Beware of Pune Real Estate Investor
My dear home buyers, beware of Pune real estate investor.
Pune real estate investor is builder's friend and your enemy.
Builder's goon is easy to identify.
But, Pune real estate investor is not.
A builder's goon harms you physically.
Pune real estate investor harms you financially.
Pune real estate investor helps the builder to hike the property prices.
Pune real estate investor is not an employee of a housing finance company but
he is ready to sacrifice his life to increase the business & profits of it!
Pune real estate investor is the one who makes housing un-affordable for you.
Pune real estate investor looks like you, almost.
Mostly, Pune real estate investor works in your company.
Sometimes, your enemy is none other than whom you trust - your neighbor.
So, how will you identify your enemy - a Pune real estate investor?
Simple!
Pune real estate investor is someone who owns a home but
keeps on talking about investing in one more property!
Pune real estate investor is someone who can't do simple maths but
keeps on talking about investing in real estate!
Pune real estate investor is someone who doesn't understand 'finance'
- difference between asset & liability - but
keeps on talking about investing in real estate!
Pune real estate investor is someone who doesn't have enough money but
keeps on talking about investing in real estate!
Pune real estate investor is someone who doesn't know anything about property but
keeps on talking about investing in real estate!
Pune real estate investor is someone who doesn't have any knowledge about the current affairs but
keeps on talking about future infrastructural development plans and economic growth of India!
You know what?
Because of this Pune real estate investor,
today, 30 per cent population of Pune cannot own a home!
Because of this Pune real estate investor,
around 15 per cent flats - "investment properties" - in Pune are unoccupied. Not used. Vacant. Locked forever.
Just imagine, because of this Pune real estate investor,
how many people would not be able to own a home when
the population of Pune will be more than 50 lakhs in the next few years!
So, be alert!
Beware of this social criminal.
Beware of Pune real estate investor.
Big Fat Launch of Gagan Akanksha, 1 BHK, 1.5 BHK & 2 BHK Flats at Prayagdham - Koregaon Mul, near Uruli Kanchan, Pune Solapur Highway, Pune 412 202:
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| Hoarding of Gagan Akanksha, 1 BHK 1.5 BHK & 2 BHK Flats near Prayagdham, at Koregaon Mul, Uruli Kanchan, off Pune Solapur Highway, Pune 412202 |
View Gagan Akanksha, 1 BHK 1.5 BHK & 2 BHK Flats near Prayagdham, at Koregaon Mul, Uruli Kanchan, off Pune Solapur Highway, Pune 412202 in a larger map
A bouncer in the black told me to stop. Pointing at the bunch of people walking towards the black Range Rover, the bouncer said, "First, let the Saheb's guests go!"
Who are these guests at the launch of Gagan Akansha (www.gaganakanksha.com)? I was not expecting Bollywood villains at the launch. I was looking forward to see the brand ambassadors of Gagan Akansha! So, I asked the bouncer in the black, "Guests....who? The actors - Sachin & Supriya?"
After saluting the Range Rover, the bouncer in the black said, "Sachin left an hour ago! These were all big builders in Pune"
"I thought so!," i said and pointing at Mercedes & BMWs parked in front of the site office, i said, "Looks like - a few big builders are still inside!"
"Builders' kids!," the bouncer in the black said and let me go.
Pandal was full of people. Nobody was looking like a property buyer. Sachin & Supriya's blow ups & cutout were all over the place. "Is this a launch of an affordable housing project or a marriage reception of Sachin & Supriya?," i said to myself and started looking around helplessly.
I thought that all were looking at me. A waiter offered me a glass of water. Young lady in the black skirt came to me. Smiling at her colleague, the lady in the black skirt asked, "What is your requirement?"
I thought that she was telling him,"Look, i found the first needy home buyer who has a budget of 11.1 lakhs for a 1 BHK Flat!"
"No! I am looking for my friends!! We all are going to invest in a 2 BHK Flat for Rs. 16.1 Lakhs!," i tried to impress her and joined a group of fat middle-aged gentlemen.
