An attempt to collect information about the housing project started by Information Technology Professionals working in Hinjewadi, Pune!:
"There are various hurdles in our lives,
but the biggest hurdle lies inside us
-- the hurdle to understand revolution and be part of it!" - Vinod Kamble, ITPWAP
Path Breaking Ceremony:
On 20th April' 2008,
IT Professionals Welfare Association Pune (ITPWAP) performed the symbolic ground breaking ceremony of their first group housing project called
"IHP Sus" .
In an email informing about this "historic event" to all members Vinod Kamble, leader of the group, said:
For many of us we are consciously aware about the monetary value the project is going to add to our lives.
And many of us are sub-consciously aware that other than the monetary value the project has revolutionize the concept of IT Professional synergy.
For those of us in the core group its not sub-consciously but consciously the awareness is there.
The effort and energy shown by our volunteers, our core group members, (Mahavir, Birendra, Sumit, Parimal, Suresh, Priyank, Ankit, Aditya, Suraj) is commendable.
Certainly, the ground breaking ceremony was, indeed, a path breaking historic event in Pune real estate market!
Path Not Taken:
Sumit, a member of 3 failed initiative and now, core member of ITPWAP, has given inspiring details in his post, dated 08-19-2009, on
Indian Real Estate Forum. He says:
Well in case of Aarohi the effort was started in Jan 2007.
It took us about 6 months to gather members and shortlist the builder.
After that we spent 3 months in getting the architectural drawings into decent shape and taking bookings for 166 specific units from members.
At this point we collected cheques of 15% payment to show commitment from members but did not hand them over to the builder.
After that the process of land accusation was initiated by the builder and getting the plans sanctioned. This was achieved in Dec 2008.
We began the construction in Jan 2009. During this time we lost about 25 bookings.
The progress has been steady and currently the third slab is being poured.
Aarohi at Sus: in the 1st week of September 2009:
I have listen about Pune could you tell me price of apartment in Pune
ReplyDeletethe location is good and the proposed infrastructure will be useful..
ReplyDeleteHi Ravi,
ReplyDeleteI was wondering if you could give any information about Angal Group and their two current projects Palazza (Balewadi) and Dwarkamai (Prabhat Rd).
Thanks so much!
Have you visited Aldea espanola by puranik builders. visit www.puranikbuilders.com
ReplyDeleteThe real woes of investing in realty
ReplyDeleteKrishna Kant, ET Bureau
A typical salaried person spends her entire working life, building nest egg for herself and her dependents. We put money in bank FDs, buy post office schemes, invest in mutual funds, subscribe to multiple insurance schemes and invest our life-long savings in real estate .
We do all this to make sure that our dependents are not forced to cut their lifestyle after our retirement.
In real life, however, things do not always work to be as planned. Quite often, when the monthly salary cheques stop arriving, we realise that the financial planning falls short of the target forcing painful adjustments for retirees.
It gets even nastier if you suddenly have to meet large unexpected expenses such as medical emergency in the family. And we have seen this happening in families where prime breadwinner has retired from a cushy government job and receives generous pensions.
So what can lead to such a situation given that Indians are one of the biggest savers in the world? A typical urban household saves nearly a quarter of his/her recurring income on a regular basis. If planned diligently, this savings would grow into a large pool at the end of your working days. So what can go wrong? Among the common causes of such a mishap is over investment in a particular assets either because we fall in love with it or due to lack of opportunity.
Former is particularly severe in the case of traditional favourites such as real estate and life insurance policies. Real estate assets, especially a residential property, have a special lure in urban India given the housing shortage in the country and the fact that relative to income, real estate prices in India are one of the highest in the world.
Not surprisingly, for those who can afford, house is typically their biggest investment and one that can eat up bulk of their life-long disposable income.
But the lure of a house doesn’t stop at a roof over your head. It has now transformed into one of the most popular asset classes for upwardly-mobile urban India.
And surprisingly, real estate investment doesn’t seem to carry any of negative attributes associated other assets such as equities (risky and unfaithful) and banks and post-office deposits (poor real returns).
The scramble to secure a pie of the lucrative real estate market has turned into frenzy ever since the government announced a tax-break on housing loans opening floodgates to the private sector investment in real estate projects. It’s not uncommon to find individuals owning three or even four residential properties. But this over reliance on real estate as financial planning tool can turn out to be a liability in old age. Consider this, post retirement, an individual needs an income stream that is regular, fairly predictable, can rise with the increase in inflation and most importantly easy to administer.
For all, its advertised virtues, real estate fails on the most of the above criteria. As mentioned above, a house is most often the largest investment for any individual, but it is seldom the biggest source of income/cash flows for a retiree.
This is because post-tax yields (i.e. rents adjusted for municipal taxes, income tax on rental income and maintenance costs) are pitifully low in India.
