### ATS Kocoon, ATS, Sector 109, Gurgaon

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amit.bhalla

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Started 6 years ago

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- amit sir is truly an asset to the forumCommentQuote0Flag
- IRR 5 yrs rate 9000

Hi

Greetings

Great stuff Amit you are a gem of a guy..

I would even agree for DLP if price after 5yrs would reach 9000/-;)

CheersCommentQuote0Flag - Bless you bhai - kaha the...bade din baad dikhe...

Thanks for the compliment sir - Appreciate the nice wordsOriginally Posted by BlessUHi

Greetings

Great stuff Amit you are a gem of a guy..

I would even agree for DLP if price after 5yrs would reach 9000/-;)

CheersCommentQuote0Flag - Buddy (Pls dont address me as Sir dear)

Thanks for the compliment, my friend...

I am happy with my Private Equity career. I have seen people become real wealthy by investing in Real Estate, so it has made me passionate about RE..

I am based out of Dubai...We exchange notes/views thu PM if you like

Thanks for the kind words...Originally Posted by vb2309Amit Sir,

Thanks you soo very much. I as well as on behalf of the group (if I may) thank you tons for making the effort and then sharing it with us :bab (6):.

It helps and adds to teh value :bab (22):of this forum to have consulting monds like you happy to share. You should seriously consider opening an estate consulting agency, I will be a customer for sure.

Than you. Amit sir, can you please upload the excel file or lindly e mail it to me so that I can have it as an asset with me that I can use in all future calculations.

Is there a number (pm me )I can call you on and thank you for responding so well to my query?

Regards & thanks,

vb2309CommentQuote0Flag - amit Bhai, bahut acchi thara explain kiya . Kudos for that . I hope that the issue is quite clear now to everybody .CommentQuote0Flag
- Bhai 9000 is a random figure -

Agar kum price leta to ladai ho jaati :DOriginally Posted by BlessUHi

Greetings

Great stuff Amit you are a gem of a guy..

I would even agree for DLP if price after 5yrs would reach 9000/-;)

CheersCommentQuote0Flag - What is DP ,CLP ,ROE ?

HI Amit Bhai ,

I am new investor and pretty much new in this forum.Please expaling me what these terms mean

1.DP

2.CLP

3.ROE

Originally Posted by amit001If the price in CLP is X

Price in DP shud be like 87% (100%-13%) of x

now we know the price in DP = 3800

So 87% of X = 3800

Calculate X

X/CLP = 3800/87%*100% = ~ 4368

So also if CLP is 4500 (Still speculation)

so DP = 4500*87% (100%-13%) = 3915, so if you are getting DP = 3800, it is cheaper by 100 rs..

Howvwer if you do the whole calculation you will find that ROE in CLP is always more than 3-4 times of DP, because only 20-30% goes in 1 year...

So an Investor should buy only in CLP

Do a End users - more detailed calculations needs to be done making assumptions like rate of interst, years taken to construct etc etc

Hope it helpsCommentQuote0Flag - IRR at 9000

Hi

Greetings

i know. But Somewhere it is quiet tempting to assume a figure of Rs 9000 psf in 5 years time under the current conditions and progress of dway, supply (on dway/gcex/spr/NH8) available, interest rate conditions and still details are not out..

Baki ladai ki chinta mat karna..

CheersCommentQuote0Flag - A strategic questionOriginally Posted by amit001Buddy (Pls dont address me as Sir dear)

Thanks for the compliment, my friend...

I am happy with my Private Equity career. I have seen people become real wealthy by investing in Real Estate, so it has made me passionate about RE..

I am based out of Dubai...We exchange notes/views thu PM if you like

Thanks for the kind words...

Amit Bhai,

Q1estion 1.

A strategic question....people like me but at DP, used to think (wrongly) that DP is cheaper......I understand that CLP is better option after your elaborate note BUT then may I please take the benefit of yor experience by asking, why do other (so many prudent mature investors) buy in DP?

Qiestion2.

What has to click right to buy in DP?

Your points on these will be very educative as I am sure you will be impartial despite your very appreciative & educatice comparetive calculations.

Question 3.

In teh project ATS for example what should be the price diffrence for one to buy in DP compared to CLP.

Your response is awaited and kindly requested..

Vb2309?CommentQuote0Flag - DP - Downpayment

CLP - Construction linked payment

RoE - Return on EquityOriginally Posted by sbhardwajlHI Amit Bhai ,

I am new investor and pretty much new in this forum.Please expaling me what these terms mean

1.DP

2.CLP

3.ROECommentQuote0Flag - Originally Posted by sbhardwajlHI Amit Bhai ,

I am new investor and pretty much new in this forum.Please expaling me what these terms mean

1.DP

2.CLP

3.ROE

S Bharadwaj Ji,

DP means Down Payment

CLP means construction link plan

ROE : Retirn on expense / investment

justy assisting Amit bhai in responsing as I too have been asking him sooooo many questions... :)

regards

vb2309CommentQuote0Flag - Sir, see my response belowOriginally Posted by vb2309Amit Bhai,

Q1estion 1.

