Friday, October 21, 2016

The better way to buy a flat in Pune real estate market

Benefits of buying a flat in Sakal Big 3 Home Utsav,
20th - 23rd October 2016:



Unaffordable property prices is the only reason people are not buying flats.

If you marginally reduce the property rates & make home finance easy people will buy flats.

Reducing property rates marginally & offering sort of easy home finance should be done in a style. With a big showmanship. With a big media promotion.

Like any festive sale of consumable goods.
For example a saree sale on Laxmi Road or a sale of home appliances in a big departmental store.

Like Sakal Big 3 Home Utsav.

Organizing big flat sale hides the builder's desperate & delicate financial condition.

Organizing big flat sale creates an impression that it's all for the benefit of the flat buyers.

Not for saving sinking ship of a builder.

Organizing big flat sale compels the people to make an impulsive emotional flat buying decision.

Organizing big flat sale helps the people to make a flat buying decision without doing any overwhelming market research, without any mind-boggling analysis, without considering better options & alternatives in the same location.

Organizing big flat sale eliminates painful mental stress in making a flat buying decision and creates false feeling of 'pleasure'.

Organizing big flat sale lets the people to cheat themselves that they are buying a product with some assured quality.

Organizing big flat sale lets the flat buyer to shrug of the responsibility of his decision and gives him freedom to blame the builder if something goes wrong.

Organizing big flat sale - in short - is good for the flat buyers - who are looking for mental shortcuts.

What is good for the flat buyers is, obviously, good for the builders.

What is good for the builders is, certainly, good for the flat buyers.

What is good for the builders & flat buyers is, for sure, good for the organizers who make good money from the flat sale. Right?


Benefits of buying a flat by visiting the projects in your preferred location:


Ravi Karandeekar at Gokhale Constructions Briz at Kasar Amboli, Pirangut, Pune

Visiting the sites is certainly time consuming, physically tiring, emotionally draining & intellectually confusing activity. I experienced this when I spend a day in visiting a few projects in Pirangut.

I chose Pirangut because many real estate sales persons & property brokers told me - "Now, Pirangut has become an investment destination of first time home buyers of IT Engineers working in Hinjewadi. Hinjawadi - third phase - Megalopolis - is just 7 - 8 - 9 kilometers from here!"

Affordable property rates at Pirangut & connectivity with Kothrud makes Pirangut ideal for them who have limited budget. I was told.

1) Pandit Javdekar Red Earth

The first project I visited was Pandit Javdekar Red Earth - Resort homes at Pirangut - Urawade. It was a random choice. I left home for Pirangut and boarded the first bus which was going to Urawade.

The security guard opened the sales office & let me visit the sample flat. Pointing at the ongoing construction next to the sales office the security guard told me that there is a car parking on the first 3 floors of the building. Then the guard gave me the brochure & the rate card.

The brochure said - Read Earth, a project of 1 BHK & 2 BHK Homes, will revolutionize the way you spend your weekends.

The rate card mentioned the floor wise rates of mountain, amenities & green belt facing flats - from 3325 to 3675. Infrastructure charges - Parking, Electricity & Amenities - 1 BHK 2,25,000 & 2 BHK 2,75,000!? I found it funny.

I didn't ask the security guard about the salesperson. He didn't tell me anything about the salesperson. I took a few photos & left.


2) Sarvesh Nakshatra Angan

The hoarding outside the project told me that ready to move in 2 & 3 BHK Flats are available in Nakshatra Angan on Ghotawade Phata - Lavasa Road at Urawade.

When I told the security guard that I want to see the flats - he asked - "Rent or Buy?" -

"How much for a 2 bhk?" - I asked.

"7 - 8 thousand" - he said and told me to visit the office on the first floor.

The person in the office didn't look like a real estate salesman. He told me that only 7 flats are available - 4 units of 2 BHK & 3 units of 3 BHK.

"For how much?" - I asked.

"First have a look at the flats" - he said. We visited a couple of 2 BHK & 3 BHK Flats.

He let me enjoy the views from the flats. He told me about the people who were occupying the flats. He told me about water, garbage, power, sewage, completion & occupancy certificate, society formation and how the project is maintained. I didn't have to ask him anything.

He not only showed the clubhouse, gym & library but even the refuge area!

A couple of more 12 story residential buildings, and a commercial complex will come in the second phase of Nakshatra Angan.

He also told me that the name of the builder is Mr. Sawant who is from Urawade.

