On several websites people have reported issues with Jaypee projects. Issues range from administrative hassles to big delays. If there are any issues which the members have, please bring them up as I am planning to invest in one of their projects.
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  • Today i had a chat with some jaypee executive and was was surprised to hear from them that they were directing me to a broker to buy a unit in their project. It was just frustrating u know that builder, who's 70% inventory is unsold is not even keen to talk. I would suggest 100% caution , as on face of it looks home on paper.
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  • JP is a Lala co. , with no respect for the customer . Once u invest with JP , u become their slave.

    Avoid it.
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  • Hi Anubhav,

    I know a bit about how Jaypee works. Its not right to look at everything from a suspicious angle.

    A lot of Jaypee's projects are underwritten by brokers like Better Options propmart , S&A Finman, Om Radianz etc.

    Underwriting means that these guys purchase the inventory from Jaypee at x price and sell it to the end customer at X+ their margin. They are obligated to pay for this inventory to Jaypee even if they are not able to sell it in the open market. Thats how Jaypee eliminates its risk by selling down projects to underwriters.

    Obviously in case all the inventory of a particular project is underwritten by a broker, jaypee will have nothing to sell and direct you to the concerned underwriter/broker.

    For example, S&A Finman has underwritten a lot of Kalypso court inventory which you wouldnt be able to buy from Jaypee now.

    Also, i doubt whether 70% is unsold, who gave you this figure ?




    Originally Posted by anubhaviit
    Today i had a chat with some jaypee executive and was was surprised to hear from them that they were directing me to a broker to buy a unit in their project. It was just frustrating u know that builder, who's 70% inventory is unsold is not even keen to talk. I would suggest 100% caution , as on face of it looks home on paper.
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  • Dear Shinde

    Then it is a fantastic situation for end user , to not buy in jaypee. Since builder has sold of his inventory, which means he is now flush with funds and will try to finish his work asap. (which they are not doing actually). And risk is now on underwritters, that means x + profit these guys plan to make will be at least 10% PA , therefore if the inventory in hand with them remains unsold for next 1 year, and there is no buyer at the present prices , thus wont be in future unless noida property prices go up in a boom. It make perfect sense to buy in jaypee as a ready to move in flat instead of booking with them in advance and loose a lot on interest today.

    Let end user also play this risk to return game the same way brokers and builders are playing. All quality and delivery risk will be covered (ready to move in , finishing done, facilities in place etc) and since so many flat inventory coming up in Noida , there fore prices are very hard to go up.
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  • totally agree with you. the strategy adopted by builder is very beneficial for him in short run, but very bad for people buying. as jaypee has sold all its inventory , it is in no particular hurry to complete the project, which other normal builders are as they have sold most of their flats themselves in CLP.

    because of this jaypee is in no hurry to complete this project. they will use money provided by underwriters for free as long as they can.
    Originally Posted by anubhaviit
    Dear Shinde

    Then it is a fantastic situation for end user , to not buy in jaypee. Since builder has sold of his inventory, which means he is now flush with funds and will try to finish his work asap. (which they are not doing actually). And risk is now on underwritters, that means x + profit these guys plan to make will be at least 10% PA , therefore if the inventory in hand with them remains unsold for next 1 year, and there is no buyer at the present prices , thus wont be in future unless noida property prices go up in a boom. It make perfect sense to buy in jaypee as a ready to move in flat instead of booking with them in advance and loose a lot on interest today.

    Let end user also play this risk to return game the same way brokers and builders are playing. All quality and delivery risk will be covered (ready to move in , finishing done, facilities in place etc) and since so many flat inventory coming up in Noida , there fore prices are very hard to go up.
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  • Whether you buy today or on possession is a matter of your calculations and choice. What i commented on is your apprehension that what they are showing today will remain on paper.

    Today people are buying properties with mom and pop shop developers in Noida extension and New Gurgaon but are worried on buying a property with Jaypee Infratech - a listed company with 12000 crores market cap.

