Beyond the glossy brochure, real data on Noida extension projects - Page 3 - Indian Real Estate Forum

gharondabhai · 06-01-12

Quote:

Originally Posted by FieldWorker

[Part 4] Project is bankable. So what, I require is my flat to be bank loan disbursable.

Approved vs Disbursal.
1. Bank can approve 1000 projects, but does not release/disburse loan for even one flat in 1000 projects. Why would bank do that – processing fees goes to bank, isinted.
2. Approved project is “FRAUD” played by banks and builders
3. There is only one milestone for loan – Full DISBURSAL.

Lovely, after so long, I found someone who can say this so clearly. I tried to explain many about the difference between 'on paper Approval' and 'Actual Disbursement' .... but many and many blurred people here, never understand he difference.

Hope some people will learn from this thread.

FieldWorker · 06-01-12

[Part 5] Demystifying “multi-story flats in open green field”.

The timeline of the multi-story has major phases
1. Before excavation: Builder does not have land in his possession. So, he his selling “Castles in the Air”. With one “puff” all can vanish.
2. Excavation: Builder has land in possession, but cost to the builder till now – bribes (that too partly paid) and nominal payment to authority. High risk, no time to buy for first time or ill-informed buyer. [I am both].
3. Some construction and bank disbursal started. [I think I can buy now]
4. Structure complete.
5. Finishing.
6. Possession [usually incomplete and backdated].

Usually Stage 1 and Stage 5 take longest time. Why,

Reason stage 1: Authority declared the land allotment (not possession), long wait from farmer possession to authority possession (compensation/abadi issues) to builder possession (bribes and initial payment). Meanwhile all the time, builder is selling “Castles in Air”. [Simple case: builder surrenders the plot and goes home with my money].

Reason stage 5: Builder got all my money, so is not interested in completing the project. Channeled all my money to builder's next to be launched project. I keep screaming, paying rent and paying EMI. [Find out that builder has done this is past project, if yes, old habit die hard, will happen again.]
Personally, I am ready to pay up to 20% [Two years of interest for uncountable mental peace] to the builder, if I am sure builder is not infected with this Stage 5 disease (but alas).

nishant007 · 06-01-12

Quote:

Originally Posted by FieldWorker

[Part 4] Project is bankable. So what, I require is my flat to be bank loan disbursable.

After everything goes well on farmer and political front, in my assessment, the tower (not project) will not become Bank disbursable, until at least ground floor slab is there for tower. Reason, bank also needs guarantees, with no land to guarantee (why, stupid, land is still owned by authority), at least basic structure should be there. So, I not expect any disbursement from banks until some structure is out of ground.

Approved vs Disbursal.
1. Bank can approve 1000 projects, but does not release/disburse loan for even one flat in 1000 projects. Why would bank do that – processing fees goes to bank, isinted.
2. Approved project is “FRAUD” played by banks and builders
3. There is only on milestone for loan – DISBURSAL.

Some basic situations:

Situation 1:
Builder/Broker says: Project will be bankable in one week.
What I listen: Payment to authority in incomplete, no plan approval is there, will takes months to bankable.

Situation 2:
Builder/Broker says: Project approved by Bank ABC. Gets nod from Bank ABC representative sitting in builder office.
What I listen: Bank ABC representative is just a commission agent and not an employee of the bank.
What I ask: Can you get me in touch with someone whose loan is DISBURSED from Bank ABC. [If bank agent does not give names and numbers immediately, I think you got the “bankable” status.]