Feeling safe in the group, i started paying attention to the discussion. A smart young man in a red shirt must be a builder. He was talking about how - in no time - Uruli Kanchan is going to become a suburb of Pune.
Referring to the property prices in Laketown at Bibwewadi and Hadapsar, he said, "At this point of time, someone who earns a salary of Rs. 40 - 50,000 per month can not buy a 2 BHK Flat in Pune - but, only at Gagan Akanksha at Prayagdham!"
Then he shared information about high land prices around Uruli Kanchan and said that,"We look at it as our - social responsibility - to construct housing for the young first time home-buyers at the upcoming location where they can enjoy a quality of life - as well as good appreciation."
"Yes! That's why we are here. We want to invest in Gagan Akanksha. What kind of appreciation we can expect?," one middle-aged fat man asked.
"Today's special launch rate is only Rs. 2,150 per sq.ft. - I don't know what would be tomorrow's rate. But - i can tell you that, in 2 years time, when the 5 buildings in the first phase would be ready - rate would have gone above 3,000 - may be 3,500 - like Manjri. And after the Pune Daund Local...," the smart young man in the red shirt said.
"OK. What rate would you offer if we make down payment!," the other middle-aged fat man asked.
"Tell us what rate you will offer - if we pay as per slabs - our group will buy around 15 - 20 properties!," one more middle-aged fat man said.
"Exact number is 24!," i said.
"That's great! You know? In this segment - we haven't considered that anybody will offer a down payment - i will talk to my senior partners and get back to you," the smart young man in the red shirt said and went in the corner to make a call.
"For down payment - we should get a rate of 2,000 - minimum 150 rupees discount!," one middle-aged fat man said.
"We should get a rate of Rs. 2,000 per sq.ft. - for the garden facing flats - for which the launch rate is 2,200 - means, 200 rupees discount," the first middle-aged fat man said.
"Come on...2,000 was the pre-launch offer for the bank payment in installments - as per the progress of work!," I said.
All of them started wondering who am i, but before anyone could say anything - the smart young man in the red shirt returned and said, "My senior said - you wont believe - no down payment - no discount - go by the price list - but i told him about our long association - form the Laketown - and convinced him for Rs. 1,950 per sq.ft.! Deal?"
"Only 50 rupees less than the pre-launch offer? We were expecting more for the down payment!," one fat middle-aged man said.
"1950 for garden facing flats is also not good, talk to your seniors and give us a good offer!," the other fat middle-aged man said.
"Possession is in 2 years - in that case - what rate will you give us for cash down payment?," one middle-aged fat man asked.
"This is a joint venture - all cheque payments - no cash - means we will accept the cash - but will give you receipt!," the smart young man in the red shirt said.
"Cash means all cash - no receipt - no agreement - no stamp duty - no registration - no vat - no service tax!," the first middle aged fat man said.
"Thanks for your trust in us. But, sorry, sir, at Gagan Akanksha every thing is white. By cheque. By agreement!," the smart young man in the red shirt said and added that, "Thanks for appreciating our efforts of providing affordable housing for the first time young home buyers in Pune. I am sure, you will take advantage of our launch offer and invest in an upcoming suburb of Pune - Uruli Kanchan - which will give you very good appreciation - as good as - our Laketown in Bibwewadi!"
"Of course, of course!," said the fat middle-aged men and started walking towards the sales executive.
"Is there any offer for the genuine end user?," i asked the young man in the red shirt.
"We were considering - "0" interest rate offer - but dropped the idea - you know? If something goes wrong - this type of an offers can create problems for both the parties. The offer was like this - you pay 2 lakhs at the time of booking and at the time of possession - rest of the payment is made in 36 monthly installments. Problem is - if you miss or delay an installment - and i take some action - you get angry. If i don't take any action - and suffer - i get angry - on myself - plus, the agreement would be done only after the final payment - about which - i can understand - the property buyer can feel uncomfortable - so, today's launch rate is our best offer," the smart young man in the red shirt said.
"Is this - 2150 per sq ft - the best rate at Uruli Kanchan?," i asked.
"Yes! Last weekend Kanchan Vrundavan was also launched at the same rate. It means, 2,150 is the right price for Uruli Kanchan," the smart young man in the red shirt said.
