Saturday, June 20, 2009

To Let boards are back in Chennai

Nowadays one can find To Let board in Chennai. Last 2 years the situation went worse with no To Let boards, and the rent sky rocketing. The rate has come down a bit, both rental and sale value. But it seems it needs more correction. Everyone no that the rates had skyrocketed because of the boom in IT, but now the IT people are struggling the worst. There are frequent job cuts, salary cuts, no hike, no onsite opportunity etc. So naturally they can't pay what they paid for last 2 years. The salary has come down but all the expenses went up the highest being the rent.

2006 status

In the beginning of 2006, I was searching for a house in and around Thiruvanmiyur, the rates are between 1500 to 2500 for around 500 sqft house. If it is 2 BHK then the rates will be around 3500 to 5000 Rs. I used to go to each street and ask anybody there like iron-man, security, residents etc. Almost everybody I ask will be a instant broker. I remember one of the resident in Valmiki Nagar asked for my budget, and when I told it was upto 2500 Rs, he told me, "the rates are high here, it is 5500 Rs for 2 BHK". But then they quoted upto 12000 Rs, some even more. But now one can find a house in that area with negotiable rate. I was seeing an ad for a house to rent in Palavakkam in a local weekly classifieds, for about 2 months. There is no taker for 2 months.

Hate Brokers

I hate these brokers and never go to them. They are the one who made the rate to go as hogh as this. If you call them for a house, they ask for your budget then ask you if (your budget price + 2000) is ok for you. Suppose if you say the budget is 6000, then they ask you there is a house for 8000 Rs, is that ok for you. They will speak as if there are so many clients for them, they call you to meet them. Only after you go there they will call other brokers and enquire.

Negotiate and get the deal

If you are the one searching for house in Chennai, then do not go blindly with the rate what they quote, negotiate heavily and get the good deal. 2 months back I went to look for a house in Shastri Nagar, Adyar, the owner quoted 12000 Rs for a 2 BHK in a flat. The size will be around 1000 sqft I hope. The house looked good with nice paintings and the fittings, switch board, cupboard are all good. Usually for rented house there will not be any cupboards, just open shelves, then no electrical fittings, not a even a maintenace will be done. So, that 12000 Rs is high for me. My wife pushed me to call the owner and negotiate, but I didn't feel doing that because I thought the negotiation will be at the maximum 1000 Rs. When I wife got tensed, I called the owner, before me asking for the price he told, it was booked by another person for 10000 Rs per month rent and 6 months advance. I dropped the call and couldn't see the face of my wife.
This is 2 months back. Now there will be more houses looking for tenants. So there is a very good chance of negotiating heavily. All the Best.

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Chithra,  August 17, 2009 at 7:05 PM  

That was a very truth and useful info.
thanks for that.
Keep up your good work.

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