Beware! Unscrupulous builders in Pune are targeting ignorant flat buyers:
Wise flat buyers are not booking flats in Pune real estate market for the last many years. That's why a huge inventory of unsold flats is lying around and the property prices are coming down. Result is most of the builders in Pune are in serious financial crunch or are on the verge of bankruptcy and mostly will not be able to complete their ongoing projects.
Add to it the new development rules plus the effects of upcoming RERA and you realize that the huge supply of flats has already made it sure that property prices in Pune real estate market will never increase and many builders would be thrown out of the business.
Obviously, wise flat buyers know that in this situation there is no point in booking a flat at the launch or at the early stage of construction. But when some event like Yashwin Hinjawadi takes place we realize that there are a few flat buyers who are completely ignorant of the realty.
Thanks to Vilas Javdekar Developers, for letting us know what are the signs of ignorant flat buyers!
If you notice these signs in you, I am sure, you can avoid to become the victim of some unscrupulous builder in Pune.
1) Do you believe that the property broker is your friend?
Many builders in Pune are appointing less educated, less intelligent and unemployable youths with no real experience or knowledge of real estate development business to win confidence of the ignorant flat buyers & trick them into booking a flat. Instead of searching a flat on your own if you are talking to these channel partners of the builders, you are an ignorant flat buyer.
2) Are you aware about online scams & frauds used by the cyber criminals to trick you?
The builders' agents launch 'unofficial' websites using the name of the builder or a project or a location and collect your mobile number & an email id. They use this data to trick you into booking a flat. If you are sharing your private information without reading the disclaimer on these websites, you are an ignorant flat buyer.
3) Are you really financially ready to own a home?
Unscrupulous builders know that those who do not have enough money to own a home are easy targets. So, the builder uses 'Lowest Property Rates' '25% Discount on Property Price' 'No EMI till Possession' as a bait to catch the financially weak flat buyers. If you are getting attracted toward this type of 'deals', you are an ignorant flat buyer.
4) Do you know what size of a flat is worth buying in Pune?
As per 2016 rules, 800 sq.ft. and above flat is given to an applicant whose income is Rs. 40,000 per month and above and an applicant whose income is between 20,000 to 40,000 per month can apply for 400 to 800 sq.ft. flat for MHADA low cost houses in Mumbai.
Considering the low cost of land in Pune, someone who earns Rs. 40,000 and above per month deserves to own a flat which is more than 800 sq.ft. in size. So, if you are going to book a flat in Pune which is of MHADA size Mumbai flat, you are an ignorant flat buyer who doesn't know which property is worth buying in Pune.
5) Do you know how builders manipulate property rates?
Quoting low basic property rate for the flat on the first floor and charging for 'floor rise' & the premium for 'the view' are well known tricks of the builders in Pune.
Though it's illegal to sale a car parking, unscrupulous builders in Pune sell it under the name of infrastructure charges.
Builders extort flat buyers under the heading of development charges for electricity, society formation, club membership etc.
If you are booking a flat because the rate is low (Rs. 4,195 per sq.ft.!) and paying premium for floor rise and preferential view (Value Addon Package) and infrastructure & development charges without understanding that you are actually paying the current market rate of under construction project ( 4,800 - 4,900 per sq.ft.!) for the project which is only on the paper, you are an ignorant flat buyer.
6) Do you know that it's illegal to sell flats on saleable area?
Unscrupulous builders in Pune actually sell the flats on 'saleable area' and cheat the flat buyers. Then they mention the carpet area in the agreement and pretend that they have sold the flat as per the law and mislead the government!
In every communication with the flat buyers these unscrupulous builders quote saleable area of a flat (the package price - 2 bhk - 850 - 950 sq ft for 48 to 54 lakhs and 3 bhk - 1100 - 1200 sq ft for 65 lacs max). But the actual carpet areas are very less. For example, at Yashwin Hinjawadi - A 2 BHK of 915 saleable has only 610 carpet area, a 2 BHK of 888 saleable has only 570 carpet area and a 3 BHK Flat of 1135 saleable has only 756 carpet area!
