g.]

Hi karyganeshan,

Since you wont get apartment plan sanction on 60X40 site, u cant get individual khatha on each unit, so, you partition your building into each floor and sell floor wise.

regards,
ravindra kumar hg

[mudude12]

hi,

has anyone had experience selling it floor wise ? can you share a sample sale deed to execute it this way ?

regards

[prabhu422p]

Ganeshan,

I have a 60x40 site on Banneraghtta road.One builder approched me through my neighbour.He is already constructing flats on 60x40 on Banneraghatta road.He said below things.

->G+3(ground floor parking and on each floor 2 units) total 6 units can be constructed.Of these since only 4 kitchens are allowed legally on 60x40 sites 4 units can be sold remaining 2 units we need to keep for our rental purpose.Loan can be availed for 4 units only and remaing 2 units will be sold only if guys with cash are availablke or it can be kept with us for rental purpose.

-> For joint venture it would be 50:50 share.Builder will bear all the cost involved for construction.Builder will get 3 units and land 0wner will get 3 units.Of these buider and owner can sell 2 units(loanable) each and both should keep one with them for rental purpose or for own use.

Pls share views if any has constructed and sold flats on 60x40 site or 50x08 site


Thanks
Prabhakar

[pvr59ksl]

Hi all

Nowadays everyone with a 40X60 site is going in for construction of apartments. In our area everyone has built apartments with G+4 floors. Has any member of this gone in for Joint Venture of apartment in 60X40 site. If so can he give the details.

[prabhu422p]

Pvr59ksl,

Which area ur residing?If possible i can take a look for 60x40 plot apartments to have an idea and discuss pros and cons with the respective owners.

Thanks
Prabhakar