"I want to talk to the residents. Can I?" - I asked.

"Yes, of course!" - he said and rang the bell of the nearby flat and told me that - "This family is the first to shift here"

A beautiful mature lady opened the door. He told her that I wish to buy a flat & want to talk to her regarding it. The beautiful lady invited us in.

"How come you are here?," I asked her in Marathi.

"Even we wonder! After being born & brought up in Sahakar Nagar we decided to spend the rest of our life here!!" - the beautiful lady said. She shared many things about the builder, other options they have considered before booking a flat when the project was under construction, life at Urawade, and so on.

"You know? The regular PMPML driver stops the bus for me at the entrance of our project!" - she said.

"That's the privilege of being a beautiful lady!" - I said.

"No one stopped for me in Pune - not even an auto rickshaw driver - credit goes to the good nature of people in Urawade - they haven't lost their humanity" the lady said.

After we took her leave, I asked the builder's man - "Who are you? The builder's brother - partner?"

"I show flats. I am builder's childhood friend. I left my job & joined Mr. Sawant. This is our second project," he said.

"Your friend is a local landlord. Right? Where is he?," I asked.

"He is from Urawade - but he is not what you think - Guntha Mantri builder - he is in construction business for a long time," the builder's man said.

"Yes! It shows. He is the best. Now, please, tell me the price," I said.

The builder's man gave me the printed price list of ready to move in flats. 2 BHK Flats - from Rs. 37.66 - 44.08 Lakhs. 3 BHK Flats - 47.94 - 48.72 Lakhs. On the price list there was contact information - 020 2542 0043 / 98811 23229 / www.sarveshrealty.com


3) K K Developers' ArCasia:

I was at Nakshatra Angan for nearly 2 hours. Now, it was 12 noon. Sun was hot. I was hungry. Walking on Lavasa Road had become boring. Still I didn't feel like going towards ugly Ghotawade Phata. But there was no option. I took a tumtum. Got down at the way to Kasar Amboli. Eat tasteless rice plate and started walking on kachcha road. Opposite ElectroMech Company, I stopped at ArCasia, a single stand alone 3 story building of shops & 1 & 2 BHK Flats.

"The builder is a factory worker. He has taken a plot & constructing this building. The builder's brother supervises the construction personally. Unfortunately, he is not at the site. But the salesman will tell you about the project," a man at the site office told me and send someone to call the salesman who has gone for a lunch.

The salesman gave me the brochure & property price list. He said - "At present we have permission for only 3 floors. That's why we are taking bookings of only 3 floors. But eventually the building will have 6 floors."

The carpet area mentioned in the price list was including the area of the terrace! The rate was 3,100 per sq.ft. A 1 BHK had a separate WC & bath. There were 6 flats on each floor - 4 units of 1 BHK & 2 of 2 BHK. Somehow the builder has managed to assemble a bunch of rooms into a flat like unit. The approximate all inclusive property price of a 1 BHK Flat was Rs. 19.7 - 21.8 Lakhs and a 2 BHK was for Rs. 27.8 29.5 Lakhs. Availability is ample. Contact numbers are 89756 38096 / 83085 56460.


4) Gokhale Constructions Briz:

As always, the main gate of Gokhale Constructions Briz was impressive. Tiny clubhouse was imposing. Landscaping & play equipment for children were trendy. A salesman cum site in charge was busy in supervising the final cleaning before possession.

"We have recently received occupancy certificate," proudly he told me and took me for the flat selection. Some 6 - 7 units of 2 BHK Flats (Approx all inclusive price Rs. 35.5 Lakhs) are available for sale in Briz and out of 175 some 10 - 15 flats are occupied. I told him to show me amenity facing flats on 7 - 9 floor.

He told me -"Amenity facing only 12th floor is available. 7 - 9 is on the back side"

"Show me 12th for the view but I will not go for it" - I said.

I took a photo of a beautiful Ganapati in the entrance lobby.

"Look at these tiles! These are 300 rupees per sq.ft. Which we use in our premium projects where each flat is of 2 - 3 cores" the salesman cum site in charge told me proudly.

"Look at the speed of the lift - In 30 seconds we have reached the 12th floor - Look at the views - Can you see Megapolis - Hinjewadi? Have a look at the amenities from here - look how cool it is here on a hot October noon" - he continued talking proudly.

"Can you see the signs of leakage or seepage on the walls or ceiling? No! In Gokhale Constructions' flat you don't have to worry about leakage or seepage. You said no for 12th floor only for that reason - right? ," he asked me.

