Hi Forum Friends,

Need urgent advice. Experts please comment.

My brother is looking to invest in a 3 BHK on EWAY in and around sector 93.

He has around 60 lacs in hand.Might take loan for the rest. Projects he likes are:


    Eldeco Olympia
    Omaxe Grandwoods
    Krescent Homes

    Pros and Cons as we see are:

    Eldeco Olympia

    Pros:


      Probably the best of the 3.
      Well maintained society.
      Low FAR society as well as sector.
      Possession being given.
      Can get immediate rental income of 25-30k at least.

      Cons:


        Will need to take loan of atleast 50 lacs.

        Omaxe Grandwoods


          Low rise
          Well maintained.
          Construction good. Not as good as Eldeco.
          Possession being given.
          Can get immediate rental income of 25-30k at least.

          Cons



            Will need to take loan of atleast 50 lacs.

            Krescent Homes
            Pros


              Part of Big Jaypee township.
              Bang on EWAY.
              Higher specs.
              Chip & Putt GC.
              Lesser BSP
              Can easily pay from his pocket in CLP plan.

              Cons


                Possession at least 3-4 years away.
                Higher FAR sector as well as society.

                So, can the experts please comment which of the 3 is a better proposition from:


                  Long term investment perspective.
                  Also, from end use perspective if he decides to live in the apartment.

                  Dinesh, Venky, Cookie, Munish and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks and others please advice.


                  Thanks
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  • Interesting question. Will love to see what experts have to say as all 3 are good projects and in a similar location.

    It will be good to also know what are the expected BSP rates for each of these in 3-5 years? If some one would like to place bets :)

    Originally Posted by libranreality
    Hi Forum Friends,

    Need urgent advice. Experts please comment.

    My brother is looking to invest in a 3 BHK on EWAY in and around sector 93.

    He has around 60 lacs in hand.Might take loan for the rest. Projects he likes are:


      Eldeco Olympia
      Omaxe Grandwoods
      Krescent Homes

      Pros and Cons as we see are:

      Eldeco Olympia

      Pros:


        Probably the best of the 3.
        Well maintained society.
        Low FAR society as well as sector.
        Possession being given.
        Can get immediate rental income of 25-30k at least.

        Cons:


          Will need to take loan of atleast 50 lacs.

          Omaxe Grandwoods


            Low rise
            Well maintained.
            Construction good. Not as good as Eldeco.
            Possession being given.
            Can get immediate rental income of 25-30k at least.

            Cons



              Will need to take loan of atleast 50 lacs.

              Krescent Homes
              Pros


                Part of Big Jaypee township.
                Bang on EWAY.
                Higher specs.
                Chip & Putt GC.
                Lesser BSP
                Can easily pay from his pocket in CLP plan.

                Cons


                  Possession at least 3-4 years away.
                  Higher FAR sector as well as society.

                  So, can the experts please comment which of the 3 is a better proposition from:


                    Long term investment perspective.
                    Also, from end use perspective if he decides to live in the apartment.

                    Dinesh, Venky, Cookie, Munish and others please advice.


                    Thanks
    CommentQuote
  • Originally Posted by sandman
    Interesting question. Will love to see what experts have to say as all 3 are good projects and in a similar location.

    It will be good to also know what are the expected BSP rates for each of these in 3-5 years? If some one would like to place bets :)


    Well .... 50+ views ...not a single reply :) is this such a hard question :) or so stupid that nobody bothers :)
    CommentQuote
  • Eldeco Oyympia is best among all I feel.

    Reason
    New Consturction,RTM,Good Location,LOW FAR.
    CommentQuote
  • Originally Posted by cookie
    Eldeco Oyympia is best among all I feel.

    Reason
    New Consturction,RTM,Good Location,LOW FAR.


    Thanks cookie bro.

