Resale value of an apartment

[DenQuest]

I am planning to buy a house near Brooke field / AECS Layout.

I am open for both ongoing projects which will get completed this year and resale apartment which is less than 3 years old.

As Ram has replied to me in another thread, the sq.ft rate in brooke field area is around 2,300 per sq.ft. which seems to agree with the quotes I have received from builders.

My questions are
how much will be a reasonable rate for a 1200 sq. ft apartment which is 3 years old? ( Brooke field / AECS Layout )
Is there any water shortage problem in Brooke field / AECS Layout area?
Is there any thumb rule for calculating the resale value of an apartment?

[DenQuest]

Can anyone please help me out in these.

[mramki_77]

Hi Den,
Regarding water problem, there is cauvery water supply to AECS Layout. But it does not comes once/twice in a month. borewell water is present in some areas.

Thanks
Ram

[DenQuest]

Thank You Ram

[abhinkoi]

Hello DenQuest,
Have u finalized any property/apartment yet? I am also planning to buy the same. Pls share the details if you have finalized something.

[Apte]

Hi, following two things come to my mind while calculating actual cost of resale apartment:
1) Value of UDS (undivided share of land for the apartment) [usually ~20 to 45% of SBA x Guidance value/Market Rate]
2) Min depreciation 5% pa
As somebody said in his blog that properties (esp apartments) are "expenditure" like other utilities TV, Fridge..... so their value depreciates not appreciates over time. So dont fall to gimmicks of greedy brokers/owners.

[DenQuest]

abhinkoi , plz check your PM.

[bloggist]

In general a newly constructed apartment may get you the appreciation for initial couple of years but over a period of time lets say after 5 years you won't be able to sell as market price.