Ravi Karandeekar's Pune Real Estate Market News Blog: Yashwin Hinjawadi

Showing posts with label Yashwin Hinjawadi. Show all posts

Sunday, October 16, 2016

8 Signs You Are a Hopelessly Ignorant Pune Flat Buyer

Beware! Unscrupulous builders in Pune are targeting ignorant flat buyers:

Wise flat buyers are not booking flats in Pune real estate market for the last many years. That's why a huge inventory of unsold flats is lying around and the property prices are coming down. Result is most of the builders in Pune are in serious financial crunch or are on the verge of bankruptcy and mostly will not be able to complete their ongoing projects.

Add to it the new development rules plus the effects of upcoming RERA and you realize that the huge supply of flats has already made it sure that property prices in Pune real estate market will never increase and many builders would be thrown out of the business.

Obviously, wise flat buyers know that in this situation there is no point in booking a flat at the launch or at the early stage of construction. But when some event like Yashwin Hinjawadi takes place we realize that there are a few flat buyers who are completely ignorant of the realty.

Thanks to Vilas Javdekar Developers, for letting us know what are the signs of ignorant flat buyers!

If you notice these signs in you, I am sure, you can avoid to become the victim of some unscrupulous builder in Pune.

1) Do you believe that the property broker is your friend?

Many builders in Pune are appointing less educated, less intelligent and unemployable youths with no real experience or knowledge of real estate development business to win confidence of the ignorant flat buyers & trick them into booking a flat. Instead of searching a flat on your own if you are talking to these channel partners of the builders, you are an ignorant flat buyer.

2) Are you aware about online scams & frauds used by the cyber criminals to trick you?

The builders' agents launch 'unofficial' websites using the name of the builder or a project or a location and collect your mobile number & an email id. They use this data to trick you into booking a flat. If you are sharing your private information without reading the disclaimer on these websites, you are an ignorant flat buyer.

3) Are you really financially ready to own a home?

Unscrupulous builders know that those who do not have enough money to own a home are easy targets. So, the builder uses 'Lowest Property Rates' '25% Discount on Property Price' 'No EMI till Possession' as a bait to catch the financially weak flat buyers. If you are getting attracted toward this type of 'deals', you are an ignorant flat buyer.

4) Do you know what size of a flat is worth buying in Pune?

As per 2016 rules, 800 sq.ft. and above flat is given to an applicant whose income is Rs. 40,000 per month and above and an applicant whose income is between 20,000 to 40,000 per month can apply for 400 to 800 sq.ft. flat for MHADA low cost houses in Mumbai.

Considering the low cost of land in Pune, someone who earns Rs. 40,000 and above per month deserves to own a flat which is more than 800 sq.ft. in size. So, if you are going to book a flat in Pune which is of MHADA size Mumbai flat, you are an ignorant flat buyer who doesn't know which property is worth buying in Pune.

5) Do you know how builders manipulate property rates?

Quoting low basic property rate for the flat on the first floor and charging for 'floor rise' & the premium for 'the view' are well known tricks of the builders in Pune.

Though it's illegal to sale a car parking, unscrupulous builders in Pune sell it under the name of infrastructure charges.

Builders extort flat buyers under the heading of development charges for electricity, society formation, club membership etc.

If you are booking a flat because the rate is low (Rs. 4,195 per sq.ft.!) and paying premium for floor rise and preferential view (Value Addon Package) and infrastructure & development charges without understanding that you are actually paying the current market rate of under construction project ( 4,800 - 4,900 per sq.ft.!) for the project which is only on the paper, you are an ignorant flat buyer.

6) Do you know that it's illegal to sell flats on saleable area?

Unscrupulous builders in Pune actually sell the flats on 'saleable area' and cheat the flat buyers. Then they mention the carpet area in the agreement and pretend that they have sold the flat as per the law and mislead the government!

In every communication with the flat buyers these unscrupulous builders quote saleable area of a flat (the package price - 2 bhk - 850 - 950 sq ft for 48 to 54 lakhs and 3 bhk - 1100 - 1200 sq ft for 65 lacs max). But the actual carpet areas are very less. For example, at Yashwin Hinjawadi - A 2 BHK of 915 saleable has only 610 carpet area, a 2 BHK of 888 saleable has only 570 carpet area and a 3 BHK Flat of 1135 saleable has only 756 carpet area!

