jason86

I have noticed this growing trend in the current real estate market of builders charging Black component (sometimes it is ridiculously 50:50) thereby quoting a lesser value on the legal agreement (eg. if the seller quotes Rs 5000 as the per Sq. Ft. rate and charges 50% in black - the buyer signs an agreement that says the flat was allocated for Rs 2500 )

It is unfair for the 9 - 5 job walla's who basically pay tax at source and end up buying property at higher prices. The black marketeers get away with making a good moolah and also make their black money white in the process.

So this is how the system works:
1) Black money investors purchase flats at lower prices by putting tax evaded black money in the deal.

2) Builders announce sold-out projects and the tax payers panic that there would be no more supply of homes in the market and flock to purchase 'Investors' flat at premium rates.

3) Rich (tax evaders) end up making more and more money and the majority category of "Tax Deducted at Source" janta once again falls prey to the bubble burst and keeps working hard to make up for their increasing cost of living.

The current real estate prices are at par with international real estate prices in the Developed countries where one gets 24/7/365 basic amenities such as water, electricity, security ... for the money paid ...

Sigh! Sad but true!

boldm28

it is a catch 22 situation

if the builder is good and wants 100% check payment , hi rate is way above the black builder price for eg
rustomjee elanza is 9750 and a new construction near in orbit mall is 7500 but he is going to make papers only for 4700 and that too the builder does not have an office .. office is in the under construction building even if he had a registered office off late there are lot of builders who are notorious
dont want to name them but they are all over this same forum

search4re

Is someone from govt listening to all this or are they just happy by sitting on chair and for 5 years!!

veeemkay

They know everything and make money out of this.

VK

mumbai2010

I have been facing a similar problem. Couple of builders in the suburbs are quoting 60-40 ratio..
In such a scenario an individual has to arrange for around 50% of the value from his own funds and the rest 50% can be funded by loan. It is virtually impossible for an average salaried person to gain huge amounts.

And who will listen to us buyers, when the corporators themselves are partners in these projects..

veeemkay

Given below are parts of an article from Mid-day... How the Builders try and fool the buyers..


MiD DAY investigated four random advertisements to find out whether their offers are really genuine or mere sham. This reporter first contacted Vihang Developers, a Thane-based company that is offering a free balcony with every flat. We discovered that the balcony is inclusive of the total area of the flat and the buyers are being charged for the balcony space.

Claimed Pratap Sarnaik, owner of Vihang Developers, "There are several builders who sell the balcony, but we are giving it for free. Apart from that, we are also providing better amenities."

Whereas M R Realtors are offering a discount of Rs 501 per sq ft for their project in Goregaon (W). Although, their price, after the offer, is close to the market rate, a marketing personnel from Parasrampuria Housing Agency that handles the marketing of the project told this reporter, "The price will be negotiated once we sit
and talk."

Meanwhile Adiraj Builders is offering a discount of Rs 200 for their Nalasopara properties and have priced the flats at the rate of Rs 2,400 sq ft. According to Vibhut Jain, a real estate broker, properties are easily available in the same area for around Rs 2,000 to Rs 2,200 per sq ft.

Also, the Sanghvi Group is offering a discount of up to Rs 3 lakh depending upon the site of the project.

However, their prices are at par with the market rate even after the discount offered. "We are offering a discount of about Rs 100 per sq ft at the Kalwa project, and a discount of Rs 200 per sq ft in Dahisar," said Shailesh Sanghvi, director of the Sanghvi Group.

boldm28

Those are small builders . they dare not go after big b's of the building world , afterall they do not want to close their revenue stream
like i said before unless consumers team up nothing is going to happen and consumers are and will keep on suffering at the hands of greedy brokers and builders

novice

Article in Moneylife - Is this the second round of the Mumbai property price bubble?

http://moneylife.in/article/8/4371.html

geeee

5400 for lake homes in May 09 is that figure correct ?

razer

Well spotted.

I think some of the data in this report is a bit off mark.

The lowest I heard of in this area were the Nahar adverts during that time, around 5500 or so.