saggii

Folks, could not resist myself from posting this adv/attachment.
930 psf-38 lk (if seller is ready to give brokerage of 50k after some considearation he would be selling it at 37 Lk, that would be like 3300 psf). Builder is quoting 4200 psf!!!
poof, is builder nuts or seller is nuts (or may be construction quality is so bad that he has gone nuts :-))

Attached Images

 

leoking

You have got your maths wrong man!

The post has the correct value of 4000+ rate displayed. Even if you consider 2 L parking the amount works out to approx 3800...

saggii

Sir I think you are new to RE market. 3300*930 comes to 30.7 Lks add to it parking+mseb+fwd maintenance charges+SDRC all these sums up to 10 Lks now a days(from builders point of view). So my lean maths suggested 3300 which should be rather 3200 :-)

RAJESHP

Total cost of these 2.5BHk (931Sq feet) flats were quoted between 51-53L total package even when rate was 3500/Sq feet with Rs 25 floor rise after 4th floor. All this in may 2009 as per RK blog.

mindguru

Keep in mind that the reseller is in Phase-1 and which has been the poster child for most delayed scheme in Pune. The seller must have booked in 2005-2006 for 2100psf and he wants to exit at decent profit.

At the same time buyers are not getting fooled by builder quoted prices as this builder has a baggage of 3 year delay in possession (in fact not every one has received possession). I would say he would be lucky to get 38L for this apartment. The layout is pathetic, lobby area cant be designed worse and society is very very cramped.

manu1981

whatever the ad says and caluclation ..its simple u have to pay 38+SDR and total costs u arnd 41L for 930 sqft...and this is current resale rate which is approx going in this area...

pcpune

As i said earlier, apts in this schemes are HOLES>..just go and have a look...didnt expect this from Kumar - its the first & last I went there.

RAJESHP

Poor appreciation from 2005 tempted me to add some numbers to this decent profit.

Price May 2009: 3500 * 931 = 32.58L; total cost quoted is 51-53 L, so almost 20L chindhi charges here. LOL.... Cant believe buyers paid this..

So cost price in 2005: 2100 * 931 = 19.55L + chindhi charges say 15L(conveniently assumed) = 34.55L (very optimistic calculation)

Assuming loan of 30L, interest paid till date: 14.5L if we assume EMI starts on June 2005. 10% interest rate.

Equity paid by buyer till date is only 3.12L

Total cost paid by buyer out of pocket till date: 34.55L + 14.5L = 49L

Any one wants to correct this calculation?

rameshyahoo

IMO Kumar builders had to take a huge hit on the profit on this project for the following reasons.

1. He started booking in Aug 2005 and sold out most of the buildings by mid 2006 except the D building which he launched a year later.

2. Most people in the project got in at 2400 or below. 2400 was the price in April 2006 when one of the last free flats were being sold.

3. A builder with many years of experience in Pune couldn't gauge the pricing power he had when he launched the project and when his sales office was swamped with buyers.

4. The biggest mistake he made was to sit on the initial payment for 1 year before starting the construction process. Commodity prices started jumping from late 2006 and peaked soon later. Kumar was forced buy at high prices since he didn't have a choice as he had already engaged the contractors to carry out construction. This was a total random event and affected his margins.

5. The MNS agitation against north Indians came as boom to him in early 2008 and he used that as a ploy to delay the project for over 1 Here is benefitted since he sat the buyers money and earned interest on his profits but by then he had already paid off his expenses to the building contractors and the material so the net gain was still minor however buyers suffered due to pre-EMI charges thereby drilling a hole in their pockets.

Since I am a buyer in the project from early on I know the pain which one has to endure when buying an under construction project so buyers beware before parting with your hard earned money. The pre-EMI for 30L and pre-EMI for 60L is vastly different so the losses in future for delayed projects will be > 100% of the losses suffered by us in Kumar.

I've interacted with many buyers in this scheme and even though people raise issues with it, there are very few who would sell at the current price. Most of them have a vested interest in Pune so even if they rent it out at ridiculous rents, they would not sell unless the overall market takes a big hit.

Personally I feel the apartments have pretty decent rental demand and I was able to rent mine in few days I put it on the market.

Again am a vested buyer so I see things differently. If I were to buy today believe me I would be hardpressed to press the buy button.

veeemkay

Ramesh Yahoo... great insight given. Thank you.

Just to add another dimension to the pricing story below are some portions of a post from a thread Need help on deciding 2BHK flat

VK