Tuesday, January 10, 2012

Skyline at Wakad: A Few Questions

I don't trust a builder!


I am associated with Pune real estate market for more than 20 years. For all these 20 years, I have always believed in every builder's dream. But i never trusted a single builder in Pune. And, I don't trust any builder today.

I don't trust any builder in Pune, mainly, because their dreams are based on lots of assumptions and our money.

If the builder is very sure that soon his assumptions are going to turn in to reality, i wonder why the builder doesn't wait till that point of time, invest his own money and earn more profit?

Why hurry now to tempt the property buyer to invest his hard earned money and take the huge liability of a home loan?

What are the risks involved in waiting for the right time? Why is the builder trying to avoid these risks? Why is the builder avoiding investing his own money - in his own project and - in his own dream?

How can I trust the builder if the builder himself doesn't trust his own project?

No builder trusts his own project!


When i was in Pune real estate advertising and marketing, I have launched many projects. In those days, launching of a project was a business opportunity for me. By launching a project, my client, the cash starved developer of the project used to collect some money to fill his empty coffers and start the construction. But the buyers in those days were not so enthusiastic to give advance to the builder. So, for me it was an opportunity to earn handsome money by creating good advertising. Obviously, i was happy to believe in the builder's dream at the launch stage.

Now, when i write for the property buyers, i see that only those who financially benefit from the launch of project believe in the builder. Looking at the business opportunity they convince themselves that the builder's dream would turn into reality and work for them. For example, housing finance companies, advertising, marketing and event management agency of the builder, main stream media and hoarding & catering contractor.

But the problem is, now a days, very small number of property buyers, those who are actually going to give their money to the builder at the launch of project, trust the builder that he will be able to materialize his dream.

Look at the recent examples. Even a project like "a 2 BHK Flat for Rs. 25 Lakhs on Sinhagad Road at UrbanGram Kirkatwadi" was not 'sold out' on the day of launch, as per the expectations of the builder.

I was told that, on the day of launch, out of 481 flats only 40 were booked at D S Kulkarni Developers' DSK Meghmalhar Phase 2.

Result is, today, a launch of the project has become a program of public acceptance of truth that without the property buyers' financial support the builder is unable to construct the project.

Not only that! In the launch ad of project, the builders in Pune publicly accept that very few property buyers come forward to take the risk at the launch stage.

For example, D S Kulkani Developers accepted that most of the flats in DSK Meghmalhar Phase 2 will remain unsold after the 4 day launch event and announced their property prices in advance!

In full two page color launch ad in Pune Times, Skyline at Wakad accepted that they didn't expect that more than 25 property buyers would take the risk of booking a flat at the launch.

Bharucha and Sons were ready to giveaway 3 Tata Nano Cars, 10 Washing Machines and 50 Mixers to the property buyers who didn't mind taking a risk of booking a flat at the launch of Collina at Kanhe Phata, near Vadgaon - Talegaon!

This public acceptance of the builders proves that not only the property buyers in Pune, but even the builders themselves don't trust in their own project!

No Bank Trusts a Builder:


We all know that the Reserve Bank of India (RBI) has given orders to all banks that they should not "over expose" themselves to the real estate industry. So, banks are reluctant to fund the builder's dreams.

Instead of trusting the builder's dream and financing his project, banks prefer to lend to an individual property buyer. Who irrespective of quality of the construction and completion of the project, will repay the home loan. So, on behalf of the property buyer, a bank gives money to the builder. Not all at one go. But in installments. As per the stage of construction.

So, when the builder needs more money at the launch of the project, the builder has to rope in some bank which is in need of business and ready to risk it's funds. Like ICICI agreed to give ADF to DSK Meghmalhar Phase 2!

No Land Owner Trusts a Builder:


When any project is launched, most of you ask me about the quality of construction, possibility of completion of the project in time, future development of the location and expected appreciation of the property.

Only a few, who know how the builders in Pune do their business ask me, "Ravi, why did this builder launch the project now?".

These property buyers know that the builders in Pune do not launch the project to make you rich by giving an opportunity to earn huge appreciation.

These well informed property buyers know that unless and until there is some urgent and important financial need - no builder approaches the property buyers in Pune.

Most of the time, installment of payment to the land owner is the sole reason for launching the project.

Desperate to pay the land owner, the builder takes the help of popular idea - "at the launch property prices are less" and tries to terrorize the property buyers by advertising and constructs show flat at the site to trap the visiting property buyers.

At the launch, now a days, a small number of property buyers, generally 2 - 3 per cent out all site visitors, really get frightened and give the cheque of booking amount to the builder.