For instance, in Mumbai, yields in most localities range from 2-3%, and this doesn’t take into account the effort involved in extracting even this nominal amount. Find a “nice and trustworthy” tenant, prepare a lease deed, get it registered and renew the agreement every 11 months and every few years find a new tenant.
ReplyDeleteProponents of real estate investment, however, push it as a capital appreciation tool. This requires one to sell the property at the opportune time. This is, however, easier said than done. Even in a market as liquid as Mumbai, it may take months to find a right buyer at the right price.
And even longer for the cash to land in your pocket. And this involves a fair amount of footwork and not to talk of the documentation involved. If a real estate transaction is so complex and time-consuming in Mumbai, you can imagine the situation in other parts of the country. Young people or those in the working age group can still hope to do the necessary running around.
But the same cannot be said about retirees. They need an asset that is no-nonsense and has almost zero transaction cost and can be liquated in the shortest possible time.
But what if you need cash quickly and an amount that is much less than the market value of the property? Not surprisingly, even for people with large real estate portfolio, it is hardly ever the prime source of cash-flow .
This is fine as long as you are working, but post retirement, it could prove fatal. Recently, I came across an old couple, who own six properties between themselves and their son, but can’t afford a medical surgery and the postsurgery expenses, despite the fact that one of them earns a decent pension.
They are now caught in a bind — they can’t rent their vacant houses for fear of losing its control; but neither are they able to sell it despite their best efforts. Instead, if they had invested in fewer properties and had diversified portfolio, including equities, bank FDs, post-office deposits coupled with a medical insurance, their old age would have been much happier.
The lesson is clear: the life is uncertain, so spreads your bets and never fall in love with an asset just because it is in circulation.
This project is in pretty bad shape, thanks to the builder who has wasted perhaps potentially great opportunity for him.
ReplyDeleteProject specs was promising when it has began but now it's all the cheapest material been used. Further project is not yet approved by PMC and permission rejected twice. Possession was promised on June 2010 which nowhere in the sight.
Stay away from this builder.
Beware about the promises made by builder, as far as I know the project should have started in Jan'2008 and actually it started in Jan'2009. And as per the agreement with unit owners, it should be completed by Jul'2010 and everyone can the status at construction site.
ReplyDeleteFew points are noticeable here:-
1) Builder is not having approval for 5th floor and above.
2) He is far behind the schedule completion date.
3) He is not willing to share the project plan.
4) He is not making fake promises to existing group of customers, what to say about individuals :)
5) The price he is quoting is too high for this area whatever be the amenities in the project.
Advise:- Visit the site and try to find out the facts from existing customers. And take your wise decision.
Official stand of IT Professional Welfare Association at Pune (ITPWAP) on Aarohi at Sus
ReplyDeleteReply
Ravi Karandeekar ✆ to ITPWAP-owner, aarohiwelfare, bcc: anna
show details 10:16 (2 minutes ago)
To
IT Professional Welfare Association at Pune (ITPWAP),
On my blogs on Aarohi at Sus couple of Anonymous readers have posted negative comments about the builder Teerth Realties.
They claim that they are the members of your group!
One Mr. Anna Subramanium has wrote me on this issue. But he hasn't replied to my mail asking whether it's his personal opinion or he represents your group.
Please, confirm that comments posted on my blogs does not represent the opinion of IT Professional Welfare Association at Pune (ITPWAP) and does not describe actual facts.
If you have any other opinion and want to share your experience about your group housing project, please, feel free to write.
As i am asking this to you, i have also asked the builder to give me an interview to share his views and experience of developing Aarohi at Sus.
Here are the links to my
1) Ravi Karandeekar's Pune Real Estate Market News Blog &
2) Ravi Karandeekar's Pune Real Estate Blog
on which you can find the comments posted by "Anonymous" readers
as your group members:
1) http://ravikarandeekar.blogspot.com/2009/10/aarohi-at-sus-tirth-developers-eco.html
2) http://ravikarandeekarsblog.blogspot.com/2009/10/now-96-it-professionals-can-buy.html
3) http://ravikarandeekarsblog.blogspot.com/2010/07/teerth-realties-teerth-towers-at-baner.html
4) http://ravikarandeekarsblog.blogspot.com/2010/07/teerth-realties-aarohi-at-sus-group.html
Sorry to bother you!
However, i am very much thankful to you!
From today, I am not allowing "Anonymous" comments on my blogs!
So, now you can send me a mail or post IT Professional Welfare Association at Pune (ITPWAP) official stand on my blog which all can read!
Thanks,
Yours,
Ravi Karandeekar,
9198600 44110
Follow me on Google Buzz at:
http://www.google.com/profiles/ravi.karandeekar
http://www.indianrealestateboard.com/forums/showthread.php/5759-Beware-Pune-s-Notorious-Builders./page9
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