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Tuesday, July 29, 2008

Palash 2 at Wakad - only few flats are available for booking!

'No EMI till possession if you give Advance Loan disbursement' scheme gets great response!!

Almost all flats are booked in 2 days!

Vilas Javdekar and Associates opens few more flats for booking!

"The Green Umbrella Offer" of Vilas Javdekar and Associates scheme was going to close on 22nd of August '08. Under this scheme only 20 apartments were available for booking. These 20 flats were all high budget flats.

2 bhk flats (1293 - 1340 sq.ft. saleable area) including stamp duty and registration, was fitting in the budget of Rs. 45,04,560 to Rs. 48,69,750. Sizes of 3 bhk flats are 1633 - 1768 sq.ft.

On Sunday morning, July 27, '08, i posted the blog on "Green Umbrella Offer" but i did not go to Palash 2's site. I thought, considering the present trend, people will call but very few bookings will happen. So i do not have to visit the site today. And i went to Venezia at Baner. A project launched on that day by Kunal Sancheti Associates.

Today morning, i called my friend Madhav Gole at Palash 2. But he was not there. So i talked to Asmita. And i realized that i was wrong. I should have visited Palash 2 on Sunday itself. Because almost all flats were booked and they had to open few more flats!

Why Palash 2 got such a great response?

We all know, Mont Vert launched the compact 2 flats in 29 lakhs ( now Rs. 31 lakhs) on the same road in Seville, Wakad. My dear neighbor, Pethkar Projects launched compact 2 bhk flats of 961 and 974 size in the new wings of Samrajya - Balwantpuram. Mr. Satish Magar is advising all builders in Pune to make a 2 bhk flat of 850 sq.ft. so that at the current property rate and interest rate it will fit into the property buyer's budget.

When every one is saying, "there is no customer for high budget flat in Pune real estate market," how come high budget Palash 2 got so much booking? When i asked Asmita, she said:

1) Flats at Palash 2 are good.
2) Planning and concept of the project is good.
3) Vilas Javdekar and Associates is a good brand.
4) Property buyers thought, paying only rent for the next 14 months is better than paying both , Rent and Pre EMI
5) Disbursing loan in advance against saving Rs. 5,74,000 (Rs. 41,000 EMI x 14 months) was a win win proposition for the property buyer and builder.
6) People are still optimistic. After 15 months, when EMI starts, things would not be that bad.
7) Property buyer who has a 4 year kid will always look for a bigger home to settle down. 8) NRIs who are planning to shift after couple of years appreciate and afford Palash 2.

Is this a paid post?

I told Asmita, if i blog this not a single reader is going to believe. Whenever i blog something positive about Pune real estate market, generally comments are - i am blowing the bubble, Ravi, do not try to hype.

But this time, i am sure, not only property buyers but even the builders are going to ask me, "Ravi, is this a paid post?" Considering this i told Asmita that i am going to quote her and i am not going to moderate the comments. "Can i quote you? Can i say "Asmita gave me this information?" i asked her. She said "Yes! you can. I am Asmita Javdekar"

Sunday, July 27, 2008

An exclusive offer from Palash-2, Wakad- No EMI till possession if you give Advance Loan disbursement to the builder (!)

Pay just 4.5 lacs for a 2 bhk flat (10%) / 6 lacs for a 3 bhk flat (10%) before registration of agreement + Advance Disbursement of the entire loan (90%) after registration of agreement = Savings: No EMI till possession of the flat!

An initiative to sell high budget flats in Pune real estate slow down(!?)

Vilas Javdekar and Associates have come up with 'The Green Umbrella Offer' for Palash 2.0 at Wakad.

Palash 2.0 has eco-friendly 2 and 3 bhk flats with terrace garden. Sizes of the flats are quite big. 2 bhk flats: 1293 - 1340 sq.ft. 3 bhk flats: 1633 - 1768 sq.ft.

Basic property rate of a 2 bhk flat is Rs. 3,200 per sq.ft. (Rs. 3,236 for 3 bhk!). Maximum real estate price goes up to, including floor rise, Rs. 3,450 per sq.ft.

