All the builders are cheating the customers. The opinions of all the readers are good and real. But who should bring in the rules to reign in the builders? Athorities in power shall think of the plight of customers and frame stringent and transperent rules for the builders.
Has the buyer any chance to argue? Is there any norm for charging these areas as per the Government housing authorities or the authorities who register the sale deed? Similar to the Registration value approved for an area at a point of time? In this approved registration value, what is the norm for counted area?
It's not just the area of the flat. More than anything the buyers should focus on the plot's Undivided Common Area. Here is how it makes the difference.
Case 1: A tower with 10 apartments of 1000 sft each on a plot area of 5000 sft.
Case 2: Tower with 10 apartments of 1000 sft on a plot area of 6000 sft.
Considering all the other variables like the location, facilities, etc. are the same, the buyers should bet on case 2 because the Undivided Common Area for case 2 is 600 sft/flat, whereas it's 500 sft for case 1.
One should remember that no structure is going to stand forever. When it's time to demolish and reconstruct the undivided common area is all that matters.
Some builders are smart dogs. They construct commercial areas within the apartment complex like Shopping malls, hotels, etc. and keep it for themselves, thereby gaining lot of undivided common area. Over it, they are smart enough to make rules for the society so that the commercial area they own pays less or no monthly maintenance compared to other apartment owners.
Buying real estate is a major decision for any middle class family. Do not make emotional decisions. Research well and don't let the builder, salesman or your best friend dominate the conversation.
Re: Look for the Undivided Common Area
by MMUSA on May 16, 2011 01:27 AM
does rediff have ppl who think normally? i thought rediff was filled with terrorists..
for built up area from the authorities who approve the plans such as Town Planning or Urban Developement Department etc., for individual project for allowing to charge 'Loading' for amenities above the carpet area. Because only they are capable of estimating amenities being planned & can certify the Loading on carpet area.
But this 'Loading Price' should be payable proportional to amenities ACTUALLY DEVELOPED, because most of the times builders promise the amenities & later do not construct them at all. (e.g. Garden, swimming pool, club house etc. I have seen one builder promising nice garden at the 'sale & construction' stage, but later planned a second tower on the proposed piece of land. Such dacoity should be punishable.
usually plinth area would be 1.15 to 1.2 times the carpet area
and super built-up area would be 1.1 to 1.15 times the plinth area
apart from this there is no specific BIS standard for defininition of super built-up areas and calculation thereon
unless this is done one can never really compare the rates.
But if the builder is able to provide the area details the efficiency ratios can be worked out
Mostly in many projects the totals area sold would me substantially more than the approved areas and this is a pointer to indicate whetehr the builder has flouted the approval norms and also whether he is overcharging by quoting the wrong areas.
One way of overcoming this is to incorporate in the approval process itself
the approval can indicate the ratio of plinth area / super built-up area and to UDS of land and this would help the consumers a lot
here is the standard industry practice/definations in simple terms from my 15yrs exp:
A: carpet area: internal room areas measured from wall to wall
B: built up or plinth area: area of apartment including walls and balconies
C: common areas: all the areas built oustide the flat like corridors, entrance lobbies, lift lobbies, stairs, electrical rooms,club house, etc serving the apartments, Excluding parking which is sold separtely
D: Saleable area of each apartment: is built up area (B) total common area (C)distributed proportionately to each apartment incases of apartments with terraces, half of terrace area (as cost of building terraces is lesser than other spaces)
ratio of common area to built up area is known as common area percentage or the loading of common areas. this is around 25% for 7 floor apartments. common area varies from city to city as in some cities, corridor widths, number of staircases/lifts to be provided as per building laws is more
Common area also depends a lot on architectural design, and common spaces provided and does not neccassarily mean you get a bad deal...some have grand entrance lobbbies, interesting corridors, spaces which improve aesthetic qaulity of the project which in the end is benifitial to apartment owners which obviously somebody has to pay for
common area % = total common area/ total built up area %
basic idea is builder sells the whole project whatever he has built to end user
Re: amenities
by Argumentative Indian on May 12, 2011 12:49 PM
Most people are willing to pay a fair price for amenities. It becomes a mockery of life, when a 2 BHK matchbox is priced at $ 250,000 (!) in a country with a per capita GDP of around $ 1500.
I had invested in a IT Business venture by buying IT space from CIDCO, CIDCO Cheated me by manipulating the area. For example A 1000 sq feet carpet area Module was sold as 2000 sq feet to me in 1998 and later the same space was sold as 1200 sq feet in 2004 to the mkt managers wife ,Chairmans son and and other employees/friends of CIDCO
Imagine area of offices shrinking by 50% just to benefit the employees of CIDCO
So be careful even govt firms cheat.In corrupt India even govt does not follow standard measurements.Everything is possible in India.
legal process to get justice is lengthy and time consuming. Se be very extra carefull when you invest in India
Re: Even Government firms cheat on Area
by Rajnish on May 12, 2011 12:37 PM
nobody cheats on areas. just because you are not bothered to understand the concepts before making investments does not mean that builders are cheating you. it is common knowledge that saleable area includes a loading factor. you can always ask for carpet area or built up area. and if they start ignoring the loading factor the price per square feet will increase in the same proportion. these prices are guided by market forces and you will still pay yhat amount. the article does not imply cheating anywhere it is just for informative purpose.
