No exclusive thread for Hiranandani Upscale OMR project. Thought of creating one so that we can follow the developments, Rental yields, Issues and other topics.

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  • Recent mailer:
    Subject: Premium 3BHK Apts at Chennai with 25:75 payment scheme, Nearing Completion

    Elegant 3BHK's 1445-2150 sea facing* units at OMR township
    Own a House of Hiranandani by paying just 25% now*

    CITY BY THE SEA
    120 Acres Integrated Township at OMR, Chennai
    Own an Upscale Address at Chennai's Tallest Residential Builings
    Facing the Back Waters & Opp. to Chennai's largest IT Park (SIPCOT)

    Rent Back ​
    Edina and Bayview : 25 : 75 offer + Rent Back Offer

    Rent Back Offer Edina Bayview
    Unit Size 1695 1445 2150 1980
    Rent Outlay (per month), 18 months Rs. 35,000 Rs. 30,000 Rs. 35,000Rs. 35,000
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  • I have few questions, as per subject if it ia nearning completion, why 25:75 scheme, it should be RTM?

    If it is nearing completion and more or less RTM, why rent back scheme for 18 month?

    Do exiting towers get 20 psft rent in Hira? (35000 rental for 1695 sqft - scheme for 18 months)
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  • There is nothing called more or less when it comes to RTM....as far as I know RTM may not be applicable for this project because it keeps on developing, re-developing for decades!
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  • You are right, Edina and Bayview delivery was scheduled Mar 2015, still,,,,, going on and now they are saying about 18 'onths rent offer, it may indicate the delivery of these two towers will be delayed by another 18 months. I pitu those who invested in these blocks and in the past worshing Hira like god and upscale like heaven. Those posts are still there in this thread, now they are abscanding!!
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  • Originally Posted by Franke
    I pitu those who invested in these blocks and in the past worshing Hira like god and upscale like heaven. Those posts are still there in this thread, now they are abscanding!!


    Is it really surprising not to see them around? These people are speculators waiting for the right time to off-load.....their stocks....by spreading probably too much of optimism! But gullible masses are more than willing to become prays of RE sharks! What can we do! We can only give forewarning!
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  • I have been an avid reader of the posts here for the last 3-4 years and this is my first post.
    I was one of the early investors in Hiranandani - invested in 2008 at a market premium of 50% over Olympia Opaline at that time. My view - Builders will be builders and dont expect them to be saints - only the degree of crookedness varies and Hiranandani is no exception. They are in business to make money and have been fairly successful at that and I am sure they will step on a few toes (read crush a few toes) to be more successful and make more money. I was also at the receiving end having received my apartment after a delay of 2 years with no compensation from the builder.

    Having said that my experience with the end product has been quite satisfying. The quality of the construction and finish is good, views are still good inspite of the few highrise apartment buildings coming up on ECR and a thriving community at Hira of over 800 families would mostly agree that it is a decent place to make your home.

    I do not want this to be read as an attempt to influence anyone to buy or to raise prices as I do not have any intention to sell, but I believe that people looking out for a good place to stay there should not be misled by all these negative sentiments about the builder's attitude and individual transactional experiences.
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  • Well said Valueinves;

    Baseless bashing has made real owners to participate less and share what they had to say. Loss is on others and not the owners.

    Am glad there was nothing hurled at you in the last 6 hrs - expect some in the next few days but you should ignore and keep doing what you are doing.
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  • Originally Posted by Valueinves
    I have been an avid reader of the posts here for the last 3-4 years and this is my first post.
    I was one of the early investors in Hiranandani - invested in 2008 at a market premium of 50% over Olympia Opaline at that time. My view - Builders will be builders and dont expect them to be saints - only the degree of crookedness varies and Hiranandani is no exception. They are in business to make money and have been fairly successful at that and I am sure they will step on a few toes (read crush a few toes) to be more successful and make more money. I was also at the receiving end having received my apartment after a delay of 2 years with no compensation from the builder.

    Having said that my experience with the end product has been quite satisfying. The quality of the construction and finish is good, views are still good inspite of the few highrise apartment buildings coming up on ECR and a thriving community at Hira of over 800 families would mostly agree that it is a decent place to make your home.