Because of this, minimum budget of 2 bhk flat, including stamp duty and registration, is Rs. 45,04,560 and maximum Rs. 48,69,750.

As per the offer, at the time of booking you have to pay only 10% of this amount, Rs. 4,50,456 (for minimum budget 2 bhk flat) or Rs. 4,86,975 (for maximum budget 2 bhk flat).

You will get 90% loan and your EMI (Rs. 41,879 / 45,274) will start only after the possession.

The Green Umbrella Offer (terms and conditions) is valid from 22nd July to 22nd Aug 2008 and applicable on 20 apartments only (availability).

Pune real estate offer station:

I know, lots of offers are going to be introduced in Pune real estate market. I request you to subscribe to my Pune real estate market news blog to take a benefit of these offers.

If you are visiting for the first time, please, visit my Google group Ravi Karandeekar's Pune real estate blog to know more about my blogs. You can join me on Twitter. Feel free to call me on my mobile 91 98600 44110 to discuss or suggest new offers.

Is it wise to give ADF in the present economic conditions?

Pune real estate boom is over. This type of an offer is the proof of Pune real estate slow down. PBAP has officially confirmed about the rising construction and land costs. Inflation is in double digits and not likely come down in this financial year. Because of the recession in US, jobs are not secure. In these circumstances, Is it wise to give ADF, advance loan disbursement, to any builder? Please, share your views in the comments.

Contact Palash 2.0:

Madhav Gole : +91 98817 44949
Maithili Page : +91 99229 39551
Sanjay Lele : +91 99229 39552

Site office:
187 Green Drive, (near Hinjewadi IT park),
Wakad, Pune, INDIA
Tel: +91-20-6410-4101 OR +91-98817-44949
E-mail: mvgole@javdekars.com

Corporate Office :
306, Siddharth Towers, Sangam Press Road, Kothrud,
Pune 411 038 INDIA
Tel: +91-20-6620-8000
Email: info@javdekars.com

North America:
Mr. Anand Khare - Consulting GM – Marketing
Office: +1-630-806-1940
Time Zone: Central
E-mail: anand.khare@javdekars.com

Middle East and Gulf:
Mr. Sanjay Kushe – Consulting GM - Marketing
Abu Dhabi, U.A.E.
Tel: 00971 55 7303273
E-mail: sanjakushe@yahoo.co.in

Saturday, July 26, 2008

Pethkar Projects' Samrajya - Balwantpuram compact 2 and 3 bhk flats at an affordable property rate of Rs. 4,000 - 80% flats booked in 2 days!

2 bhk flat in 43 lakhs at ShivtirthNagar on Paud road!

On Saturday, July 12, 2008, Pethkar Projects opened the booking of O and P wings of Samrajya - Balwantpuram. Booking rate for these wings was Rs. 4,000 sq.ft. On Sunday, as per the policy, property rate was increased by Rs.100. On Monday, real estate rate at Samrajya - Balwantpuram was Rs. 4,200 per sq.ft.

The builder, Pethkar Projects, was sure about the response because they had the data base, collected over the last 4 months. On March 2, 2008, the day Samrajya - Balwantpuram was launched, property rate was Rs. 5,600 per sq.ft. and flats were big - 2 bhk flat was 1,200 or 1,250 sq.ft. and 3 bhk flat 1,450 or 1,500 sq.ft. Because of the rate and the size, many people who visited the site, found out that flats on offer were not fitting in their budget.

So, Pethkar Projects reduced the size of flats in wing O and P. Now, the saleable area of a 2 bhk flat is 961 or 974 sq.ft. and of 3 bhk flat is 1420 or 1456 sq.ft. Along with the size, Pethkar Projects also reduced the property rate. O and P wings were launched at an affordable property rate of Rs. 4,000 per sq.ft. At this rate, a 2 bhk flat fits into the budget of 42-43 lakhs and a 3 bhk in 62-63 lakhs. Pethkar Projects send the emails to those who had that much budget and on July 12, released the launch ad in the local Marahti daily Sakal. Result was, on Saturday, people came not to inquire but to book the flat at Samrajya - Balwantpuram!

