Dear Friends,
Please can you advise from your experience / research on risk and downside associated with SRA projects in Mumbai.

The SRA projects are priced quite reasonable compared to other normal projects. But, generally they demand 50-80% at the time of booking and that too in pre-launch or just launch stage.

One risk which is quite obvious is delay in completion. Would like to know if there is any other risk / downside in SRA projects. Any instance you know where the SRA project failed or delayed by more than 2-3 yrs.

I’m looking to buy a house to have a roof on my top when I come back to India. The price of normal projects to me seems to be unreasonably high. In this not sure SRA make sense. Your advise and info sharing on SRA projects would be highly appreciated.

Thanks
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  • Originally Posted by nsh123
    Dear Friends,
    Please can you advise from your experience / research on risk and downside associated with SRA projects in Mumbai.

    The SRA projects are priced quite reasonable compared to other normal projects. But, generally they demand 50-80% at the time of booking and that too in pre-launch or just launch stage.

    One risk which is quite obvious is delay in completion. Would like to know if there is any other risk / downside in SRA projects. Any instance you know where the SRA project failed or delayed by more than 2-3 yrs.

    I’m looking to buy a house to have a roof on my top when I come back to India. The price of normal projects to me seems to be unreasonably high. In this not sure SRA make sense. Your advise and info sharing on SRA projects would be highly appreciated.

    Thanks


    Hi,

    Check the documents, if the builder has IOD & Title report, it should be good, CC obviously takes time and only comes after tenant building work is partially done.

    Last year all projects got delayed due to multiple changes in regulations, otherwise safe bet.

    Check the one in Bhandup, Swaroop Atlantis, premium project, with rates c.7K PSF.
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  • Thanks Akki for the guidance ...wondering there are reputed builder in this field ...any sucessfully completed project so far in Mumbai ... heard of one SRA project in Mulund (w) behind Nirmal Life style quoting approx 4500 psf (if paid 40-50% payment in advance) with all amenities ...quite attractive price and so im bit skeptical as no builder will sell below market ...and its question of 50% of the total money at stake....is there a way to check builder financial status to complete the project??
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  • Not sure if it's Slum Rehab Authority

    hi, I am not 100% sure if it is 'Slum RehabAuthority'. If it is then,
    ** Slum Rehabilitation Authority **

    In such cases they construct buildings and allot one side to Slum dwellers and others to the Private owners. Basically you need to check out the layout and facilities. In my mind's eye, you may not want to live in such community also property appreciation may be hampered.

    Thanks,
    Monu
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  • not unless u want dhobi, dababatliwala , plumber to be ur neighbors

    not unless u want dhobi, dababatliwala , plumber to be ur neighbors ,bhomi heights I think is SRA , but dont think u will get a lower price cause it is SRA

    Originally Posted by nsh123
    Dear Friends,
    Please can you advise from your experience / research on risk and downside associated with SRA projects in Mumbai.

    The SRA projects are priced quite reasonable compared to other normal projects. But, generally they demand 50-80% at the time of booking and that too in pre-launch or just launch stage.

    One risk which is quite obvious is delay in completion. Would like to know if there is any other risk / downside in SRA projects. Any instance you know where the SRA project failed or delayed by more than 2-3 yrs.

    I’m looking to buy a house to have a roof on my top when I come back to India. The price of normal projects to me seems to be unreasonably high. In this not sure SRA make sense. Your advise and info sharing on SRA projects would be highly appreciated.

    Thanks
    CommentQuote
  • Hello Akki & NSH... . I already went through the project you have suggested "Check the one in Bhandup, Swaroop Atlantis, premium project, with rates c.7K PSF." the project is still on hold since a last 2 years as i heard from lot of people. I was planning to book his same project at Ghatkopar East Laxmi Nagar but that project was also on hold since a last 3-4 years. Current possion is SRA Building started with 2 Slab but Private is No Movement. asked to Developer & he confirmed that work will start in Feb 2013 first week. Now I am also in confusion, shall buy or not ??
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  • Mumbai : Downside of Investing in SRA Projects

    Hi,

    Please help.
    What is the problems if we invest in housing projects in SRA projects?
    Is it safe and will there be future problems?
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  • Hi,


    Looking for a property mainly in chembur.
    Am interested in a SRA project , named Alta vsita.


    Could someone suggest what is the lease clause in a SRA project and buying a flat in SRA project is risky?
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  • sra projects risky ? - yes to a high extent with the execution delays involved , projects similar to alta vista , luxe amar mahal, crystal armus, eastern heights, ruparel orion etc . cant see them getting delivered before 2019 end 2020 and staying in the vicinity of sra buildings and slums is of course a big drawback.
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  • Investing in SRA project said to be very risky but i think if you still want to i would suggest check if property is not messed up with any legal issues, get all details of property and then only invest.
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  • If I buy property in Mumbai slum area like kurla, ghatkoper. Will the it give apprecaition afte SRA scheme? Rather than investing in Navi Mumbai is it good idea to buy property in Mumbai slum


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    0 Comments
    • amancrapbox1 years ago
      You pay some amount now. And your returns will be:
      1. Rent earned till demolition start.
      2. Rental amount paid by builder during demolition/ construction stage.
      3. Rent/ Sales proceed after it's built.

      There is no assurance of rental amounts/ duration, so the calculations get complex. No-one can say if it'd turn out profitable.
      In an average case, it would make some profit. Whether you find it worth all the hassles, is upto you. I don't.
      It won't be a big profit anyway, unless you get a really good deal with proper paperwork.

      Another major issue with buying these houses is poor paper-work of existing ownership.

      It's relatively better to go for a flat in an old building in a good location which was developed when FSI was very low, and might do for redevelopment in near future. You'll get better rental from builder, won't have SRA ownership, better quality houses, relatively less hassles.
  • As banks do not provide finance for these projects. Banks do not give mortgage on SRA projects, therefore the chances that the developer will be short of cash during development are very very high. There are many such projects in Mumbai which have been delayed by three years or more.

    I suggest stay away. Invest in stock market on SIB basis. When you want to buy, find a property with Ocupancy Certificate, pay and take ownership.

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