It's not crime. It's fun...........idhar ka udhar........udhar ka idhar.......
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When someone calls me on 919860044110 for 3 minutes free advice about buying a home in Pune, I ask him, "Do you know that real estate is a criminal enterprise?"
Generally, the caller says,"I know most of the builders are bad. But, I don't know what do you mean by 'criminal enterprise'?"
"An enterprise - organisation - a group of people who work together - for committing a crime! Do you know what 'crime' means? 'Crime' means - unlawful activity. Crime means - a serious offense, especially one in violation of morality. 'Crime' means - an unjust, senseless, or disgraceful act. 'Crime' means - an evil act. 'Crime' means - something to be regretted. 'Crime' means - any serious wrongdoing. 'Crime' means - a foolish act or practice!," I try my best to explain.
But, now, after Credai Pune Metro Pune Property Exhibition 2014, my job has become easy. I don't have to take so much efforts to warn the buyers about the true nature of real estate business.
Now, even The Times of India has publicly accepted the exact nature of business of it's biggest patron.
Of course, The Times of India has extended it's help to cover up the foolish act.
While explaining the 7.5 % offer of Credai Pune Metro, TOI clarifies that - "The lender will not take a cut on the interest. Instead, the developer will shell out the difference between 7.5% and what the lender is charging for that specific period."
It means that - by shelling out the difference between 7.5 % and the official interest rate - Credai Pune Metro is not going against the directives of Reserve Bank of India (RBI) or not disobeying the court of law.
In short, The Times of India says that Credai Pune Metro is neither committing any crime - nor taking a home buyer for a ride.
To attract the property buyers, Credai Pune Metro is just playing a game.
A motivational game - "One Two ka Four - Four Two ka One".
Now, please, don't ask me - Did Credai Pune Metro (www.credaipune.org) succeed in attracting property buyers?
Better, have a look at this video and decide:
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4) Now, who will save us from EMI Shahi?
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Hi Ravi,
ReplyDeleteI think ravi is the biggest criminal of all .Following points will explain you how.
1. I do not charge for first 3 minutes -------------A honest person should write ---" I charge 2% commission after first 3 minutes of talk".
2. I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market--------------A honest person should write ----"I write negative reviews to increase my blog visits ,so I can get more adds revenue"
3.I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market -------A honest person should write ---"I write negative because if I write positive then people will smell that I work for builders for commission ,so I write negative to show I am messiah of common people".
4. I write positive about following builders who give me commissions regulary --------------------------" Vastushodh ,Mapple group,etc".
Dear Sanskruti Joshi,
DeletePlease, update your profile immediately. Get It authenticated by Google.
So that I can consider you as a genuine person - my serious critic.
I like critics. Critics provide me an opportunity to talk about me.
But, I don't like spammers. As a blog owner, I have an authority to mark you as a spam.
So, before posting next comment, please, update your profile. Get It authenticated by Google.
Dear Mr. Sanskruti Joshi, I love you.
ReplyDeleteDear Sanskruti , please read Ravi's links for Ivy estate and Sangaria towers. Its not he who is talking ,they are ppl who have booked or residing in those buildings. I find this blog very informative because atleast someone is standing against big cheating builders like Kolte Patil or Megapolis.
ReplyDeleteThanks for support, Sourabh!
DeleteHi Sourabh , I simply hate Hipocrites ...............what would you call car companies selling car at 0% interest------------Marketiers or Criminals. Sourabh its called Marketing. If Ravi has so much problems with Builders ----he should standout like AAP and fight instead of hiding in the bush.
ReplyDelete1) Oh! 0 % Interest is marketing!! Thanks for intelligent info, +Santosh Mhaske.
Delete2) Hiding in the bush! +Santosh Mhaske, you know? You are funny. I visited your profile.
Ohh thanks Santosh. I really want to thank you for giving me worthy insight on marketting. Why dont you join Brand Republic or Frog design. They are worlds best ad agency and marketting firms. I also respect Mr. Arvind Kejriwal and his awesome gang of media.
