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Wednesday, March 11, 2015

Investing in Aapla Ghar Uruli Kanchan Lakeside

Visit Aapla Ghar Uruli Kanchan, Lakeside, at Shindaone
on India Housing Day by Maple Shelters:

Visit Aapla Ghar Uruli Kanchan Lakeside at Shindaone on India Housing Day by Maple Shelters

My mother was a teacher. But she didn't teach me about sex & money. My father did it. My father was not a teacher. He was a poet. However, the education gave me confidence. Unfortunately, my confidence didn't last long. Thanks to my girl friend. She helped me to relearn everything. From that day - I have become curious about - what does a father teach his son about sex & money?

Fortunately, last weekend, at Aapla Ghar Uruli Kanchan Lakeside, I got an opportunity to observe a father teaching his son about money - about investing money. Investing money in property.

On India Housing Day - 1st March 2015 - they have booked the Premium 1 BHK Flat - 299 Carpet + 43 Terrace for Rs. 16,72,596. Without visiting the site - they have paid 1 lakh rupees. Only to block prefered garden facing flat on the first floor. (Because - in case of power failure - climbing staircase is possible.) On the last weekend - 7th March 2015 - they were visiting the site for the first time. Thanks to Maple Shelters!

The father - let us call him Mr. Banker - he is retired from a Nationalized Bank - and his son Mr. Engineer - No! He is not an IT professional working in Hinjewadi - He is a mechanical engineer working at Ranjangaon MIDC on Nagar Road - were in the back seat of the tourist car. I was next to the driver.

After Mr. Engineer paid toll at Golibar Maidan (Rs.20) and Pune Solapur Highway (Rs.37), I took them seriously. When Mr. Banker offered me his water bottle - I decided to pay for cutting chai at the roadside tea stall.

"Because of the swine flu in Pune - I always carry water bottle. I am from Jalgaon," introducing himself Mr. Banker said.

'Jalgaon! Good!! No swine flu and no water in Jalgaon. Right?," I said.

"Since 2000 - I am settled in Pune," Mr. Banker said.

"Yes! Half of Jalgaon is in Pune real estate market - some are builders - rest are flat buyers," I said.

"Yes! I have 2 flats in Pune and investing in the third flat for my son - yet - he hasn't taken a loan -  he is not paying an EMI," pointing at his financially virgin son, Mr. Banker said.

"Means though you are retired - you haven't stopped working for the bank!,"  I said.

"Earn salary to invest in property - is my philosophy," said Mr. Banker and told me about his property investments.

Little drops of water make the mighty ocean. Small investments in property make you wealthy. Salary is for survival. Property investments are for prosperity.  I believe.

In 1975, my salary was Rs. 750 per month. The first 25 years of my banking career - I was always posted at some district town.  After taking care of my family and old parents - in those days - 5 rupees were more than enough for weekly vegetables - gold was 100 rupees tola  - I used to save 50 - 100 rupees every month in Recurring Deposits at my bank. When the R D matures - I used to make Fixed Deposit Receipts of 1 or 2 thousand rupees.

I used those Fixed Deposit Receipts plus staff housing loan (at a very nominal interest rates) - to invest in my first property - a house I was renting - for Rs. 60,000.

Then I started buying plots on installments. The rates were only 3 - 5 rupees sq ft. So, 2 - 3 guntha plots used to cost only 6,000 to 15,000 rupees. I had purchased a couple of plots in many district towns in Marathwada & Vidarbha.  Eventually, I sold the plots. Earned good appreciation. Which I used for the college fees of my son & daughter. Out of all these investments - I have kept only one - 1400 sq ft bungalow on 4 guntha plot - at my home town.

After coming to Pune in 2000 - I joined a group of colleagues in my bank. Our group purchased 2 acre agriculture land at Shirwal and divided it into 2,000 - 3,000 - 5,000 sq.ft. plots - I got a 5,000 sq.ft. plot for 60,000. It's current market value is - @ 500 per sq.ft. - Rs. 25 lakhs.

My pension is substantial. I have some 1,000 shares of my bank. It's market value is around 300 per share. My bank used to add equal to my contribution in my Employee Provident Fund (EPF). I don't have much savings because in 2012 I purchased a 2 BHK Flat in Pimple Saudagar. After the redevelopment, I am getting a 2 BHK Flat against my old 1 BHK Flat at Aundh.

