Basant

Two major township projects are in pre-launch stage now. Both vying for corporate deals and huge discounts.

I request expert members to please give their views as to which one is better in terms of;

Location
Reputation based on past track record
Master layout plan
Apartment Floor Plans
Price, discounts

This will help every one in taking a call for booking.

Thanks..............

AnupamKhurana

Requesting SanjeevChaudhri or someone else to come up with GoogleMaps of both projects and exact locations of STP and cremation grounds in relation to these.

This would help people make call...

search2010

There are lot of discussions happening about these 2 builders and these 2 projects. Before investing do basis research on these things:

1. How many projects they have delivered till now and what is the quality of construction they have given? Is there any project delivered by Gardenia till now? I tried hard to find out but got to know that all projects are under construction.
2. What is the financial health of builder?? Till now they were doing small small projects and suddenly they are making township, don't you think it is big risk interms of financial?
3. As per payment plan of Noida authority, 90% payment will be given after 2 years and by going this, Amrapali launched Sapphire(2 projects), Eden park, Pan oasis, Zodiac and now silicon city so total around 5.2 Lakh sq meter area in these projects and just going by "true" value of authority, cost of this land is going to be around 1000 crore and if 90% payment is due then 900 crore is what they need to pay to authority and if go by 11% rate of interest as per brochure of authority, they need to pay Rs 99 cr as interest for 1 year which is huge. If recession is going to happen in next 6 months , you can imagine the situation of these projects.
4.Similarly "True" cost of 6 Lakh sq meter of sector 75 is going to be approx. 1000 cr and it is big amount to be paid by builder to authority. It is always risky to put money in project which is having so much liability.
5.Just by seeing ad in papers and seeing the face of Mr.Dhoni in newspaper, projects can not be made. Till now these builders were making around 500 flats society in 3 years then suddenly how they will be able to make approx. 10,000-12,000 flats in next 3 years. Even after selling of these flats , making them on time will be big challenge as till now they have resources those are sufficient to deliver 500 flats in 3 years. Even they start hiring so big numbers of engineers,supervisors , it is not easy to find so many talented people in such a short span of time and definately cost will go up. Just hiring more people will also not solve problem, you need lot of planning/implementation to do so much construction in next 3 years(running amrapali sapphire, pan oasis, zodiac,silicon city etc. on almost same duration).

Invest your money very wisely as it is life time decision. Dont go by the recommendation of brokers as they are just here to make their 2-3% .Talk to these brokers and find out whether they know anything about financial situation of these builders, Have they seen planning of these builders to execute these projects.I can bet 90% of brokers won't be aware about even payment plan flexibility given by governmet to these builders.

BUYING HOUSE IS LIFETIME DECISION SO DON' TAKE IN A HURRY OR BASED ON ADVISE GIVEN BY PEOPLE WHO ARE NOT EDUCATED ENOUGH TO HELP YOU MAKE DECISION.

blueskyliner

Great Analysis as ever!! I waiting for you next post where you can shed light on the inside story of each of the projects and rank them.

The sad part is that Noida Authority is letting builders take this risk and play with people's money just to make up for their own revenue.

tyagi_rajat

Hi Searching property,

I had the same apprehension about amrapali wht you wrote in your post.
But after doing some research I found that Amrapali had different finance companies involved for different project.For example Zodiac,Platinum and two other projects are in association with Bihariji Ispat.Similarly Pan Oasis is with Patel and Nirala.They have 1 or 2 more projects with Nirala.

In this case I think its managable for them and they dont have to put all the money from their own kitty.And risk is less.

I think same thing sanjeevchaudri also pointed in some of his earlier post.

May be you or sanjeev or any other senior member can shed more light on this.

Basant

me too have serious doubts about the capability of Gardenia in implementing 150 acre township project. They are not listed company so difficult to assess the financial health.
however, having 150 acres of land inventory is a big asset and can attract financial partners. Moreover, this being phase-I only, they have too much at stake. that may become the driving force for delivery.
However, still risk factors looms large.........

Kaps_real1

Searching Property, Great analysis.

As a common man I wonder how a builder can start a project like this, without having enough funds. How would different financial institutions finance their projects.

As an individual, if I go for a Loan. The bank checks my financial background. My credit card history, by bank account history, My stocks, my assets. Then only I get a loan.

I wonder how would these builder go thru all this and keep on launching 1 project after another.

I also doubt, if banks would provide loan to individuals buying in these projects. If the builders delays the project or scrap( worse condition), its tough for individual's to pay bay back the money.

It looks like bank has tough norms for poor middle class people not for these builders..

Basant

Yes...Banks are always very strict with middle/poor class whereas they favour riches. Smart CAs overvalue assets/ revenue flows & hide liabilities.

sonirohit

and the middle class will generally pay for the greed/errors & omissions of the biggies...

Basant

If you pay in time....you get rebate of 1-2%.........
If you default, you get waiver of 20%.....
This is India bhai.............