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Bangalore : Need Reviews on Smartowner

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Bangalore : Need Reviews on Smartowner

Last updated: August 31 2019
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  • #11

    #11

    Re : Bangalore : Need Reviews on Smartowner

    Members, please note -

    Personal Information
    Do not post personal information, such as full names, email addresses, numbers, or home/business name/addresses on the forum. If you feel the need to disclose this information, do it in a private message. Posts containing personal information will be deleted. Revealing real world information about a member, administrator or moderator is STRICTLY PROHIBITED, regardless of the source, public or private. This includes any information about a forum member that reveals an individual's legal name, address, occupation or other sensitive or personally identifiable information.
    Let's Talk REAL on IREF

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    • #12

      #12

      Re : Bangalore : Need Reviews on Smartowner

      Smartowner running a Ponzi scheme ?

      Hi ,

      This company is offering an investment along the - BLR-NOA-HIL NH 7 highway with 30% guaranteed return.

      In this slackened real estate market such exorbitant amount of return reminds me of a ponzi scheme.

      Guys please share your views / experiences / feedback?

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      • #13

        #13

        Re : Bangalore : Need Reviews on Smartowner

        I heard from my friend they are investing in certain projects with investors amount, with guarantee return around 25%, sounds astonishing invest in these firms just Project on Paper.

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        • #14

          #14

          Re : Bangalore : Need Reviews on Smartowner

          Worth investing or is it sham?

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          • #15

            #15

            Re : Bangalore : Need Reviews on Smartowner

            Scam.Please don't believe this sort of advertisements.

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            • #16

              #16

              Re : Bangalore : Need Reviews on Smartowner

              A few red flags.

              1. Their approval processes, legality and other documentation process is totally opaque. This is a massive red flag. They might simply be taking your money, buying illegally with messed up documentation for cheap and then scoot with your money.

              2. Why would we invest through a middle man? How are these people any better than brokers who lie frequently to sell on volumes to maximize their commissions?

              3. Who holds the legal liability in case there is a encroachment?

              4. What happens to taxes?

              5. Who actually owns the property?

              6. This seems like a horrible way to build your portfolio anyway.

              In all this seems like scheme that can turn sour any day. Should anything go wrong, these guys will deny liability and you will be on your own.

              Comment


              • mangalrv
                mangalrv commented
                Editing a comment
                on top of it they are fooling builders also with their concept.
            • #17

              #17

              Re : Bangalore : Need Reviews on Smartowner

              My personal experience with thier Sales team :

              I did speak to one of thier sales team member for an upcoming project 'BLR-NSC-AVS'. Its close to 4 months since I spoke to them and dont remember the minute details. But here is the gist of it :
              1. Their projects are designed to cater predominantly to 'investors' and not for end users.
              2. Exact location of the project will be revealed only after you sign the initial contrat with them after paying 1.5 lacs (if I remember correctly)
              3. Thier own legal team does exhaustive due deligence for each project and only after that they select a project.
              4. After signing the initial contract, you will be give the exact location of the project, project plan, legal documents so on.
              5. If you are satisifed, you can go ahead and sign the actual contract. Else your money is refunded fully.
              6. If you happen to go ahead with the actual contract, the agreement happens between builder and buyer directly. Smartowner is not in picture.
              7. You will have to deposit money into thier escrow account.
              8. If there are delays in project completion, builder pays ~12% (I dont remeber exactly) and that is part of the agreement between builder and the buyer.

              Why I was reasonably convinced with thier business model ?
              If you dig slighlty deeper into tier1/2 builder real estate projects in India, most of them follow a simple pattern. Land owner and builder gets into Joint venture agreement. Land owner gets his share of apartments, builder gets some share (in the ratio of 40:60 or something similar). If the builder manages to get Smartowner team onboard, they get interest free funding for construction. The business model of Smartowner is to buy close to 40% of apartments in each project. This 40% apartment cost is roughly enough to cover the entire construction cost. Thus, the builder comes in with no risk and "No Capital", executes the project, walks away with some good profit. If I happen to be in the shoes of a builder, I would happily give a deep discount of 20-30% for such interest free upfront funding. This is how smartowner is able to offer deep discounts.

              Why I eventually backed out ?
              I was actually looking for an apartment for self use and not for investment. The project happened to be in a killer location, what can be considered as one of the most well developed part of bangalore, with good social infrastructure and metro station in less than 300 metres under phase1. The discounts are deeper, only if you pay upfront 100%. Otherwise risk- reward ratio gets skewed towards risk. Also, since this upfront payment happens even before start of construction, you cannot avail bank loans. So you gotto come with 100% self funding. And for the investment to give you good returns, you have to exit the project in 1-2 years ( Thier own sales team will help you in selling in a reasonable time frame of 3-6 months).

              All in all, The cost was close to 50% of my networth. As this was for a self use, which meant a wait of 3 years, discount was working out to ~ 12% per annum.As the FD/bank itself offers 8%, risk reward ratio was not favourable to me, I decided to give it a miss.

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              • #18

                #18

                Re : Bangalore : Need Reviews on Smartowner

                Members do share your experiences

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                • #19

                  #19

                  Re : Bangalore : Need Reviews on Smartowner

                  Got convinced in their model and invested in BLR-NSC-AVS.. hoping it works out well..

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                  • #20

                    #20

                    Re : Bangalore : Need Reviews on Smartowner

                    Could you please explain how it works? From their website it shows BLR-NSC-AVS sold out?? Did you buy some SQFT or full unit.

                    How is your experience so far ?
                    Last edited March 6 2016, 07:06 PM. Reason: Text formatting.

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