These carpet areas are certainly unsuitable for a home. But that's not all!

Even the saleable area calculation is also unfair & misleading!

Only unscrupulous builders in Pune calculate saleable area in this way - Carpet area of a flat + Carpet area of a terrace x 1.35 / 1.4

A builder who believes in fair business practices never adds loading on the terrace. The loading is added only on the carpet area of the flat. - The right formula to calculate the saleable area is - 1.3 x Carpet of flat + Terrace = Saleable Area

For example, visit Pethkar Projects' website and see the cost sheet of Siyona at Punawale.

When you pay for 888 saleable area when the actual carpet is only 570, you are an ignorant flat buyer.

7) Do you know what is the difference between Municipal Corporation & Gram Panchayat?

Pimpri Chinchwad & Pune have Municipal Corporation. Whereas Maan, Hinjewadi, Wagholi villages have Gram Panchayat.

PCMC & PMC have organization, development plans, source of income, financial aid from the state & central government and they can raise funds from even world bank. That's why PCMC & PMC can develop & maintain basic urban infrastructure which is somewhat suitable for human population.

Against this, Gram Panchayat has very less source of income, insufficient financial aid from the state & central governments, weak organizational structure, no development plan. That's why Gram Panchayat can not develop & maintain basic urban infrastructure. Result is Gram Panchayat can not construct roads, build bridges, buy - process & supply drinking water, can not lay drainage lines & process sewage, can not process garbage, can not develop public utility facilities like gardens & vegetable market, can not have fire brigade & can not prevent diseases. Even mosquito-borne diseases like Malaria, Dengue, and Chikungunya.

That's why when you book a flat in any Gram Panchayat it's very clear that you pay irrational property rate for the flat which has no basic urban infrastructure - like a car without an engine - and put your family's life in danger for your own selfish convenience of commuting distance from your office, you are an ignorant flat buyer.

8) Do you have an ability to avoid emotional trap?

Builders, banks, mass media, friends, relatives & parents have turned a simple basic need of a shelter into an emotional trap.

That's why instead of renting a flat in a developed neighbourhood for a less amount most of the first time home buyers are ready to become slaves of bank for life.

Unscrupulous builders gather the flat buyers in a close environment, block your rational mind and manipulate your emotions in such a way that you stop thinking rationally and take an instant emotional decision.

Very few people have an ability to avoid this type of emotional trap. Like this person -

But i want to highlight the physiological trap created by VJ like on the spot booking without giving ample time to think customers. on same day last moment he published rate and distributed details and asking book flat now itself else never you get this opportunity!

Even though he quoted based 4195/sq ft. on that day which is applicable only on 1's floor, he added floor rise charges and premium view charges which goes around 4800-to 4900 which is near to exiting near by Tinsel project rate. Many people missed this due to large crowd/ mob effect and mass booking psychological effect and fear that i miss the opportunity , sadly I am also victim of that !

After reading you blog & details study of cost sheet , i questioned them some points for which they have no answers on that.

I think this is not good practice at all, this guys saying to decide in 10-20 min and book flat . I heard that every project launching VJ is doing this kind mass booking using this kind of "physiological trap"

Thanks for your valuable guidance on Blog to aware us many points which need to ask builder before purchasing flat.

When you can't avoid emotional trap and book a flat in a event like "Yashwin Hinjawadi", "DSK घ घरांचा उत्सव आनंदाचा!" event at some strategic location or in a property exhibition like "Sakal Big 3", you are an ignorant flat buyer.

Please, beware, unscrupulous builders in Pune are targeting ignorant flat buyers like you.

What say you?

If you know a few more signs of a hopelessly ignorant flat buyer, please, add in the comments.

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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.

If you want my advice, feel free to call me on 919860044110. First 3 minutes are free! And for more than 3 minutes - pay as you wish - you decide the value of my advice.

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Wednesday, October 5, 2016

What if Hinjewadi IT Engineers were a little less stupid?

Why a Hinjewadi IT engineer should not book a flat in the pre-launch offer of Vilas Javdekar Developers' Yashwin Hinjawadi this weekend:

What if Hinjewadi IT Engineers were a little less stupid?

Yesterday, when I visited Yashwin, opposite Tinsel Town near the 2nd phase of Hinjewadi IT Park, Mr. Aditya Javdekar, CEO & MD, Vilas Javdekar Developers & National Head of CREDAI Youth Wing, challenged me.

