Ilankai Tamil Sangam
Association of Tamils of Sri Lanka in the USA
Property Investments in Vanni
by K. Mylvaganam
Sangam does not endorse or advertise businesses. For this reason the name of the company has been intentionally left out. This article is posted because it is a sign that the economy of the NorthEast is moving along and because it may be of interest to the diaspora. -- Editor
It has been noted that many of the Tamil Diaspora invest in properties in places like Colombo, Madras and Trichi. The main reason for this trend of events is because there were no possibilities and dependable sources available in Vanni to ensure them to invest in their Homeland. To eliminate this shortcoming and assist those to invest safely and reliably in their own homeland, new houses are now being built in Kilinochchi and Vavuniya by the property developers which are financed by the Tamil Diaspora and managed by their representatives. Hence security and reliability is assured.
Proper Selection of Building Sites
Utmost care and importance is given in the selection of the sites where the houses are built. Only highlands with no possibility for flooding are selected. The availability of water is also given importance. Lands with sandy, clayey and gravelly soil textures will be rejected. The sites are selected in proximity to shopping areas and/or with easy access to transport facilities and the availability to essential amenities like electricity and telephone, etc. Only lands with proper title deeds are acquired.
Types of Houses
Several options are provided to meet the tastes and needs of individuals. There are plans and bill of quantities drawn out by qualified personnel for two and three bedroomed detached houses with a garden space around them. Plans submitted by the prospective investors will also be accepted. Any alterations or modifications suggested to the existing plans can also be accommodated, as long as the alterations do not affect either the structure or the strength of the building. Should such alterations involve additional expenses, a quotation would be provided for consideration and prior approval of the buyer. A mirror image of the existing plan, if desired, can easily be accepted without any extra cost. ,The necessary Planning and Building permissions will be obtained from the local authorities before the commencement of construction. Plans could be obtained on request.
Nature and Structure of the Houses
Priority is to ensure the quality, strength and stability of the buildings. According to the type of the top soil and the subsoil, the foundation will be laid accordingly in order to avoid the possibility of any subsidence even at a later stage. Not only materials of good quality are used in the construction, but the environmental factor is also taken into consideration in the selection of the building materials. For example, the usage of asbestos or any similar materials that are injurious to health and environment will be completely avoided in all our construction works. A qualified construction engineer will be at the site to supervise the work. The prospective buyer or his/her representative can visit the site intermittently while the building is in progress to observe the construction work being done.
Astrological Implications or Manai Sasthiram
Expert advice will be obtained to abide by the astrological and Tamil traditional customs adopted in building houses. The direction of the main entrance and the prayer room will be done in compliance with proper astrological points of view. Any special suggestion by the buyer to suit his or her star or date of birth will be given due consideration. Even the location of the well will be suitably sited.
Site Clearance & Delivery Dates
On completion of the construction, the compound will be cleared of all debris and the boundaries fenced with barbed wire. Should boundary walls be desired they could be constructed on the type and terms agreed in advance. A layout of a garden can also be undertaken if requested. A delivery date will be stated in the contract and it will be ensured that the building is handed over on or before the date stipulated therein. Delays, if any, will be compensated to the buyer in terms of the contract.
Contract & Terms of Payments
A legally prepared contract in duplicate by a solicitor will be available in advance for the perusal of the investor for scrutiny and endorsement. There shall be an initial deposit of 50% of the total cost of the property on the date the contract is signed. The remaining sum will have to be paid within two months from the commencement of the construction. Payments have to be made directly to the Seylan Bank to the account of the property developer. The property will be transferred in the name of the buyer thereafter.
Assistance in obtaining bank loans will be extended to buyers by providing the property concerned as collateral security. No fees will be levied for this service.
Letting services: Terms & commission
The establishment also deals in Letting Services. Tenants can be found for the houses and the collection of rents monthly will be guaranteed. The rents so collected will be disbursed in accordance with the instructions of the landlord. Periodical inspection of the house and property will be undertaken by the company representative to check for proper care and maintenance of the property. A legally binding leasing contract will be signed by the landlord and the tenant before the property is handed over. A nominal fee of 10% on the rent will be levied monthly for these services. Vacant repossession of the property will be made possible with a maximum six months notice to the tenant unless otherwise mentioned in the contract.
Financial Investment Possibility
Those wishing to participate in the financing of the property developer can do so in consultation with its management. The contact details are appended. Investors in the above company are given two choices. One is that they will be given an annual interest of 10%. The interest is payable quarterly as per directions of the investor. The interest could be paid either to a bank account or to a nominee of the investor. Should an investor wish to withdraw his or her deposit at any time a minimum of three calendar months' notice should be given. For those last three months interest will be paid only at the rate of 5%.
The other alternative is that the investor will be paid 50% of the net profit of a particular project agreed upon by both parties in advance.
Further information could be obtained by calling the following numbers:
Mr. Varathan : 00 94 21 228 5877 or
Mr. Mylvaganam : 00 94 21 228 5098
Posted October 19, 2005