No EMI till possession if you give Advance Loan Disbursement (ADF)!
In July 2008 Vilas Javdekar and Associates launched their "Green Umbrella" offer for Palash 2.0. In September 2008 they launched compact flats in Palash 2i with the same offer.
On my blogs, Ravi Karandeekar's Pune Real Estate Blog and Ravi Karandeekar's Pune Real Estate Market News Blog, we had "hot discussion" on this offer. Main objection to this offer was - "Is it safe to give Advance Loan Disbursement to the builder?" (Did you read my post "Donate your eyes and get Ray Ban for Free!"?)
Builders gimmicks to avoid price reduction!
Besides "Trust", property rate was also a major concern.If you remember in March 2008, we had just started talking about "Pune Real Estate Slow Down".
Promoters and Builders Association of Pune (PBAP) has warned property buyers about impending rise in the property rates in Pune real estate market.
Mont Vert has just launched "compact homes at Seville in Wakad" and tried to break the "price barrier".
These marketing initiatives were called as "builders' gimmicks" to avoid price reduction and trick the Pune property buyer to book the flat.
These "exclusive offers" were nothing but a disappointment for the first time home buyer working in Hinjewadi who was eagerly expecting overly inflated property prices to come down.
RBI and Finance Ministry joins builders to tempt the property buyers!
However, we all know that "Green Umbrella" offer of Palash 2.0 and Palash 2i got a good response.Many more builders in Wakad (compact flats at SuCasa!) and even in Hadapsar (Runwal Seagull!) tried this type of an offer, launched "compact homes" and it became a new trend in Pune real estate market.
Not only in Chakan (Sara City), even in Balewadi (Amit's Astonia) and Kharadi (Gera's Park View 1) "compact budget flats" were launched.
Global financial crises and RBI stimulated low home loan interest rates and tried to add some attraction to these affordable homes.
How Palash at Wakad is utilizing your ADF?
But what is happening at Palash 2 and Palash 2i who were among the first to start this "trend"?Was it worth to take a risk of giving ADF to the builder?
Here are some photographs which show the progress of the construction at Vilas Javdekar and Associates' projects in Wakad.
In the present circumstances, nothing looks beautiful than on going construction work at site! Please, have a look and share your views in the comments. (Comments Policy)
Palash 2.0 - G and H wings:
January 2009:
F,G,H work in full swing:
H wing level 7 complete:
D and H wing:
F and G wing:
G wing:
H wing:
February 2009:
G wing:
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H wing:
.jpg)
H wing from D wing:
H wing from podium:
March 2009:
11th Slab G wing:
10th Slab H wing:
Palash 2i:
January 2009:
Level 5 complete:
.jpg)
Close up:
Site office and Palash 2i:
February 2009:
From podium:
Site office and Palash 2i:
.jpg)
March 2009:
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Hello Ravi,
ReplyDeleteThanks for this info. However, let us know what is the difference between the current scheme & the Green Umbrella Offer. I would also like to state that today banks are not lending home loans as ADF (Btw, home loans in any case is hard to get in current times as eligibility of several buyers has gone down).
Such schemes come up as builders can't afford to take loans from open market & no one is lending to real estate sector either.
What if ADF is made & builder doesn't give possession for next 5 years? We lose money as well as rent, don't we?
Hello Parimal!
ReplyDelete"What if ADF is made & builder doesn't give possession for next 5 years?"
There is no "current scheme"!
I have posted photographs to answer, "What if...?"...We have to keep watch. Shouldn't we? After all, as you have said, we are financing him!
Hello Ravi,
ReplyDeleteYou still haven't answered my question:-
What is the difference between the current scheme & the Green Umbrella Offer? It would be really useful if you can throw some light on this as it would help in comparing the current offer with the older one.
Hi Ravi,
ReplyDeleteWhat is the interest rate which is considered by the builder for EMIs. Has Palash tied up with some banks for this scheme? Please reply. Thanx.
Hello Parimal and Anonymous!