"Ravi Karandeekar, I challenge you to write good about me," Mr. Aditya said.

"I know for sure, you will always write bad about me because if you write good about me you will lose your readership. So, you have no option but to keep on writing bad about me and every other builder in Pune," Mr. Aditya added.

"Mr. Aditya, best way to prevent me from writing bad about you is to give me a video interview and present your views. Of course, on my blog - I will take opposite view and try my best to convince the flat buyers how wrong you are. Like me, if you believe in the intelligence of the flat buyers - let them decide what is right and wrong - good or bad for them. But you avoid giving me an interview - so I have no option but to put only my side in front of the flat buyers," I said.

"No. I will not give you a video interview. You are an expert in putting everything in a wrong way. You know? My mother was very hurt when you called me a robber," Mr. Aditya said.

"1 - I didn't call you a robber. I said you are inviting flat buyers to rob a bank. So, the flat buyer would have become a robber if he had accepted your offer. Not you! 2 - My views are always based on principles. According to Governor of Reserve Bank of India - banks must not offer home loan subversion schemes to financially weak buyers - because such activities lead to subprime crises - that's why I was against your offer. I don't have anything against you or any builder. In fact, I admire you," I said.

"Though I don't agree with you - I can understand - but how can you expect a mother to take it lightly if someone calls her son a 'robber'?," Mr. Aditya said.

"I respect your mother. I admire her. She is a brave lady. I feel sorry for hurting her. But - you know - that was never my intention - I use strong words only to communicate my message effectively - you know - how difficult it is to convince a naive young first time homebuyer to say no to your tempting offer," I said.

Then we spoke for a long time. Of course, on real estate, on RERA, on Maharashtra government's policies. Not at all about the event this weekend at Yashwin Hinjawadi.

At the end of our conversation, I complimented him about Yashwin at Maan Gram Panchayat - his first project in a fringe village of Pune which has proper access road! (Yashwin, Yashwin 2.0, Yashwin Anand, Yashwin Jeevan at Sus Gram Panchayat and Palash Boulevard at Pirangut - have no proper legal approach road.)

And you know what? Mr. Aditya gifted me his mother's best seller Marathi book on live liver transplant!

Yashwin Hinjawadi

Since Aditya Javdekar didn't give me any information about Yashwin Hinjawadi, I have to rely on my readers & Vilas Javdekar Developers' booking agents. It means that the information I got may not be accurate. There is a possibility of errors or misunderstanding. So, please, cross check the facts before accepting or rejecting my views.

My main objection is to the modus operandi of Vilas Javdekar Developers.

In these days, when even the government is trying to bring transparency in real estate business by insisting on publishing authentic and accurate information about the project in the public domain before accepting bookings, Aditya Javdekar, National Head of CREDAI Youth Wing, is importing corrupt NCR culture to Pune real estate market.

You know what I mean by corrupt NCR culture?

For me property brokers dominance - criminal practice of pre-launch offers - unethical business practice of pressure selling and secrecy in transactions is corrupt NCR culture.

Which is very harmful for the property buyers.

It's not only harmful but it is against the basic rights of the home buyers.

If you take a close look at the real estate business, you will realize that property buyer is not a consumer.

Real estate development is actually a 'collective investment scheme'. When you book a flat you become the co-owner, stakeholder of the project. Collectively your stake - flat buyers' investment - in the project is many times more than the builder's.

A developer is like a startup guy and you are a venture capitalist. You like the developer's concept and you decide to invest in it. Obviously, you have more powers than the builder.

However, since it is a builder's concept and he has the experience of execution - you - the flat buyers - let him lead the project.

Though you collectively own the project - you let the builder work as a chief executive officer of your operation.

For the sake of earning tax revenue from the real estate business - state & central governments consider that the builder is in a business of providing service and collects VAT & Service Tax.

But the government conveniently ignores to recognize that the flat buyers are actually investors in real estate ventures. It avoids to recognize that real estate development is a collective investment scheme and do not let SEBI to regulate.

The government can afford to refuse to accept flat buyers' ownership. But you - the flat buyers - know well that without your involvement, without your money, no builder can develop a housing project. Aditya Javdekar can not build Yashwin Hinjawadi.