"Yes! Please, show me the one which is available!!," I said.

He showed me 2 units on the 12th floor. Both had different layouts. Both flats were compact. Floor lobby had a strange shape. The duct was deadly. Fittings & fixtures were unusual. Mr. Gokhale must have taken a lot of efforts to do something unusual than he normally does in his premium projects! Still, I am sure, all his flat buyers must be very satisfied.

"What was the price when you launched the project 3 years ago?" - I asked.

"I am not sure. May be 25. It was the same price last Navratrotsav - of course, I am not sure - when we offered 30 % discount and booked some 40 flats," the salesman cum site manager said and added - "3rd Navratrotsav and ready possession flat went for 35 - look at the appreciation! Gokhale Constructions is a brand"

"Very true!," I said and took his leave.


5) Nakshatra - Challenge Rate Rs. 2424 per sq.ft.:

I got out of Briz, crossed the bridge, entered Nakshatra and was trying to take photo of Briz. One man came to me and said - "At the launch Gokhale had promised that at the time of possession the cement road would be ready from main road to here - did you see the cement road anywhere? No! This bridge - we constructed it"

"No. The road was kachcha. But why will Gokhale construct it? Gram Panchayat constructs the roads & bridges," I said.

"You must be a Bamaan! Am I right?," he said.

"How did you guess?," I asked.

"Who else will take a photo of Gokhale's building! All Sadashiv Peth Brahmins have invested here. Ask me. I know everything." he said.

"How come? You work in Nakshatra?," I asked.

"No. I know all. General knowledge. This project was stalled for a long time. Because of the fight between the partners. Now, again they have started construction. Go there and have a look - if you wish - but I know you will not buy there - you will only go for Gokhale!," he said.

"No. I am going. Gone," I said where the construction activity was in a full swing. But couldn't find the salesman. So, had come back and continue walking towards Kalash.


6) Kalyani Fortune Properties Kalash - Property Rate 2499 per sq.ft.:

Kalash was a big surprise! Because of the so many hoardings about the property rate of Rs. 2,499 per sq.ft., I had unconsciously assumed that the project would be a typical 'affordable junk property'. But when I saw the sample flat I was pleasantly surprised.

Though the flat was compact, it was intelligently planned. There are only 4 flats per floor. The floor lobby is quite large.

Living cum dining was 14'7" x 12'2" - because of the 12 feet width it looks specious. 9' x 8' Kitchen had a 4' x 4' store and a dry balcony. Common toilet had an Indian WC pan. Master Bedroom was 12'2" x 10'2". The second bedroom was of course 10' x 10'. Attached terrace to living / dining was of enough size for a compact flat.

The second surprise was Jitendra Gaikwad, my old friend & one of the best real estate salespersons in Pune real estate market. In his typical style, Jitendra gave me an idea about the future scope of development in Kasar Amboli. And explained how Kalash can be an ideal investment. When I said bye bye to him, I had become expert on Kasar Amboli and was completely convinced about it's future prospects.

The third pleasant surprise was the young directors of Kalyanee & Fortune!

We are civil engineers. We are completely involved in the execution of the project. We plan and supervise construction personally. They told me.

They also told me that they are going spend their own money to construct the approach road from Kasar Amboli Gaonthan to Kalash!

A 2 BHK Flat in Kalash, ready / under construction costs around Rs. 31 - 33 Lakhs and a 1 BHK Flat for around Rs. 21 - 22 Lakhs!

Contact details are 97647 88688 / 97641 88388 / www.kalashhome.com


Which is the better way to buy a flat in Pune real estate market?


While coming back, I had to wait nearly for one hour at Ghotawade Phata for a bus. While I was waiting I took a stock of the day.

Was it worth to take so much trouble to visit the projects? I asked.

Yes! Considering that I am going to spend rest of my life here - the trouble I took was nothing. I told myself.

Did I find any project worth considering? I asked myself.

Yes! Assuming that I am working in Hinjewadi - my budget is around 40 lakhs for a 2 BHK Flat or around 25 for a 1 - my family is comfortable to live in undeveloped - non urbanized area - without any social & cultural infrastructure - a day's efforts have convinced me that - there are many options available for me in Urawade - Kasar Amboli. I told myself.

