Branded Flat v/s Un Branded Flat – Survey by Prop headlines.

Focus Investor September 16, 2023 No Comments admin

Branded Flat v/s Un Branded Flat – Survey by Prop headlines.

Subject: Detailed Survey of Purchasing a Branded Flat from a Grade – A Developer with a Total Capital Investment of Rs 40 Lakhs in the Year 2011 verses Purchasing of an Unbranded Flat with the same capital Investments of Rs 40 Lakhs

Part 1: Analysis of the Flat Purchased from Grade – A Developer

➢ Detailed Analysis of Actual Facts and figures and the the Total Return of Investment of Purchasing a Flat worth Rs 40 Lakhs in the year 2011 and the Total Return of Investments

➢ We helped a client to Purchase a Flat of 2 BHK with a Built-Up area of 1087 sqft with a Grade – A Developer in Electronics City, Bangalore, This Flat was part of the Gated Community complex with all the Amenities like swimming pool, Club House, Gym, Children play area,Foot ball Ground, Tennis Court, and other Lifestyle Amenities

➢ To Stay and Enjoy this is an Amazing Housing community, but our client wanted this not for Personal stay but to earn Rental Revenue out of this and dispose it later

Premium Apartment 2 BHK – 1087 sqft – 1 Flat

Purchased Year: 2011

Purchased Rate: 40 Lakhs – 1 Flat

Monthly Rent in 2011: Rs 10,000/ Month

Annual Rent in 2011: Rs 1.2 Lakhs

Monthly Rent in 2012: Rs 12000 / Month

Annual Rent in 2012: Rs: 1.44 Lakhs

Monthly Rent in 2013: 13000/ Month

Annual Rent in 2013: Rs 1.56 Lakhs

Monthly Rent in 2014: 15000/ Month

Annual Rent in 2014: Rs 1.8 Lakhs

Monthly Rent in 2015: 15000/ Month

Annual Rent in 2015: Rs 1.8 Lakhs

And for the Next 7 Years from 2016 to now I have taken an average of Rs 18000/ Month due to increase in maintenance charges and other things so Rent Collected in these 7 years is 18000x12x7: 15.12 Lakhs

So The Rental Revenue Generated from the Year January – 2011 to December 2023 is Rs 23 Lakhs

And at Present the selling Value of the Flat is 85 Lakhs

Hence, for the Principal Investment of Rs 40 Lakhs in 2011 the Client got Rs 23 Lakhs (Rental Revenue) + 45 Lakhs (Extra Profit upon selling): 68 Lakhs Revenue (Net Profit before Taxes in Total)

Part 2: Analysis of the Flat Purchased from Non-Branded Developer

➢ Detailed Analysis of Actual Facts and figures and the the Total Return of Investment of Purchasing a property worth Rs 40 Lakhs in the year 2011 and the Total Return of Investments

➢ We Helped a client to Purchase 2 Flats of 2 BHK each in a Stand alone Building in Kanakanagar, off RT Nagar post, this is a Standalone building with only basic facilities like Power back up, Elevator, 24 hours water facility and no luxury amenities

➢ The Total Built area of the Flat is close to 1000 sqft and it was billed at 20 Lakhs

➢ Since the NRI Client had an investment of 40 lakhs we were able to Purchase 2 Flats at 40 Lakhs

➢ And again, this is an investment and we had purchased a Ready for possession apartments inboth the cases

Unbranded Apartments – 2 Flats

Purchased Year: 2011

Purchased Rate: 40 Lakhs – 2 Flats

Monthly Rent in 2011: Rs 8000/ Month – for 2 Flats it was Rs 16000/ Month

Annual Rent in 2011 – 1.92 Lakhs

Monthly Rent in 2012: Rs 9000 / Month – for 2 Flats it was 18000/ Month

Annual Rent in 2012: 2.16 Lakhs

Monthly Rent in 2013: 10000/ Month – for 2 Flats it was 20,000/ Month

Annual Rent in 2013: 2.4 Lakhs

Monthly Rent in 2014: 12000/ Month – for 2 Flats it was 24000/ Month

Annual rent in 2014: 2.88 Lakhs

Monthly Rent in 2015: 12000/ Month – for 2 Flats it was 24000/ Month

Annual rent in 2015: 2.88 Lakhs

And for the Next 7 Years from 2016 to now I have taken an average of Rs 15000/ Month due to Increse tenance charges and other things so Rent Collected in this 7 years is 15000x12x7x2 :25.2 Lakhs

So, The Rental Revenue Generated from the Year January – 2011 to December 2023 is Rs 37.44 Lakhs nd at Present the selling Value of each Flat is 45 Lakhs: 2 flats are 90 Lakhs

Hence, for the Principal Investment of Rs 40 Lakhs in 2011 the Client got Rs 37.44 Lakhs (Rental evenue) + 50 Lakhs (Extra Profit upon selling): 87.44 Lakhs Revenue (Net Profit before Taxes in total)

And the Total Summary of the above 2 Properties are

Branded Flat: Rs 40 lakhs

Purchased Year: 2011

Total Rent: 2011 – 2023: 23 Lakhs

Selling Price in Jan – 2024: 85 Lakhs

Net profit: 23 Lakhs + 45 lakhs : 68 Lakhs

2 Unbranded Flats: Rs 40 lakhs

Purchased Year: 2011

Total Rent: 2011 – 2023: 37.44 Lakhs

Selling Price in Jan 2024: 90 lakhs

Net profit: 37.44 Lakhs + 50 Lakhs: 87.44 Lakhs

Download this Survey Report of Branded Flat v/s Un Branded Flat in PDF