My wife and I had signed a Memorandum of Agreement to buy a flat at Barrackpore in North 24-Parganas in July 2007. The super built-up area of the flat is 1,400sqft. The price we agreed on was Rs 1070 a square foot.

Common areas like the staircase, lift, reservoir, entrance passage, community hall and parking space for two-wheelers add up to nearly 640sqft.

Is the rate of the facilities mentioned above the same as that of the flat?

Swapan Kumar Roy, Chittaranjan

The builder usually works out the total cost of development, which includes expenses on land, construction and regulatory approvals. The cost is then divided among buyers proportionate to their super built-up area after including the developer’s profit.

Although the cost varies from section to section, buyers are usually charged a flat rate. However, you may ask the developer to give you a break-up of the cost. Such information — it is up to the promoter to give it — can be used to satiate your curiosity but it is unlikely that the developer will agree to a differential rate.

I am an NRI and want to buy a house or a flat at a good location in Calcutta to settle down. But I cannot decide which is better, an independent house or a flat? Which will have more resale value if I decide to sell in future?

Somnath, on email

Both have their advantages and disadvantages. However, you will not be able to buy new houses in Calcutta because no one is building them anymore. Some bungalow projects are coming up near Rajarhat. You may look at them or you have to buy an old house and renovate it.

If you are buying an old house, appoint a good lawyer to verify the history of the property and the veracity of its documents. This is an absolute must before buying old houses.

The cost of old houses differs from place to place. The minimum you should set aside is Rs 50 lakh, but there is no upper limit. Moreover, you may have to spend a substantial amount on upgrading it.

Buying a flat is relatively easier. The minimum price of a 1,000sqft flat is Rs 30-35 lakh. But it can go up to Rs 3 crore, depending on the locality.

Both flats and houses have good resale value as property prices in the city are steadily rising. However, it may be difficult to find buyers for houses fast as they are more expensive. However, if you are patient, you might find the right buyer.

Send your queries to propertt@abpmail.com or mail them to

Sambit Saha, Business Telegraph, ABP Ltd,
6, Prafulla Sarkar Street, Calcutta — 700001