Did I find the projects which are worth shortlisting for the next stage of scrutiny of legal papers, environmental clearance, basic infrastructure developed by the builder, storm water management, source of water supply, cost of maintenance of the flat, and most important the sanctions - approvals? I asked.

Yes! Out of the 5 projects I visited today - minimum 3 are worth considering seriously. I told myself.

Would I like to visit more projects? I asked.

Yes! Of course!! It's my duty & responsibility to explore every on going project in the vicinity of Pirangut, Urawade, Kasar Amboli, Chande Nande & Paud. I told myself.

Isn't this overwhelming? I asked.

Yes! It is. But I have an option. I can rent a flat at Aundh or Kothrud for a less amount and enjoy high standard of life!! I told myself.

What was the surprise of the day? I asked.

2 surprises! Sarvesh Nakshatra Angan & Kalash. Both less known builders have surpassed the well known brand of Gokhale Constructions. I told myself.

What is the conclusion? I asked myself.

If you keep your eyes open - you see better things in the world. I told myself.

What say you?

Would you like to explore the properties on your own or would you like to submit yourself blindly to some media house?

Which is the better way to buy a flat in Pune real estate market?

Please, let me know in the comments.

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2) 8 Questions every flat buyer in Pune should ask a builder

1) Investing in DSK Dream City Pune

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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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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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9 comments:

  1. The best way to buy a flat in Pune real estate market is RENT one on a 2/5 years lease!!!

    That way, let the "intelligent" investors buy the overpriced property, take the entire risk of incomplete sanctions/no OC or CC, let him fight with the builder for conveyance, let him pay ever-increasing maintenance and pay the bank back for the rest of his life.

    I only need to spend a fraction of the cost to get by for 2/5 years.

    After that? There is always another "intelligent" investor who needs to rent HIS flat to make back some of the money he is hemorrhaging...

    ReplyDelete
  2. After such a long period got to see so many photographs & as it's said, a picture is equal to thousand words. Really appreciate you Ravi for going to such remote areas, which may not show even on google maps !

    First, the exhibition - lot of empty space, vacant chairs & idle salespersons inside the hall shows the response from the buyers. What I don't understand is rather than spending money on regular basis for various real estate exhibitions, why don't builders drastically reduce the rates & deliver flats on time with good construction quality ? This is far easier way to attract buyers than participate in one exhibition after another.
    Nonetheless, this clearly shows that buyers are not there in the market for several reasons mentioned in your blog.

    Coming to projects which you visited, first that Gokhale chap said that tiles put in some area costs 300 psf, but look at the basin in the flat, it doesn't even have U bottle or bottle trap for basin, which local one costs barely 350 rs while Jaquar costs around 1200 & that pipe of basin is also of poor plastic which cracks after certain period of time. Seems putting so called 300 rs few tiles is important than putting proper pipes for basins !

    In most of projects, absence of salesperson indicates that sales are not happening.
    And most hilarious of all - "The builder is a factory worker. The builder's brother supervises the construction personally." And I am sure, that RCC contractor is the driver of the tum-tum, LoL.

    "Who else will take a photo of Gokhale's building! All Sadashiv Peth Brahmins have invested here."
    - ROFL, hahaha. This was indeed a good one.

    And all this area is so pathetic, that forget shops, even e-commerce sites won't deliver parcels at such places ! Don't know how people even think of buying here even if it's for 1L ? Forget buses, even Uber & Ola don't operate in such jungle areas. You didn't had anything to eat nearby itself shows how remote is the area, perhaps you should have ordered Cheetahs Pizzas. Here, leopards are hired as delivery boys !

    "Which is the better way to buy a flat in Pune real estate market?
    Please, let me know in the comments."
    Best way to buy flat is currently not to buy flat.
    The answer has been already given by you, rightly so :

    "But I have an option. I can rent a flat at Aundh or Kothrud for a less amount and enjoy high standard of life!! I told myself."

    Some latest real estate news.

    Festive season: Home buyers likely to snub even 10-15% discounts by builders; here’s why -

    In the West, Mumbai Metropolitan Region (MMR) is expected to see a steep fall of nearly 40% in unit launches this year while Pune may see a decline to half.

    http://www.financialexpress.com/economy/delhi-mumbai-pune-property-prices-home-buyers-festive-season-sales-10-discounts-real-estate-offers/424682/

    Real estate as collateral backing bad loans in India may be worth $45 billion -

    The value of Indian real estate posted as collateral for problem loans could be worth Rs3 trillion ($45 billion), according to a unit of India’s largest mortgage lender HDFC.

    http://www.livemint.com/Industry/4EblPgeYq5OaZYQHYf28CJ/Real-estate-as-collateral-backing-bad-loans-in-India-may-be.html

    ReplyDelete
    Replies
    1. One more thing -

      Builders are constructing buildings at location where there is not even proper approach road. What I wonder is that in absence of fire brigade/station & absence of approach roads, how do builders get permission to build 12 floors building ? Since it is the corrupt gram panchayat, atleast buyers should refrain from buying in such projects/areas where even basic safety & infra is absent.