DeletePlease read below article just for awareness ,its better to read before passing judgements.
http://prof-vaidyanathan.com/2014/01/13/is-india-safe-what-is-ford-foundation/
If the rate difference is being shouldered by builders, its actually good for serious buyers. For those interested in "investment", they clearly have excess money, and yes builders are out to get you hooked.
ReplyDeleteEven if the Law is being bypassed, its still legal. Thats why amendments come into effect, and thats why Lawyers practice runs just fine to bypass even those. 'Criminal' is a harsh term i suppose. Its definitely a Game though, you win some, but then even builders lose some.
Dear Mandar, do you know any bank which has given official consent to Credai Pune Metro's Offer of 7.5 % Interest rate & 10 % down payment?
Delete7.5% interest rate is not illegal.
DeleteWhat was deemed illegal was to give payment which is not construction linked.
Also, the scheme would save at most 4% to 5% if a ready posession apartment is bought. It is because the interest waiver is applicable only for first 2 years of loan tenure.
DeleteDear +Ajay, do you have a document of any bank giving written offer - consent to builder's offer - assurance about the arrangement between the bank & builder?
DeleteDo you know that Reserve Bank of India & court of law has prevented builders from giving such "lofty" offers?
Ajay, like many, I think, you haven't understood the offer! Please, study it carefully.
Ravi,
ReplyDeletePls dont stop writing due to some fools who do not understand the meaning of blogs. Its one perspective on things, so those are his views, you are welcome for constructive criticism about the issues pointed out. But the blogger has the freedom to express his views. So, if you dont like it get the hell outta here. Another good post, keep going, you have more admirers than critics.
-A Punekar, who bought a ready possession home in Pune, tks to your eyeopener blogs
Thanks a lot, Deepak! You keep me going.
DeleteHi Sourabh.Ravi & Deepak , you all seem to be completely lost . Are you interested in sources of funds or application of funds . I don't look at glass half empty ,I look at glass half full.................so what is constructive and destructive I very well understand, so stop showing your foolishness & mind you I have also visited your profile.
ReplyDeleteDear Santosh,
DeletePlease, update your profile immediately. Get It authenticated by Google.
So that I can consider you as a genuine person - my serious critic.
I like critics. Critics provide me an opportunity to talk about me.
But, I don't like spammers. As a blog owner, I have an authority to mark you as a spam.
So, before posting next comment, please, update your profile. Get It authenticated by Google.
Aree yaar ,chill man. We are just discussing on one bloody blog on earth. You can have your opinions ,we can have ours. Thats it ,there is nothing right or wrong in here. Have a great day mate !!
ReplyDelete"Hi Deepak, Ready possession house sounds to me as stupidity to purchase the house at 1.5 to 2 times its value ---its like ---" Taak phunkun pine". I would instead take advantage of the market conditions and squeeze the builder with more downpayment and take rate advantage of 15% 20% over quoted price. So your thinking ---I can see only 1 to 2% of people can benefit and 99% will loose ."
ReplyDeleteInteresting theory, Sameer!
DeleteIf you have actually put this into practice and got possession of that property, please, let me know. I would like to write a blog on your property buying theory.
Hi Ravi,
DeleteI am a active realestate investor along with group of friends. We only invest in prelaunch projects. Following are few of our experiences where little bit of risks has given us huge returns.
1. We invested in Aditya garden city in around 2008 at Rs.1400/Sq.ft when nothing was on ground ,today rates after 5 years are around Rs.6000/Sq.ft .
2.We had invested in Vardhamnapuram at marketyard in 2011 at around Rs.3500/Sq.ft ,again a prelaunch project ,today prices are around Rs.10000/Sq.ft ,again 3 times return in 3 years.
3.We had invested in Lake town --end of bibewadi near VIT college , in year 2008 at around Rs.1400/Sq.ft , today rates after 5 years is around Rs.7500/Sq.ft.