"Yes! Kanchan Vrundavan!! Your partner in the Laketown Bibwewadi - now, at Uruli Kanchan, though - your projects are separate - you are still united to dominate the market and jack up the property price!," i said, of course, to myself.
Contact Gagan Akanksha Prayagdham Koregaon Mul near Uruli Kanchan:
99220 16666 / 99220 26666 / sales@gaganakanksha.com / www.gaganakanksha.com
1) 1 BHK Flat in Gagan Akanksha Prayagdham - 360 Carpet + Terrace - 7th Floor
Rs. 13,01,539 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 26,000 Corpus Fund:
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| 1 BHK Flat in Gagan Akanksha Prayagdham - 360 Carpet + Terrace - 7th Floor |
2) 1 BHK Flat in Gagan Akanksha Prayagdham - 410 Carpet + Terrace - 2nd to 7th Floor
Rs. 14,67,224 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 30,000 Corpus Fund:
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| 1 BHK Flat in Gagan Akanksha Prayagdham - 410 Carpet + Terrace - 2nd to 7th Floor |
3) 1 BHK Flat in Gagan Akanksha Prayagdham - 425 Carpet - 2nd to 7th Floor
Rs. 14,26,766 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 28,000 Corpus Fund:
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| 1 BHK Flat in Gagan Akanksha Prayagdham - 425 Carpet - 2nd to 7th Floor |
4) 1.5 BHK Flat in Gagan Akanksha Prayagdham - 485 Carpet - 6th Floor
Rs. 15,737,38 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 32,000 Corpus Fund:
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| 1.5 BHK Flat in Gagan Akanksha Prayagdham - 485 Carpet - 6th Floor |
5) 2 BHK Flat in Gagan Akanksha Prayagdham - 540 Carpet + Terrace - 6th floor
Rs. 18,74,284 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 38,000 Corpus Fund:
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| 2 BHK Flat in Gagan Akanksha Prayagdham - 540 Carpet + Terrace - 6th floor |
6) 2 BHK Flat in Gagan Akanksha Prayagdham - 545 Carpet + Terrace - 7th Floor
Rs. 20,04,464 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 41,000 Corpus Fund:
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| 2 BHK Flat in Gagan Akanksha Prayagdham - 545 Carpet + Terrace - 7th Floor |
7) 2 BHK Flat in Gagan Akanksha Prayagdham - 570 Carpet + Terrace - 1st Floor
Rs. 21,33,544 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 42,000 Corpus Fund:
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| 2 BHK Flat in Gagan Akanksha Prayagdham - 570 Carpet + Terrace - 1st Floor |
8) 2 BHK Flat in Gagan Akanksha Prayagdham - 580 Carpet + Terrace - 1st Floor
Rs. 21,34,645 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 43,000 Corpus Fund:
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| 2 BHK Flat in Gagan Akanksha Prayagdham - 580 Carpet + Terrace - 1st Floor |
9) 2 BHK Flat in Gagan Akanksha Prayagdham - 590 Carpet + Terrace - 2nd to 5th Floors
Rs. 20,39,969 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 41,000 Corpus Fund:
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| 2 BHK Flat in Gagan Akanksha Prayagdham - 590 Carpet + Terrace - 2nd to 5th Floors |
10) 2 BHK Flat in Gagan Akanksha Prayagdham - 605 Carpet - 2nd to 7th Floors
Rs. 20,00,335 + 75,000 Parking +16,800 Advance Maintenance of 24 Months + 40,000 Corpus Fund:
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| 2 BHK Flat in Gagan Akanksha Prayagdham - 605 Carpet - 2nd to 7th Floors |
11) Floor Plans of A1, A2, A3, A4 & A5 Buildings in Gagan Akanksha Prayagdham - Koregaon Mul, near Uruli Kanchan:
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| 2nd Floor Plan - Gagan Akanksha, 1 BHK 1.5 BHK & 2 BHK Flats near Prayagdham, at Koregaon Mul, Uruli Kanchan, off Pune Solapur Highway, Pune 412202 |
1) Click to View Enlarged 1st Floor of A1, A2, A3, A4 & A5 Buildings in Gagan Akanksha Prayagdham - Koregaon Mul
2) Click to View Enlarged 2nd Floor of A1, A2, A3, A4 & A5 Buildings in Gagan Akanksha Prayagdham - Koregaon Mul
3) Click to View Enlarged 3rd Floor of A1, A2, A3, A4 & A5 Buildings in Gagan Akanksha Prayagdham - Koregaon Mul
4) Click to View Enlarged 4th Floor of A1, A2, A3, A4 & A5 Buildings in Gagan Akanksha Prayagdham - Koregaon Mul
5) Click to View Enlarged 5th Floor of A1, A2, A3, A4 & A5 Buildings in Gagan Akanksha Prayagdham - Koregaon Mul
6) Click to View Enlarged 6th Floor of A1, A2, A3, A4 & A5 Buildings in Gagan Akanksha Prayagdham - Koregaon Mul
7) Click to View Enlarged 7th Floor of A1, A2, A3, A4 & A5 Buildings in Gagan Akanksha Prayagdham - Koregaon Mul
12) Layout Plan of 20 Buildings (P+7 Story) in 20 Acre Gagan Akanksha, 1 BHK 1.5 BHK & 2 BHK Flats near Prayagdham, at Koregaon Mul, Uruli Kanchan, off Pune Solapur Highway, Pune 412202:
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| Layout Plan of Gagan Akanksha Prayagdham Koregaon Mul |
Click to View Enlarged Layout Plan of Gagan Akanksha Prayagdham-Koregaon Mul, Uruli Kanchan
Smart Shrewd Launch of Kanchan Vrundavan, 1 BHK & 2 BHK Flats at Koregaon Mul, near Uruli Kanchan Pune 412202:
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| English Launch Ad of Kanchan Vrundavan, 1 BHK & 2 BHK Flats at Koregaon Mul, near Uruli Kanchan Pune 412202 |
I couldn't visit Kanchan Vrundavan (www.kanchandevelopers.com) at Koregaon Mul on the day of launch. But when i visited it - i was told somewhat similar story - i witnessed at Gagan Akanksha Prayagdham. At the two day launch event, the sales executive told me that, more than 170 flats were booked. All were investors from Pune. And booking amount was Rs. 11,000!
Looking at the construction stage and the actual sample flat in the building, I decided to play the role of Pune real estate investor. Making a sorry face, I told the sales executive that if i had come with a cheque book - i would have invested in a 2 BHK Flat at Kanchan Vrundavan!
"No problem! You can block your flat - now - and give a cheque of Rs. 11,000 in our head office in Pune - tomorrow! No issues!! Anyways, we are not depositing your cheque - now. We will deposit your booking cheque - along with your cheque of 15 per cent own contribution - only when you will show us your - bank's loan sanction letter - and - pay us the stamp duty and registration charges!," the sales executive at Kanchan Vrundavan Koregaon Mul said.
So, i blocked a 2 BHK Flat of 596 sq.ft. Carpet Area - in the A 7 Building and called my wife.
"Good news! I booked a 2 BHK Flat in Kanchan Vrundavan at Koregaon Mul!!," i told my wife.
"Really! Congrats!! What's great about it?," my wife asked.
"Have you ever seen a common toilet in front of the kitchen? No! Right?," i asked her.
"No. Generally - we all prefer kitchen cum dining!," my wife said.
"Silly! Isn't it. After all the last destination of any food you cook is - the toilet - right? This flat in Kanchan Vrundvan had met the two ends - common toilet is opposite the kitchen - Isn't it unique?," i asked my wife.
"Shit!," my wife said.