A strategic question....people like me but at DP, used to think (wrongly) that DP is cheaper......I understand that CLP is better option after your elaborate note BUT then may I please take the benefit of yor experience by asking, why do other (so many prudent mature investors) buy in DP?

Under construction projects carry delivery risk, thats why people buy in CLP. Also agar DP karna hi hain to people prefer ready to move apartments and not CLP...Else in DP you will pay interest on the 100% cost of the house with out having the ability to use it or give on rent.. ATS appears to be a strong brand, may be thats the reason people are buying in DP..But I dont know how much of the fact that they sold out large no of apartments on DP is indeed a fact or hype...

Qiestion2.

What has to click right to buy in DP?

Did not get your question. Can you rephrase please

Your points on these will be very educative as I am sure you will be impartial despite your very appreciative & educatice comparetive calculations.

Question 3.

In teh project ATS for example what should be the price diffrence for one to buy in DP compared to CLP.

As i had reported in previous posts the DP price is generally 87/88% of the CLP price. Most of the builder offer 12-14% discount on their CLP price if the buyers makes a downpayment

Your response is awaited and kindly requested..

Vb2309?CommentQuote0Flag - Originally Posted by amit001Sir, see my response below

Amit Bhai,

Question rephrased:

Thanks for your response.

What all needs to be the things that need to be in place before one decoded on buying on Down Payment compared to Construction linked plan.CommentQuote0Flag - Originally Posted by amit001Sir, see my response below

One of the key factors to consider in DP vs. CLP is builder intent (which is difficult to know upfront). One the assumptions Amit ji has taken in CLP calculation is that yearly installments are almost evenly spread ... This is where all your calculations fail when these assumptions fail because of constrution speed. I will take 2 scenarios ..

1. Many builders in order to get the money will quickly construct the floor and take most of the money (90%) in a matter of 1-2 years and will take another 2 years to finish the project. So your most of the outflow happens in the first few years. In this case DP will be better if differential in two (DP and CLP) is big - because you did not gain on the price and time much in CLP mode. - A good example is Jaypee Pavillion - People who invested in these project payed almost 90% of it in a year under CLP and still far from getting the apartment after 2+ years. Both CLP and DP guys are impacted but DP is still better off than CLP in this case. I have learned that Raheja has done the same in sector 109 - But I am not sure on this.

2. Many builders will sit on the project for first two years or go at very slow speed and start working on it in the last 2-3 years .. In this case the CLP is better option. Good example of this Jaypee Kalypso/Imperial - Jaypee sat on this project for 2+ years and now going aggressively to construct these. You can imagine the plight of people who paid crores of rupees in DP.CommentQuote0Flag - Good pointsOriginally Posted by rmnoidaOne of the key factors to consider in DP vs. CLP is builder intent (which is difficult to know upfront). One the assumptions Amit ji has taken in CLP calculation is that yearly installments are almost evenly spread ... This is where all your calculations fail when these assumptions fail because of constrution speed. I will take 2 scenarios ..

1. Many builders in order to get the money will quickly construct the floor and take most of the money (90%) in a matter of 1-2 years and will take another 2 years to finish the project. So your most of the outflow happens in the first few years. In this case DP will be better if differential in two (DP and CLP) is big - because you did not gain on the price and time much in CLP mode. - A good example is Jaypee Pavillion - People who invested in these project payed almost 90% of it in a year under CLP and still far from getting the apartment after 2+ years. Both CLP and DP guys are impacted but DP is still better off than CLP in this case. I have learned that Raheja has done the same in sector 109 - But I am not sure on this.

2. Many builders will sit on the project for first two years or go at very slow speed and start working on it in the last 2-3 years .. In this case the CLP is better option. Good example of this Jaypee Kalypso/Imperial - Jaypee sat on this project for 2+ years and now going aggressively to construct these. You can imagine the plight of people who paid crores of rupees in DP.

Thanks RM Noida,

Good points. Your point 2 adds to the view Amit/memers gave on the risks on delays in projects and thus CLP is better.

I too was thinking of Point 1 you mention as to will 10 % only be payable in year 1, must say that you have braught it out well.

I will now use the formulas with assumption of CLP at 30% in year 1 , 30 % in year 2 and 40 % in year 3 and take a decesion.

Give that I trust the builder I am ok with the risks part.

Thank you mate. You and Amit have given valuable inputs.

vb2309CommentQuote0Flag