Even one can insist on renting the property only if it comes with the buy tomorrow option!
While looking at newest "Rent Properties classifieds Pune" on Quikr, i found some interesting properties available for renting in Wakad, Baner, Balewadi, Bavdhan and on Paud Road in Kothrud. For example:1) Five Garden / Wakad 4BHK Row House for Rent - Pune - Rent: Rs. 22,000/-
2) 3 BHK in Balewadi - Hinjewadi 10 min - Brand New on 7th Floor - Pune - Rent Rs. 15,000/-
3) 2 BHK new flat on rent in Bandhan, close to Chandni Chowk. - Pune - Rent Rs. 13,000/-
4) 2 BHK new flat on rent in Baner road. - Pune Rent - Rs. 11,000/-
5) rental 1 bhlk furnished in kothrud area - Pune - Rent Rs. 8,500/-
Dealing with global economic uncertainty and recession:
I look at Mont Vert's "Rent Today Own Tomorrow" as a solution to deal with job uncertainty and bust of booming real estate market in Pune. Now, considering the response Mont Vert has received, i am very much convinced that this can be a workable solution.Solution not only for the builder but for the real estate investor who may not get an appreciation, a buyer and expected rent for his 2nd flat which was his major investment. Can he offer "Rent Today Own Tomorrow" to successfully en-cash his investment and retire from the property market, at least in the next 11 months?
In these tough times, instead of just renting and letting your hard earned money go down the drain, can you opt only for the flats which has "Buy Tomorrow" offer? And convert your rent into your down payment and own the same property in the next 11 months when you are little bit comfortable about paying EMI!
What about the property rate?
For "Rent Today Own Tomorrow" offer, generally pricing terms depend upon the trend in real estate market. For example, Donald Trump offered "locked in property price at today's property rate" for Trump Plaza because in November 2007, real estate prices were rising.Now, we all agree that property rates in Pune are going to go down more in 2009. So both of you, real estate investor and the property buyer, can work out on a reasonable property rate and go for mutually agreed property rate or opt for Mont Vert's Rent Today Own Tomorrow style "property rate at the time of purchase" term.
Since, both of you are perfect gentlemen and don't belong to the builder community, you can be sure about "transparency", "fair price", "ethics" and guess how low property rates can go accurately. Right?
What is your take on renting today to own tomorrow solution?
Considering that offer comes form, not a builder but form a real estate investor, mostly IT professional like you, you may look at the "Rent Today Own Tomorrow" in a different perspective.Do you think it's a good housing solution for the property buyer and a real estate investor to come out of this recession and uncertainty?
Particularly, when mostly many more builders may offer "Rent Today Own Tomorrow" scheme to reduce their inventory of unsold ready possession flats and your investment might depreciate more.
Please, share your views in the comments. (Comments Policy)
Renting is not money down the drain. Its the money you pay for convenience. If things go bad then you can always move to a cheaper location. You cant really reduce your loan payments when the economy is not doing so well
ReplyDeleteRavi ,
ReplyDeleteI am regular reader of ur blog.
The rental property rate u got from 'Quikr' looks overpriced to me . I know few people who got rented 2 BHK apartment in kothrud for about Rs.10000 and in baner for about Rs8000. BY looking at these examples 2BHK flat @ 13000 in area like Bavdhan is too costly.
Secondly , the scheme marketed by Mont-Vert is actually loss to customer in long run, either way. a. Customer is paying more rent at present ( compared to rented property rates in fringe areas where montvert has its schemes)
b. Customer has to renegotiate hard for buying rate while purchasing the flat he is occupying on rent. I am sure mont vert will definitely charge him more than the market rate at that time. No builder is so foolish to give this customer the property at lower rate.
So i feel this scheme launched by Mont-vert is for the customers who are not aware about market conditions and present property situation.
Regards
Karandikar Amol
Ravi ,
ReplyDeleteThe rental property rate u got from 'Quikr' looks overpriced to me . I know few people who got rented 2 BHK apartment in kothrud for about Rs.10000 and in baner for about Rs8000. BY looking at these examples 2BHK flat @ 13000 in area like Bavdhan is too costly.
Secondly , the scheme marketed by Mont-Vert is actually loss to customer in long run, either way. a. Customer is paying more rent at present ( compared to rented property rates in fringe areas where montvert has its schemes)
b. Customer has to renegotiate hard for buying rate while purchasing the flat he is occupying on rent. I am sure mont vert will definitely charge him more than the market rate at that time. No builder is so foolish to give this customer the property at lower rate.
So i feel this scheme launched by Mont-vert is for the customers who are not aware about market conditions and present property situation.
Rental is money down the drain. Ravi I like your thinking that if this scheme was done between 2 private parties, ie renter and landlord a fixed purchase price can be agreed on the day of agreement itself, I dont see a better solution than this.
ReplyDeleteWith all said and done I give credit to Mont vert for some different thinking which atleast at my work place is positively talked about. Only if they could have fixed the prices right on day one, that uncertainity would have been out too.
Personally I feel that property values are now at some sensible levels and the primary home buyers should start looking and finalizing on good bargains.
Great post with Great stuff.That sounds pretty cool. Really helpful thanks for the Article, Great job, hope we can expect more articles. All the Best
ReplyDelete