Story of the year!

If you like to read other Pune real estate stories, please, subscribe to my Ravi Karandeekar's Pune Real Estate Market News Blog. If you like to know more about my related blogs, please, visit my Google group, Ravi Karandeekar's Pune Real Estate Blog Group. Join me on Twitter!

Monday, July 21, 2008

Wakad and Thergaon - real estate investment destination in Pune for Mumbai property buyers

When a Mumbaikar decides to invest in a ‘home away from home,’ it is essential that the project and its location meet certain criteria. There should be potential for growth, easy access from Mumbai, reasonable rates and a sustained flow of rental income.

Certain locations on the periphery of Pune, like Wakad and Thergaon fit the needs of this segment perfectly because they offer value for money, steady rental demand and good returns on investment.
Investor dreams | Property Bytes

Sunday, July 20, 2008

Good news for Pune real estate market! Gaming industry looks set for at least another year or two of strong growth!!

Pune real estate slowdown:

In the comments, most of you express your concerns about sluggish US economy, future of an IT industry and job cuts.

'Are Pune real estate developers living in a fools' paradise?' you wonder, when new township projects are launched in Pune real estate market.

Most of us are convinced that builders in Pune are not aware about the imminent danger we all are facing. Some of us are even very sure about the crash of Pune real estate which is mainly driven by the growth of an IT industry in Pune.

Because we all are so overwhelmed, though we are aware about Indian IT industry's efforts to develop IT products and new markets like Japan to overcome this situation, we do not give much importance to these developments, including initiatives to develop "animation and gaming industry" in Pune.

"Hi Tech Pune-Maharashtra 2008 conference" organized by MP Suresh Kalmadi's Pune Vyaspeeth, 40 acre Animation and Gaming Park in Nanded City Pune, DS Kulkarni Developers' joint venture for the training institute in it's upcoming Fursungi SEZ are some of the recent initiatives to promote animation and gaming industry in Pune. Which is supposed to be the 'next big thing' happening after Information Technology, Bio-technology and Auto-hub.

Recession-proof solution?:

As per the Reuters' analysis "Growth ahead for more diversified game industry" by Kiyoshi Takenaka is, for sure, a good news for Pune real estate market. He writes:
"The video game industry looks set for at least another year or two of strong growth, driven by geographical expansion, a strong hardware lineup and growing pool of casual gamers.

Slowdown in the global economy and its chilling effect on personal consumption, which cast a long shadow over other industrial sectors, have not become a major source of concern, at least not yet"
To update yourself about Pune real estate market, please, subscribe to my Ravi Karandeekar's Pune Real Estate Market News Blog. To know about my related blogs, please, visit my Google group, Ravi Karandeekar's Pune Real Estate Blog Group. Join me on Twitter!

Saturday, July 19, 2008

Chicken soup for the Pune real estate developer's soul - 3

"If you create a 850 sq ft vis-à-vis a 1000 sq ft, you are saving on 150 sq ft of land, so at a common rate of Rs 3000/ sq ft, you will save Rs3 lakh - Rs-4 lakhs and at these interest rates, it can easily fit in one's budget,"
says Satish Magar, chairman and Managing Director of Magarpatta Township Development & Construction Company Limited and Nanded City Development and Construction Company Limited and Vice President, Promoters and Builders Association of Pune (PBAP).
Pune builders' success mantra: build townships

Related Stories:

1) Chicken Soup for the Pune Real Estate Developer's Soul - 1

2) Chicken Soup for the Pune Real Estate Developer's Soul - 2

3) Pethkar Projects, at ShivtirthNagar on Paud Road in Kothrud, opens bookings of 2 new wings of Samrajya - Balwantpuram at Rs.4,000 per sq.ft.!: Now 2 bhk in 43 lakhs and 3 bhk in 60 - 65 lakhs!

4) Review of Mont Vert Seville, Wakad - 2 and 3 BHK luxurious flats at an affordable price starting from Rs. 29 lakhs: It is all about not cutting corners, just the price:

5) Magarpatta's Nanded City Pune closes it's offer of phase 1 with a promise to open 2nd phase in December 2008: Who said we are interested in the 2nd phase of inquiries!