    Btw, rates quoted in Olympia are around 7k. What is realistic expected rate for Olympia in 3-5 years?
    CommentQuote
  • If needs for end use and need immediately, should go for the one already available to move in....
    If need for investment, 50 Lakhs loan will call for approx. 4.5 lakh per annum of interest on loan (i.e. approx. 38000 pm of interest outgo). So even 25-30K rent will still keep him paying from his pocket. In that case, Krescent homes should be good as the property value will appreciate and by the time it is ready (say in 4 years), property is new, rate shall become comparable (if not more) to project referred by you. And another good part, no loan required on it, as he can pay from his pocket
    CommentQuote
  • Originally Posted by Quest2012
    If needs for end use and need immediately, should go for the one already available to move in....
    If need for investment, 50 Lakhs loan will call for approx. 4.5 lakh per annum of interest on loan (i.e. approx. 38000 pm of interest outgo). So even 25-30K rent will still keep him paying from his pocket. In that case, Krescent homes should be good as the property value will appreciate and by the time it is ready (say in 4 years), property is new, rate shall become comparable (if not more) to project referred by you. And another good part, no loan required on it, as he can pay from his pocket


    Interesting point.

    Though I would still prefer GW or Olympia over KH because of the sheer fact that they are low rise apartments with considerably lower FAR.

    And, my sense is that in 3-5 years by the time people get possession of KH, it will be around 7.5-8k max.
    While, GW should be 10k and Eldeco 11-12k. And, this gap will always be there.

    Experts please comment.
    CommentQuote
  • Also need to factor that in next 4-5 years, the present society will already be 6-8 years old, so maintenance of society to keep to quality expected at that rate may also be a point of thought
    CommentQuote
  • Originally Posted by Quest2012
    Also need to factor that in next 4-5 years, the present society will already be 6-8 years old, so maintenance of society to keep to quality expected at that rate may also be a point of thought


    True.
    But, eldeco utopia is one of the best maintained society so I am guessing it will continue to be that way. Haven't been to GW but have heard it is pretty well maintained as well.
    CommentQuote
  • Hi Bro - some thoughts:

    I have been a couple of times to the Eldeco complex (Utopia, Olympia, Klasse and Studio) - we nearly had bought the studio in about 30L then (he is quoting 75 now - so bad decision we didnt)

    I have also seen both the sample flats of Olympia

    I have been to Grandwoods once or twice and have seen Krescent in some depth

    So - I know a little about each and hence will try.

    Eldeco Impressions

    - We thought that the overall Eldeco complex was ok ok - not really awesomely maintained but not bad either. The sample flat of Olympia then we saw (it was just 2-3 stories high then) was very nice - I remember saying this is nice and airy - with good floor plan - still remember a massive loo (which is always nice). Even the money asked then was quite ok
    - So positives here are - good floor plan, pretty good and new construction, great sector. Negatives were so so maintenance (but that was 2 years back) and always the second citizen factor next to ATS V. No big real greenery (space) around Olympia


    Omaxe Impressions


    - We really liked and were pleasantly surprised with the whole layout - greens, pool etc I thought was very nice indeed
    - Another positive is the low density and virtually going to touch the eway (not quite as there is space in front where eventually construction will happen)
    - The negatives here were - the construction quality seemed very average - it really pissed me off then (take it with a pinch of salt that I didnt evaluate super carefully) and there was the whole issue then (I dont know now) that registry wasnt happening etc etc

    Krescent Impressions

    - Obviously this is very different in that it is still 3 years away. So your first question should be - what is more important - early possession with the downside of having to cough up everything upfront with the flat, with the upside - less risk of construction, you know what u r getting, some room for rent . In which case your option is really limited to 1 & 2 above

    - If the answer is no - I've got time, I trust the township concept, I want to pay easy for next 3 months and I want the best of the 3 - then Krescent is your choice for sure. JP does better construction than both - floor plans of KH are very nice - you have a much more modern building/township - which will pale out these 2 above in many different ways and it is the cheapest of the 3 which means in 3 years when all 3 are in front of you - it will have reversed the cost arbitration it gives to Olympia/Omaxe. I have no doubt that once constructed and habitated somewhat - Krescent will almost destroy Eldeco/Omaxe (yes Omaxe will remain the least dense - but already soso construction will really show up, Olympia may still be quite good, with good location and construction - but its nothing spectacular esp with the associated costs)
    - the downside is the patience required to wait and everything that can happen in between
    ----

