Construction of Semi-Independent Houses

The project idea is to construct six semi-independent houses in three family owned plots in trichirapalli in South Chennai, Tamilnadu, India. To market the same to middle class and upper middle class community and realise the investment and profits over a period of 12 to 18 months period. For this project the funding required is USD 2,00,000.

The objective of this project is to provide high-class residential homes to middle class and upper middle class community. The cash payback period would be 18 months and the project roi would be 18% pa. This business idea will definitely yield results due to the close proximity of the plots to the bus stand and railway station in trichirapalli.

The opportunity of the investor lies in the easy marketability of the project and once this project is completed the investor can join in the impending projects and this becomes a cycle of events to be continued over a period of time. The project is immediately marketable because of the overall development taking place in the said area and the affordable price tag fixed by us.

The three plots were bought with my own investment in 2005. Now once the investor comes in then I plan to go for house development approval and once that formality is completed then I can start the construction work approximately from January 15, 2012 as this month (called 'thai' in tamil) is considered auspicious to start new ventures. The funding of usd 2,00,000 required by me from the investor is only for construction activities as the plots are already owned by my family.

The direct/indirect players for this project would be the middle and upper middle class community. The advantage that I have over the competitors is that the plots have been purchased in 2005 itself at a low price and only the construction activity costs are according to the current market rates. Now the plot rates have escalated approximately 10 times from the year of purchase. This idea can't be repeated by our competitors because if at all they have to buy plots now, then they have to do that only at the current market rates and thereby their selling rates ought to be more than ours.

My opportunity lies in the fact that the plots were bought by me at a relatively lower cost long time back. By constructing semi-independent houses in these plots I can market the same at a relatively lower cost than our competitors do because anyway the construction cost remains the same for all. The indication is that lots of construction activities are going on around our plots and this is a positive sign.

The investment is needed one and only for construction activities to be carried out on the three plots. The finance is needed only because I do not possess liquidity and that all my investments are in real estate only. The desired investment is for construction to be carried out on a 5380 square feet of land area divided into three plots, plot 1 measuring 1832 square feet, plot 2 measuring 1824 square feet and plot 3 measuring 1724 square feet.

The construction area would be 1.5 times the land area (subject to approval by government authorities) which means approximately 8070 square feet. The current construction cost per square feet would amount to rs. 1,250 which means the total construction cost would amount to rs. 1,00,87,500. That is USD 2,00,000 approximately. The desired investment schedule shall be in one lump sum as I can substantially bargain for the cost of the materials from the suppliers if I buy in bulk and with table cash. Thereby I can save 10 to 20% on the purchase depending on the materials thereby increasing profits.

Interested investors can contact us on Merar for more information.