Scenario for those who want to book now in current situation.
Builder/Broker says: Sir, pay 10% now book flat. Pay rest on project bankable.
What I did: I believed and paid 10%.
[1 year hence, project is bankable, got loan paid the rest].
[5 year hence, with possession letter what I got.] Late payment fine with 36% interest on that. [Happening now to CR guys who missed bank loaned payment by few months, what will happen to NE with 2 years of delay – Late fee fines exceeding the BSP]
What I should have done originally: Get written in BBA & LoA that no further payment is due to me now. Next payment when the Bank DISBURSES my loan.

excellent work ....

gharondabhai · 06-01-12

Quote:

Originally Posted by FieldWorker

[Part 5]

Reason stage 5: He got all my money, so no interest in completing the project. Channelled money to next project, I keep screaming, paying rent and paying EMI. [Find out that builder has done this is past project, if yes, old habit die hard, will happen again.] Personally, I am ready to pay up to 20% [Two years of interest for uncountable mental peace] to the builder, if I am sure builder is not infected with this Stage 5 disease (but alas). I welcome any way to resolve this.

I would love if builder does this way.

On the contrary, builder will push you to take possession even though 50% of the common facilities are still not done. Many of the things are yet to be finished.

There is a final payment at the time of possession, between 5%-10/15%. Maintenance meter starts from the day you take possession. Builder can wash-off his hand from you immediately after possession... and hence no hypothetical late delivery penalty!!

However, true that finishing work, if done properly, takes quite a long time and unfortunately, builder does not have the patience or will to wait so long.
Pass the buck and close the chapter is their motto.

FieldWorker · 06-01-12

Great, I got it wrong on this. But ondabhai, why do then, we see in some projects in Noida structure standing till top floor, but no interior work?

gharondabhai · 06-01-12

Quote:

Originally Posted by FieldWorker

Great, I got it wrong on this. But ondabhai, why do then, we see in some projects in Noida structure standing till top floor, but no interior work?

payment terms are skewed towards initial construction phases. it is more profitable for builders to start a new projects and get the first 40% without really doing much work!!

FieldWorker · 06-01-12

Quote:

Originally Posted by ondabhai

payment terms are skewed towards initial construction phases. it is more profitable for builders to start a new projects and get the first 40% without really doing much work!!

Exactly my point, current buyer project is delayed; because the builder barters last 5% of current buyer for next 40% of new buyer [no barter more profitable,more than 35% due to price increase]. I will edit the post to make it clearer.

[Tip 2] Late penalty is also a cruel joke played at time of possession. If at all given, Rs 5/feet – Rs 7500 for flat costing Rs 30000 in EMI (not to mention rent). Mostly it is not given, even if given, will be very short period, with incomplete flat and possession date backdated.

ver_amit · 06-01-12

Great thread with hard facts. FieldWorker great job. Keep posting.
BTW, just want to add that end user is the most vulnerable species in this game. He has no idea nor he seems to be interested in it and that's what keep feeding most of the builders and give them power to abuse them.
Another well know fact, if you ask builder to give the exact super area distribution of your own flat, they will never disclose the calculations. Simple answer what I got back - Itna to hum kisi ko bhi nahi batate, Aap ko kyon batayian. and if you still insist - Court main jaa sakte hain aap, wahan hum jawab de dengey...

FieldWorker · 06-01-12

[Part 6] Payment plan – your payment schedule = your EMI increase schedule.

Consider CLP payments in % below

Time bound - Excavation -Structure - Brickwork - Possession - Post Time bound
Mahagun Mywood 30 5 50 10 0 5
RG Luxuary Homes 35 0 43 4 18 0
Arihent Arden 13 9 43 17 19 0
Panchsheel Green 20 10 55 10 5 0
Supertech Eco Village 20 10 48 17 5 0
Stellar Jeevan 27 9 54 5 5 0

Analysis:

1. Best payment plan for buyer
A. Min Time Bound payment: No construction, no payment
B. Max Possession time payment: Least likely of issue explained in [Part 5]

2. Mahagun Mywood has last payments on a fixed date. So, last payment may not be last payment, if construction is delayed (very funny). By brickwork, builder has all your money. Least desirable payment plan.

3. Arihent Arden: has least initial payment and max possession time payment. Arihent is costly, but payment plan is best of the lot.