Assuming that after going home, many are going to stop fearing and going to regain their confidence, builder takes cancellation charges from the property buyers. After all, mostly, collecting money to pay to the land owner is his only motive behind the launching of the project.

However, the cancellation charges don't prevent the property buyers from joining others who have visited the site but not booked. Collectively, all of you start questioning!

A few questions about Skyline at Wakad Pune:


In case of Skyline at Wakad too, i am sure, you will also have many questions. For example look at my questions:

'Horizons at Wakad' Pune on the day of launch of 'Skyline at Wakad'
'Horizons at Wakad' Pune on the day of launch of 'Skyline at Wakad'

1) Why did Adi Group launched the Skyline at Wakad when a few flats in the under construction building in Horizons at Wakad are available?

2) Why did Adi Group launch the 'Skyline at Wakad', when out of 5 buildings in 'Horizons at Wakad' - only 2 are almost ready, RCC & brick work of the third is going on and the construction of the last building is not yet started?

'Horizons at Wakad' - Road - 'Skyline at Wakad'


3) 'Skyline at Wakad' and 'Horizons at Wakad' are located on the two opposite sides of the road - which doesn't exist today. What is the reason behind not waiting for the road and what is the hurry to launch 'Skyline at Wakad' at this premature stage at the lower rate?

4) Why the booking amount is Rs. 3 lakh and cancellation charges Rs. 50,000?

5) Do they fear that, day by day, Wakad is becoming less popular and unless you have a competitive property price no one books at Wakad Pune?

6) Does Adi Group know that Pune is in Maharashtra and in Maharashtra property is sold on the carpet area? Why the carpet area of the flat in Skyline at Wakad is not given?

Along with the first question came to my mind when i saw the launch offer - Why are you charging the property rate of Rs. 3,800 per sq.ft. for 'Skyline at Wakad'?

My dear readers of Ravi Karandeekar's Pune Real Estate Market News Blog, if you have any questions, please, feel free to write in the comments. The launch of 'Skyline at Wakad' was business cum family get-together. So, i couldn't ask a single question. However, i have told the directors that i will visit them with an appointment to talk about the launch of 'Skyline at Wakad' - which is planned better. Have a look the floor plans and the 'regular' property prices at the rate of Rs. 3,800 per sq.ft. saleable area for 'Skyline at Wakad' Pune:

Skyline at Wakad Pune - 2 BHK Flat Cozy - Even Floors
878 sq.ft. Saleable Area for Rs. 34,91,900 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month:


Skyline at Wakad Pune 2 BHK Flat Cozy Even Floors 878 sq.ft. Saleable Area for Rs. 34,91,900 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month
Skyline at Wakad Pune 2 BHK Flat Cozy Even Floors 878 sq.ft. Saleable Area for Rs. 34,91,900 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month

Skyline at Wakad Pune - 2 BHK Flat Comfort - Even Floors
953 sq.ft. Saleable Area for Rs. 37,58,150 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month:

Skyline at Wakad Pune 2 BHK Flat Comfort Even Floors 953 sq.ft. Saleable Area for Rs. 37,58,150 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month
Skyline at Wakad Pune 2 BHK Flat Comfort Even Floors 953 sq.ft. Saleable Area for Rs. 37,58,150 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month

Skyline at Wakad Pune - 2 BHK Flat Large - Even Floors
1065 sq.ft. Saleable Area for Rs.41,55,750 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month:

Skyline at Wakad Pune 2 BHK Flat Large Even Floors 1065 sq.ft. Saleable Area for Rs.41,55,750 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month
Skyline at Wakad Pune 2 BHK Flat Large Even Floors 1065 sq.ft. Saleable Area for Rs.41,55,750 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month

Skyline at Wakad Pune - 3 BHK Flat Odd Floors
1301 sq.ft. Saleable Area for Rs. 49,93,550 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month:

Skyline at Wakad Pune 3 BHK Flat Odd Floors 1301 sq.ft. Saleable Area for Rs. 49,93,550 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month
Skyline at Wakad Pune 3 BHK Flat Odd Floors 1301 sq.ft. Saleable Area for Rs. 49,93,550 + Legal Charges + Stamp Duty + Registration + ST + VAT + Maintenance Charges for 2 years @ Rs. 2.5 per sq.ft. per month


Contact 'Skyline at Wakad' Pune:


020 6511 2111/2555 / 97 62 071 071 / sales@adigroup.in / www.skylineatwakad.com

Related Stories:


1) SATURDAY, JANUARY 7, 2012

Skyline at Wakad: 3,550 per sq.ft. for 25 bookings!

