Sunday, February 8, 2009

Buy now, but be wary - some safety guidelines

1) Buyers should go for property that is got the statutory approvals, where work is in progress — the more advanced stage of completion the better.

2) The buyer has to beware — check the documents thoroughly, see the plan approvals and related paper work are in place, check if the project is progressing and at what stage it is in and most importantly, the reputation and track record of the builder and ability to deliver.

3) Reputed builders now compensate buyers when there is an inordinate delay.

In most cases the developers cannot be blamed for the delay as the system in place is a long and complicated process involving multiple government agencies. The developer can provide the plans and title documents but there are over 15 No-Objection-Certificates that have to be obtained from a range of agencies like traffic police, water supply and drainage, electricity board, airports authority, pollution control boards and the Public Works Department.
To read more, please, visit - R. Balaji -The Hindu Businessline

Beware and be careful but keep on investing in under construction properties!

I can't imagine what will happen if on one fine morning each and every property buyer in Pune decides to buy only "ready possession flat" in a project which has all amenities ready and operational!

If builders are convinced that yes, people are not going to book when the project is launched, i am sure, majority builders will leave Pune real estate market, and will go to Bollywood! In Bollywood, Pune builders will start producing Hindi films where distributors, financiers and now corporates, give advances when you launch your film!

Those who will remain in Pune real estate market, will find it difficult to sell their ready possession flats. Because, there is a vast difference in selling imagination and reality.

We all know this, but never accept that most of the flats do not look as good as their floor plans. Home owner out of "self respect" never tells you exactly what is his opinion about his flat, but keeps on talking, very proudly, about the changes he has made in the original floor plan and the interior he has done!

The real estate investor, who keeps the original floor plan and doesn't make any interior, finds it very difficult to sell his "investments"!

To survive, these unfortunate builders, who have no option but to continue in Pune real estate market as a builder, has to change his basic "theory".

Instead of focusing on the plot size and shape, FSI, corporation laws and premiums, he has to give importance to the needs, tests and aspirations of the home buyers! For that, along with the architects, structural designers, plumbing consultants, electrical consultants and landscape designers; he has to appoint marketing consultants (like me!) who know what home buyers are looking for!

For any businessman, you experience this in every day life, his business is more important than his customer. That's why, you see auto drivers dusting off his rickshaw when he is waiting at the stand , but he will never dust the seat before you get in! Same is with the builders. Forget about considering that home buyers are the center of their business, most of the builders try to avoid meeting their clients! Out of more than 100 builders, i know personally, very few actually talk to their customers, on their own.

Point is, dear Pune home buyer, please, keep on booking when the project is launched or when the project is under construction but never think of buying only ready possession properties. No, oral consent is not enough. You have to take a oath, in writing, in the comments! (Comments Policy)

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I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 5 minutes!) Call +91 98600 44110

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6 comments:

  1. Friends, don't do this mistake of booking now...

    DON'T BUY NOW, WAIT FOR AT LEAST 6 TO 9 MONTHS AND THEN REVIEW PRICES AND STAGE OF CONSTRUCTION.

    ReplyDelete
  2. Ravi,

    Do we have to invest in under-construction properties to help the BICHARA builders because they have to lend from market and stuff ?

    I would really hope you could help us by telling real statistics about the industry than these prophetic advice which would do nothing but add doubts in our mind whose side you actually are.

    I was a huge fan of yours, but recently your posts are limited to advices and most of them in builder's favors.
    Probably not the best time to tell these things as people who are reading these blogs are probably the ones who have been suffering most since last few years with builders' greed.

    ReplyDelete
  3. # ref: "I would really hope you could help us by telling real statistics about the industry than these prophetic advice which would do nothing but add doubts in our mind whose side you actually are."

    Dear Anonymous!

    This is not a prophetic advice!
    This is: according to Oxford English Dictionary:
    "sarcasm" (n.)the use of irony to mock or convey contempt
    - sarcastic (adj.)

    - Your question "Do we have to invest in under-construction properties to help BICHARA builder..." tells me that you have got what i mean to say!!

    - Sorry, i am not into "self help" type of posts - How to - what to - Tips - advice.
    - Why? Because i am salesman. I consider all my readers as my clients. I talk, discuss, try to make my point, debate but not advice or teach.

    - Sometimes, i intentionally raise a controversial point just to start the discussion.
    - Idea is to have a conversation, share different views.

    - I am not trying to promote my or any particular point of view.
    - At the same time, i do not belong to any one side - not property buyers' side - not builders' side - i can't because i am real estate salesman, not a builder or a property buyer.

    -Plus, i see how stressful we all are. So on this blog, if possible, i try to be humorous too!

    - I request you to relax and focus on the topic - in this post topic is "Should I book a flat in the project which is just launched or is at very early stage of construction?" and express your views freely, without bothering about right or wrong.

    - You know well what is good for you. You don't need anybody to teach you.

    - You are my client - reader and i have a great respect for you.

    ReplyDelete
  4. Hello Ravi,
    Buying a new launch or under construction is not a problem with reputed builders.
    Problem is proper pricing & proper returns for the money paid.
    The quality & specification should justify the price.
    Builders should give price advantage to customers who are booking for under construction, but fact is that prices are still on higher side !!!
    Market will not improve till the prices are corrected buy Pune Reputed Builders.

    ReplyDelete
  5. # ref: "Buying a new launch or under construction is not a problem with reputed builders."

    - I don't think so. Instead of going by the so called "reputation" of the builder, i think, home buyer should consider the viability of the particular project. At least, builders look at their projects in this way. Builders stall or slowdown the construction of the less viable project and focus on the viable ones!

    ReplyDelete
  6. Aah,... I see your point of sarcasm now !
    Yes - definitely a point well made then. I am not too sure if I looked like, but I am looking for a property for myself to STAY since last few years and havent got it due to ever increasing prices. It never made sense to put money here, rather I opted take a place on rent. So is this the correct time to buy property or some further rate will mark the property rates downwards particularly after seening US market ?

    ReplyDelete