6) Is Nanded City, Pune all about real estate development?

7) Magarpatta's Nanded City on Sinhagad road in Pune - an exclusive slide show gives complete idea about 700 acre mega township

Chicken Soup for the Pune Real Estate Developer's Soul - 2

"The need is there, people may want to postpone decisions on buying property but they can’t do it for long,” says Lalit Kumar Jain, managing director of Kumar Builders.
Kumar Builders is putting in Rs 18,000 crore in 3 townships in Pune.

The integrated township idea is catching everyone in Pune. Builders will put in over Rs 40,000 crore in such projects by the end of this year

Pune builders' success mantra: build townships

Related Stories:

1) Chicken Soup for the Pune Real Estate Developer's Soul - 1

2) Few flats are available for booking at Paranjape Schemes' Blue Ridge at Hinjewadi!

3) Hinjewadi: real estate investment destination in Pune real estate market

4) Megapolis - views and property rates of Kumar Properties' and Avinash Bhosale Group's 150 acre integrated township at Hinjewadi, in Pune

5) DS Kulkarni sells 50 % stake in 250 acre Phursungi multi-service special economic zone to investment firm GTC Cyprus for $90 million

6) Magarpatta's Nanded City - Pune: Mr. Suresh Kalmadi, MP and Chairman, Pune Vyaspeeth, you too?

7) PRA Realty, Pune real estate developer, to launch residential integrated townships in Pune, Nashik and Nagpur

8) Is it an invitation for a collaboration or a proclamation of war or the last warning to Pune real estate developers? Housing group of 100 IT professionals in Infosys is looking for a reputed developer!:

9) Aniruddha Deshpande, of Amanora Park Town, to offer flats in 10 to 20 lakhs in his upcoming township in Pune

10) Indian middle class salaried families turning naxalite?: "How far can Indian real estate market rise?"

11) Kolte Patil Developers' to launch integrated townships and SEZs at Hinjewadi, Wagholi and Kharadi in Pune: 1) 400-acre integrated township at Hinjewadi:

12) Thanks to Megapolis at Hinjewadi! Inspired by it's success, i am announcing my first integrated township based on "swim to work" concept!

Monday, July 14, 2008

Builders in Pune dismiss suggestions that the property prices are heading for a sharp drop, claims that the demand is steady & still outstrips supply

Chicken Soup for the Pune Real Estate Developer's Soul:

My secret source has told me that Mr. Lalit Kumar Jain, Chairman and Managing Director, Kumar Builders, and President, Promoters and Builders Association of Pune (PBAP) and Mr. Satish Magar, Managing Director, Magarpatta Township Development and Construction Company and Nanded City Development and Construction Company Limited and Vice President, Promoters and Builders Association of Pune (PBAP), have appointed a ghostwriter to write a book "Chicken Soup for the Pune Real Estate Developer's Soul".

Though Mr. Jain is fond of "soup", for the obvious reason, he was against naming the book "Chicken Soup". He was insisting on "Baby Corn Soup". "Pethkar Projects' English ad in Marathi news paper Sakal, about launching 2 bhk budget flats at Rs. 38 lacks in Balwantpuram - Samrajya, convinced Mr. Jain about the urgency and emergency of publishing the book immediately" said unofficial source.

The book "Chicken Soup for the Pune Real Estate Developer's Soul" is a collection of inspirational, motivational and uplifting stories, Mr. Jain and Mr. Magar tell in their speeches in the PBAP meetings, to help Pune real estate developers discover, experience and retain key concepts and approaches. For example, "Pune bucks the trend" is a motivational story, specially written for Mr. Jitendra Pethkar, on a key concept:
“How can prices move down when both land cost and cost of construction that accounts for 60 per cent of the final price are phenomenally up over the last three years?”
Related Stories:

1) At Paranjape Schemes' Blue Ridge, Hinjewadi, few flats are available for booking!