Contact Kanchan Vrundavan Koregaon Mul near Uruli Kancahn:
90110 02233 / 90110 02244 / kanchandevelopers@gmail.com / www.kanchandevelopers.com
1) 1 BHK Flat 455 Carpet with Sit-out & Balcony for Rs. 16.25 Lakhs in
A1, A4, A6 & A9 Buildings at Kanchan Vrundavan Koregaon Mul near Uruli Kanchan Pune 412 202:
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| 1 BHK Flat 455 Carpet in A1, A4, A6 & A9 Buildings at Kanchan Vrundavan |
2) 2 BHK Flat 585 Carpet with Sit-out & Balcony for Rs. 20.37 Lakhs in
A1, A4, A6 & A9 Buildings in Kanchan Vrundavan Koregaon Mul near Uruli Kanchan Pune 412 202:
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| 2 BHK Flat 585 Carpet in A1, A4, A6 & A9 Buildings of Kanchan Vrundavan |
3) 2 BHK Flat, 596 Carpet with Sit-out & Balcony for Rs. 20.81 Lakhs in
A2, A3, A5, A7 & A8 at Kanchan Vrundavan Koregaon Mul, near Uruli Kanchan Pune 412 202:
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| 2 BHK Flat, 596 Carpet in A2, A3, A5, A7 & A8 of Kanchan Vrundavan |
4) 2 BHK Flat, 634 Carpet with Sit-out & Balcony for Rs. 21.72 Lakhs in
A2, A3, A5, A7 & A8 at Kanchan Vrundavan Koregaon Mul, near Uruli Kanchan Pune 412 202:
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| 2 BHK Flat, 634 Carpet in A2, A3, A5, A7 & A8 of Kanchan Vrundavan |
5) Typical Floor Plan of A2, A3, A5, A7 & A8 Buildings at Kanchan Vrundavan, 1 BHK & 2 BHK Flats at Koregaon Mul, near Uruli Kanchan Pune 412202:
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| Typical Floor Plan of A2, A3, A5, A7 & A8 Buildings at Kanchan Vrundavan |
Click to View Enlarged Typical Floor Plan of A2, A3, A5, A7 & A8 Buildings at Kanchan Vrundavan Koregaon Mul
6) Typical Floor Plan of A1, A4, A6 & A9 Buildings at Kanchan Vrundavan, 1 BHK & 2 BHK Flats at Koregaon Mul, near Uruli Kanchan Pune 412202:
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| Typical Floor Plan of A1, A4, A6 & A9 Buildings at Kanchan Vrundavan |
Click to View Enlarged Typical Floor Plan of A1, A4, A6 & A9 Buildings at Kanchan Vrundavan Koregaon Mul
7) Layout Plan Of the 1st Phase of Kanchan Vrundavan, 1 BHK & 2 BHK Flats at Koregaon Mul, near Uruli Kanchan Pune 412202:
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| Layout Plan Of the 1st Phase of Kanchan Vrundavan, 1 BHK & 2 BHK Flats at Koregaon Mul, near Uruli Kanchan Pune 412202 |
8) Layout Plan of Kanchan Vrundavan, 1 BHK & 2 BHK Flats at Koregaon Mul, near Uruli Kanchan Pune 412 202:
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| Layout Plan of Kanchan Vrundavan |
Click to View Enlarged Layout Plan of Kanchan Vrundavan Koregaon Mul
Sensible Genuine Under Construction Project - Tej Platinum, 1 BHK & 2 BHK Flats near Uruli Kanchan Railway Station, Pune 412 202:
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| A Building - Visit Tej Platinum, 1 BHK & 2 BHK Flats near Uruli Kanchan Railway Station, Pune Solapur Highway, Pune 412 202 |
On my way to Kanchan Vrundavan, i visited Tej Platinum, a residential cum commercial project of Shops, 1 BHK & 2 BHK Flats in 4 Story 2 Buildings with landscaped garden, near Uruli Kanchan Railway Station.
I asked Mr. Suresh Kanchan, the builder of Tej Platinum, Town Planning Approved Project, about rental income and appreciation in Urli Kanchan. He told me that i can get a rent of Rs. 4,000 per month for a 1 BHK Flat. Of course, i have to pay 500 per month for the maintenance. Means, if i am happy to earn rental income of Rs. 3,500 per month - on an investment of Rs. 17.5 Lakhs - i can go for a 1 BHK Flat in his Tej Platinum. Housing finance available from SBI!
"In the next 5 years - how much appreciation can i expect?," i asked Mr. Kanchan.