    I think the key is the 3 years - if these are vital in terms of cannot wait for Krescent - then I would pick Olympia - if yes - we can live with the uncertainty of waiting along with the benefit of lower cost and spread out payment (comparatively) and getting the best product with max upside potential - I would pick Krescent

    ----

    A second alternative is to pick Olympia now and sell it when Krescent is nearly there - but for that you need to do multiple sales and have to time it right. Not everyone wants to do that
    CommentQuote
  • Originally Posted by bizarien
    True.
    But, eldeco utopia is one of the best maintained society so I am guessing it will continue to be that way. Haven't been to GW but have heard it is pretty well maintained as well.

    I stay in Olympia (on rent) and I would disagree on the 'best' wording. Nothing special in the maintenance.

    Some negatives of Olympia:
    * No Green areas.
    * 2 lifts only (and often breaks down with only one in service for 90 odds flats for each tower)
    * Plasters cracking around windows
    * Huge Fire fighting pipes left uncovered in lobby
    * Swimming pool is hardly maintained. From above, you can see the dirt on the floor.
    * No dedicated club (shares the club with Eldeco Utopia, congested)
    * Less FAR, but that does not translate into any good space or open areas. In fact, I feel claustrophobic when walking around it. Towers are placed very close to each other.
    * Most of the open spaces around the two towers are converted to open parking. Greed on the the part of builder to sell parking space at the expense of open space/green areas.
    * Basement gets flooded on heavy rains.

    Plus Points:
    * RTM.
    * Good construction
    * Already developed Sector
    * Nearby food market/bank
    CommentQuote
  • Thanks dinesh. Always appreciate your feedback.

    My bro has been thinking about this for a while and he has been doing due diligence as well. I think real decision for him as you also pointed out is between Olympia and kh.

    But, he has been really concerned about the delays in kh. After 2.5 years of launch it is still barely above the ground.

    So, his thinking is why not invest in Olympia for now given it's rtm and later on when kh becomes rtm take a decision if he should switch. But, the question is do you think such a switch will be possible in future or kh will become far expensive than Olympia and kh will be out of reach even after selling Olympia.

    Pleas share your thoughts.

    Originally Posted by dineshsays
    Hi Bro - some thoughts:

    I have been a couple of times to the Eldeco complex (Utopia, Olympia, Klasse and Studio) - we nearly had bought the studio in about 30L then (he is quoting 75 now - so bad decision we didnt)

    I have also seen both the sample flats of Olympia

    I have been to Grandwoods once or twice and have seen Krescent in some depth

    So - I know a little about each and hence will try.

    Eldeco Impressions

    - We thought that the overall Eldeco complex was ok ok - not really awesomely maintained but not bad either. The sample flat of Olympia then we saw (it was just 2-3 stories high then) was very nice - I remember saying this is nice and airy - with good floor plan - still remember a massive loo (which is always nice). Even the money asked then was quite ok
    - So positives here are - good floor plan, pretty good and new construction, great sector. Negatives were so so maintenance (but that was 2 years back) and always the second citizen factor next to ATS V. No big real greenery (space) around Olympia


    Omaxe Impressions


    - We really liked and were pleasantly surprised with the whole layout - greens, pool etc I thought was very nice indeed
    - Another positive is the low density and virtually going to touch the eway (not quite as there is space in front where eventually construction will happen)
    - The negatives here were - the construction quality seemed very average - it really pissed me off then (take it with a pinch of salt that I didnt evaluate super carefully) and there was the whole issue then (I dont know now) that registry wasnt happening etc etc

    Krescent Impressions

    - Obviously this is very different in that it is still 3 years away. So your first question should be - what is more important - early possession with the downside of having to cough up everything upfront with the flat, with the upside - less risk of construction, you know what u r getting, some room for rent . In which case your option is really limited to 1 & 2 above