2)Promoters and Builders Association of Pune strikes back: increases the per-square-foot rate of flats between Rs 50 and Rs 400 from April 20

3) Builders will increase the rate according to the stage of the construction, says Shantilal Kataria, while talking on rising property prices in Pune

Sunday, July 13, 2008

Gaurav Dalmia, Indian Real Estate Guru, Upbeat On Local Market

Why i am blogging this complete interview?

In the comments on this "Ravi Karandeekar's Pune Real Estate Market News Blog" the most talked about subjects are Pune real estate slowdown, property rates coming down and the 'future' of Pune real estate developers.

When most of us are so sure about the debacle, in the last week itself Gaurav Dalmia, probably the first marwari business family scion to test the private equity waters, has acquired approximately 10% Equity in Kumar Builder' 124 acre Hinjewadi Township & SEZ for an undisclosed sum, with an option for additional investment upto 49%.

This investment makes him a important member of Pune real estate market. I thought, you all would like to read his views and discuss about it in the comments.


Known to be a shrewd investor, Dalmia, founder and chairman of $225 million Delhi-based real estate fund Landmark Holdings, is not fazed by the current flux in real estate markets, nor is he worried about the high interest rate regime that is likely to continue for some time. He says real estate investors in India can still make money if they follow a bottom-up investment approach.

VC Circle’s Shrija Agrawal caught up with Dalmia in his office in Narayan Manzil to get his take on the current Indian real estate scene.

VC Circle: How are you reading the macro situation right now? Are you nervous as a real estate investor?

Dalmia: I am a bottom up investor, and not a top down investor. That said, if the macro environment is a little slower, the projects will be slower. For instance, if the rupee appreciates, there will be a slowdown in IT and there will be a slowdown in IT related employment and therefore housing catering to that sector. That’s a macro view. So, now we need to have a bet on the rupee because it affects housing demand indirectly. So, we try to blend the top down view with the bottom up view, but an 80% of our thinking is based on a bottom up view.

VC Circle: The Reserve Bank of India recently raised borrowing rates to the highest in more than six years. How do you see high interest rates affecting housing demand?

Dalmia: Interest rates will affect demand. It will also affect our margins because our interest costs will go up. I think that is a reasonably big variable, which means we look at higher margin projects and if we don’t get higher margin ones, we simply don’t do it.

VC Circle: What are your other concerns in the current macro environment? Isn’t inflation a threat?

Dalmia: Inflation, buying power of the consumer, interest rates, change of government, upcoming elections, and therefore, the macro management of the economy, all remain concerns. Even though the demand is real, there is too much supply. A lot of them have gone into the hands of speculators. So the problem lies on the supply side. The demand is growing reasonably. The projects, which have been conceived well, are doing well and will continue to do so.

VC Circle: Do you think the Indian real estate market has corrected?

Dalmia: The stock valuations of the real estate companies have corrected by 40-50%. I think real estate market is seeing a correction now. The key word is quality. There are 200 developers, and 70% of them will disappear. Players who are not serious will disappear. In 1985, believe it or not, there were 200 petrochemical players in India and only some 20 petro chemical players have survived since then. A similar shakeout will happen (in real estate).

VC Circle: What is your firm’s investment strategy?

Dalmia: As a real estate investment company, we partner with best of breed developers. We can come into a project at a start up stage or at a fully conceived stage. We would define best of breed by geographic specialty and product specialty. I don’t believe if one is a great developer in Delhi, he can necessarily conquer the Bombay market too. The reason is we believe that there are good developers in Bombay and they are not asleep.
I think geographical specialization makes sense and the same with asset specialization.

VC Circle: What do you look for before investing in a project?

Dalmia: We look at the local economy, what is the demand-supply situation, the particular location, the developer – and whether he can pull it off and so on. We would be the financial partner, we will bring in our own equity, and will also arrange debt.

VC Circle: How many projects do you have currently and what are the returns you are expecting from them?

Dalmia: We have 21 projects currently and we expect 30% to 40% returns although it varies from project to project.

VC Circle: How long do you expect the slump to continue?

