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Friday, August 26, 2016

Better buy a plot at Pirangut & construct a bungalow

My dream home:

Is a 28 - 29 year old young boy buying his own home a sign of prosperity? A symbol of success, status & wealth?

Or is he a victim of debt based economy which needs a lot of people to be in debt all the time?

Are the property exhibitions really about the properties?

Or are these exhibitions really organized to sell homes or
to force the young people to prevent from saving their salary and become a debtor of a bank for life?

After talking with Ms & Mr Kulkarni at Sakal Vastu - I started wondering.

It was obvious that they were ideal home buyers. A young couple looking for their first home. Curious to know whether the experience of visiting the property exhibition was encouraging or disappointing - I requested them to give me a video interview.

"The experience was encouraging. My budget is around 55 Lakhs. But most of the 2 BHK Flats were beyond my budget - costing around 70. However, there were a few stalls offering bungalow plots. A 2 guntha plot at Pirangut was only for 18 lakhs! It means that - if I buy that plot and spend some 25 - 30 on construction of a bungalow - I can own a home - in my budget!," Mr. Kulkarni said.

"WoW!," I said.

"I am an IT professional - working in Hinjewadi. For me, Pirangut is a convenient location! By the way, I am born & brought up in a bungalow on Sinhagad Road - so, I hate living in a flat - same about my wife - anyway - I am not in a hurry to shift in that bungalow - for a while - I can use it as my weekend home - as an investment property," Mr. Kulkarni said.

"Yes! Lucky you!!," I said.

When I was editing the video, I enjoyed the expressions on their faces. Both of them looked so young & so happy.

My budget is 55 lakhs - I liked the way Mr. Kulkarni made this statement.

My budget is 55 lakhs!


Home loan eligibility!!

Yes! I hear this type of a statement everyday.

"My budget is 55" - people say this - with a casual confidence - as if they are saying - "my weight is 68 kg" - "my height is 5' 8"" - "my blood group is B+"!

It's not your budget, dud. It's your capacity to create a debt!

It's not your worth or wealth. It's your liability!

God has sent you on earth because a bank needs debtors!

You are an organic fuel of this debt based economic engine.

Your parents know this. Your in laws know this. Your colleagues know this. The organizer of the property exhibition knows this. That's why they put pressure on you to book a flat.

Coconut is for the god in heaven.

The god on earth needs sacrifice of - bali of - the beloved young son.

You are naive. You don't know what they are doing to you.

You don't know the difference between a liability and an asset. Debt and investment.

And that's better for you! Illusion is encouraging. Truth is discouraging.

I am sure - like every good son - you will name your bungalow - "पितृ कृपा"!

Related Story:

1) Sad story of a son who purchased a flat in Sus

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I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market.

My email id is RaviKarandeekar@RaviKarandeekar.com Feel free to write to me. I reply as soon as i can.

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Of course, for a serious discussion, better fix an appointment at a time convenient to both of us. So that we can have uninterrupted & in depth discussion on my mobile (919860044110)
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For more than 3 minutes and up to 30 minutes - pay as you wish. After the conversation - transfer the money to my bank account. As much as you wish. From a few hundred to a few hundred thousand crore of U S Dollars or Indian Rupees. Here are my bank account details:

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  1. Awesome felt like reading a spiritual blog.

  2. Good one sir. You expressed it correctly. We IT people are running after flats and bungalows without enjoying the real short span of life...

    1. Felt good to read this tam. The moment people understand this, things will change for the better.

      @ Ravi,

      This blog was indeed very nice. Crisp, simple and with fantastic message. Wonderful.

  3. Thanks for Sharing this Ravi, I enjoyed reading this, and agree that it make more seance to buy plot. I did same but not went that far and brought something in Kharadi, in way its expensive but then i have peace that i am close to city.

  4. Time & again it has been seen that IT Yedas don't know ABC of finance (finance for IT Yedas means interest rate & EMI, LoL) forget meaning about wealth.
    Take loan buy flat, take loan buy plot, take loan buy stone......but you know, common sense is free but it is rare brain element !

    Coming specifically to this interview, I agree only to the extent that buying plot is far better than buying third class flats from class-less dacoits who keep ripping off the buyers. Even worse is the idea of taking big loan & working as slave for dacoits & builders especially when it's not needed. And who takes loan for weekend house ? Better to go to different resorts & enjoy, keep changing resorts & have fun.
    His current house is 52-53 years old as he mentioned in video. It is better to demolish this & build a new one using the same money which he planned to use for constructing house at Pirangut. This way he saves money of the plot, stays in his same location which is better than Pirangut & enjoys new house without much of loan headache. At this age, money should be invested to build assets & not to take loan for creating liabilities.
    As I posted earlier :

    1. Price is what you pay, Value is what you get.
    Ensure that price is less than value or in worse case situation, price=value but never let price be greater than value.
    2. When you buy something, it's cost of purchase, and when you cling on to it, it's cost of ownership. Emphasis must be laid on cost of ownership & not cost of purchase.
    3. Work for money, but ensure that money is working for you.
    4. Use money to create assets not liabilities.

