What is going on in Pune real estate market?
Instead of towing the policy of the PBAP, how can any builder offer his own housing solution to the property buyers in Pune?Particularly when the PBAP had been so kind to the home buyers who were avoiding to book flats because of job insecurity due to recession in the US economy.
In fact, it was not at all necessary for the PBAP to offer to pay 3 EMIs to the financial institution in case of borrower lost the job and couldn't pay. Builder is not at all concerned with EMI. It was bank and borrowers business.
Only on the humanitarian grounds PBAP decided to show sympathy to the property buyers.
But one member of PBAP, wants to be friends with the property buyers! He wants them to chill. Don't bother about property rate cuts. Home loan interest rates. Stalled construction work. Cancellation charges and refund of booking amount. Delayed possession. Paying EMI.
This builder, just tells you to go ahead and rent his brand new property. In his projects in Pashan, Baner and Wakad. All preferred neighborhoods by IT professionals working in Hinjewadi.
No, this builder is not changing his line of business. He is not going into renting. Doesn't want to become landlord and live off the rent. He wants to remain builder and develop housing schemes. He is offering some sort of scheme just to show his concern and commitment to his patrons in the hard times. He calls it "Rent Today Own Tomorrow"
This offer, this gesture, this builder is fundamentally wrong. Completely against the principal of PBAP. Why? I can explain it only in Hindi. "Agar ghoda ghas se dosti karega to bhuka mare ga." is the universal truth.
Shame, shame, shame...
Am i missing something?
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And what would be the purchase price, if I decide to buy eventually? is there any lock in purchase price when we sign for rent?
ReplyDeleteIsn't it like, when you want to buy, buy at the price we say or else forget about the rent paid!
You can't afford it, no problem, you can transfer it to relative/friend... what a novel idea! start looking for that non-existing relative/friend who will repay you your rent and buy same flat form builder at current price. Now its like, rent today and share the burden of sale with us tomorrow... even better :)
Once again Ravi. Sorry, but I could not have a clear takeout from this post. Are you praising Montvert in this post? Are you teasing them? Could not understand.
ReplyDeleteI would not advise my friends to go ahead an shake hands with Montvert for these reasons:
1. Rent is 33% higher then market rate. For e.g.: In Wakad they are asking for 12000/- pm for 2 BHK. Generally, without furniture the rent is around 8500-9500 in Wakad for 2 BHK. So, you end up paying higher rent.
2. Builder is not commiting on any price. Generally, the negotiation power goes down for buyer in this kind of situation. The builder will charge the highest possible List price for the flat you want to buy and whenever you want to buy. I do not see any smartness in spending 1.44 Lacs upfront in rent and then pay 3 Lacs higher then market rate (after negotiation) for the same flat after one year. Instead, I would advise them to go ahead and bargain hard in Wakad with any builder. Even today, I have evidential proof by some of my friends who bought ready flats @ 2300/2400 psqft in WAKAD with ALL AMENITIES.
3. Actually, you are marrying the 'Daughter of Builder' by getting engaged earlier. Just to save your rent against your EMI, you end up paying very high price of the same flat.
Once again and frequently again, I will advise PUNE BUILDER COMMUNITY to:
- Accept the fact that 200-300% rise in past was not viable for Indian scenario, so ROLLBACK. NOTHING ELSE - REPEAT - NOTHING ELSE will bring your business back. All other tricks will go down the drain.
- The low interest rate regime will bring just 3% of aspirant buyers. But if you bring down the price back to 2004 levels, you will have your scroll rolling.
- You have market, a good market in Pune - ONLY IF YOU REDUCE THE PRICE AND GO BACK TO 2004 LEVELS. Do a good business, roll your cash, make your customer happy - A Mantra to be successful in this bad times.
- GREED is the last thing that will help you in this time.
Hi Atul
ReplyDeletecan you please give some more details about
I have evidential proof by some of my friends who bought ready flats @ 2300/2400 psqft in WAKAD with ALL AMENITIES.
Hi Ravi:
ReplyDeleteAtul expects prices to roll back over and over again so that he can buy a home which he wants it for the longest time but missed the boat perhaps when rates were 1500/-
He is trying to have nothing but absolute negativity for builders no matter who the builder is what their product is and where the location is.
We all are hoping for a price cut to a fair market value. I have done a search on his posts and its nothing but spilling poison on this blog and diverting your attention on reporting the properties and deals in an unbiased way. There are many more of these guys on this blog taking this blog to nowhere.
If one was to offer Atul a flat in say for eg Parihar Chowk Aundh at say 2000/- he will still feel its too high.
Atul just do the numbers before you make unreasonable prediction.
I got my 1st wakad apt in 2007 at around 3100/- what I thought was decent price then, Now it falls to 2700 before even getting possession but then you do not see me making nasty calculations to justify things one way or the other. I will live with my decision and will revisit the price in 5 years. I am sure you will still be looking for a property even after 5 years cose you are afraid to make commitment and preventing others to do so. This way you are not left alone if the boat leaves again.
Atul get a life and Ravi help him get one cose he is taking up your time in you responding to his arguments.
Ravi pl concentrate on educating potential buyers and reporting builders traps. Thank for a very good blog
Hi Ravi Sir,
ReplyDeleteCould you please advice us about Manjri Greens solapur (Magnus Realy) ?
1) Is it worth to buy row how in Managari Green project, and how is builder's reputation in previous project .
2) What would be the right negotiable price for that.
3) What all things we have to consider before buying row house in Mangari Geen solapur.
Nitin
Today all are riding high on a economic condition which is fragile, if Oil goes to 150-200 in 5 yrs all the Auto industry will close. Its has started happening in the West, China will capture all the India's IT market, it has captured manufacturing already, then who would like to stay in apartments? When you don't have work. Do you think that Govt. can compete with china to get the Trade here ? Closest neighbours are already unstable(Pak and Srilanka). Why are you thinking in 2-3 year horizon. Its next 20 - 30 years I am talking about. Because there is a very huge risk that everyone is ignoring ... environmental changes. that can change the shape of world in few years.
ReplyDeleteThe clock is ticking