Dalmia: The slump hasn’t started. It is just starting. You have to watch the fun in the next two years. People will be out there with begging bowls. There are developers who are paying 30% interest to private lenders, that is equivalent of a begging bowl.

VC Circle: What is your outlook for the real estate market?

Dalmia: I think the market is doing alright. There was too much euphoria in the market. You should segregate between the euphoria and the real market. I think returns will be far more selective. If you look at the demographics in India, the real estate boom is linked to the demographic boom. It is quite happening in India.

Why is the shopping mall boom happening now and why didn’t it happen 15 years ago? It’s happening now because of the buying patterns of young consumers, this demographic shift will mean that the housing demand will go through the roof. It will mean more organized retail, it would mean more domestic tourism, therefore the need for hotels so on and forth. This demographic will drive real estate more in India than in the U.S. which is a mature economy. Forget the short term and the medium term, real estate is the best play out here.

Saturday, July 12, 2008

Promoters of Ziggurat Sky Villas, Al-Track Group opens the bookings of Aura Elegance at Wadgaon Bk. on Mumbai Bangalore bypass near Sinhagad road

2 bhk Flats, Penthouses and 3 bhk Row Houses:

Al-Track groups' Ziggurat is a mini-township. Whereas Aura Elegance is a small project. The project has only one building (parking + 5 floors). On the 1st, 2nd and 3rd floor building has 2 bhk flats. On the 4th and 5th floors of the building there are 3 bhk penthouses. Besides this building, Aura Elegance also has 4 row houses. Because of the penthouses and row houses, yes, we can say, "Aura is an elegant project."

Based on the principals of Pyramid, Ziggurat is an Indian projects. Which has only "sky villas". Means three side or four side open 3 bhk flats. 192 flats in 7 buildings, spread over 11 acres of land.

It means, now, Al-Track group has a good range on Sinhagad road. "Elegant" 2 bhk flats, 3 bhk penthouses, 3 bhk row houses. And 3 bhk sky villas based on "five elements of nature"!

Property rate and Budgets of Aura Elegance:

1) 2 bhk flats: 850 - 900 sq.ft.: 35 lakhs (approx)

2) 3 bhk pethouses: 1500 sq.ft.: Rs. 50 to 55 lakhs (approx.)

3) 3bhk row houses: 1700 - 1900 sq.ft.: 65 lakhs (approx.)

Booking rate of Aura Elegance is Rs.3,200 per sq.ft. Obviously, you would like to know the real estate price of Ziggurat Sky Villas. Current rate at Ziggurat is Rs. 3,200 - 3,400 per sq.ft. Means 3 bhk sky villa fits into the budget of 50 - 56 lakhs.

Contact and Subscribe:

Aura Elegance's website is not ready. But for the official information you can contact here:
Site Office:
Plot No. 12 & 13, Sr. No. 54, Wadgaon Bk., behind Hotel Nikhil Garden, Mumabi Bangalore bypass, near Sinhagad road, Pune 411 041.

Phones: 020 3241 2794 / 95
91 98814 09173
91 99756 80020
SMS: ZIG to 54646
Email: altrackmail@yahoo.com
Website: www.ziggurat.co.in

I enjoy typing the contact information of the project. Because, if you subscribe to Ravi Karnadeekar's Pune Real Estate Market News Blog, you will have all info in your mail box which you can print and refer. For sure, you will not call me on 91 98600 44110 to ask the phone number of the project but only to chat with me.

Friday, July 11, 2008

Pethkar Projects, at ShivtirthNagar on Paud Road in Kothrud, opens bookings of 2 new wings of Samrajya - Balwantpuram at Rs.4,000 per sq.ft.!

Now 2 bhk in 43 lakhs and 3 bhk in 60 - 65 lakhs!:

Pethkar Project has opened the bookings of O and P wings. These wings have compact flats. 2 bhk flat is around 970 sq.ft. and 3 bhk flat is around 1,450 sq.ft. As per the information i received on the phone, the specifications are almost same. Amenities are, obviously, the same. Because of the new "reasonable" property rate of Rs. 4,000 per sq.ft. (only!) 2 bhk flat (970 sq.ft.) fits into the budget of 43- 44 lakhs and 3 bhk flat (1450 sq.ft.) fits into 60 - 65 lakhs! Possession is in 2 years.