    Btw, few days back at Bhugaon, used Taxi aggregating app & the cab came promptly. After sitting inside, found out that it was leopard who was driving the cab !! When asked about why is he working on a cab, he said there is no work for him as there are no forests left, thanks to Pune builders & hoarders.

  5. Some latest news in Pune real estate, both are of bhagoda builders & buyers who have been made ulloo by them.

    Pride Group owners, partners still missing, buyers left clueless :

    An eerie silence has descended over the Park Xpress construction site in Balewadi....

    Caught between the scale of the tragedy and the abandoned work lie a group of families who have purchased flats at the site, each in the excess of Rs 80 lakh. This group has begun to feel jittery as they stare at an uncertain date of completion of their dream homes even as a bulk of them continue to service the interest on loans taken from banks.


    Hope buyers understand why it's not good idea to buy under-construction flat.

    125 cases emerge from Wagholi project (Srushti Regency) fraud :

    Investigations by Pune rural police have found that till now, 125 flat buyers at the Srushti Regency housing project in Wagholi have been duped by the builder. The prospective buyers had been assured houses at affordable rates and zero per cent interest in the project, but currently, cops are saying that the number of cheated persons is set to increase further.


    Just to show that buyers shouldn't get carried away by builders' gimmicky offers like no EMI till possession, 20:80 etc.

    See the super idiot buyers' statements about this builder projects -

    Srushti Regency :
    He said the builder was offering houses at a zero per cent interest rate and hence, many people had booked flats and paid over 60 per cent of the total cost.

    Shrushti Orbit:
    The firm promised delivery of possession of the flat by 2015, but construction work at the site never took off. Inquiries by Ghadge at the talathi and sub-registrar's office revealed that the land where the scheme was proposed to come up did not belong to the firm.

    What can anyone do when buyers are brainless ? Paying money for flat whose land is not owned by builder.......they should go to Yerwada mental hospital than filing Police case against builder.

  6. Your articles are so humorous with pinch of sarcasm :)

  7. The most funny part of this interview is your sarcastic tone which they couldn't catch...

  8. Hi Monk!! You and Ravi have been awesome helping masses to make good decisions! I was a first time home buyer but your comments have made me a wait and I am damn happy that I did not book any thing!! One thing I have observed that every salesman in other fields have knowledge of their products !! But here in real estate in Pune sales people don't even know about the environmental clearance!!

    Funny thing is when they don't understand, they will shake heads saying yes yes !!

    I hope day comes when government makes a rule to buy only ready posession flats, which is ready to use just like we buy other stuff !!

    1. Thank you for the kind words Jasmeet.
      Over-leveraging is very bad, be it for house or for anything else. That's why pricing is critical especially when compared to the rentals prevailing in that area.
      And buying a flat taking big loans & then sacrificing other good things in life.....is it worth ?
      People forget that actual ownership of property is when it is purchased with 100% cash down or without loan, those who don't believe, can try stop paying EMIs to find out who the owner of flat is, you or bank !!

      "I hope day comes when government makes a rule to buy only ready posession flats, which is ready to use just like we buy other stuff !!"

      - Agree but then we as buyers too have the option to buy ready for possession flat with all approvals. People forget that cost of having "peace of mind" can't be compared in terms of money.
      We can't stop everyone becoming ulloo by builder's hand but atleast we can avoid ourselves becoming ulloo.

      Emphasis must be given on overall "Quality of Life" rather than just ownership of flat.

  9. Kudos to Ravi & Monk for being so informative with pros & cons. I was following you from last week & had to withhold myself from booking a Second 3 bhk in Urban Nest @ Undri in Slow Construction stage.
    whether to buy a flat with too much infrastructure & Construction & development charges or to buy a plot?
    I own a 2 bhk in Flower Valley in Wanowrie. please advise

    1. Thanks dr mark but unlike Ravi, I am not a real estate expert, just a buyer who likes to go in depth before taking any call. Here is my take as a prospective buyer, but surely not at current prices :

      1. Buying anything in under-construction project is very bad idea since builders are literally bankrupt,
      2. If you are buying as a investor (I call them hoarder), then it's even worse since you need to see appreciation, which is becoming negative apart from timely possession which is not happening,
      3. If you are looking for self use, even then buying in under-construction is big no for reasons mentioned above,
      4. Location is very important aspect which can't be compensated be it the specs or the amenities given by builder even if it's ready possession flat. If you need 1 more bedroom, you need to see the other costs associated with it by shifting to poor location, be it the infra, things which are in walk-able distance, safety & security of the locality & overall ambiance of the area. Shifting from Wanowrie to Undri for 1 extra bedroom is like moving from Hyundai Creta to Mahindra Bolero for additional couple of seats !!

      You can read this latest news -

      Real estate investors put pressure on developers to return money :

      Real estate investors who have taken a hit from a slowing property market are putting pressure on developers to cancel bookings and return their investments.


    2. Thanks for your timely & valuable reply. Just saw your message as was very busy last fortnight. will think before acting. Thanks again