The modus operandi of Vilas Javdekar Developers

But how does Aditya Javdekar treat you?

Does Aditya treat you like a venture capitalist?

No!

Aditya considers that you are some needy poor homeless person sitting on a roadside.

"Go and catch all - Don't bother about names - They are nothing but stray dogs - Give them a token number - Make them stand in a line in front me - I am a kind man - I am going to give them homes!" - Aditya tells his agents.

"You all are lucky. Because of me - you are not going to remain homeless anymore. I am here to distribute houses to you. When your number is called - get up and go in - choose a home - one after another - in the queue - of course, there is no compulsion - if you don't like - feel free to refuse - I am a very kind man - God has given me this job - but remember if you say no - chances are you may never get a home in this life" - announces Aditya.

And, you know what? Without applying their brains many Hinjewadi IT engineers have booked flats in Vilas Javdekar Developers' Pallasio / Prudentia Towers at Wakad, Yashwin 2.0 & Yashwin Anand at Sus.

One channel partner of Javadekar told me that 400 + people already have taken tokens for Yashwin Hinjawadi! Of course, most of them are Hinjewadi IT Engineers from northern India - like Uttar Pradesh, Madhya Pradesh, Bihar & Rajasthan. And of course, some stupid Maharashtrian investors!

The channel partner also told me that when real estate was booming Punjabi IT guys were very active. And now, in the slow down, Biharis & Bhaiyyas are buying. This is mostly because of the feudalistic culture of north India where middle class is weak. May be. I don't know.

For me all Hinjewadi IT Engineers are one & the same. I give more importance to the state of mind than their home state.

So I keep on wondering - why do Hinjewadi IT engineers do something so stupid? Why do they let Aditya Javdekar treat them like Bhed Bakri? Don't they realize that eventually the builder will slaughter them?

Why are these Hinjewadi IT Engineers not at all assertive - not aware about their role & rights as a flat buyer?

Of course, all of them have brains. They are intelligent & educated. What all they have to do is just be less stupid.

According to Balazs Aczel, a professor at the Institute of Psychology at Eotvos Lorand University in Budapest, people do something stupid because of these reasons -

1) Confident Ignorance - sometimes people overestimate their ability.

One of my readers, who has 30 lakhs in his bank account, asked me - Instead of booking a 2 BHK Flat for 53 Lakhs at The Nook at Tathawade - can I book a 3 BHK Flat for 65 lakhs in Yeshwin Hinjawadi?

I asked him - how much home loan will you take? He said 35 Lakhs.

I asked - What would be your EMI? 33 - 34 K - he said.

What is your monthly income? - I asked. 60 K - he said.

Can you manage your family's monthly expenses in 27 K? - I asked.

He said - It would be difficult. My wife is in a family way.

2) Lack of control - Aczel says people lose control over themselves because of "obsessive, compulsive, or addictive behavior."

I know that I do not have enough money for down payment & my loan eligibility is not enough - still I can't prevent myself from visiting the sites & property exhibitions. I am always searching web for the good deals. I am completely obsessed with the idea of buying a home.

3) Absentmindedness — lack of practicality - People do stupid things when they are not paying attention or simply aren't aware of something.

I asked one of readers - Does Yashwin Hinjawadi have environmental clearance?

The broker told me that the project has all necessary sanctions - my reader said.

Did you ask specifically for EC? Did you visit ec.maharashtra.gov.in? - I asked.

What is it? - he asked.

Okay. What about water supply? What about sewage? - I asked.

I was so impressed with the price - and the agent told me that - I will get all info on the 9th - I gave him a cheque of 21,000 without asking all these things - my reader said.

Okay. What is the rate? - I asked.

I don't know the rate. The agent told me the package price - 2 bhk - 850 - 950 sq ft for 48 to 54 lakhs and 3 bhk - 1100 - 1200 sq ft for 65 lacs max. - my reader said.

Okay. That's the saleable area - it means nothing - what is the carpet area? - I asked.

I don't now. I told you - Javdekars will announce that on 9th - he said.

Was it wise thing to give a cheque of 21 thousand without knowing the basic details? - I asked.

No. It was so stupid - my reader said.

When I was reading the sign boards on the compound wall of Yashwin Hinjawadi, one channel partner caught me. Looking at me he thought that I must be some investor.

"This is the best investment opportunity in Hinjewadi!," he said.