Going by the above examples it only makes sense to invest in pre launch projects ,as if you want huge returns then you have to take some calculated risks. If you don't take risks then you cannot expect returns .NO gains without pains .
This comment has been removed by the author.
Delete@Sameer, Congratulations!! But fortunately I am a home buyer and not a real estate investor. Hence all these prelaunch offers and gains dont really concern me, what is more important for me is the location, infrastructure, schools, hospitals, markets, security, watersupply, electricity, malls (I owe a RP row house near Shivar Chowk,Pimplesaudagar). I would not prefer to supply my hard earned money to the developer at a 0% interest rate. I do not wish to move into a home which is completed by the developer but still unsuitable to move in (you should read Ravi's blogs about Nanded city), i dont wish to go 2km to buy Bhaaji Palaa, and 5km to find a supermarket. I dont wish to pay Rs 5000+ per squarefeet to live next to the highways(suffer with bronchitis) nor in huge pits like Bavdhan. I cant count these in terms of monetary gains as family gains easily past these. I am not sure how you evaluate a home, but i evaluate it as a value for my money, so i am pretty happy with what i have and even more importantly my family is more happy.
DeleteMy Best wishes for your future ventures.
ThanksDeepak,
DeleteEven if you are a home buyer & your money is hard earned.I simply cannot understand your logic of value for money as same can only be possible in a prelaunch project ,as any developer who has money to sell ready possession flat will have money to keep it vacant only to charge 20% premium for ready possession.
Secondly your logic of having whole ecosytem next to the project is also not understood by me since if the project of prelaunch is launched suppose in baner ,aundh ,balewadi ,wakad,pashan,marketyard ---then whole social infrastructure already exists ,its common sense that whatever exists today will only better till possession ,so what is the point in again waiting for ready possession and paying a premium.
Sameer, there are a few things which drag me away from pre launches
Delete1. Paying for something that is yet not into existence (it is just like a mango seller shows you the mango plant, and says this will give great mangoes after 3 yrs to you, will you pay for the mangoes looking at the plant?)
2. Value for money for me is simple equation, how does the project add value to my life and if i think that it evaluates to what i am paying for it(this could differ from person to person as you may agree).
3. I dont trust the builders and their commitments, they are too far from being reliable and trust worthy.
4. Also i believe now Pune property rates are reaching a near saturation or will be hitting near to the ceiling soon as people have gone bizarre and buying because others are buying.
5. Just like in equity market, when a stock is oversold, it devalues to correct the soreness due to crazy buying, just the usual demand vs supply equation.
6. I dont have time nor energy to run behind these developers chasing them for completing the project on time, possession, watersupply , many other things.
7. I prefer to buy something that my eyes can see and i know what i am buying, i can meet the existing residents and get their views, i know who would be my neighbors, i know which school my kids will have to go, i know that there is proper connectivity to my office, i know the area is safe or atleast enough populated to be safer, i know there are no problems with water supply, i know there is are 2-3 hospitals well connected for emergencies, i know that the rainy season does not bring in water logging issues in my society, I know that there are real people living next to me and not investors, my parents have many same age friends there and dont feel like a loner when I am away. This for me is value for my money.
I appreciate your views, it is just not me.
Hi Deepak, I will anwser your queries point by point.
Delete1.Investment in Flat is not like investing in mangoes ,its like investment in LIC ,Fixed deposit or equity market -- where you get returns on maturity proportionate to the risks you have taken ,in any case reputation counts ,if you have invested in ponzi scheme without reputation then you cannot expect returns ,Same is the case in realestate --when you invest in reputed developer then you have no risks.
2.Value for money -- you can measure it in terms of ROI (returns on investment)----So if you buy ready possession --you have to forget "value for money" & expect negative returns since flat is a depreciable asset and it never appreciates --what appreciates is the underlying land and it will only appreciate more based on how low you enter in the project ,the later you enter --very less chances of appreciation.