    - If the answer is no - I've got time, I trust the township concept, I want to pay easy for next 3 months and I want the best of the 3 - then Krescent is your choice for sure. JP does better construction than both - floor plans of KH are very nice - you have a much more modern building/township - which will pale out these 2 above in many different ways and it is the cheapest of the 3 which means in 3 years when all 3 are in front of you - it will have reversed the cost arbitration it gives to Olympia/Omaxe. I have no doubt that once constructed and habitated somewhat - Krescent will almost destroy Eldeco/Omaxe (yes Omaxe will remain the least dense - but already soso construction will really show up, Olympia may still be quite good, with good location and construction - but its nothing spectacular esp with the associated costs)
    - the downside is the patience required to wait and everything that can happen in between
    ----

    I think the key is the 3 years - if these are vital in terms of cannot wait for Krescent - then I would pick Olympia - if yes - we can live with the uncertainty of waiting along with the benefit of lower cost and spread out payment (comparatively) and getting the best product with max upside potential - I would pick Krescent

    ----

    A second alternative is to pick Olympia now and sell it when Krescent is nearly there - but for that you need to do multiple sales and have to time it right. Not everyone wants to do that
    CommentQuote
  • Nash bro,

    U have highlighted quite a few negatives. Are you suggesting not to buy in Olympia?And, it's good to get first hand feedback.

    In that case, which project will you suggest?



    Originally Posted by B.Nash
    I stay in Olympia (on rent) and I would disagree on the 'best' wording. Nothing special in the maintenance.

    Some negatives of Olympia:
    * No Green areas.
    * 2 lifts only (and often breaks down with only one in service for 90 odds flats for each tower)
    * Plasters cracking around windows
    * Huge Fire fighting pipes left uncovered in lobby
    * Swimming pool is hardly maintained. From above, you can see the dirt on the floor.
    * No dedicated club (shares the club with Eldeco Utopia, congested)
    * Less FAR, but that does not translate into any good space or open areas. In fact, I feel claustrophobic when walking around it. Towers are placed very close to each other.
    * Most of the open spaces around the two towers are converted to open parking. Greed on the the part of builder to sell parking space at the expense of open space/green areas.
    * Basement gets flooded on heavy rains.

    Plus Points:
    * RTM.
    * Good construction
    * Already developed Sector
    * Nearby food market/bank
    CommentQuote
  • Originally Posted by libranreality
    Thanks dinesh. Always appreciate your feedback.

    My bro has been thinking about this for a while and he has been doing due diligence as well. I think real decision for him as you also pointed out is between Olympia and kh.

    But, he has been really concerned about the delays in kh. After 2.5 years of launch it is still barely above the ground.

    So, his thinking is why not invest in Olympia for now given it's rtm and later on when kh becomes rtm take a decision if he should switch. But, the question is do you think such a switch will be possible in future or kh will become far expensive than Olympia and kh will be out of reach even after selling Olympia.

    Pleas share your thoughts.


    Right - if you see the last bit of my post, I was saying the same thing.

    Thing is we need to know a few things about the construction pattern at JP that I have observed for last 4-5 years. Post launch - they do nothing in terms of construction, they sell sell sell.

    There has always been a period of 2-3 years post launch that has been a lull period - happened with almost ALL WT projects - some more - like Imperial/Kalypso - some less like Knight, Kosmos etc

    What I am trying to say is - historically the lull period is over for KH - all projects launched just before are now zooming - see Kasa, Orchards, Kube, KB etc - all are now 1.5-2.5 floors a month. KH is now approaching that phase so the worst of the wait is now behind (if history tells us anything) - even now u go to KH you see a whole lot of people - which wasnt the case many months ago

    Further, there is no doubt that Krescent will overturn the Olympias/Grandwoods of the world - the issue is timing - do we buy into Eldeco or keep the money in FD and keep watching the market and turn to Krescent once it picks up

    Yes, you can - but you will have to take a early call - i.e. you will only be able to hold Olympia for a short time - why - well simply because the market isnt very liquid now - you need to give your self enough time to sell and it to not appear a panic sale. But more than the liquidity issue - DO YOU really see Olympia giving massive returns (better than FD) over the next year - year and a half (by the time Krescent construction really picks up, a lot of WT is delivered and sentiments really turn positive) - its a difficult call