    This is what fascinates and amuses me the most.

    Anubhav - today a 2bhk in pavilion court with the golf course view is available at 4900 psf. Lets exactly come to this thread 1.5 years down the line on possession and lets see whether you can get it at this price then !



    Originally Posted by anubhaviit
    Dear Shinde

    Then it is a fantastic situation for end user , to not buy in jaypee. Since builder has sold of his inventory, which means he is now flush with funds and will try to finish his work asap. (which they are not doing actually). And risk is now on underwritters, that means x + profit these guys plan to make will be at least 10% PA , therefore if the inventory in hand with them remains unsold for next 1 year, and there is no buyer at the present prices , thus wont be in future unless noida property prices go up in a boom. It make perfect sense to buy in jaypee as a ready to move in flat instead of booking with them in advance and loose a lot on interest today.

    Let end user also play this risk to return game the same way brokers and builders are playing. All quality and delivery risk will be covered (ready to move in , finishing done, facilities in place etc) and since so many flat inventory coming up in Noida , there fore prices are very hard to go up.
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  • Today, a 2 BHK at rs 6000 psf in ATS in 93 sec is cheaper buy than compared to Pavillion court. With basic maths you will realize this.
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  • All reputed builders underwrite some of there towers to various dealers/investors. This way they sell there 30-40% inventory quickly and sell the remaining one on there own at a higher price. Some people are more comfortable dealing directly with the builder and hence buy from them ....some look for better price n opt for other option.

    names - Mahagun, Jaypee, Assotech, gaur etc ....they have been underwriting there towers for some time.

    Jaypee - It's a calculated risk .....Vshinde .....I read your interest in golf course plot 115000 per sqyard .....total ticket price will be 3cr.

    Not for investors but if you want to show off to the whole world that you live in a class apart house.....go n buy ....this is one of a kind property in the world ( I have yet to see a house in the middle of the golf course anywhere ).

    Some properties become too precious for a price tag ..... who knows this could be one of them in 10 years time.

    Regards
    Sbajaj
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  • Guys, Underwritten doesnt mean sold off to underwritter !!! Let me try to explain my understand on JP case:
    If BOP have underwritten Kensington Bulevard, it means they have commited to JP that they would sell certain percentage of flats in certain amount of time. And they agree to pay some percentage amount ( which is never more than 10% of flat value) to JP. If BOP is not able to sell those no. of flats in that period of time, that amount is forefeited.
    No dealer underwrites entive inventory. Its not more than 20-25% of the project....No delaers have this much financial power nor guts to buy entire inventory from JP.
    2ndly, JP can still increase price for the project....
    3rdy, Payment from user is still to JP, not underwritter. Remember that you dont buy flat in resale if you buy from dealer,,Its still considered a first buy even if u purchased from dealer.

    Advantages to user if project is underwritten: Dealer is under pressure and dont expect much price rise . U can bargain more.
    Disadvantage: Delaer plays on choice of flat and dont give clear picture. They will sell poor locations first, then liquidate their better located flats. But if u r adamant on location, they will give it to you fearing loss of deal.

    Regarding issues with JP...Yes, Delay of project is a major issue and would be continue to be !! Even JP cant help it.
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  • I just have a look at this advert then, you can create you own personal golf course, but that wont justify the premium of jaypee. as per my maths

    PV golf should be 3900, non golf 3500 , considering builder premium for name and golf view. When others are selling at 2700 including jaypee then how can one digest 4900 if out of my understanding. and that is the reason for high level of unsold inventory and all this underwriting (i dont believe this underwriting, jaypee is publicly listed, not our dear brokers, neither do banks finance them so much. )
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  • Dear SBajaj,

    Thanks for your advice. Although I am convinced about it being a great living experience, I want to discuss a bit abt the price.

