Info: IT Employees Housing Co-op Society

[awin]

A bunch of facts below:

1) 1 Acre = 70 lakhs for the Sy Nos with road access. If it is 25 acres or 50 acres land that was acquired, it is easy to visualize that the developer's cost per acre would be significantly lesser than 70 per acre. I am sure you know the fact that SLN City acquired lands from farmers between 2006-2010 at the rate of Rs 25 to Rs 27 Lakhs per acre. Even today, their offer stands between 45 to 50 L per acre. You can contest these numbers all you want, but that is the fact. I suggest other members/visitors of this forum who can speak Kannada to speak to farmers when you visit the locality to confirm the above facts.

2) 1 Acre = 43,560 sq ft and not 45,560.

3) In your math, the Rs 200 per sq ft development charge was applied on the whole acreage. It is to be applied only on 49% of the land that is developed, isn't it?

Well, in any case, all I am saying here is that the price is on the higher side. I am bringing these facts out in the open to help you guys at the IT society (members) negotiate for better rates as a group with the developer. And that at a time when Real-estate sales are in doldrums and it is very much a Buyer's market.

And the locality as such is an ocean of plots - with so many of them out there in the re-sale/secondary market. For these reasons, people that wish to buy plots here should make some visits to the region and talk to secondary sellers to assess the value... Unlike BDA (creator of artificial scarcity), SLN City & other layouts in the vicinity are more like a free-market, where there's a balance on both supply & demand.

Anyway, I guess the forum has already welcomed a new entrant to the the Real-estate Republic of Bangalore, and I sincerely hope that the sweat & blood of the IT guys isn't taken for a ride.

[Daya]

Even I felt the rates are on the higher side... But looking from a buyers perspective, what value addition does it have for me to pay 975/sqft now and wait for 3 years(minimum) for registration? I see that there are plots available for immediate registration in the same locality for resale at 1000-1200rs at max..

[msn1270]

awin

SLN City is a big 3000+ acre area owned by Vijaynagar & Govindarajnagar (Father & Son Duo) MLA Krishnappa and Priyakrishna.
Whether they bought it in 2006/2000/1990 from farmers or xyz makes no difference, as they sell land pieces at today's price for any developer.

Per say the development fencing the entire layout, Road Development from main Road to the Layout & internal Roads, Parks, Water connection & Tank, Drainage, electricity & sanitary connection from main line, any other amenities are all done and the same cost + margin will be imposed to the owners of the 49% area. So considering the development cost for the full acre at a Rs. 200 is in my math is not a worst scenario.

if a person can get 1 acre with road access at a price of Rs. 70 Lakhs, instead of paying 1 to 1.5 crores for a 50X80 site in (that too in Sir M V Layout tail end) people
will go for this 1 or 2 acres of land in SLN City and make a farm house(as SLN city is outside the periphery of Sir M. V layout between Mysore Road to Magadi Road).

DAYA: If you are looking for immediate occupation, re-sales are good option in an already developed layout at some extra amount. If you are an investor or planning to construct at a later period say after 5 years, then only this is OK as you pay the amount in installment. Also by the time you make registrations, you can't get the same peice of land at today's price.

BTW, A 30X40 BDA site registration value for Sir M. V, BSK 6th stage or Anjanapura, people paid around Rs. 2.2 Lakhs.
Today same site is selling at least 15-20 times more. Real estate asset returns for an ordinary man benefits only at a longer term which no banks can give you.
Small term returns are meant only for speculators/High Networth investors/market controllers.

[awin]

awin

if a person can get 1 acre with road access at a price of Rs. 70 Lakhs, instead of paying 1 to 1.5 crores for a 50X80 site in (that too in Sir M V Layout tail end) people
will go for this 1 or 2 acres of land in SLN City and make a farm house(as SLN city is outside the periphery of Sir M. V layout between Mysore Road to Magadi Road).

Precisely sir. With a little weekend-scouting work in that area, you will realize that there are many farmers in that area who are willing to sell small parcels of land (like quarter acre to half acre etc) with road access from BMRDA approved layouts. Their quotes are typically in the 70 Lakh per acre range if there's road access, and lesser without.. Now, even if you consider paying a top-end price of Rs 1 Crore/acre, the price per sq ft works out to be Rs 229 per sq ft, with ready-made/already-constructed BMRDA road approach and no internal roads... So, at the cost of a 50x80 @ 975 psft, you'll basically be getting about 0.4 acres of agri land. All it needs is for a person's family or a relative to be qualified for buying such an agri land parcel under the Karnataka State laws/acts. The law states that the buyer should belong to agricultural family (with RTC/Paani/Patta land in his/her name) + family lineage to show agri land holding since 1972 + Non-Agri income not greater than 2 Lakhs per annum. Agricultural income can be any amount (of course, to mobilize such a fund)!! Scan through your trust-worthy relatives list and it isn't hard to find one suiting the above requirement.

