Members!!!!

I have been looking to invest in a 2-3 Bhk since a couple of months now and more or less zero-ing on ireo sector 67a project ( although uptown, palm studio and victory valley are still on my radar) ... I request all knowledgable members ( especially the seniors and brokers in disguise of members) to comment upon the pros and cons of the project.

Also, I'd request other members planning to go for the project to get in touch with me, so that, we can look for a deal as a group rather than as multiple single parties .

As a start to the thread, let me list out a few pros and cons.

PROS

- New launch. Very little upfront payment.
- Specifications, better than basic, which are becoming a hallmark of ireo.
- location ( as per first information) looks to be good. Behind sector 67 or say
behind victory valley and PVSN
- other projects of the builder getting handsome appreciation and excellent
speed of all projects as of now ( cash crunch doesn't seem to be affecting the
So called FDI funded , politically funded as per grapevine, builder at all.

CONS

- yet undemarcated sector. Not in master plan 2021.
- builder, although very promising, hasn't delivered anything as yet
- specifications will be more along the lines of uptown ( which is available in
resale at 4800-4900 levels and has better location) and not very luxurious
Like grand arch,victory valley or skyon.
- although pricing is very speculative as of now but if it ends up 5k or more
Will be a disappointment ( like unitech south park).


I hope to hear from the other guys soon ....
;)





MODERATOR's NOTE - This thread was started about 18 months back, when this project was rumored to be getting launched . Due to delay in the launch this thread went into hibernation for some time and it is now alive . Newbies/First time users, please note & do not get misguided by the last year's launch price that stands mentioned . A duplicate thread { which stands closed now } has some updated information . Refer http://www.indianrealestateforum.com...7-a-46911.html .
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  • Originally Posted by Lazybell
    In ethics there is only one obligation, to honor commitments; in this case things are happening exactly as communicated by Ireo to channel partners. If some channel partner has misguided customer, the customer must make written complaint to Ireo against the channel partner; blaming Ireo is not justified.

    Not following the govt laid law is not unethical, the laws were never made with the intent of being followed; they are there to intimidate by selective prosecution. If not following laws is unethical, then Resale deals are all unethical as they involve undeclared income via cash component.

    Soft launch transactions are ethical as they are by voluntary choice to mutual benefit; those that feel unethical about not following all the govt laws have no option but to be absent from the RE field, this is their only Moral choice. In fact, in India, with the plethora of unreasonable and unfollowable laws, the only Moral choice seems to be to quit Life, but sadly that too is unlawful.


    What is true by your own personal experience may not be true for everyone . There are many people who follow all the laws of land including not dealing in illegal transactions like undeclared income. So please do not assume everyone indulges in that and hence resale deals are all unethical and that there is no option for law abiding citizen to enter into RE investment. It is absurd to say the least in my experience and my pov.

    an illegal activity has no justification :) in my books . each to his own. Soft launch without necessary approvals are illegal irrespective of wether it is voluntary choice for mutual benefit or not.
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  • Originally Posted by Lazybell
    In ethics there is only one obligation, to honor commitments; in this case things are happening exactly as communicated by Ireo to channel partners. If some channel partner has misguided customer, the customer must make written complaint to Ireo against the channel partner; blaming Ireo is not justified.

    Not following the govt laid law is not unethical, the laws were never made with the intent of being followed; they are there to intimidate by selective prosecution. If not following laws is unethical, then Resale deals are all unethical as they involve undeclared income via cash component.

    Soft launch transactions are ethical as they are by voluntary choice to mutual benefit; those that feel unethical about not following all the govt laws have no option but to be absent from the RE field, this is their only Moral choice. In fact, in India, with the plethora of unreasonable and unfollowable laws, the only Moral choice seems to be to quit Life, but sadly that too is unlawful.


    People will buy all this non sense until they are hopeful of making money.

    Otherwise IREO will loose its Goodwill as has happened with DLF and unitech.

    DLF RG guys got stuck; so no one bought Ultima.

    If people get stuck in this project of IREO;it would be tough to sell future projects.
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  • Originally Posted by teamplayer
    The escalation is slowly but surely creeping back into each new launch equation. The big negative here is the non urgency of developer to deliver in time as the customer is picking up the tab.