      Delete
  3. Thank You very much for a really nice blog Ravi.
    Keep up the good work.
    Our Best wishes to you.
    Happy Diwali in advance :)

    ReplyDelete
  4. Does anyone know why EC Maharastra website https://ec.maharashtra.gov.in/ has stopped updating since Feb 2016?

    ReplyDelete
  5. Namaskar Ravi Sir,


    My Experience at fringe village :
    _______________________________

    I had been to Kalash , Kasar Amboli in October - 2015. He had quoted 2700 psf for 2 BHK.
    On Diwali day , the Kalash executive called me saying : " Happy Diwali Sir , I am just calling to tell you that the rate is now 3000 and will further increase in next financial year"

    Me : " Ok , Happy Diwali . I do not have any plans as of now. As mentioned while we met , I am just exploring areas and offers. "


    And now October - 2016 the rate is 2500 psf !! What about those buyers who booked at 2800 psf+ !!


    My Observation ( October - 2015) :
    ________________________________

    I also travelled like a common man by PMPML , by catching bus at Chandni Chowk to Pirangut.

    I visited allmost all builders(in Pirangut/Kasar Amboli/Jungle area :P ) like Kalash, Calyx - Navyangan , Calyx - Earthern Life , Nakshatra , Rigel , Vastushodh , RM Feliz ,
    DSK.

    I was too much tired after exploring 4 projects in Pirangut , there was no PMPML bus at 4.30 PM.
    Only local jeep was present which was waiting for 3 more passengers , luckily I got ST bus from Kolvan-Swargate !!

    Kasar Amboli - Paud Phata !! the journey was like from Hell to Heaven !!

    At paud phata I had Nira. Then I went to Dashabhuja Ganapati Mandir _/\_ . It felt really nice to be back to Punyanagari (Pune)!!

    I asked Ganapati Bappa : " Is it advisable to invest in Pirangut for my 1st home in Pune ? , Shall I book in Kalash at 3000psf or any other famous builder project in Pirangut "

    Ganapati Bappa was laughing & said : "I'll give you more knowledge and answers , only if you use the knowledge which I already gave you."

    Then I went to IREF blogs , Ravi Sir blog and thought and delayed my decision . Today I am happy that I did not book in Pirangut/ any other fringe village in Pune.
    The rates have fallen very much but the rude attitude of builders continues in Diwali-2016 !!


    __________________

    Dear Ravi Sir ,

    I really doubt that Sadashiv Bhramins might have booked in Pirangut !! Why ?? Because they are smart and they know the difference between value of the good life and cheap property at odd location.
    Areas like Wakad , Pimple Saudagr took 5-6 years develop , then fringe areas will take decade to develop.

    I myself have travelled like you by PMT bus to Pirangut , expereinced the odds at Pirangut/Kasar Amboli/Urawade jungle region.
    I have no words to express your commitment/Passion Sir , Thank you very much Sir , may you keep exploring and enlighten us through your knowledge/expereince.

    Happy Diwali and have a prosperous festive season ahead.

    ReplyDelete
    Replies
    1. Thanks for the write up. Enjoyed it.

      "And now October - 2016 the rate is 2500 psf !! What about those buyers who booked at 2800 psf+ !!"
      - They have become ulloo. This is the price one pays for believing in builders or salesperson words like buy now or never, prices will go up, few flats left blah blah.
      And yes, passion for real estate of Ravi is outstanding.
      Happy Diwali.

      Delete
  6. Hi, Ravi sir,thanks for giving the lots of information about real estate in pune, the pics given here are pretty good.Looks like the designs are done by on of the top architects in pune.

    ReplyDelete
  7. Hi Ravi
    I wish to buy 2 bhk in Hinjewadi phase 2
    Is it Right time to invest,?
    Is it Right location to invest?
    Which project u suggest?
    Thanks
    Sanjay Thorat

    ReplyDelete