"I construct for the actual home buyers in Uruli Kanchan! I don't know what is an appreciation!! I can tell you only one thing - look at my quality and convenient location of Tej Platinum," Mr. Kanchan said.
"You mean to say that your quality is better than those big townships?," i asked.
"Yes!," Mr. Kanchan said and opened his brochure. You know what? A 1 BHK Flat - 581 / 584 Saleable - for Rs. 17.44 / 17.52 Lakhs and a 2 BHK Flat - 829 / 839 Saleable - for Rs. 24.33 / 24.60 Lakhs were really very well designed. A lot better than the floor plans of Gagan Anaksha & Kanchan Vrundavan at Koregaon Mul.
Contact Tej Platinum near Uruli Kanchan Railway Station:
84216 15737 / 99229 50396 / 90492 99891
Pune Real Estate Horror Story:
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| Dreams Nivara Investor |
After visiting Tej Platinum near Uruli Kanchan Railway Station & booking a 2 BHK Flat in Kanchan Vrundavan at Koregaon Mul, i realized that i am completely transformed. Now, i am no more Ravi Karandeekar. The professional Pune real estate blogger. I have become Pune real estate investor.
This transformation made me walk towards Dreams Nivara near Gagan Akanksha at Prayagdham. On the way. i read every hoarding and called the phone numbers to know more about bungalow plot's schemes at Koregaon Mul.
When, at last, i reached Dreams Nivara, i met two real Pune real estate investors - who have actually invested in Dreams Nivara. Because of these guys, i didn't dare to call Dreams Nivara - a ghost town. Though, at this point of time, a very few families are living in Dreams Nivara Prayagdham, one of the first affordable housing project in Uruli Kanchan.
One of the friends, has invested in 2 properties - 1 room kitchen & 1 BHK Flat. Since, the sales person was not at the site, this Dreams Nivara Investor became my guide. He showed me the entire project. Referring to the current property price list in his pocket, he told me that ready possession 2 BHK Flats - 360 to 430 Carpet - for Rs. 9.55 to 11.36 Lakhs are available in Dreams Nivara. He tried his best but could not manage to show the actual 2 BHK Flat. Telling him not to mind, i requested him to show me his investment property.
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| Property Prices at Dreams Nivara Prayagdham Koregaon Mul near Uruli Kanchan |
Proudly, the Dreams Nivara Investor took me to his 1 BHK Flat on the 3rd floor. We sat by the window and talked for a few minutes - about his investments in real estate. Then we stopped talking and went on looking around.
To break the silence, I told him that i would like to buy a flat in Dreams Nirvana and spend rest of my life here.
"Yes! Dreams Nivara is a great place to retire! Look, how calm and quite this place is. Full of greenery - and beautiful farms!! Plus, the PMPL bus stop is at the main gate...." the Dreams Nivara Investor went on talking enthusiastically.
I promised him to visit Dreams Nivara with my wife and took his leave. Two or three days after the visit, i called him. But i couldn't tell him that i was pretending. In fact, i accepted his request to invite him when i will visit Uruli Kanchan - with my wife. I felt that i was doing favor by keeping his hope alive. I know that investing in a property is easy but, - selling investment real estate is a frustrating experience.
Contact Dreams Nivara, Prayagdham - Koregaon Mul, near Uruli Kanchan:
937 015 0131 / 937 015 0133 / www.dreamsgroup.com
Related Stories:
1) THURSDAY, MAY 31, 2012
Visit Kanchan Vrundavan & Gagan Akanksha Koregaon Mul, near Uruli Kanchan, Pune 412202 - Photo-walk
2) WEDNESDAY, MAY 23, 2012
Review of Dreams Avani, 1 BHK & 2 BHK Flats at Manjri Budruk Pune
3) WEDNESDAY, MAY 2, 2012
April 2012: Ravi Karandeekar's Most Popular Pune Real Estate Market News Blogs
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I always enjoy your blogs, you have a natural and honest flair to relay the exact happenings during your research.Congrats and please keep up the great Blogs that you keep on producing so frequently.
ReplyDeleteRegards,
Vipul Sheth.
Well, Nice reading
ReplyDeleteRavi: I remember you selling homes at Five Gardens,
You were in completely different mindset at that time.