    It may be a good idea that the developer should give a defined timeframe say 2.5 years to 3 years and any further delay the developer picks up the escalation for the differential time. Anyway the major bulk inputs purchases are done in the initial time periods say between 1-2 years and the escalation clause covers them over and above this period and can be pocketed by developer citing this increase from day 0 till completion and not till each material end day of purchase.



    The escalation clause, the price of the project in relation to its location/ speculated specification and the fact that much better projects are available at much better price will make this project unviable for the investors, once the 30% mark is exceeded.

    Just wait and watch :). on paper once can always make money when one gets into a resale transaction, one will know the fate of their investment.
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  • Hello everybody,

    Though I am not invested in this project due to my last minute refusal for allotment when I rightly felt that this project due to its layout in nothing special but a mid rise attached houses township. After seeing the picture of the project, I am sure I made the right move by not investing here.

    Also why is everybody beating and hammering Ireo for whatever is happening? As far as my knowledge goes, this project is not their baby and actually belongs to a bunch of NRI investors and Ireo gets a fixed %age for selling and executing the Project. Most likely real owners are calling the shots. If this information is 100% correct, all new and existing investors might have to change their strategy whether they like it or not. Also if this is the case then Ireo might always not be able to give true picture about this project forget transparency.

    Matter of great concern could be the time taken in execution of the project of such magnitude and the escalation clause kicking in due to delay.
    it would be interesting to keep a watch and see till when and what level this project stays viable.

    One thing is sure-viability of this project will definitely make the investors of other nearby projects laugh all the way to the bank. (my POV).

    Cheers.

    CA.
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  • Originally Posted by Cheeky AlAn
    Hello everybody,

    Though I am not invested in this project due to my last minute refusal for allotment when I rightly felt that this project due to its layout in nothing special but a mid rise attached houses township. After seeing the picture of the project, I am sure I made the right move by not investing here.

    Also why is everybody beating and hammering Ireo for whatever is happening? As far as my knowledge goes, this project is not their baby and actually belongs to a bunch of NRI investors and Ireo gets a fixed %age for selling and executing the Project. Most likely real owners are calling the shots. If this information is 100% correct, all new and existing investors might have to change their strategy whether they like it or not. Also if this is the case then Ireo might always not be able to give true picture about this project forget transparency.

    Matter of great concern could be the time taken in execution of the project of such magnitude and the escalation clause kicking in due to delay.
    it would be interesting to keep a watch and see till when and what level this project stays viable.

    One thing is sure-viability of this project will definitely make the investors of other nearby projects laugh all the way to the bank. (my POV).

    Cheers.

    CA.


    I did not understand the highlighted line. IREO is a 100% FDI so it is the fund, land owner, conceptualiser, seller and executing the project itself. It is not a PMC at all.
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  • Sir as far as I know, this land and the project on the whole does not belong to Ireo. When I say Ireo, I mean including its heirs, assigns, interest holders etc. etc. This project is only being marketed and/or managed by the Ireo team in exchange of some %age of maybe the total cost of the project or total value of the project what ever the case may be.

    I thought I was very clear in my earlier post but now it should be clearer.

    Cheers.

    CA.
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  • I highly doubt IREO would do such a thing.

    The least what they can do is do a proper JV if they are associating their brand name to this one
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  • Originally Posted by Cheeky AlAn
    Hello everybody,

    Though I am not invested in this project due to my last minute refusal for allotment when I rightly felt that this project due to its layout in nothing special but a mid rise attached houses township. After seeing the picture of the project, I am sure I made the right move by not investing here.

    Also why is everybody beating and hammering Ireo for whatever is happening? As far as my knowledge goes, this project is not their baby and actually belongs to a bunch of NRI investors and Ireo gets a fixed %age for selling and executing the Project. Most likely real owners are calling the shots. If this information is 100% correct, all new and existing investors might have to change their strategy whether they like it or not. Also if this is the case then Ireo might always not be able to give true picture about this project forget transparency.

    Matter of great concern could be the time taken in execution of the project of such magnitude and the escalation clause kicking in due to delay.
    it would be interesting to keep a watch and see till when and what level this project stays viable.

    One thing is sure-viability of this project will definitely make the investors of other nearby projects laugh all the way to the bank. (my POV).

    Cheers.

    CA.