Pethkar Projects' Samrajya - Balwantpuram - the most popular project on this blog!:

On 3/2/08 i blogged the launch of Samrajya Balwantpuram " 40 acre township in the heart of the city", which happens to be my neighborhood. At the time of launch booking rate was Rs.5,600 to 5,800 per sq.ft. Which was a great disappointment for me! 3 bhk flat in Samrajya Balwantpuram was fitting into only 92 lakhs! I wrote:
Because of this, as a real estate marketing professional i was disturbed; somebody may think that Pune real estate market is slowing down, Pune real estate boom is over, Pune real estate bubble is busted!

More than that, as a proud neighbor, people, particularly in Sahakar Nagar of Pune, will think less of me, when they will come to know that 3 bhk costs less than 1 crore on Paud Road in Kothrud, Pune. What a shame!
Nobody was in a mood to appreciate my sarcastic way of looking at the things. All were very angry about the rate. People started talking about the quality and service of the builder. www.realestateagentspune.com republished my blog. Residents of Balwantpuram joined the conversation. Even Mr. Jitendra Pethkar took part in the conversation! See, here is his reply:

Why did Pethkar Projects reduced the property rate?

When i asked this, sales executive said, " We found out that most of the people who inquired had this much budget. So we launched the new wings with compact flats at an affordable rate which can comfortably fit into their budget." This sounds good. Slashing price is lot better than a desperate offer of a free car with your new home! I congratulate Mr. Jitendra Pethkar for taking a part in the conversation and offering new plans at an affordable rate!

Welcome to ShivtirthNagar on Paud Road, Kothrud:

Welcome to my neighborhood! Let me know about your plans in the comments. Pray for real estate prices coming down in other areas of Pune and to update yourself subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog. To know about my other blogs visit my Google group, Ravi Karandeekar's Pune Real Estate Blog Group. Join me on Twitter. Feel free to call me on my mobile 91 98600 44110.

Contact Pethkar Projects:

S. No. 117+118, Plot No. 21/B,
Madhav Bag Co.-Op. Hsg. Soc.,
Shivtirthnagar, Paud Rd., Kothrud ,
Pune, Maharashtra (India) - 411038.

Tele : +91-020-25401234
91 97649 95555
91 97649 95599
SMS: PET to 54646

Fax : +91-020-25401240
Email : mail@pethkarprojects.com
Website: www.pethkarprojects.com

Tuesday, July 8, 2008

Buy your dream home now

Experts suggest that investors willing to buy residential properties should not wait. It is better to invest at current levels.

The inflation rate is ruling at quite high levels (above 11 percent) and is expected to remain high in the short to medium term. This means the rise in input costs of properties will continue and builders will be forced to raise the property prices in future.

Also, home loans attract income tax incentives for the borrowers. This means it is good to invest early in property.

However, investors should factor in some variables while going in for a home loan. As a home loan is a long term commitment from the borrower, it requires proper financial planning. Typically , a home loan tenure is 15 to 20 years.

Some factors to consider while availing a home loan:

Scheme: fixed or floating interest rate home loan

First of all, a borrower needs to decide on whether to go in for a fixed or floating interest rate home loan. Usually, the rate of interest is 1-1 .5 percent higher in fixed interest rate options. Borrowers with stability of income can go for the floating rate option while the risk averse should opt for the fixed interest rate loans.

Plan finances:

Due to the higher inflation rates ruling globally, the Reserve Bank of India (RBI) is bound to take tough monetary policy measures. As a result, interest rates might go up in the near future. Investors should factor in some interest rates hikes while calculating their equated monthly installment (EMI) outgo . Usually, banks absorb small interest rate increases by increasing the tenure of the loan. However, in case of sharp rises in interest rates (seems unlikely from current rates) investors can look for partial pre-payment and partial increase in the EMI outgo.