2) SATURDAY, JANUARY 7, 2012

Skyline at Wakad Pune Launched!

3) WEDNESDAY, JANUARY 4, 2012

Skyline at Wakad will be launched on 7th January, 2012!

4) MONDAY, MAY 10, 2010

Horizons at Wakad Pune opens booking at the property rate of Rs. 2,550 sq.ft. (for first 50 flats!)

5) MONDAY, APRIL 18, 2011

Discount! Horizons at Wakad offers Rs. 200 per sq.ft. discount!!

6) TUESDAY, DECEMBER 27, 2011

Available! Six 2 BHK Flats in Tropica, Blessed Township at Ravet PCMC, Pune 412 101!!

7) MONDAY, DECEMBER 26, 2011

Available! Ready Possession 3 BHK Flats at Wakad - Pune!!

8) FRIDAY, DECEMBER 23, 2011

Kumar Piccadilly Circus & Jokers at Wakad Pune 411 057

9) TUESDAY, NOVEMBER 22, 2011

Want a 3 BHK Flat at Wakad, Pune 411057?

10) MONDAY, JANUARY 2, 2012

Ravi Karandeekar's Most Popular Pune Real Estate Market News Blogs in December 2011

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36 comments:

  1. Please keep the good work doing Ravi. This is really eye opener for potential property buyer.

    ReplyDelete
  2. aha . now you say this . after praising projects like megapolis, life republic etc and egging buyers to go for them, NOW you say that you dont trust builders.
    Ravi jara der ho gayi aisa nahi lagta aapko?

    ReplyDelete
  3. Hi Ravi,
    You are doing a great job by evaluating each project. Those are really helpful.
    Though I have questions.

    Why didn't same question arise in your mind for Megapolis 1 year before?
    They did and are still doing the same thing. Launching next phase when existing phase is incomplete.

    Skyline still doesn't have a proposed road. Megapolis still doesn't have proposed amenities.

    Skyline has cancellation charges. So does Megapolis. By the way, was the cancellation charges more at Megapolis than in Skyline?

    I am really keen to know the criteria you use for evaluating each project.

    ReplyDelete
  4. Just be careful about Adi group as in their earlier project ie horizons at wakad I have suffered a lot due to false commitments about NA document which was not there, NO PCMC approval for construction, No bank approval. I had to cancel the booking & got my all money back only after threatening the builder through my lawyer.

    ReplyDelete
  5. Thanks for this wonderful artical ravi. Its help for property buyer. But why dont u wright same at Life ripblic ?? U give full marks to their launch and even suggest buyer to go on and book it??? Some thing is there.

    ReplyDelete
  6. I dont understand why you guys "expect" the same remarks from Ravi everywhere. I believe its his opinion and his blog. We should simply make the most of his comments that are helpful, and ignore the ones that we don't agree with.

    I wonder why he always gets bashed for his Megapolis views. In my opinion, Megapolis is much better than others. It is a unique township, not something like Skyline etc. Its primarily aimed at housing for IT co. workers to keep them near home. Serves a good purpose if it really does work that way. As for the amenities someone mentioned, please feel free to visit the Megapolis website and watch the photos. Children play park, tennis/basketball courts, cricket courts, everything is ready. Rest is supposed to be ready within 6 months at the most. That is when the possession is coming. (I'm talking of Smart Homes, not Sangria.) I don't know of ANY OTHER scheme, where monthly photos of complete project site, all buildings and facilities are uploaded to show the progress.

    Also, Megapolis I think, is the only scheme, who's COMPLETE pricing break-up is putup ONLINE on the website for us to check. There is nothing hidden at all. Its one of the cleanest documentation project that I've seen. I'm not at all promoting it, and I know that the builders at the end of the day are the same breed, but still, I don't like it when Ravi gets crucified for his views on Megapolis. When he said it is good, it definitely was good for the money they were asking. Still is.

    Come on, his views about Skyline etc. are more generic. They apply to ALL properties I guess. But then its our judicious decision that should make or break a property deal. If he stops his blog after saying "i hate builders" where will we get all these reviews etc from?? The flats are being sold when not at plinth level, and that is how the market is! So, reviews are always needed. The posts like these help remind us, that actually what is happening, is not right!

    If we all don't like any builders, why are the property prices at places like Wakad are 5000/sqft? So people ARE BUYING!!! Complaining to Ravi, isn't the solution to it is it? People should NOT BUY if they don't like the idea thats all.