3. It has nothing to do with trust with builder --it is same as saying I don’t trust banks which is generic what you can say is i don`t trust "co-op banks" and I trust "Nationalised Banks" ,similarly when you invest in a reputed builder --question of relaibility and trustworthy dosen`t arrive.
4.Thats your personal opinion ,Its like saying gold and silver rates have bottemed out .Infact the fact is far from realty --a). day by day residential land is unavailable, b).policy paralysis by government is not allowing new lands to be added for development,c). land in itself is limited and cannot be maufactured,d). population is rising everyday ,e). People are migrating to cities, f).Labour costs are increasing at 20% yearly.----it shows that in india due to various factors price will only increase(also if you check history of ready reckoner prices of last 50 years ---you will see the same).
5.You are right but the other side of coin is if you invest in bluechip stock then crazy buying or selling --you are unaffected.
6.This is intresting ,but if you do some financial calculations ---delay in delivery is infact beneficial to the buyer as his installments are delayed and hence ROI on invested money doubles, simple calculation If you have invested Rs.20/- in a project and now if a project is delayed then you are still enjoying appreciation of land on complete investment ,also developer selling cost is capped ,so delay is infact beneficial for the buyer and not for the developer since his selling cost is capped.
7. Its like saying I want to see my kids before marriage ,I want to know whether it is a girl or a boy ,I want to know what he will become --doctor /Engineer. I want to know whether he will stay with me after marriage so that I can decide how much expenses i will do on my kids.----but Deepak ---life is not as easy as it seems and you have leave with some assumptions and some calculated risks to enjoy maximum benefits of life. If i go by your thinking then i should not marry but i should adopt a child which i can see ,etc ,etc.
I also appreciate your views ,but I don’t agree to your thinking process as 99% people wont benefit from it.
@Sameer,
DeleteI partially agree with your idea of return on investment. But this type of investment is still risky game. You can not propose it as generic formula for being successful in RE market. You were lucky because there was considerable appreciation. But what if appreciation is not so attractive. Non-attractive because it did not beat for what you invest(with bank loan). Also, I agree with Deepak that prices have reached to the point that getting 25% return year on year seems very difficult.
Hi Sameer , I am pleased to read your investment advise and fully convinced that its the only way to have returns on your investment. Also I disagree with amol & Deepak that you were lucky ,as I cant see any luck factor here and its sheer common sense that why your investment will pay returns. Also even if one get 12 to 15% returns its still better than bank interest we pay or our fixed deposit after tax deduction shall not earn more that 6.5% returns ,so even if investment is done with more than 12% as governing factor ---I cannot see any risk. Secondly if you see ready reckoner rates which were increased 20 days back it was increased by 15% - 25% overall in all areas ---this is government figure which is taken after averaging of increase in realestate prices of that area - last year was full of RECESATION ,but still property prices increased by more than 15% which in itself is a proof that realestate investment is safer than any other investment done with some common sense.
DeleteThanks Sameer, It is a nice explanation and a different perspective to investment. Surely worth a thought i must admit.
Deletelolz @Sanjay, pls dont compare returns of property investment returns to FD returns, pls explain "full of RECESATION", i cant find this word in english dictionary, probably my common sense is quite uncommon ;)
IMO, it's advisable to choose ready possession property.
DeleteI burnt my finger in Tata Housing Shubh Griha Vasind project. I applied for a flat in 2010 and still havn't got the possession. Already paid more than 60% amount.
When I tried to sell this property, NO BUYERS!
Hi Adroit, my friend has got refund of full amount from tata for the shubh griha project incuding interest. So where is the question of you burning fingers when you are getting refund with interest .Infact tata themselves are refunding money with interest for all the flats. If you had kept the money in fixed deposit you would have got 10%less interest then what tata is offering.
DeleteHi Sameer, if you can explain more onto in & around of Hinjewadi. Pl drop an email on amish.sagar@gmail.com
DeleteThis comment has been removed by the author.
ReplyDelete