The above math is precisely where I see the 975/sqft way off-range to be in the non-profit/goodwill domain. Being a capitalist myself, the developer is in his complete right and liberty to quote that price. All I am trying to do here is opening up the other side of the equation. Information-Assymetry has long been taken undue advantage of. In this case, the IT guys are soft targets because they only know how to code the software/Technology to bring out Information. Just like how they're trained not to look into a 'Bank of America user account DB' or a 'Credit card history DB' and still code great banking products around that data, they easily choose to ignore the 'Information' itself.

[sriram]

How is the area in general ? I read/heard that many properties/land parcels are under litigation in that area since titles have been sold to multiple people by the politician who controls land in that area. Is the land litigation free ??IT Employee Society claims that their USP is litigation free land. Since the layout is not BMRDA approved there is some risk involved.
My understanding is that to fund the land acquisition the society has to bring some investors on board and these investors surely have a profit motive. But inspite of that, they would be able to sell 10-20% lower than the market price. If more people pitch in and the investors can be reduced then the prices would be even lower. While it is easy to be skeptical given the dismal record of the real estate industry, still honest endeavors may be encouraged after due diligence.

[sam_m400]

Can anybody still can be member ? . Is site allotted to only members or without being a member we can purchase?/ How much is membership and land costs????

[msn1270]

Here are the initial few words from the society for the members enquiries.

========================================================================================================================================
Dear Member,

Over past few days after issuing circular about our project announcement, we are receiving many calls from interested members asking various questions pertaining to the project. In this regards we want to clarify few things which are in many people’s mind.

Few questions are as below:

Do you have Site visit facility?

Where are the marked sites and roads?

Can I pay full amount and select my site today?

Where is 40x60 marked? I want to see it today!

Do you provide free club membership if we book the site today?

How soon the rates will be doubled? Is the price negotiable?


These are questions that one would normally ask a private builder or developer who is ready with a project and selling plots at a premium. A cooperative society, on the other hand, operates in a model that is driven by the members of the society and for their benefit. A cooperative society is a movement where like minded people join hands and work together for a purpose - in our case the purpose is to get plots in a good location at an affordable price. A Society on its own does not have the capital to invest in buying/developing land and the capital has to be raised by way of members depositing money in the Society to buy plots. Its a practice followed by almost all the housing societies to collect money from the members in advance even before a project is finalized, and this money helps in getting started with a project. With this approach the members would have to wait an inordinately long time - up to 3 -5 years to get possession of a plot they had paid for. This is also fraught with risk as the members have already paid the money and need to wait it out as long as it takes for the Society to allocate a plot. Taking cognizance of these aspects we have adopted a different approach, thanks to our association with a developer who supports our vision - BriCASA - where the developer has taken care of the initial investment to acquire land for the project and get started. We are now asking interested members to deposit the money to buy a plot in the said project, with the assurance that the members will be in possession of their plots in a specified time. As it is evident to all members, it requires a huge investment to complete a project of the size we have launched, and a specific time interval to complete the project.

We are at the project kick-off phase and getting started with the initial investment from BriCASA. Based on the number of bookings that we receive from our members we will be confirming that many plots to the developer, and the layout will be planned accordingly. It is required of us to complete the booking step at the earliest. Our Society’s main vision has been to avoid all the marketing gimmicks, expensive promotional activities, advertisements, middlemen/brokers and eventually reduce price for its members. The price that has been arrived at is the most market competitive price given the location of the project and the amenities that will be provided. We are banking on our members to make this maiden project a huge success! A member is benefited by a BMRDA layout with all exclusive amenities delivered with high standards and commitment!

[girishshk]

What the large developers will do? Buy Agriculture land & DC convert & develop and sell.

But if you see the history the process of Buy Agriculture land & DC convert will be done - Long before 5 years Or More..

So the appreciation price will be converted as margin for the developers when they start marketing after 5 years.

But the case here is the piece of land has already appreciated a lot near big banian tree & off mysore road till bidadi.

So the agriculture land availability is in scarcity. Considering these facts 975 is a good price.

But my personal opinion i will not suggest people to invest here for quick returns, instead people who travel to mysore / work in mysore road can invest here

else its better to invest in bangalore north / or north west and nearby places to namma metro phase 1/2 for quick returns.

[msn1270]

This society has come up with their second layout near Malur.

visit their website for more details.

http://www.ithousingsociety.com/

[duffyhair]

I dont see most of these societies adhering to that 3 months promise of delivering the project..