Visit Aapla Ghar Uruli Kanchan Lakeside at Shindaone on India Housing Day by Maple Shelters 3

Now, this investment in Aapla Ghar at Uruli Kanchan is for my son. This property investment is his fist baby step towards prosperity. He earns more than 60,000 per month. But doesn't save much. EMI is nothing but compulsory saving.  After the possession - I am sure - he will earn substantial appreciation from this investment.

"How can you be so sure about appreciation? You haven't yet seen the site!," I asked.

"Every property appreciates. I believe. You may consider me mad. But, remember, in this world there are many people who are more mad than me. And by the way - this is  a lakeside property! Located at a convenient distance from the railway station. Do you know about electrification of Lonavala Daund Railway?  A few years down the line - when Pune will have local train service - like Mumbai has - Uruli Kanchan would be Andheri of Pune," said Mr. Banker.

"Really? No one at India Housing Day told me this!," I said.

"I do market research before investing! That's why I chose this project. You know what mistake people make while investing?," asked Mr. Banker.

"No!," I said.

"They think like home buyers! When I invest - I think like an investor. I invest where future development prospects are great - I invest where the rates are lowest - I invest in the property which has some glamor," said Mr. Banker.

"You mean to say - Aapla Ghar Uruli Kanchan Lakeside has all this?," I asked.

"Soon - you will find out!," Mr. Banker said.

At Uruli Kanchan, the driver left Solapur Highway and took a right turn. After sometime, Mr. Engineer asked the driver - "Which is this road?"

'This is Jejuri Road, Sir!," said the driver.

After some time, again, Mr. Engineer asked - "How far is the site from Solapur Highway?"

'7 kilometers, Sir!," said the driver.

"7 kilometers? But on the location map in the builder's brochure it looks close to the highway!,"  said Mr. Engineer.

"If it had been near highway - the builder would not have said - Aapla Ghar Uruli Kanchan -  Lakeside! If you want to invest in real estate - you have to learn the language of builders!," said Mr. Banker.

"I am learning, Papa! Now, I know Wagholi Annexe means - Wadebolai! Ambegaon Annexe means - Khed Shivapur! If the lake hasn't been there - this project would have been - Uruli Kanchan Annexe. Right?," said Mr. Engineer.

"My son is very intelligent!,' touching my shoulder, Mr. Banker said.

 "Like father, like son!," I said.

Visit Aapla Ghar Uruli Kanchan Lakeside at Shindaone on India Housing Day by Maple Shelters 4

"Have a look at the lake!," welcoming us the onsite salesman said.

"Beautiful! Means - in the monsoon the lake will look beautiful," said Mr. Banker.

"Yes, of course!," said Mr. Engineer.

"When the project will be ready - for sure - the builder will provide boating facility! This would be a great second home!!," said Mr. Banker.

"But no one at India Housing Day told me about the boating - they only talked about a lake," I said.

"You know what? He must be from Jalgaon!," pointing at the onsite salesman, Mr. Banker said.

"Yes! I am from Jalgaon!!,' said the onsite salesman.

"Good! Now, show us the site - the exact location of our building," Mr. Engineer said.

The on site salesman took us to the site. It was a plane barren wasteland with a painted tin compound. We stood at the board indicating the building in which Mr. Banker & Mr. Engineer have invested. Referring to the layout plan in the brochure - they visualize their building. While they were getting the feel of their investment - I asked the on site salesman - "Which is the nearest railway station?"

"Uruli Kanchan - may be - not sure," he said.

"I asked the nearest one!," I said.

"Look there - the railway track is there on that hill," he said.

"Yes! Look! The train!!,' pointing at the hills, Mr. Banker said.

I looked at the hills from the zoom lense of my camera. I saw the railway bridge on the hill - but not the train.

"If the railway station is not there today - tomorrow it will be there! No one can stop expansion of Pune!," said Mr. Banker.

"Future of Pune is in the hands of Jalgaon!,'" I said.

"Take a deep breath! No pollution.  Pure air. This would become a great place to live," said Mr. Banker.

"But isn't it too lonely -- too far away from the highway - and from Uruli Kanchan gaon?,' asked Mr. Engineer.

"Certainly, it is. That's why you can afford to invest in this project. Now, focus on the positive points. When we go home - show the photos of the site office - lake - hills etc. Don't talk much. Your mother & your wife will understand the potential of appreciation only when they will visit the site," told Mr. Banker to Mr. Engineer.

"Yes, sure. When I told my wife about the booking - she said - this building is at the far end of the project - why didn't you book in a building which has a view of the lake?," said Mr. Engineer.