ReplyDeleteThis post is about "what's happening..."!
About progress of construction at Palash 2.0 and 2i.
Not about any new or on going "offer"!
Now, i am planning to write about the current status of construction and construction facilities - infrastructure.
I am sure, you would like to read about the project where you have already booked (or thinking of booking!).
Even you can suggest me the projects of your choice!
Hello Ravi,
ReplyDeleteAppreciate your efforts to give opinions on the real estate in Pune. Wanted to know your opinion on Silver Orchards (by Manav) in Wakad; Also, considering the slowdown (an optimist view) or complete crash (a pessimistic view) in the Pune real estate, and the price points of most of the rowhouses / bungalows in the Wakad and adjoining areas, what is your take on how things will pan out in the next 5 years.
Hope to get a reply...
NAB
Hi Ravi,
ReplyDeleteYou have recently written articles about all townships like Blue Ridge, Amarona Park, Megapolis etc but Nanded city is missing.Any updates on his project?
# Ref: "Nanded city is missing.Any updates on his project?"
ReplyDeleteYes, you are right! Instead of adding to the rumors, i thought i should give "official" info. Mr. Satish Magar has promised me that he is going to give a walk through interview and explain 'on going activities' at Nanded City Pune and his 'plan of action'.
For last 5 weeks i am waiting to meet him but...hope to see him soon!
# ref: "how things will pan out in the next 5 years."
ReplyDelete- Happiness does'n depend on the appreciation of the property so owners would be enjoying their row houses and bungalows!
- Silver Orchard behind Indira is ready possession. Though i enjoy the company of collage going girls and boys, i don't like to stay so close to their collage!
Hi Ravi,
ReplyDeleteI appreciate your idea of work in progress. It would be nice if you can cover one area at a stretch & cover major projects here so that the buyer looking at particular area will get the knowledge in one stroke & it would be easy for you too to visit multiple places in one time.
Can we start alphabetically say Aundh, Baner-Balewadi etc.? (Sorry Vimanagar residents/buyers!!)
# Ref: " It would be nice if you can cover one area at a stretch "
ReplyDeleteGreat! Thanks, Parimal! Done!!
Hi Ravi:
ReplyDeleteThanks for the info. I love your blog. Now that you have started with Wakad, why not finish with that area. I am on rent in Wakad for past 3.5 years waiting for a much hyped crash and almost weekly going to these sites in fact many sales guys now know me by face and smile at me when me and my wife walk in. I did not buy 3.5 yrs back cose I was just married and very new job. No family support and did not want to commit with no money in pocket. Today I am ready but waiting for the right price. I see the rates to be now at same level as about 2-2.5 years back. Will wait for a month or so and then jump in. Loan approval etc is ready, Job stable and 30% capacity to put down payment. Ok Enough about me.
I see many projects stopped, standstill or at snail pace with exception of few.
It will be a good idea to see what is happening and which builder to avoid. I was at Costa Rica by Rama group and did not even see a sales guy. Ditto at few other projects. Omega folks told me they are fully booked but no work in progress. Rohan Tarang seems to have picked up the work after a long delay. Mont Vert Tropez few towers(5 or 6) look completed and painted. Pristine Grandure two tower RCC is done. Palash you already reported, Su Casa is also showing activity. Apostrophe is also in progress.
OK I made your life a bit easier.
You will need 3 days for this road.
Projects on this road can be seen on wikimapia.
Regalia, Apostrophe, Tranquille, Seville, Cappricio, Costa Rica, Su Casa, palash, Omega, Tropez, Lorelle, Parkwayz, Rio Vista or something(no work its on hold), Grandure, Eden, Atul, and some more.
One suggestion... please ask the launch date for each of them and then see how much work is done in what time.
Good Luck.
My comment is to tha last poster. You state :
ReplyDelete"I see the rates to be now at same level as about 2-2.5 years back."
If I recall correctly the rates were below Rs. 2000/sqft during that timeframe. Where do you see this rates ?
