Sort by :
Filter by :
- no Reyanshbh....everytime I talk to them they say "will dispatch in 2 days"..
Also 2 other things.....in talking to Manish of CHD about BBA I asked about "other charges" like electricity and fire-figthting charges that were not announced earlier ....whether they have added that in the BBA and he said no....not sure if that means these will not be charged or that it will be decided later.
I also tried to re-confirm on "escalation free" clause on the BSP which was part of the pricing sheet earlier and he said BBA HAS escalation clause to his knowledge but he will recheck.....I hope that they have not added escalation since no escalation is one of the reasons I liked and invested in CHD Vann....
Others also please when you talk to them and look at the BBA do check this and push back to them..CommentQuote1Flag
- Has any body received the BBA?CommentQuote0Flag
- Originally Posted by gauravshHas any body received the BBA?
God promise, ,,,,,,I have still not received it (As yet),,,,,,,,,belive me.........PleaseCommentQuote0Flag
- HI...any idea what would be the latest resale price of a 2BHK unit here ? ThanksCommentQuote0Flag
- I got a offer of 6400 bsp.CommentQuote0Flag
- Signed the BBA today.CommentQuote0Flag
congrats, does it have escalation clause as pointed by some other members ?
any other major thing you might have noticed in BBA which was not mentioned by company guys/brokers at the time of booking?CommentQuote0Flag
- I got BBA today ....and as I feared they have added escalation clause....this is a clear U turn - if you look up the price list given at time of booking it mentioned clearly in the footnote that the BSP would be esclation free. Everyone- please do not sign the BBA blindly....I know there are a 100 clauses and ALL are in favor of builder....but those are now industry standard....
Escalation clause is not industry standard, some builders apply and some don't...personally I would not have invested if I had not seen the clear note on "escalation free" at time of booking....and now this a complete "dhokha"...
Request everyone on this forum who sees this to call up Manish Handa and protest...I have done so and he says please write a mail to him and he will talk to "management"..
Jago Grahak Jago and please all of you write e-mail/ call/ visit CHD..
please realize that the BSP you booked as, say 6300 will easily become 8000 or even higher by the time of delivery given the inflation formula given and inflation in India...that means if you were hoping to sell the flat for say 9000 .....your profit on investment nearly disappears..
I did not expect this and is nothing short of fraud....request all to protest and not sign the BBA...CommentQuote3Flag
- Thanks for pointing out the escalation clause. I have not received BBA yet but will take this with CHD guys. Can you help me understand how escalation clause works.CommentQuote0Flag
- I have also not received the BBA. Can u pls tell the exact wording of the Escalation clause.
How is the escalation decided. Is it unilaterally done by builder? What sort of troubles can we have later due to such clause?
- Amir12 and gauavsh- Escalation means just what it says...the BSP can "escalate" or increase to a different number. I can't reproduce the whole language here...but it was based on a formula....essentially they have said price will go up based on an weighted index of steel, cement, labour cost etc in the next 42 months......so if say steel is is 100/kg now and is Rs. 120/kg in 42 months (and let's assume cement, labour etc. all else also goes up 20%) then the BSP goes up 20%....(if inflation is different for different inputs then weighted average number is taken based on ratio of inputs etc.). But net result is simple the flat you thought you bought at say 6400psf will now cost you 20% more...ie 7680psf....by the way 20% maybe quite conservative....and could be much higher.....as India has overall inflation of 8%+ per year (construction materials could be higher or lower but if India grows faster under Modi etc. then construction inputs could inflate more, much more).
As an investor my investment "thesis" is destroyed, as I, expected RE not to do so well over next few years and it was the fact that we had "locked in" a price with CHD while inflation would make everything else expensive....was a key part of the logic for getting a decent return (that and paying in installment).....if we accept this then my prediction is that this investment will yield less than Bank FD and may even turn negative given the massive oversupply of residential flats in GGN at this time.CommentQuote1Flag
- So let me get this straight. You invest in RE to hedge against inflation and when construction component increases with inflation, you want a hedge against the hedge against the inflation.
Makes a lot of sense doesn't it.
Share the formula and I can tell you if it's fair or not.CommentQuote0Flag
- just double checked the BBA and it has a 50% rider on top that I missed earlier...in other words total construction cost is taken as 50% of BSP..and therefore the escalation is on 50% of BSP...so in my example above if construction costs go up 20%...BSP goes up 10%..
My opinion remains that same..this severely impacts the investment case and moreover is very bad in principle by CHD as at time of offer the price sheet clearly said "no escalation"..
By the way there is an additional affidavit that is also supposed to be signed....as far as I can see it just repeats few clauses already in the BBA...pertaining to "builder can add more buildings/ increase FAR etc. at will".....and "area of flat can change" etc..obviously these (and most other clauses are one sided) but one has come to expect these as every builder does it....
Maybe the additional affidavit is due to the Supertech tower fiasco in Noida where they added a tower and it was front-page newsCommentQuote0Flag
- Originally Posted by boomerSo let me get this straight. You invest in RE to hedge against inflation and when construction component increases with inflation, you want a hedge against the hedge against the inflation.
Makes a lot of sense doesn't it.
Share the formula and I can tell you if it's fair or not.
who said "hedge"?....hedge is very different from "beat"...I want to "beat" inflation as a simple investment case....not "hedge" against it...and please if you don't know the difference between these terms then don't use them...;)CommentQuote1Flag