4. Always consider that for same cost and same covered area, the final cost is different. Reason payment plan [Can it get more confusing than this?]. No major issue: simply calculate, with excel sheet, its kids job, if you cannot do it, get a kid that can do it for you.

zohaib2012 · 07-01-12

Finally a buyer who doesnt post threads like ''I am not in noida...but HAVE to buy a flat as soon as possible.''...Spoon feed me..so i can courier my cheque to my broker.

Suggestion:

Field worker...If you can summarize all these findings on a Word document, etc and post the final Copy as an attachment on this very thread...it could be useful for other buyers...

All the best

Regd Noida extension:

- Stellar group is coming up with another project by name of Stellar Springs in sector 1...which has a very good location. I dont have other details. As per my last info...they will launch it after this mess is cleared.

I strongly suggest you to COMPLETELY avoid Big projects...as you are an end user and with large projects..expect construction to go on for years and years

AND REGD THE MISCONCEPTION

That Gaur city has Best location....just wait and watch what happens when all these Mega Dense projects lined up next to each other will be ready and people move in.

This Gaur roundabout SEEMS good location NOW..when not even a single family lives here...People are making the Blunder OF Considering it same as Pari chowk in Main Greater Noida.....Pari chowk are is ONE OF THE LEAST DENSE AREA in whole of NCR...while this Gaur roundabaout will be probably the MOST DENSE..surrounded by High density projects.

Moreover..Gaur is planning a commerical in the region bang next to this roundabout..so it will be a complete mess on this roundabout in the future.

and right from this Gaur commercial...starts the long commercial belt of Noida extension on the 130 mtr road

NEVER BUY A UNDER CONSTRUCTION PROPERTY SEEING WHERE IT IS TODAY...BUT VISUALIZING WHERE IT WILL BE TOMORROW WHEN ITS READY TO MOVE IN (LOCATION WISE)

06-01-12	#22
FieldWorker Member Join Date: Jan 2012 Posts: 328 My Mood: Thanks: 13 Thanked 157 Times in 78 Posts	[Part 5] Demystifying “multi-story flats in open green field”. The timeline of the multi-story has major phases 1. Before excavation: Builder does not have land in his possession. So, he his selling “Castles in the Air”. With one “puff” all can vanish. 2. Excavation: Builder has land in possession, but cost to the builder till now – bribes (that too partly paid) and nominal payment to authority. High risk, no time to buy for first time or ill-informed buyer. [I am both]. 3. Some construction and bank disbursal started. [I think I can buy now] 4. Structure complete. 5. Finishing. 6. Possession [usually incomplete and backdated]. Usually Stage 1 and Stage 5 take longest time. Why, Reason stage 1: Authority declared the land allotment (not possession), long wait from farmer possession to authority possession (compensation/abadi issues) to builder possession (bribes and initial payment). Meanwhile all the time, builder is selling “Castles in Air”. [Simple case: builder surrenders the plot and goes home with my money]. Reason stage 5: Builder got all my money, so is not interested in completing the project. Channeled all my money to builder's next to be launched project. I keep screaming, paying rent and paying EMI. [Find out that builder has done this is past project, if yes, old habit die hard, will happen again.] Personally, I am ready to pay up to 20% [Two years of interest for uncountable mental peace] to the builder, if I am sure builder is not infected with this Stage 5 disease (but alas). Last edited by FieldWorker; 08-01-12 at 01:48 AM.