As a thumb rule, the EMI should not be more than 40 percent of the borrower's take-home income. Also, since a home loan EMI is a long-term issue (usually 10 years or more), investors need to plan other expenses like child's education, marriages in the family etc and adjust their outflow accordingly.


Repayment of home loans is through EMIs (equated monthly instalments).

EMIs are the fixed installments a borrower needs to pay over the tenure of the loan - to repay the debt as well as the related interest.

Usually, the EMIs remain constant over the tenure of the loan. The loan amount plus the interest for the loan tenure divided by the tenure of the loan (in months) gives you the equated monthly instalment.

The amount of EMI to be paid depends on and varies with the amount of the loan, tenure of loan, rate of interest, and mode of calculation of interest.

One of the important parameters governing the amount of EMI is the tenure of the loan. Nowadays, you can avail loans for various tenures - between five and 20 years, and in some cases upto 25 years as well.


Here are some factors that go into deciding the tenure of the loan:

1) Age of borrower:

If you decide to borrow early, at a younger age, you can opt for a longer tenure loan - like 15 to 20 years. This way, your monthly EMI payments would be less. Although the amount of interest paid would be higher as compared to other options, you can have the benefit of availing the loan for a longer period of time.

However, if you are borrowing at the fag end of your career, you may have to opt for a shorter tenure.

2) Income of borrower:

This would include the present as well as the expected future income of the borrower.

The borrower should be able to repay his EMIs without compromising drastically on his quality of living. The cash flows available after repayment of EMIs should not entail a dent in his living standards.

As such, a judicious planning of cash flows is required.

3) Tax benefits:

A borrower should try to avail the maximum tax benefits available under the Income Tax Act. Presently, interest up to Rs 1.5 lakhs per annum paid for housing loans is deductible from the taxable income of the person.

The borrower should structure the housing loan amount and tenure so that his annual interest component paid in the near future is Rs 1.5 lakhs per annum. Of course this would be contingent on other factors as well, like annual income and savings potential.


The longer the tenure, the higher will be the interest rate. This is due to the increased risk taken by the bank. The interest amount in absolute terms is higher , in case of longer tenures. However, the EMI is lower because the loan and interest are spread over a longer span of time.

The shorter the tenure, the lower will be the interest rate. This is because, in this case, the risk taken by the bank is reduced. The interest amount in absolute terms is lower because of the smaller tenure. However, the EMI is higher because the loan and interest are to be repaid over a lesser span of time. As the tenure of the loan increases, the interest rate also increases (to compensate for the increased risk element). Simultaneously , the EMI goes on reducing.

The last few quarters have been quite tough for the people dreaming of buying a home. The interest rates on housing loans have gone up from the 2004-05 levels. Many people thought that property prices will come down significantly due to the rise in home loan interest rates. However, contrary to expectations , property prices have never come down significantly, and in fact, have gone up in many areas.

So what affects property prices?

Some factors that dictate property prices:

1) Rise in input costs:

With the inflation ruling high globally (especially here), the prices of all basic commodities has increased quite significantly over the last few quarters. For example, the cost of labour, steel and cement has gone up quite significantly in the last few quarters. Due to higher input costs, builders cannot reduce property prices in their newly-launched projects .

2) Investments by foreign investors:

Many foreign investors believe that there is huge potential in real estate and the returns will be quite attractive. Foreign direct investments in realty projects has increased quite significantly over the last few quarters as more foreign players are investing in real estate projects here.
-The Economic Times

Tuesday, July 1, 2008

Slum rehab: Tenements to be of 350 sq ft

Putting an end to months of debate, the state government has decided to go with 350 sq ft carpet area tenements for slum-dwellers and not 270 sq ft as contemplated earlier. The decision has been taken for the implementation of the projects under Slum Rehabilitation Authority (SRA).

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Premium housing in Pune is in the Rs 3-5 crore band

Launching a project with UK-based YOO, Panchshil Realty brings around 100 flats into the market annually, in the price range of Rs 3-5 crore and are spread over 3,000-5,000 sq ft. “The demand is not as strong as last year but we are selling all that we construct,” Panchshil Realty director Atul Chordia said.

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