"You read my mind! How much do I have to invest & how much appreciation can I expect?," I asked.

"See, if you book in this pre-launch offer - you can get a much lesser rate - than the ongoing market rate in Hinjewadi - the current price list rate in Hinjewadi - is around 5,100 - 5,500 and deal closing rate is around 4,800 - 4,900 - Javdekars always offer lesser rate than others," the channel partner said.

"Lesser is good - but exactly what rate Javadekar is offering?," I asked.

"That I don't know. In fact, no one knows. Aditya Sir will declare the rate on Sunday. What all I know is the package. What is your requirement?," the channel partner asked.

"If you don't know the rate - how can you say that Javdekar's rate would be lesser than the other projects in Hinjewadi?," I asked.

"Because last 3 times - he has done the same thing - offered lesser rate than the neighboring projects," the channel partner said.

"It mean that the builder is getting lesser rate but when I will sell my flat - I will get the same rate like any other flat in any other project in Hinjewadi. Right?," I asked.

"Now, you got it! You will get a head start of nearly 4 lakhs!," the channel partner said.

"Okay. When should I sell?," I asked.

"You will get possession around October 2019. The entire project will be ready by 2021 - 2022. You will get better returns if you sale in 2022," the channel partner said.

"5 - 6 years! How big is this project?," I asked.

"10 acres! 4 towers of 21 stories. Around 160 flats in each tower. Plus a mall on this main road," the channel partner said.

"Sounds good. Tell me about appreciation in 2022," I requested.

"See...Megapolis was launched in 2009 - 10. At that time rate was 2600. Today it is selling at 5,500. Double appreciation in just 6 years!," the channel partner said.

"But didn't you say that the deal rate is around 4800 in Hinjewadi?," I asked.

"I mean you can expect nearly double appreciation - 65 x 2 - in just 6 years!," the channel partner said.

Poor fellow didn't know that Megapolis was launched in April 2008 and the launch rate was Rs 3,250 per sq ft for 2 BHK and Rs 3,300 for 3 BHK Flat! Then in December 2009, Sparklet Megapolis Smart Homes 1 was launched at the rate of Rs. 2,300 & 2,350. Smart Homes 1 became hot cake only because all inclusive price of a 2 BHK Flat of 750 sq.ft. carpet area was around 25 - 26 lakhs! Which was within a budget of a young first time Hinjewadi IT engineer. Today, only working couples can buy a 48 to 54 lakh 2 BHK Flat in Yashwin Hinjawadi and remain a slave of a bank for life!

When Megapolis was launched - people were worried about lack of social infrastructure in Hinjewadi. Still they booked only because of the traffic jams at Hinjewadi & Wakad chowk - every morning and evening.

Today, considering the ongoing & upcoming numbers of residential & commercial projects - people have stopped worrying about lack of social infrastructure and have started worrying about traffic congestion on every meter of the entire length of all roads in Rajiv Gandhi Infotech Park Phase 1, Phase 2 & Phase 3.

It means that the stupid Hinjewadi IT engineers have got the government which is as stupid as they are!

Stupid IT Engineers book a flat without bothering to know anything and stupid government converts industrial zone into residential zone and lets builders build flats - without bothering whether can so much population live in Hinjewadi.

Is it right to let the people live in all these projects - when Hinjawadi Industries Association (HIA) is unhappy about insufficient water, road, drainage, waste management systems in Rajiv Gandhi Infotech Parks?

Is it wise to let the builders develop residential schemes in Maan & Hinjawadi gram panchayats which have no basic urban infrastructure?

Is it wise to book a flat in Hinjewadi - when huge number of flats with basic urban infrastructure are available at competitive rates in PCMC?

To consider all these things - you don't need to be more intelligent. You just have to be a little less stupid.

What say you? Please, share your views in the comments.

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Sunday, October 16, 2016

8 Signs You Are a Hopelessly Ignorant Pune Flat Buyer

Beware! Unscrupulous builders in Pune are targeting ignorant flat buyers:

Related stories:

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Wednesday, October 5, 2016

What if Hinjewadi IT Engineers were a little less stupid?

Why a Hinjewadi IT engineer should not book a flat in the pre-launch offer of Vilas Javdekar Developers' Yashwin Hinjawadi this weekend:

Related Stories:

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Pethkar Projects Opens Booking of Phase 2 of Siyona at Punawale