Hi People,
please help me decide.
I have a house measuring 15x40, 15 facing the road side with ground floor built around 20 yr back. I do not want to stay in the house and have plans of purchasing a new house
The property value in our area is approx 3-4K per sqft
can you guys suggest me
1. should I sell this house as is ?
keeping 3k as average for 600sq feet i might get around 15-18L
2. should I demolist and construct 3 stairs meant for rent and then sell
approx rent for 1bhk in the area is 4.5K per month, i am thinking that i might get around 45-50L once I offer to sell constructed house
3. also what would be cost of demolishing and re constructing 600x3 sq ft.. need a bore-well too
Need Suggestion - To sell house or reconstruct and sell
Re: Need Suggestion - To sell house or reconstruct and sell
Presently your property will get valuation only for the Plot. Not for the Building which is already 20 years old.
Reconstruction Part, here are some blind estimates.
1) For a Borewell with Submercible Motor : atlelast Rs. 1 lakh
2) Demolishing: Minimum Rs. 50,000.
3) Cost of Building plan approval + BESCOM + BWSSB Approvals = Say Rs. 1 to 1.5 Lakhs
4) Cost of Reconstruction: An average construction cost per square is Rs. 1.5 lakhs.
So for minimum of 15 squares X 1.5 lakhs = Rs. 22.5 lakhs.
5) The time you invest atleast 6 months for the construction is also to be considered as Investment + interest rate you loose for your Rs. 25 lakhs in Six months. Once your construction is over, your need to wait for selling say 2-6 months(?) + commission if you go through any agents, Put altogether another 5 lakhs.
Hence Rs. 1.5 Lakh(Borewell+Demolistion) +Rs. 18 lakhs(Plot) + Rs. 22.5 lakhs(Construction) + 1.5 lakhs(Approval+Deposits) + 5 lakhs(Time+Interest) = Rs. 48.5 lakhs is your minimum Principle amount Invested. On this amount, you need to have your profit margin (excluding Capital Gains Tax to be paid to the Government, which could be upto 30% of your registered Value if you do not reinvest your earnings in real estate again). if are able to sell it for atleast Rs. 60 Lakhs(Net amount), worth to go for reconstruction.
think judiciously before choosing the option 2.
Reconstruction Part, here are some blind estimates.
1) For a Borewell with Submercible Motor : atlelast Rs. 1 lakh
2) Demolishing: Minimum Rs. 50,000.
3) Cost of Building plan approval + BESCOM + BWSSB Approvals = Say Rs. 1 to 1.5 Lakhs
4) Cost of Reconstruction: An average construction cost per square is Rs. 1.5 lakhs.
So for minimum of 15 squares X 1.5 lakhs = Rs. 22.5 lakhs.
5) The time you invest atleast 6 months for the construction is also to be considered as Investment + interest rate you loose for your Rs. 25 lakhs in Six months. Once your construction is over, your need to wait for selling say 2-6 months(?) + commission if you go through any agents, Put altogether another 5 lakhs.
Hence Rs. 1.5 Lakh(Borewell+Demolistion) +Rs. 18 lakhs(Plot) + Rs. 22.5 lakhs(Construction) + 1.5 lakhs(Approval+Deposits) + 5 lakhs(Time+Interest) = Rs. 48.5 lakhs is your minimum Principle amount Invested. On this amount, you need to have your profit margin (excluding Capital Gains Tax to be paid to the Government, which could be upto 30% of your registered Value if you do not reinvest your earnings in real estate again). if are able to sell it for atleast Rs. 60 Lakhs(Net amount), worth to go for reconstruction.
think judiciously before choosing the option 2.
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nagarjunkatta
- Posts: 161
- Joined: August 15th, 2011, 4:39 pm
Re: Need Suggestion - To sell house or reconstruct and sell
very informative answer..
Re: Need Suggestion - To sell house or reconstruct and sell
@msn - splendid math... i would hv nvr done this math in any way..
thanks a ton...
I do not think that I might get 60L for t property once constructed. caz ther are 2 15x40 adjusent buildings all t three sides
max value i can get would be of 50L...
feel I should push for selling the property as is, and make sure i get more than 20+
thanks a ton...
I do not think that I might get 60L for t property once constructed. caz ther are 2 15x40 adjusent buildings all t three sides
max value i can get would be of 50L...
feel I should push for selling the property as is, and make sure i get more than 20+