    I do not want this to be read as an attempt to influence anyone to buy or to raise prices as I do not have any intention to sell, but I believe that people looking out for a good place to stay there should not be misled by all these negative sentiments about the builder's attitude and individual transactional experiences.


    Thanks for your post. Experience from existing owner is the best to have it here.

    Take away from your post:
    1. Quality is good
    2. Price premium 50% at the time of booking in 2008
    3. Delay of 2 years
    4. No penalty paid by Hira for 2 years delay.

    I think 2 years delay must have significantly increased your cost of owning further to the initial premium of 50%. I could understand how much pain you might have undergone with 2 years delay, however at the end you got a quality product, but should be at huge premium.

    Please also share your experience on maintenance cost, how water supplyis managed by the association of the community. Thanks in advance.
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  • Originally Posted by Franke
    Thanks for your post. Experience from existing owner is the best to have it here.

    Take away from your post:
    1. Quality is good
    2. Price premium 50% at the time of booking in 2008
    3. Delay of 2 years
    4. No penalty paid by Hira for 2 years delay.

    I think 2 years delay must have significantly increased your cost of owning further to the initial premium of 50%. I could understand how much pain you might have undergone with 2 years delay, however at the end you got a quality product, but should be at huge premium.

    Please also share your experience on maintenance cost, how water supplyis managed by the association of the community. Thanks in advance.

    Valid questions and comments. Let me try to address them as objectively as I can.

    Yes, it has come at a fairly high premium, but I believe I got into it knowing fully well that there would be a premium associated with staying in a better place. I am not aware of another complex in Chennai or suburbs right now which would offer the same kind of space, amenities and quality of construction that this place does at this price point. Although the completed apartment was handed over late, the quality control was quite good during handover and now even after 3+ years of possession I can vouch for that quality and the few initial issues like cracks in marble etc were resolved pretty quick upon handover.

    Maintenance is expensive and would be anywhere between Rs.3-4 per sq ft per month - do not come expecting a Re.1-2 maintenance that you see in the 15 yr old single block apartment units in the city, water is purchased and comes in from tankers and is treated, just like all other apartment complexes outside Chennai metro limits - cost of water is included in the maintenance cost. This augments the internal sources of supply from treatment plants etc. Water has generally not been a cause of concern so far for us i.e. we have not had to think about how or where water will come from - it is always there.

    I would reiterate my earlier statement - from an investment standpoint it may not have been great for me in terms of price appreciation - most likely I am still not in the money after accounting for financing costs over the last few years, but as a place to live in, I do not regret the decision.
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  • Originally Posted by Valueinves
    Valid questions and comments. Let me try to address them as objectively as I can.

    Yes, it has come at a fairly high premium, but I believe I got into it knowing fully well that there would be a premium associated with staying in a better place. .


    Appreciate your reply. I am not questining your investment decision, its ypur decision and you are bearing the cost of owning such a qyality product. Only trying to take your specific case to see, is it a good buy for a prospective buyer?

    I am not questining the quality or brand premium, if the builder deliver on time without delay, the additinal interest cost you had incurred for 2 years might have been avoided. We are not in a country where the cost of capital is 1-3%, in India cost of funding is as high as 10%. For example for INR 1.5 cr apartment value, one additional year of delay will cost INR 15 lacs - for 2 years INR 30 lacs, for size 1500-2000 sqft apartment it will approximately translate into additonal huge increase of Rs.1500-2000 per sqfeet, is it not significant?

    Please don't conclude many of the projects are getting delayed, so Hira too. Remember 50% brand premium charged shall atleast ensure quality product delivery ON TIME. If there is any 'unexpected' delay significant penalty should be paid. Is is a greedy expectation for a buyer?

    In the first place, delay should not happen from such an established builder. Penalty is only a worst case remedy.

    They are raising the structure in 2 years, sucking 95% payment and then take their own time of 4-6 years to complete the handover with 2 years delay without penalty. This is the most worst part of this project,, which i am trying to highlight, hope you too agree.
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  • We are not in a country where the cost of capital is 1-3%, in India cost of funding is as high as 10%. For example for INR 1.5 cr apartment value, one additional year of delay will cost INR 15 lacs - for 2 years INR 30 lacs, for size 1500-2000 sqft apartment it will approximately translate into additonal huge increase of Rs.1500-2000 per sqfeet, is it not significant?


