what happens after you buy flats?
What happens after you buy flats? I understand there are different categories, some cases you pay pre construction, often during construction and sometimes ready to move. But what after 50 years? When the building is old? Do the constructors break it down, build another building and give you a new place? Or is it like you buy for 50 years and that’s it? Building gone, your investment gone. also who decides that it’s time for the building to be demolished and reconstructed? How does it work? Otherwise what’s the point of buying of flats? Isn’t it better to just rent?
Flat owners in a building together form a society and take decisions with everyone’s consents for various small and large matters pertaining to the building. After 50 years, a redeveloper can buy the building - existing owners will get a new flat in the new building (without paying any extra money) plus redeveloper will construct a taller building and sell the new upper floors for a profit. So you actually buy the flat forever (except for a legal dispute or natural calamity)
While the new building is being constructed, you will have to find a rented flat somewhere else for 2-3 years, and redeveloper will reimburse you the rental cost
got it. what happens if there’s a natural calamity like earthquakes? can you claim insurance or do they redevelop the building?
also what happens to all the maintenance money charged? is that like a society fine
fund or something of the sort?
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Residents of the building/society form a resident cooperative society (mandated by law), which takes all the decisions on residents behalf. Once 80% members decide that building is old and requires redevelopment, first legal hurdle is passed. Then a new builder submits the plan to redevelop the building by submitting blueprint, floor plans etc. The sizes of the new redeveloped building/flats depend on the total FSI your new builder will get, based on the present laws on redevelopment. It's most likely that they will get permission to build larger/higher stories building. That way, existing owners get a new bigger flat, and builder gets to sell the remaining flats for recovering their investment.
With present quality of construction, it's unlikely that buildings will last 50 years. Cities like Bangalore, Pune that saw realty boom that started about 15-20 years ago, will be interesting to see how those premises will be in next 10-15 years.
Talking about natural calamity, makeup sure you buy a house insurance for protection against fire, theft, and other natural calamities. If you buy flat via a home loan, then it's mandatory to buy a home insurance anyway.
Hope this helps.
The new rcc high floor structures coming these days will easily last 70 years, in fact even 100 or more if norms are followed.
That's good to know. My observation is mainly with the minor cracks that I see on 15+ years old building in the neighborhood. And is the case with even reputed builders.
SabChangaSi
Stealth
9 months ago
You get something called UDS. This is the undivided share of land you get under the building. This basically means that you have around 5-45% of the size of the flat as land allocated to you. The society will vote after 100 years not 50 years to determine how to redevelop the entire building. Hence your flat gives you access to more than just a way to stay there just now. It's future proofing your entire next generation.
so if i buy a 600 sqft house today, after 100 years, i’ll only be given a place of max 270 sqft?
SabChangaSi
Stealth
9 months ago
Yes if you want to build an independent house. Otherwise you'd rather build a bigger building and take more space if the regulation allows you to build higher.
majboormajdoor
Stealth
9 months ago
Someone is asking the right basic questions.
Thanks bro.