Coming to the topic, You have written against the so called investors.
I would stress there are 2 more culprits
1-Banks & Housing Finance companies
2-Absence of Regulator for Real-estate industry
When the rates were in affordable segments till Y2003-04. Consumer was King.
Then, Builder's started increasing the rates irrationally.
Banks & Housing Finance companies supported them as they were getting more business since higher loan requirements.
There was a comfort factor for them as it was a "Secure Lending"
If Banks would have collectively formed a forum to discourage such inorganic growth at that time, our society would have been in far better shape.
"Banks & Housing Finance companies" are the equal contributors.
------------------
In our country, We have regulator for Banks, Insurance companies & almost every other important field.
Why we don't have it for Real-Estate?
Real-estate contributes 7% of country's GDP. but there is no one regulate it.
Why?, Goodwill between politicians & builders.
-------------------
There were sufficient real estate investors in 1970's, 80's , 90's as well.
But there were no one ready to finance them for their real-estate investments like today's Banks & HFC's.
So there was no In-organic growth during those decades.
Post late 90's, Laws for home finance were loosened & we started the era of irrational price hikes.
That just shows you the big role of Bank's & Policy maker's.
Today's investor alone cannot be blamed.
This comment has been removed by the author.
Delete@Rahul
DeleteI truly admire and respect your views and I have exactly same views like you.
Unfortunately, we are in dark future when it comes to RE buying.
Your explanation of RE affordability until 2003-2004 is TRUE. After 2004, builders started looting and IT(software chaps) sector started dumping money for fulfilling their demands...
Today's prices are horrible. Had there been fair and ethical growth in this sector we would have got 1000 Sq. feet 2BHK for less than 22-25 lacs in city area. But sadly, they are getting sold above 60 lacs.
Ravi,
ReplyDeleteYou are absolutely right about the devloper-investor (foolish investors actually) relationship in jacking up Pune property prices. But isn't it the same everywhere even in stk markets there are circular trades, government interventions etc etc that distort the prices.
What I fail to understand is why investors have become mad behind property investments and that too not in plots but they beleive in paying super built up to the builders...thats horrible and the average return on property in Pune has been no more than 12~15% in past 15~25 yrs and this we are talking about the best period in Punes History...My dad bought a 3Bhk in Mukund nagar area for 4 lk 30 yrs ago...today its 1.25 cr but a compound interest of 15~18% (which builder themselves give with forward cheques) translates to 2.5 cr.
Its a myth that real estate investment outperforms. Moreover its illiquid and if we get a recession it would be very difficult to come out of your investments having said that there are advantages of safety as the property is in your name and you can utilise some of your black money to buy property especially in city areas.
What I feel is that stock market is the best investment simply invest in the index and leave it ...a 30 yrs analaysis says that giving money on interest outperforms real estate and investing in Index outperforms giving money on interest...
If at all one wants to invest in property than we must take plots (and not flats with superbuit up and builders margins) and that too at the time of distress..when everybody says that markets are doomed and economy is doomed thats the precise time to buy and not when Index is at 21K and Pune property are at peaks
i didn't dare to call Dreams Nivara - a ghost town.
ReplyDeleteTruly Its a Ghost Nivara, And Caretaker director of Dreams group ,Mr Umesh Ambardekar are very artistic in nature and his employes with project manager , sales director and his team are greately resposible for this beautiful art , making of Dreams Nivara into "Dreams group made slum city".You all are cordiely invited here to see the new slum in best location of uruli kanchan , the new subarb of Pune city, Its a total fraud towards society membars. No dranege system , no water supply , no cleaning system. every were dirt , Garbage , and greedy dogs and employes . membars want to change the situation but the company not willing to handover the Society to membars
Can anybody come to help us ,and give us right advice on this situation
pls...
We are helpless!
first class greedy directors,worst class employes and third class quality ,The slogan of dreams group
DeleteRight information i found here.
ReplyDeletei have booked 2 BHK in Aishwaray Prerna City at Urui Kanchan.Can anybody share his experience regarding this property.My mobile number is 8108551845.
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