"That's the problem with these ladies - they don't understand that the builder will open the booking of the lakeside buildings in the last phase - in the third phase - may be after  3- 4 years - when the property rates would be highest - double than the today's rate of 2800," said Mr. Banker.

"Double of 2800 is 5600, Papa!," said Mr. Engineer.

"At least 80 per cent more than today's rates! Hasn't the builder claimed that the rate of appreciation of Aapla Ghar is 30 to 40 percent?," said Mr. Banker.

"But those flats were costing in the range of 7 - 12 lakhs! Will these 13 - 27 lakh flats appreciate at 30 - 40 percent rate?," asked Mr. Engineer.

"Every investment has some risk - in this property the risk is only the rate of  appreciation -  if it appreciates less - say at the rate of 20 - 30 percent - will you lose? No! In any case you are going to win. Right?," said Mr. Banker.

"Lady luck favors the one who tries!," said Mr. Engineer.

"The vibrations of the plot are telling me that the lady luck is with you," Mr. Banker said.

"With us, Papa!," said Mr. Engineer.

"What say you, Mr. Ravi Karandeekar?," looking at me, Mr. Banker said.

"I am with you! If you don't mind - can I suggest to you something?," I asked.

"Sure! Go ahead!!," said Mr. Banker.

"In my career - I have visited many sites with the builders - when the builder makes up his mind to buy a particular plot - I have seen that the builder urinates in the plot - so, if you have make up your mind - please - urinate - establish your ownership!," I said.

"Yes! Even I have done it a few times!! Without understanding the significance!!!," said Mr. Banker.

To give them the privacy to celebrate their investment, I started walking toward the site office.

"Which is the nearest village?," I asked the onsite salesman.

"Shindaone," said the onsite salesman.

Visit Aapla Ghar Uruli Kanchan Lakeside at Shindaone on India Housing Day by Maple Shelters 2

On our way back, for a long time, no one spoke.  On the highway - Mr. Engineer said - I feel like we are already in Pune city.

Is something wrong with me? Why am I so particular about sanctions & approvals? Why do I keep on insisting about legal documents? Why do I bother so much about environmental clearance? Can't I be romantic like these guys? Why can't I trust builders? Is my mind full of negativity about buying real estate? Am I a sadist? Can I become as innocent as these guys? I went on wondering.

When we were at 7 Loves Chowk, Mr. Engineer received a call. He told Mr. Banker that his wife had called to remind him about the doctor's appointment.

"She wants to know when will we reach home," Mr. Engineer said.

"In an hour's time - when is your appointment?," asked Mr. Banker.

"She has told me to take an appointment," said Mr. Engineer.

"Now it's 7 pm - ask for 9 pm," said Mr. Banker.

Mr. Engineer called the doctor.

"Doctor was asking - is it about Swine flu or a regular dose!," Mr. Engineer told Mr. Banker.

"Swine flu! Raising a family has become challenging. Our life was quite simple. I don't remember me taking my children to the doctor. Doctor used to visit to treat my children. What about you, Mr. Karandeekar?," said Mr. Banker.

"Certainly! Life is no more simple!!," I immediately agreed. I wanted to add - so is investing in real estate - it's not as simple as it was in your days Mr. Banker. But I kept mum.

I didn't want to hurt them both. If Mr. Engineer had asked my advice about investing in Aapla Ghar Uruli Kanchan under this scheme of "Buy a home in Rs. 1 Lakh" - I would have told him that this is not an investment scheme - this scheme is about creating debt - creating liability!

Like your father - you don't have pension.
Like your father - your job is not secure.
Like your father - your cost of living is not inexpensive.
Like your father - you may not afford to pay fees of your children's college education.
Like your father - you don't live in pollution free environment - and medical treatment is costly.
Like your father - your work life is not easy. It's more stressful.  
Point is - Mr. Engineer, first secure your financial future.
Then save money to invest in real estate.
Invest only in investment grade property!

Related Story:

1) India Housing Day - Last Day Today!

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  1. Half of Jalgaon is here...........half of Solapur is here......half of Satara ....Kolhapur....Latur.....some from UP...MP....amidst all these people where is Punekar ?
    Once upon a time we used to build houses for people to LIVE, now it is all about investment.......becoming crazy day by day. Just hope what happened to USA in 2008 is not repeated over here


  3. Actually hope that 2008 us happens sooner so some needy home buyers will buy a place to live...