Jitu_Sir

Dear pune_friend,
The offer was extended on buyers demand since they wanted some time to arrange for the funds and discuss with the bank from loan perspective. We have received good response to the ad campaign as well as there are good number of conversions. This is reflected in the changes seen in Availability list. Ofcourse one has to believe it without a prejudice mind.

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Jitendra Pethkar
Pethkar Projects
Partner

Pawarat

Dear all ,
I am inclined in buying a property in Pune asap. Many developers including Samrajya are seeking cash payment. In some cases, they do not accept check payment for the entire amount. Atleast 10-15 % is cash payment.
I do not understand, why such rigid constraints. I am uncomfortable in doing cash transaction. Is it a norm to do cash transactions in buying apartments ?

Again, this is my first property in Pune. I was hoping to buy something in Samrajya but this one issue is making me hesitant. 2ndly, if I am paying all amount upfront. E.g if the cost for 2bhk in Samrajya is 70L and if I am willing to pay 70L by check right away, why won't I get some concession ?
Given I am not in Pune and am talking to the sales folks at Samrajya over phone, its difficult for me to explain this. Don't the builders usually give some discount if a buyer is paying all the amount upfront?
From developers point of view wont he prefer to sell his apartment to a buyer who is not relying on loan and willing to bear the entire cost upfront ? If I was a builder, I would definitely seek such buyers. By selling them apt now at some discount is much better than carry cost that I might incur due to unsold inventory.

Can someone please guide me? I wish I could have this candid chat with the developer of Petkar project. Hope this forum could put me in touch with someone !!!

thanks,
Mr. Pawar

Jitu_Sir

Dear Pawarat,
Thanks for your genuine interest in Samrajya.
As regards payment terms you need to discuss it with the sales people in person.
Since now all flats at offer are ready possession or near to possession. Mean to say, if one executes the agreement he will be given a demand letter for 95%-100% as per the work. So it hardly matters if you pay it in upfront or bank disburses it. Moreover we had been came up with an offer whereby we had waived off Stamp Duty & Registration fees for bookings done between 4th Jan till 20th Feb. Also since all flats have OC received there will be no Service Tax & VAT. So in totality the discounts works out to 9.5% (5+1+2.5+1).

puser

why would they not accept a cheque payment, and conclude the sales once cheque is cleared?

kazihamed

spot on..i understand that HDIL too in some mumbai project takes cash..and this is listed company..despicable

Pawarat

Dear Jitu_Sir,
First of all thank you for such a prompt response. On my first post on this forum, such a quick response. I am amazed.

I will definitely do that. Issue is that if I come down to meet sales people in person, it will be for 1 or 2 days max. And I will come to close out the deal. i.e. I want to pay check and get it done with. Would like to negotiate upfront. As said before I am traveling ( at this point out of the country ). I would "highly" appreciate if this could be accommodated by Sales people.

If payment by bank or me is one and the same, can entire transaction take place via. certified check ( as Puser noted above why wont a check suffice ? ) I was told about the deal for waiving the service tax and VAT. But still what my friends in Pune tell me is that if you pay everything upfront ( with out loan and other means of payments ), generally the builders are gracious enough to give a discount. In any case, its hard to know that for yourself because I have not spoken to the developer. The Sales guys wont give me their contact.

Honestly, I understand that Sales people are not in position to talk about discounts etc. as they are being instructed to follow certain directions. What might be best is to directly have a candid chat with the developer.
Jitu_Sir, do you know of any means by which I can have a quick conversation with the developer and express him my views?

thanks again for the response.
Regards,
Mr. Pawar

realacres

As Jitu said that Samrajya falls under section 80IB of IT act whereby the builder is exempt from paying any income tax. Now if this is the case, why is Samrajya asking for cash ?? Seems they need to repay some of the real investors in the project in cash or the builder may not be able to meet the deadline of completion of the project as this benefit is now gone..

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IREF Rules - Read Me

Jitu_Sir

Dear realacres,
Yes it's 80IB which is going to sunset by 31st March 2012 (don't think any more extension in current budget). So your second guess is partly right. We had met all deadlines since we have received OCs (partly or completely) for all buildings and henceforth no more 80IB benefit .

Wish you all a Happy & Safe Holi !!!

Pawarat

Dear Jitu Sir,
If I buy before 31stMarch is it still required to pay cash?

thanks,

realacres

Maybe yes coz who will not like to have white income which is tax free ? They accepted earlier cheques but now ask for cash which means they want to save tax or repay to the investors in cash.