Hi,
i have come across a resale flat in Murugeshpalaya next to Manipal hospital and Leela palace which is a prime location.the age of the property is around 25 year.the condition seems to be not quite good,but OK.the quoted price is 40L,negotiable.how long i will be able to make use of such a flat?will i get reasonable appreciation if i want to sell it later?how generally old apartments are demolished and re-constructed?
is itworth buying a 25 year old flat in prime area
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harishrests
- Posts: 46
- Joined: March 23rd, 2011, 1:05 pm
Re: is itworth buying a 25 year old flat in prime area
Generally old apartments are demolished and re-constructed in the very prime areas and main roads (example: some apartments(ansal, brindavan) next to Prestige Acropolis), Mugeshpalaya is not a prime area which can be taken up for redevelopment in future nor you can expect any appreciation, more over if it is not on the main old airport road, then it is not worth.
Re: is itworth buying a 25 year old flat in prime area
jimmy,
you need to look at two facts,
1) Very high quality constructions can last more than 75 years. ordinary constructions or by any non-reputed builders may not have life of more than 40-50 years.
For Ex, Usha Apartment in Jayanagar is of same age and is in very good condition and it is commanding around 1 crore for a 2 BHK unit, as it is a low rise building with huge open space and also it is located on the centre of jayanagar with 3 side roads. So evaluate the quality of your targeted apartment to estimate its remaining life based on its construction quality. If it doesn't have much life, your resale chances will be very minimal in future.
2) The plot area of the apartment building must be decent & above say at least 10,000 sq.ft and above in any non-prime areas. In such a scenario, once the entire structure becomes weak and no more advisable for living, owner association can go with an agreement with a developer to demolish and rebuild a new apartment in that plot. Based on the bye-laws prevailing at that time, Builder can go for more number of floors. The existing owners will get the new flat free of cost(in many cases) or at a differential cost and the builder will take away his profit in the newly built remaining units (raised floors). In many cases during the construction period, the builder will also pay the rental amount for the old unit owners till the project completion.
if your targeted flat is already a high rise building and doesn't have much open space, it may not fetch much value in future.
So think about yourselves based on the above two factors.
you need to look at two facts,
1) Very high quality constructions can last more than 75 years. ordinary constructions or by any non-reputed builders may not have life of more than 40-50 years.
For Ex, Usha Apartment in Jayanagar is of same age and is in very good condition and it is commanding around 1 crore for a 2 BHK unit, as it is a low rise building with huge open space and also it is located on the centre of jayanagar with 3 side roads. So evaluate the quality of your targeted apartment to estimate its remaining life based on its construction quality. If it doesn't have much life, your resale chances will be very minimal in future.
2) The plot area of the apartment building must be decent & above say at least 10,000 sq.ft and above in any non-prime areas. In such a scenario, once the entire structure becomes weak and no more advisable for living, owner association can go with an agreement with a developer to demolish and rebuild a new apartment in that plot. Based on the bye-laws prevailing at that time, Builder can go for more number of floors. The existing owners will get the new flat free of cost(in many cases) or at a differential cost and the builder will take away his profit in the newly built remaining units (raised floors). In many cases during the construction period, the builder will also pay the rental amount for the old unit owners till the project completion.
if your targeted flat is already a high rise building and doesn't have much open space, it may not fetch much value in future.
So think about yourselves based on the above two factors.
Re: is itworth buying a 25 year old flat in prime area
Hi,
thank you for your valuable suggestion.can you please tell me how can i evaluate the health of the building?
with regards,
james.
thank you for your valuable suggestion.can you please tell me how can i evaluate the health of the building?
with regards,
james.
Re: is itworth buying a 25 year old flat in prime area
To evaluate the health of the build, do a inspection from a qualified structural engineer. Thumb rule is avoid any flat older than 10 years in Bangalore for various reasons like quality of construction, depreciation of values, availability of new apartments.
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prabhu422p
- Posts: 130
- Joined: March 2nd, 2012, 10:30 pm
Re: is itworth buying a 25 year old flat in prime area
I have LIG apartment in Surya city,Chandapura.The undivided share is 36.56 sqmtr(392 sq.ft) mentioned in the sale deed.When the apartment is demolished after its expiry time and if constructed by giving to builder do i still get 392 sq.ft undivided share?
Thanks
Prabhakar
Thanks
Prabhakar
Re: is itworth buying a 25 year old flat in prime area
I guess the rebuilding exercise will not be a straightforward calculation.
The builder will first and foremost look for how many more floors he can build. How much open space currently available and how much he needs to keep in the new design. Only thing that can be 100% ensured is each one will get minimum ONE dwelling unit which is NEW.
The builder will first and foremost look for how many more floors he can build. How much open space currently available and how much he needs to keep in the new design. Only thing that can be 100% ensured is each one will get minimum ONE dwelling unit which is NEW.
Re: is itworth buying a 25 year old flat in prime area
prabhu
the undivided land share will be decided based on the new number of units which comes up in that Place. When the number of units in the new project goes up, the land share will come down. If the new project comes with lesser number of units, you may get more area
infact you will pay from your pocket for the rebuilding activity
Note: Whether you get more land share or less doesn't make any difference in physical, as it is only a notional area and not marked exclusively for you. Secondly you can't do any transaction on that piece of land alone. Only the entire owner's association has to take a unanimous decision to make any new venture on that land. So always give more importance on the area where you live physically, not on a virtual undivided land area.
the undivided land share will be decided based on the new number of units which comes up in that Place. When the number of units in the new project goes up, the land share will come down. If the new project comes with lesser number of units, you may get more area
infact you will pay from your pocket for the rebuilding activity Note: Whether you get more land share or less doesn't make any difference in physical, as it is only a notional area and not marked exclusively for you. Secondly you can't do any transaction on that piece of land alone. Only the entire owner's association has to take a unanimous decision to make any new venture on that land. So always give more importance on the area where you live physically, not on a virtual undivided land area.