    ReplyDelete
  7. Dear Saibaba, please, read these lines and visit the blog. I was praising the 'concept' of Life Republic. Other blogs on 'Life Republic' are there because this is a news blog. Here i cover what Pune property buyers are doing. Not what i want them to do.

    "If I am allowed to say more than "Yes" or "No" - my answer is "Yes! Conceptually!!". Because, we all know that, any real estate project should be judged on 3 parameters - Concept, Execution & Service. It means that you can get a true answer only a couple of years after the completion of the entire project. It means that, at this point of time, we can only say that - the concept of "Life Republic" is better than all the other ongoing townships in Pune!"

    Ravi Karandeekar's Pune Real Estate Market News Blog:
    Life Republic, Kolte-Patil Developers' "Special" Integrated Township at Marunji - Hinjewadi, - First Impression

    ReplyDelete
  8. Dear Ajay,

    "Why didn't same question arise in your mind for Megapolis 1 year before?
    They did and are still doing the same thing. Launching next phase when existing phase is incomplete."

    Your question send me in the past. Made me visit my first blog on Megapolis Smart Homes 1. If you visit it, you will find the answer -

    Ravi Karandeekar's Pune Real Estate Market News Blog:
    Megapolis Hinjewadi Phase 3, Pune -
    Are you investing in a 1 BHK for Rs. 16.87 lakh or a 2 BHK for Rs. 25.34 lakh Smart Home?

    ReplyDelete
  9. Dear Ajay,

    Megapolis Smart Homes 1 & 2 were launched to fulfill the need of the property buyers - within the property buyer's budget - at that point of time. Proof is without much advertising 1100 flats booked in 10 months.

    ReplyDelete
  10. Dear Ajay,

    "Skyline has cancellation charges. So does Megapolis. By the way, was the cancellation charges more at Megapolis than in Skyline?"

    Sorry to disappoint you. In those days - No cancellation charges at Megapolis.

    ReplyDelete
    Replies
    1. As a matter of fact, I cancelled a 2.5 BHK flat in SUNWAY last week. And no cancellation charge was levied even now. Btw guys - that means there is a 2.5 BHK flat available if anyone is interested :). Its on 14th Floor. Sunway A16. Possession is around 1.5 years from now.

      Cheers.

      Delete
    2. hi vikas,
      why you want to cancel your apartment. what is the problem with it.
      can i know. i want to make a investment in megapolis. you can contact me, if you are ready to come out of it.

      Delete
    3. hi Raj,
      I cancelled it because I got a better deal within Megapolis. In Smart Homes 1, instead of 2 (where I had booked earlier.) Now I got a 2 BHK in Megapolis Smart Homes 1, for a lot lesser price and the possession is by June 2012. Someone had cancelled this one which I took. Thats all. Its not like I cancelled Megapolis for some disadvantage. I checked today, and the flat I cancelled is still available.

      Delete
  11. Dear Ajay,

    "I am really keen to know the criteria you use for evaluating each project"

    The criteria is simple - Is the project good for the rational property buyer who wants value for money and standard of living?

    ReplyDelete
  12. Dear saccha, I know that to enjoy 'happy' married life you don't need to love your wife. I also know that - if the terms and conditions are clear between the both parties one can do business with the builder. I have done it. For many years.

    ReplyDelete
  13. Ravi , it looks you have opened the Pandora's box. But this is very terrifying picture of pune real estate. if you see any advertisement of newly launched project it insist buyer to book on the launch without worrying for anything. Just trust the builder. I Know one middle class salaried person ( should i say common man like me ) who was searching flat to stay ( most importantly not for Investment like many ) . He was looking home in kothrud area. But his search always stopped at the price tag like min 75L for 2BHK and 1 Cr for 3 BHK. With his salary that was impossible target to achieve. Though he was at middle management level of reputed company. I visited to few sites with him . Almost at all the places we got similar response from salesman that only last 3 or 4 are remaining so pls hurry-up and book. This answer was not only for the ready possession flats but surprisingly for the newly launched buildings/ phases as well. Very strange!! We sumed up all his Savings + possible money borrowing sources + EMI + max possible loan amount + Savings etc etc . But still that magic amount was dream for him . Finally he gave up the idea of purchasing flat in kothrud and settle for rented home which was near his kid's school in Erandawane. For common salaried people its becoming difficult to purchase homes in liveable areas of pune . All builders are playing mind games with common people to jack up the prices which are beyond reach of common fellows like us.

    ReplyDelete
    Replies
    1. Well-said, Common Man!

      We all have forgotten that 'we the people' are supreme. Not only in our collective political life, but in our personal lives too.