I recently contacted BlueRidge and they quoted Rs. 3500/sqft. I think this is still too high.
Hi Ravi,
ReplyDeleteThanks a lot for very informative blog. I really appreciate it. Recently I send enquiry to many projects, only 2 responded :
1. BlueRidge @ Rs. 3500 sqft
2. Vascon Willows @ rs. 4300 sqft.
I was surprised to see only 2 responses. Around 3 yrs ago when I send enquiries I got almost 80% responses.
Questions :
1. Any ideas/theories why builders have stopped responding ?
2. As far as above 2 projects go where is the correction ?
I think I will buy if rates are below 2500.
Rajiv
# Ref: "1. Any ideas/theories why builders have stopped responding?"
ReplyDelete- I think slow down in Pune real estate market has taken it's toll.
Not only property buyers have lost the enthusiasm to book but sales staff's motivation is also low!
# Ref: "2. As far as above 2 projects go where is the correction ?"
ReplyDelete- Who is looking for the correction? Only those who haven't booked. Not those who have already booked!
Now, nobody is sure about getting more bookings if property rates come down!
Property rates can come down not by "wishing for lower rates" but only if bookings happen at a lower rates.
Rajiv, you have to negotiate to get Rs.2,500. Action, not waiting is going to give you that rate.
Thanks Ravi for responding.
ReplyDeleteI think we are in a deadlock situation right now. Builders have their theories for not responding and buyers have theories for standing on the fence.
The reason I did not try to negotiate is coming down from Rs. 3500 to 2500 will be very hard. It is not flying to begin with. This is from my experience of last property purchase.
From macroeconomic perspective we are still not clear whether we are in inflationary or deflationry phase. If inflation expect prices to stay at current levels or go higher. If deflation expect much lower prices.
Currently I definately see deflationary cycle at least in US.
Times are interesting.
Thanks a bunch for your blog.
Good projects like Willows rarely offer discounts. They won't be affected by the slowdown. But if you are looking for an affordable housing project in Aundh annexe, then may be you can expect lower prices. A salesperson at a Baner site recently told me that every now and then he runs into customers looking for irrational prices that are 30-40% below quoted price. He said his boss would rather lock up the flats for two years instead of selling them at prices demanded by these customers. So there is a big standoff with significantly less deals happening compared to last year. But there is no evidence this will lead to a crash.
ReplyDeletehttp://rightadvice4u.blogspot.com/
HI Ravi
ReplyDeleteI have been following you blog regularly and like it. I was wondering if you or any people looking at this know the booking rates at Lavasa?
Booking for 2, 3 Bed room flats and also for villas
Thanks
Mumbaiwala
Hello Ravi
ReplyDeleteI admire your blog and your efforts.
I was keen to know re: Kanchan Vastu- Try Builders project in Bhusari colony. They are quoting 4300 Rs per Sq ft. Do you think rate will come down further ? or is it hyped?
Your expert opinion would be appreciated.
Parth
hello Ravi,
ReplyDeleteI wondered if you have any idea about K B Pate -golden petal project? Are the rates expected to go down any further? they are quoting apprx 3800 Per SqFt
thanks in advance
Parth
ciancousemHello Ravi..
ReplyDeleteThank you for setting up this wonderful blog which is helping people like me who are not born n brought up in pune but are planning to settle down here.
I m getting a package deal from a broker for 22 lakhs (all inclusive) for a 1.5 BHK flat in Kalpatroo estate Phase 1 pimple gurav.
Flat is 750 Sq feet and car parking is not included.
Your view would be appreciated on the area, future devlopments, resale, and the stauts of prposed DP road going near from Kalpatroo.
Informative post indeed. Although not new to the real estate market but wasn't so sure about ADF.
ReplyDeleteI recently came across your blog and have been reading along. I think I will leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often
ReplyDeleteHi Ravi,
ReplyDeleteAssuming u get the ADF scheme, what is ur rating of the builder??? the biggest risk is of project completion..
Would like your views on the same..
This comment has been removed by the author.
ReplyDelete