These carpet areas are certainly unsuitable for a home. But that's not all!
Even the saleable area calculation is also unfair & misleading!
Only unscrupulous builders in Pune calculate saleable area in this way - Carpet area of a flat + Carpet area of a terrace x 1.35 / 1.4
A builder who believes in fair business practices never adds loading on the terrace. The loading is added only on the carpet area of the flat. - The right formula to calculate the saleable area is - 1.3 x Carpet of flat + Terrace = Saleable Area
For example, visit Pethkar Projects' website and see the cost sheet of Siyona at Punawale.
When you pay for 888 saleable area when the actual carpet is only 570, you are an ignorant flat buyer.
7) Do you know what is the difference between Municipal Corporation & Gram Panchayat?
Pimpri Chinchwad & Pune have Municipal Corporation. Whereas Maan, Hinjewadi, Wagholi villages have Gram Panchayat.
PCMC & PMC have organization, development plans, source of income, financial aid from the state & central government and they can raise funds from even world bank. That's why PCMC & PMC can develop & maintain basic urban infrastructure which is somewhat suitable for human population.
Against this, Gram Panchayat has very less source of income, insufficient financial aid from the state & central governments, weak organizational structure, no development plan. That's why Gram Panchayat can not develop & maintain basic urban infrastructure. Result is Gram Panchayat can not construct roads, build bridges, buy - process & supply drinking water, can not lay drainage lines & process sewage, can not process garbage, can not develop public utility facilities like gardens & vegetable market, can not have fire brigade & can not prevent diseases. Even mosquito-borne diseases like Malaria, Dengue, and Chikungunya.
That's why when you book a flat in any Gram Panchayat it's very clear that you pay irrational property rate for the flat which has no basic urban infrastructure - like a car without an engine - and put your family's life in danger for your own selfish convenience of commuting distance from your office, you are an ignorant flat buyer.
8) Do you have an ability to avoid emotional trap?
Builders, banks, mass media, friends, relatives & parents have turned a simple basic need of a shelter into an emotional trap.
That's why instead of renting a flat in a developed neighbourhood for a less amount most of the first time home buyers are ready to become slaves of bank for life.
Unscrupulous builders gather the flat buyers in a close environment, block your rational mind and manipulate your emotions in such a way that you stop thinking rationally and take an instant emotional decision.
Very few people have an ability to avoid this type of emotional trap. Like this person -
But i want to highlight the physiological trap created by VJ like on the spot booking without giving ample time to think customers. on same day last moment he published rate and distributed details and asking book flat now itself else never you get this opportunity!
Even though he quoted based 4195/sq ft. on that day which is applicable only on 1's floor, he added floor rise charges and premium view charges which goes around 4800-to 4900 which is near to exiting near by Tinsel project rate. Many people missed this due to large crowd/ mob effect and mass booking psychological effect and fear that i miss the opportunity , sadly I am also victim of that !
After reading you blog & details study of cost sheet , i questioned them some points for which they have no answers on that.
I think this is not good practice at all, this guys saying to decide in 10-20 min and book flat . I heard that every project launching VJ is doing this kind mass booking using this kind of "physiological trap"
Thanks for your valuable guidance on Blog to aware us many points which need to ask builder before purchasing flat.
When you can't avoid emotional trap and book a flat in a event like "Yashwin Hinjawadi", "DSK घ घरांचा उत्सव आनंदाचा!" event at some strategic location or in a property exhibition like "Sakal Big 3", you are an ignorant flat buyer.
Please, beware, unscrupulous builders in Pune are targeting ignorant flat buyers like you.
What say you?
If you know a few more signs of a hopelessly ignorant flat buyer, please, add in the comments.
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