    How can a delay cost beyond the rental value(2% p.a) and the aspirational value of living in there besides frustration and angst?
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  • @Franke,

    The point I take from Value's post is:

    "Quality at that price point at that time"

    In other words around 5 years ago there weren't many choices for quality township at reasonable location at prices around 1C.

    5 years later, today there may be better choices and options.

    The Market will force Hira to change, modify and evolve.

    ----------------------------------------------------------------
    Hira is suitable for investors & owners with long term investment horizon.

    The real upside on investment return for Hira will only 10 to 15 years down the track and even that RoI may not out beat some astute low value, low quality & high risk Investments.

    Hira is for very long term cashed up investor who is lazy to hunt around and spend lot of time in acquisition.

    Not for:

    Some one who is up for profit under 15 years,
    some one worried about variations of 10% or 20% in cost.

    Someone who wants to limit annual property outgoings to below 40% of rental income.

    Someone who is keen to see consistent annual appreciation in value and not comfy with a few negative growth years.

    In other words not for active & conscious astute investors. They may do the run around and possibly find choice and turnover handsome profits.
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  • I was looking to buy an apartment in Hira for some time now.However I am not able to justify myself so far on the ROI. Here is my take on this property

    Positives

    1. Excellent ambience, space, nice view and a clubhouse of international standard. Don’t think any other projects I know off in OMR can rival this

    2. Comfort it provides to me being close to my work location and a decent school inside the campus.

    Negatives

    1. Low rent yield. I am paying 23K as rent (17.5+5.5maintenance) for a 2BHK apartment. The cost of a resale apartment is 88L. If I add the cost of furnishing and registration the rent yield would be around 2.1 which is very low. With more units coming up in Hira and oversupply in OMR I don’t see the rental yield improving for another 5 to 10 years. If corporation limit extends to Siruseri, I guess the cost incurred for water/maintenance could come down a bit.

    2. Could see some cracks inside the unit (Not sureif it’s due to Hiras construction quality or due to leakages from AC wiring which was done by the owner). Quality of switches and doors deserves improvement.

    If Hira is coming down on the pricing (20% from below level)I will take a plunge. If not I will be happy to rent the place till I find an equally good township.
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  • Originally Posted by maverick007
    How can a delay cost beyond the rental value(2% p.a) and the aspirational value of living in there besides frustration and angst?


    I will look at loan funding rate, not rental- maintnance etc....

    Why should i fund Hira at 2% for their delay?
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  • Originally Posted by Economist
    @Franke,

    The point I take from Value's post is:

    "Quality at that price point at that time"

    In other words around 5 years ago there weren't many choices for quality township at reasonable location at prices around 1C.

    5 years later, today there may be better choices and options.

    The Market will force Hira to change, modify and evolve.

    ----------------------------------------------------------------
    Hira is suitable for investors & owners with long term investment horizon.

    The real upside on investment return for Hira will only 10 to 15 years down the track and even that RoI may not out beat some astute low value, low quality & high risk Investments.

    Hira is for very long term cashed up investor who is lazy to hunt around and spend lot of time in acquisition.

    Not for:

    Some one who is up for profit under 15 years,
    some one worried about variations of 10% or 20% in cost.

    Someone who wants to limit annual property outgoings to below 40% of rental income.

    Someone who is keen to see consistent annual appreciation in value and not comfy with a few negative growth years.

    In other words not for active & conscious astute investors. They may do the run around and possibly find choice and turnover handsome profits.


    I agree with you. Hira- this project is not for ordinary buyers, its only suitable for black transaction people who never mind no return or negative return- to convert b to w. Unfortunately those kind of buyers are hiding as legal loop holes are plugged in.

    Hira changed spec and Mivan technology for Ph2 to control the damage, but did not reduce their mark up, they are yet to realise until they squeez their margin to reduce the price, hard to sell.

    Price premium is too much.
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