    Even if that may be true, people invest in Ireo projects not some unnamed owners. whatever little credibility and reputation they have earned ( i am saying this is because they are yet to deliver anything ) , they will end up compromising it.

    In all their projects till now ( i have invested in 2 of them ), the experience as a customer has been pretty decent . Based on these experience i know certain people have invested in 67a , with such lack of transparency some of the earliuer customers would have a rude awakening.

    Ireo can not wish away from responsibility towards it customers, and i hope they will not.

    Prrof of the pudding is in eating and we are few months away from the year end where they are supposed to deliver their first 2 projects. That will be the time to judge them on what they are capable of delivering. Till that time we can only speculate.
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  • Retail Investor / End User does not have the sophistication to asses risks connected to escalation...hence escalation clause should be banned by the govt..unfortunately we live in the times of gunda(builder) raaj :bab (59):
    as a side note..iinvestors at first price of small size units will be able to earn 1000 /psf in 1 year..my pov
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  • I think it took a lot of time, money and effort for Ireo to build their brand from scratch to where it is today. This is no small feat. Lot of strategic and innovative thinking went into this I believe. Now, why on earth they would start making moves to ruin their brand equity? Sounds suicidal, no?

    If someone doesn't like ireo project(s) then that's an opinion but I doubt Ireo would risk hard earned image for a puny or whatever percentage on a project.

    Disclaimer- invested in Ireo, but always glad to hear corroborated negatives about builder so I can use them for my offloading strategy and future investments
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  • Originally Posted by ajgupta18
    Retail Investor / End User does not have the sophistication to asses risks connected to escalation...hence escalation clause should be banned by the govt..unfortunately we live in the times of gunda(builder) raaj :bab (59):
    as a side note..iinvestors at first price of small size units will be able to earn 1000 /psf in 1 year..my pov


    ajgupta ji,

    I thought you could make about 1000 PSF in 1 year on most of the projects in GGN and that also with much lesser investment, whether in direct booking or resale. Only thing which has to be seen is the colour of the money to decide New Booking or Resale. Am sure in re resale market properties with smaller ticket size are easier to offload as well.

    Cheers.

    CA.
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  • yes there might be other options..but risk/reward for this project seemed quite favourable to me at first rate...

    Originally Posted by Cheeky AlAn
    ajgupta ji,

    I thought you could make about 1000 PSF in 1 year on most of the projects in GGN and that also with much lesser investment, whether in direct booking or resale. Only thing which has to be seen is the colour of the money to decide New Booking or Resale. Am sure in re resale market properties with smaller ticket size are easier to offload as well.

    Cheers.

    CA.
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  • Want to understand how are the risks favourable.
    Isnt there a liquidity risk, you may not find an enduser buyer easily who may prefer better locations at lesser cost/no escalation clause which may lead to the investor being overleveraged.

    As for rewards, almost any underconstruction project can yield 1000 rs/year in GCX currently.

    Originally Posted by ajgupta18
    yes there might be other options..but risk/reward for this project seemed quite favourable to me at first rate...
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  • Originally Posted by ajgupta18
    yes there might be other options..but risk/reward for this project seemed quite favorable to me at first rate...


    Sir it all would in the end narrow down to risk appetite and in my opinion even with high risk appetite the risk/reward ratio in this project is quite unfavorable. I consider myself to be having quite a high risk appetite but cash outflows, size of the project and especially the layout of apartments made me decide against it. Especially because this would have been sheer stock in trade unlike other Ireo properties which I turned into long term end user investments.

    If all people in this world were to think alike, how boring would this world become. Everybody already knowing what others are thinking. This is one big reason which makes this world an interesting place to live in.

    Cheers.

    CA.
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  • Originally Posted by sh-saxena
    Want to understand how are the risks favourable.
    Isnt there a liquidity risk, you may not find an enduser buyer easily who may prefer better locations at lesser cost/no escalation clause which may lead to the investor being overleveraged.

    As for rewards, almost any underconstruction project can yield 1000 rs/year in GCX currently.


    Going with your argument ...when all the other options with better locations & lesser prices have been exhausted ...end users will certainly find their way here too ;)
    all these better cheaper location projects will be completed much before this one ..., when amidst of a developed school , shopping complexes and surrounded by your better located nice big projects.. Value by vicinity ..till then enjoy the ride of a tight cash flow :D
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