kikloo

Hi,

Few days back I saw full page ad of Sky rock city that they have even got the CLU and they printed the letter number and date also. Then why they are still showing in the list of Unauthorized Colonies ?

I feel that GMADA is not doing their bit by posting the updated info on their website.

Thanks.

zirawood

myself and my friend has booked two plots recently at sky rock mullanpur.At this rate no body is giving/booking plots at mullanpur area.If project goes ahead it will be a win win satuation.If project is not succeded then our booking amount is blocked there for the time being.If you have to take profit,Then you have to take risk of money blocking for some time.

AnkurPune

I personally would be wary of booking with developers who make unauthorized colonies even though they later may be regularized. In addition brokers around the area asked me to check whether Skyrock actually has enough land for the number of bookings they are making. They also expect you to share your profit with them if you sell your booking to someone.

AnkurPune

Hi,

Skyrock claim to be doing this scheme on a no profit no loss basis.

1) I would ask why would someone work on no profit no loss in today's time? Everyone works for profit today. If it is being run on no profit no loss, why are the developers advertising it every week and taking so much pains to sell it?

2) If this scheme is running on no profit no loss, why haven't all the investors and dealers in and around the area jumped on it and booked all the plots so that they can earn profits out of it?

3) Why is this scheme listed under under unauthorized colonies in Puda site?

4) Why is it that the cost in this scheme is so low as compared to surrounding areas but still it has not sold out despite advertising for so many weeks?

Personally I feel for the area it is in, the cost should have been around 16 - 18K per sq yard. If a scheme in that area is selling for 12.5K per square yard the I believe it should have been sold out on day 1.

So even though it sounds extremely lucrative, I would be very skeptical to invest there.

AnkurPune

Additionally even though I have nothing to back it up, the agents around the area mentioned that booking are being done for more than the available land/ they don't have as much land as they are claiming. They may have plans to acquire more land but if it is the case then the booking is all in the air.
However as I said this point is simply what I heard and I have nothing to back it up so please verify this on your own.

gaganps

Hi Ankur,

Thanks a lot for the bunch of questions. I really appreciate your effort which can help all the investors to have knowledge about the project. I will answer to your questions in the same sequence

1. No-Doubt everyone is working for profit but the main thing is how much the profit. Whenever land is bought then a big reputed builder sells at a margin of 25-30%. But they are only earning 5-10% profit. Like big builder sells 1-2 plots a day due to high price but they sell 10-20 plots. Overall the profit is same as big builder (as they are working on a volume strategy).

2. All the dealers and investors have not jumped there as they cant play a margin game in this like they can play with big builder. They only gets commission and not even can earn a 100rs margin.

3. I have to check about this. Might be its not the updated list. Please also see http://gmada.gov.in/promoters.pdf (S.No - 157) where it is showing that it is the approved GMADA Promoter.

4. It starts from 4000/- per sq. yard from the last year and you can see the huge hike in price. Again everyting depends on the owner that how much profit company is targeting for.

They are having CLU of 25 Acres and have submitted for the file of next 25 Acres. Will update you when i get any update on this. It could have been sold in one day if it was a reputated builder like Emaar, TDI, Unitech...but its the new one so people takes time before investing but now days its going really good as per my knowledge.

It was upto my knowledge. Please correct me if i am wrong somewhere so that we all can be on the same page.

Thanks,
Gagan

AnkurPune

Hi Gagan,

1. No-Doubt everyone is working for profit but the main thing is how much the profit. Whenever land is bought then a big reputed builder sells at a margin of 25-30%. But they are only earning 5-10% profit. Like big builder sells 1-2 plots a day due to high price but they sell 10-20 plots. Overall the profit is same as big builder (as they are working on a volume strategy).

>> So it is not at "no profit no loss" as they claim it to be.

2. All the dealers and investors have not jumped there as they cant play a margin game in this like they can play with big builder. They only gets commission and not even can earn a 100rs margin.

>> Can you explain this a bit further? I am not able to understand your point. Why wouldn't investors buy all the plots here at 12.5 K or 12K if we negotiate when surrounding plots are available for close to 16 - 18K. Then they can resell them for say 15K per sq yard or more if they hold.

3. I have to check about this. Might be its not the updated list. Please also see http://gmada.gov.in/promoters.pdf (S.No - 157) where it is showing that it is the approved GMADA Promoter.

>>You can check here:
http://puda.nic.in/img/unauthorisecolony_files/uac.pdf
S.No. 389.

Even though this may not have been updated but the fact is that this developer had created an unauthorized colony knowingly. Someone like me wonders what other wrong / illegal things have been done in this developer's projects.

4. It starts from 4000/- per sq. yard from the last year and you can see the huge hike in price. Again everyting depends on the owner that how much profit company is targeting for.

They are having CLU of 25 Acres and have submitted for the file of next 25 Acres. Will update you when i get any update on this. It could have been sold in one day if it was a reputated builder like Emaar, TDI, Unitech...but its the new one so people takes time before investing but now days its going really good as per my knowledge.

>> In my opinion prices will keep going up as long as investors keep on selling to other investors. However this does not ensure that my money will not be lost at the end of the day.

A FIR had already been registered against the society last year

Realty check: Buyers knock on consumer court doors - Indian Express

Realty check: Buyers knock on consumer court doors - Indian Express

In short it is just too much negative news for someone like me to go and invest in the society even though the prices may be very attractive.

AnkurPune

Also as per this link
Realty check: Buyers knock on consumer court doors - Indian Express
which is dated 08 July 2011, skyrock had started bookings at 9999 per square yard.

Now since this news is from 8 July 2011, I guess their adverts would have been going out for quite sometime before that so I don't think that their rate was 4000 last year at all.

Also go to 99 acres, filter by Mohali and search for "sky rock" in keywords. You would see a few adverts from the owners trying to re sell their plots at 10K and 11K per sq yard. I assume this would be almost the same price as they bought.

Strangely there is also an advert (quite recent advert - 20Jan-2012) by a dealer who is offering sky rock 100 sq yard plots at 11,500 per sq yard and rest at 11K per sq yard.

gaganps

1. Very right Ankur as no one works for no profit
2. All the dealers and investors have not jumped there as they cant play a margin game in this like they can play with big builder. They only gets commission and not even can earn a 100rs margin.
3. One person can only buy one plot. So investor have to arrange multiple persons to buy plot on there names.
4. I have seen this before. I guess now it will be updated as they are now having CLU of 25 Acres.
5. Every colony is unauthorized till the CLU and required NOC's are not passed from the authorities.
6. This is the realty market of india and is happening in each and every project not only in this.
7. Yes i have heard about it and it usually happens in every project. Now there is a case of 420 against RKM city that thay have sold plots where there is no land. So its a trend in Real Estate Sector.

I have shared the knowledge which i am having about this. Please share if you have any other information about this.

gaganps

Ankur,

There is always a huge difference in Company Price and Market Price.

Its very less difference. Please check Zirakpur Flat Rates in .

One is offering flat at 72 Lacs while other is of 60 Lacs in the same society. It again depends on buyer that at what price he/she can easily sell there flat or any other product.

This is the most common thing globally.

They offered at 4k at the start in Jan Last Year (Tentative). You can get a plot in resale at less price but in that case you have to pay Big Preimum to the buyer so usually customer prefer from company itself.