      It's not the builder but the property buyer is the boss of Indian real estate market. It runs on our, property buyers', money.

      If we change the way we buy the property - if we stop booking and start buying only ready for possession flat with the completion certificate and necessary infrastructure from Gram Panchayat / PMC / PCMC - we can get a better home at the right price.

      Not only in local governments but in private cities like Blue Ridge, Nanded City Pune, Amanora & Life Republic too.

      Delete
    2. Thats good idea Mr ravi..

      Already there are some rules in Karnataka like this. The PMC/PCMC should not allow to register the property if it is not in existence, not only that, it should have the completion certificate. The flats are all sold in ready possession. There is no concept of EMI,s till the flats are registered with completion cert.

      Although we need homes, but do we think that this all has created a fake ground for builders to make money, to convert black to white. with no property we start paying EMI's. If the builders are reputed and good, they will definately not bother of this, and also the other issues of fooling, cheating, delays in constructions. all will come down.

      Please post your views, lets work on this. It will definitely help us to tackle different issues.

      Delete
  14. Hi Ravi,
    I want to book a flat in maxima wakad 2.5bhk can you please advice is this good deal for investment/residential. Thanks

    ReplyDelete
    Replies
    1. Dear Neha, please, talk to the people who are living in the project (illegally).

      Delete
    2. HI Ravi,

      Could you please let us know how they are staying illegally and what illegal in this project..?

      Delete
    3. Hi Ravi,

      Could you please let us know what is illegal in this MAXIMA Wakad Project.? which will help all the residents of Maxima.

      Delete
    4. Living in a project which has not received completion & occupancy certificate is illegal, Atharva!

      Delete
    5. Thanks Ravi, does it mean that Project is NOT illegal but people staying there illegally and after some time this project will get these certificates right.?

      Delete
    6. Yes, living in a flat which doesn't have completion certificate and occupancy certificate is illegal. PCMC will charge you penalty for that. And you have to pay electricity charges by commercial rates. The builder can vacate you any time for unauthorized occupation. In case of an accident you will not get anything from insurance company. Means, those who care for their life & money should not live in such flats.

      Delete
  15. Hi Ravi,

    One question. I am looking for a flat with Budget of 40-45 lacs (fully stretched by all sources) in areas around Sus, Pashan, Baner, Bavdhan, Pimple series, Sanghvi, Wakad and probably Tathewade but still I am unable to find even one such project. I am only interested in ready-for-possession. At times, I think even if I buy a 2 BHK for 55 Lacs, will it be beneficial for me if after 4-5 years, I need to relocate (being in IT) and had to sell it as compared to other cities like Bangalore, Jaipur, Chandigarh, Noida. Don't misunderstand me as investor, but thats again a fact in case I want to settle in some other city due to some unavoidable circumstances with 20 years of Home Loan following me everywhere.

    ReplyDelete
  16. Ravi,

    I am interested to buy a 2BHK flat in Wakad and nearby area.
    My budget is 60-65 L. Please suggest me some suitable project in this area.

    Thanks in advance.
    Priti

    ReplyDelete
  17. well This is second project by same builder , if you guys are really interested in this project then just inquire about construction quality and delayed possession of "Horizon at wakad" which is previous and on going project not yet completed project by same builder just opposite to skyline project.

    or you can read post by existing buyer by joining yahoo group - horizonatwakad@yahoogroups.co.in
    and can get batter idea :)

    ReplyDelete
  18. Can you please tell me about the project Crystal Heights that is adjoining to Skyline. I like this project and was planning to buy but before researched a bit and fownd some issues posted by some of the residents. Also, how is the builder. From some of the forums they say some issues with builder. Will these type of issues get fixwd after society formation?

    ReplyDelete
  19. Hi ,
    I am not able to search above group. Can you pl help me to see this group.
    Also I have very bad experience @ Horizon and @ this builder.

    ReplyDelete
  20. Hi... I visited Skyline today and the he is quoting 5300 psf. All in all the project looked good to me.
    He is left with few flats... that's what he told me. I feel that this area has lot of potential of appreciation.
    I have heard so many times that prices will fall down or at least even out, but I have always seen price going up. Agreed that in 2009 prices plummeted but they have backfired equally.
    Ravi, you never recommended any project in wakad, but still if I see the appreciation (skyline itself has appreciated 1500 psf) of this area it is good enough, provided that Areas like Punawale and ravet are catching up.
    Goods and Bads will always be part of builder's scheme.
    What do you say is it worth INVESTING in the skyline?

    ReplyDelete