I was interested to have a look at it because:
1. they offer independent homes of decent sizes
2. the location was attractive as it is just 9 kms from Pondicherry
3. they are building a township of around 1000 houses which itself creates a community.
4. they were quoting a rate of around Rs1200/- per sq.ft. Where do you get a piece of real estate at Rs1200/- sq.ft?
The township consists of more than 1000 houses in three categories named Economy, Elegant and Elite. Each one of these houses are built up on a land area of 2400 sq.ft and has built up area measuring according to the type of the house you are buying. The township comes with host of amenities like Vinayagar temple, gym, tar Roads, street lights, children play area, shopping complex and security systems. Visit the website of Navasakthi Promoters by clicking here.I was looking at it positively because it is closer to Pondicherry and when I spoke to the promoters they informed that the township is surrounded by engineering colleges and a medical college as well. There is a perennial rental demand in this area due to the presence of high number of colleges. The students and staff members of these colleges prefers these houses around their college. For a 2000 sq.ft house, you can get a minimum rent of Rs10000.
I worked out the arithmetic and the total cost would be be around Rs25 lakhs. If I am able to contribute 20% as my initial contribution, the rest of the money would come as a loan. With a rental value of around Rs10k a month, the net liability towards loan servicing at ongoing rates would be around 10k per month, which I thought could manage. Thought about it for a long time but decided to let go since I didn't want to commit for a new loan. A new housing loan at this stage for another 10-15 years would perennially challenge my desire to break free from a job.
If the rental value as claimed by the promoter turns out to be true and with Pondicherry developing over the next few years, it would be an ideal investment /retirement property. Please check out with the promoters what is the current rate quoted by them.
I am still waiting for my retirement property, though!!