Planning to start construction in North Bangalore

[Sreejith]

Hi Guys,

This is my first interaction on this site. I have been following this site for few months now & have gone through many posts & have gained a lot of knowledge. Now I have decided to go with construction.

This will be a long journey. I will try to keep you guys posted on the updates. Let’s start the journey.

I own a 30x40 site in Chikkabanavara, North Bangalore & is a B Khata site. I initially thought of going for a labor contract as one of my friend was getting a house constructed. He quoted 26,000 per chadra. I have been following his work for few months & did speak to him about my plans.

I have finalized on constructing complete parking in the ground floor & then a duplex above (1st & 2nd floor). We have plans to have a restaurant in future & hence the parking space in the ground floor which can be used for some other purpose when required.

I happened to shift my home to a newly constructed house next to my site thinking that it will be easier for me during the construction. Few days later a construction started across the road & I was happy with the work, I met the contractor & spoke to him about my plans & came to my site & checked all the dimensions. The site was a little crossed (same with all the sites in the layout), he was into turnkey projects & not labor contracts.

I was in a dilemma on how to execute this. For a labor contract you will need to have a lot of time & patience & good knowledge on the construction part. Time for me is an issue, I work in rotational shifts & will not be able to dedicate time every day. There is nobody who can take care of this on behalf of me when required. So I confirmed that I will go with the turnkey project.

I will continue to keep you guys informed on the bank loan, construction, materials used & end result.

[Kiran Kumar K]

BEST OF LUCK

[Sreejith]

Thank you Kiran.

Water- I initially thought about going with borewell & checked on the charges. Most of the houses in my layout has borewells. My neighbor got water at 380 ft. 6 years back. The present house that I stay in got water at 883 feet, another person got water at 910 in the same lane. Moreover, there is a guy who has water supply business & has about 3 borewells. I felt this is not a good investment.

Water consumption in my home is very less & there is enough water available from CMC, when required I can have the tanker supply water & I am also investing in Rain water harvesting.

House plan- I informed about my requirements to my contractor & we went through at least 4-5 plans before finalizing on the present plan. I am fond of movies, I & my better half spend a lot of time watching movies & listening to music. I planned on having a dedicated theater room for this & whenever we feel that this is not required anymore, we can change it in a bedroom or an office as per necessity.

Bank Loan
My contractor referred me to a guy who will arrange loan for me. I was not happy with the commission charges, which itself came around to 32k . The contractor called me after few days and said that I don’t have to pay the commission charges as he referred the loan guy to another person who was starting a commercial project & he will be getting a higher commission & my contractor asked to waive off the charges.

I spoke to the agent & he will arrange for a loan either from IDBI or CanFin. The interest is not yet know as he has to check my documents & confirm. He said that the interest rate will be around 8.5 to 9 .00 %.

This is the list of documents that has been requested. My wife will be a co- applicant.

1) Identity Proof
2) Age proof
3) Address proof
4) Income Proof
5) Banking History ( statement for at least 1 year)
6) Permanent address proof
7) LIC policy
8) 1 Color photo each
9) Processing fee from the salary account
10) Qualification proof
11) Relationship proof
12) Property documents

[sujiths]

Could you please elaborate on why the LIC policy was asked for, in the list of documents ?
Are they looking for any life insurance policy that you might be having (so even non LIC should be ok) ?

[Sreejith]

Hi Sujith,

Lic is not mandatory.this is just to check your investments. This will be an added advantage if available. This can also be considered as age proof.

[Sreejith]

Hi All,

A quick update on the progress. I met the bank guy again gave all documents required. Getting the loan from CanFin ROI @ 8.50%.

I only had EC until 2007, so went to guy who I know in Peenya registrar's office and applied for EC from 2006-2007. Cost Rs 500, I will be getting the EC today.

I also have to apply for records of right (phani), will get that sometime next week.

I am waiting for the blue print so that I can get the plan approved. My contractor has quoted 1550/ sqft . Will keep you all posted on this.

[Sreejith]

Hi All,

Update on the progress. I got the blueprint of the plan. I will be going to the panchayat office to get the approval.

Got the phani and costed 1500 from 1980 till date.

Had been to CanFin homes for home loan enquiry. Details below.
1) Interest rate - 8.90 % floating
2) Processing fee- 0.75%
3) Legal fee- 3000
4) Site assessment an visiting charges (5 times during the entire phase of construction)- 2500 (have to pay this only once).

[umeshguru]

Hi All

If you are getting loan with interest below 9% for B katha. then it is good.
You can try with REPCO bank. they process quickly, secondly, you don't need to pay any broker fee.

[hiradhu]

What is the process for Plan approval by BBMP? Can you pls help us with that?

[Sreejith]

What is the process for Plan approval by BBMP? Can you pls help us with that?

Mine is a B Khata site and under panchayat limits. I am not sure about the process in BBMP