06-01-12	#29
FieldWorker Member Join Date: Jan 2012 Posts: 328 My Mood: Thanks: 13 Thanked 157 Times in 78 Posts	[Part 6] Payment plan – your payment schedule = your EMI increase schedule. Consider CLP payments in % below Time bound - Excavation -Structure - Brickwork - Possession - Post Time bound Mahagun Mywood 30 5 50 10 0 5 RG Luxuary Homes 35 0 43 4 18 0 Arihent Arden 13 9 43 17 19 0 Panchsheel Green 20 10 55 10 5 0 Supertech Eco Village 20 10 48 17 5 0 Stellar Jeevan 27 9 54 5 5 0 Analysis: 1. Best payment plan for buyer A. Min Time Bound payment: No construction, no payment B. Max Possession time payment: Least likely of issue explained in [Part 5] 2. Mahagun Mywood has last payments on a fixed date. So, last payment may not be last payment, if construction is delayed (very funny). By brickwork, builder has all your money. Least desirable payment plan. 3. Arihent Arden: has least initial payment and max possession time payment. Arihent is costly, but payment plan is best of the lot. 4. Always consider that for same cost and same covered area, the final cost is different. Reason payment plan [Can it get more confusing than this?]. No major issue: simply calculate, with excel sheet, its kids job, if you cannot do it, get a kid that can do it for you. Last edited by FieldWorker; 07-01-12 at 04:05 PM.

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Detailed list of the Projects in Noida Extension.	Pradyot1315sqf	Noida	173	3 Weeks Ago 12:05 PM
Best Projects of NOIDA EXTENSION	subodh12001	Noida	100	29-09-11 08:35 PM
fate of noida extension projects	83rakeshk	Noida	10	12-05-11 06:19 PM
Good projects at Noida extension	house20	Noida	6	15-01-11 11:40 AM
Moving Away from NOIDA EXTENSION, Looking for Projects at Sec 76,77,78 NOIDA	subodh12001	Noida	1	06-07-10 11:16 PM

06-01-12	#28
ver_amit Member Join Date: Dec 2010 Posts: 153 My Mood: Thanks: 3 Thanked 11 Times in 9 Posts	Great thread with hard facts. FieldWorker great job. Keep posting. BTW, just want to add that end user is the most vulnerable species in this game. He has no idea nor he seems to be interested in it and that's what keep feeding most of the builders and give them power to abuse them. Another well know fact, if you ask builder to give the exact super area distribution of your own flat, they will never disclose the calculations. Simple answer what I got back - Itna to hum kisi ko bhi nahi batate, Aap ko kyon batayian. and if you still insist - Court main jaa sakte hain aap, wahan hum jawab de dengey...

07-01-12	#30
zohaib2012 Member Join Date: Aug 2010 Posts: 4,078 My Mood: Thanks: 0 Thanked 596 Times in 269 Posts	Finally a buyer who doesnt post threads like ''I am not in noida...but HAVE to buy a flat as soon as possible.''...Spoon feed me..so i can courier my cheque to my broker. Suggestion: Field worker...If you can summarize all these findings on a Word document, etc and post the final Copy as an attachment on this very thread...it could be useful for other buyers... All the best Regd Noida extension: - Stellar group is coming up with another project by name of Stellar Springs in sector 1...which has a very good location. I dont have other details. As per my last info...they will launch it after this mess is cleared. I strongly suggest you to COMPLETELY avoid Big projects...as you are an end user and with large projects..expect construction to go on for years and years AND REGD THE MISCONCEPTION That Gaur city has Best location....just wait and watch what happens when all these Mega Dense projects lined up next to each other will be ready and people move in. This Gaur roundabout SEEMS good location NOW..when not even a single family lives here...People are making the Blunder OF Considering it same as Pari chowk in Main Greater Noida.....Pari chowk are is ONE OF THE LEAST DENSE AREA in whole of NCR...while this Gaur roundabaout will be probably the MOST DENSE..surrounded by High density projects. Moreover..Gaur is planning a commerical in the region bang next to this roundabout..so it will be a complete mess on this roundabout in the future. and right from this Gaur commercial...starts the long commercial belt of Noida extension on the 130 mtr road NEVER BUY A UNDER CONSTRUCTION PROPERTY SEEING WHERE IT IS TODAY...BUT VISUALIZING WHERE IT WILL BE TOMORROW WHEN ITS READY TO MOVE IN (LOCATION WISE)