    I have tried to rationalise it as follows :

    I cannot get this at an average price of 60-70 K which a normal Noida authority plot commands today. Obviously, there has to be a premium for being in the middle of a 9 hole international standard golf course, gated community, being 1 out of 144 plots ONLY on offer....there is huge snob value

    The question is how much premium over 70 K ...........I have seen plots in Sector 15A being traded at 250K (15A is VIP but concrete jungle), sector 44 at 125 K ....again worse than a concrete jungle and not even VIP......

    So would you not give a multiple of 1.5-2 times over normal NA plot rates?

    You bought a plot in Sec 105 at 50 K...........if it goes to 100K in 5 years, would this not goto 200 K ?

    How is this then not an investment ? Your reply very much awaited !










    Originally Posted by sbajaj
    All reputed builders underwrite some of there towers to various dealers/investors. This way they sell there 30-40% inventory quickly and sell the remaining one on there own at a higher price. Some people are more comfortable dealing directly with the builder and hence buy from them ....some look for better price n opt for other option.

    names - Mahagun, Jaypee, Assotech, gaur etc ....they have been underwriting there towers for some time.

    Jaypee - It's a calculated risk .....Vshinde .....I read your interest in golf course plot 115000 per sqyard .....total ticket price will be 3cr.

    Not for investors but if you want to show off to the whole world that you live in a class apart house.....go n buy ....this is one of a kind property in the world ( I have yet to see a house in the middle of the golf course anywhere ).

    Some properties become too precious for a price tag ..... who knows this could be one of them in 10 years time.

    Regards
    Sbajaj
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  • Vshinde......This is the thing ....

    5k to 10k is easy.
    10k to 50k ...takes years.
    50k to 100k ...takes many years.
    100k to 200k ....takes something special other than many years.

    Acceptability --- Risk --- Devlopment --- Demand --- Cost of owning n above all holding....every point worth considering 10 times.

    If tmw some other sector comes like sec - 105 .....I will not loose much but if jaypee like projects comes with same golf course offering ....then it will loose it's numero uno position ( The premium you are paying is only for it's unique value proposition)....if it goes away ....so is the projected profit.

    I see this for end users (well off end user) not for investors.

    Love the return not the property.

    Regards
    Sbajaj
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  • Originally Posted by anubhaviit
    I just have a look at this advert then, you can create you own personal golf course, but that wont justify the premium of jaypee. as per my maths

    PV golf should be 3900, non golf 3500 , considering builder premium for name and golf view. When others are selling at 2700 including jaypee then how can one digest 4900 if out of my understanding.
    Let me give you some Churan to digest Rs4900 price....
    JP Golf is a luxary property. Its not just Golf facing. Just look at the specs of the flats of Golf property and compare it with any other property like Logix/3 Cs/including JP's Kasa/Bulevard.
    Also its fully finished. All woodwork, modular kitchen, lightings, AC etc.
    Maintenanace charges for Golf property is Rs2.50/ and non golf is Rs1.50 per sqft.
    and that is the reason for high level of unsold inventory and all this underwriting (i dont believe this underwriting, jaypee is publicly listed, not our dear brokers, neither do banks finance them so much. )
    You could even raise a question that why do JP or others need dealers at all to sell their project ..
    As I told , deal is still directly with Bldr, so banks do finance.. U dont raise a cheque in name of underwritter but to JP.



    Thing to note is : JP property price have not increased in past two years, and would not increase in next two years by more than rate of FD ..So chill and take yr time to buy in JP. Hurry will cause Worry !!
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  • Completely agree on that to wait for 2 yrs . but how come fans lights, AC, modular kitchen cost 1000rspsf. still some indigestion left:bab (4):
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  • I suggest you rent out a place and keep paying rent for the rest of your life. Thats will always be cheaper than owning a house !


    Originally Posted by anubhaviit
    Completely agree on that to wait for 2 yrs . but how come fans lights, AC, modular kitchen cost 1000rspsf. still some indigestion left:bab (4):
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