    My suggestion is either for your brother to get in Krescent now (when the rates are low, there is time to pay and the lull period for Krescent is just passing) or to simply put his money in FD etc and buy when he knows Krescent will happen (say construction has reached 15-20 floors - WT deliveries have started in earnest) - but dont get in the trouble of buying in Olympia - timing the market and liquidity, hoping Olympia has outdone Krescent, selling it right and otherwise hassling himself with the fear of the unknown (I am doing this for something - but trust me, when it does not go as per plan - its not a nice feeling)

    Or if he def wants to invest in RTM - do it in Olympia with a care all attitude - i.e. the worst that can happen is he buys Olympia, cannot sell in time, Krescent turns out as per plan and that option is now closed - well not too bad - he still has Olympia

    But if I was him - I would now be really looking hard to get a top unit in KH - which one may get now but 2-3 years down will be difficult
    CommentQuote
  • Originally Posted by libranreality
    Nash bro,

    U have highlighted quite a few negatives. Are you suggesting not to buy in Olympia?And, it's good to get first hand feedback.

    In that case, which project will you suggest?

    I was not suggesting at all. I was just replying to the 'best maintenance' clause based on what I have experienced living here. Yes, if you want RTM in and around sec 93, Olympia is the better option than Omaze granswood. I think you should also consider ATS One hamlet and Lotus Panache too (sector 110), which would be RTM soon and IMHO are better located with many amenities. In fact, one can see painting already done on the ATS tower (next to phase 1 LP) and the nets are removed.

    Having said that, I have a 4 BHK in KRH for self use (booked in Jan 2013) and so far have paid around 35% on CLP. Within my budget of 1 cr, that was the best option I could garner during that time. And I hope it pays off in future. I also have a 3 BHK in LP phase 3 (bought in Jan, 2011) which is scheduled for possession in dec 2013. In fact, before I booked with 3C, I did have a look at Olympia (that time around, the tower construction was in final stage). But the pricing was twice as LP (and 3C had started construction a year ago). And I can remember existing residents of Utopia have put up sign boards on their balcony 'Boycott Eldeco' or 'No to Olympia' something. Anyhow, because of the price and the fact that I had to borne 80% payment unfront lead me to 3C.
    CommentQuote
  • Excellent analysis Dinesh bro.

    The sense I am getting from you post and correct me if I have misunderstood, is that there won't be any inherent advantage in buying today 's well maintained societies such as eldeco, silver city, ats village of 93 sector 4-5 years down the line when a lot of other societies will become RTM and these won't command premium anymore and if possible people should try to get out of these in the near future or it might be a possibilty that they won't be able to catchup as new societies might get out of their reach like kh, oc, kube etc.

    Is this a correct understanding?

    Originally Posted by dineshsays
    Right - if you see the last bit of my post, I was saying the same thing.

    Thing is we need to know a few things about the construction pattern at JP that I have observed for last 4-5 years. Post launch - they do nothing in terms of construction, they sell sell sell.

    There has always been a period of 2-3 years post launch that has been a lull period - happened with almost ALL WT projects - some more - like Imperial/Kalypso - some less like Knight, Kosmos etc

    What I am trying to say is - historically the lull period is over for KH - all projects launched just before are now zooming - see Kasa, Orchards, Kube, KB etc - all are now 1.5-2.5 floors a month. KH is now approaching that phase so the worst of the wait is now behind (if history tells us anything) - even now u go to KH you see a whole lot of people - which wasnt the case many months ago

    Further, there is no doubt that Krescent will overturn the Olympias/Grandwoods of the world - the issue is timing - do we buy into Eldeco or keep the money in FD and keep watching the market and turn to Krescent once it picks up

    Yes, you can - but you will have to take a early call - i.e. you will only be able to hold Olympia for a short time - why - well simply because the market isnt very liquid now - you need to give your self enough time to sell and it to not appear a panic sale. But more than the liquidity issue - DO YOU really see Olympia giving massive returns (better than FD) over the next year - year and a half (by the time Krescent construction really picks up, a lot of WT is delivered and sentiments really turn positive) - its a difficult call

    My suggestion is either for your brother to get in Krescent now (when the rates are low, there is time to pay and the lull period for Krescent is just passing) or to simply put his money in FD etc and buy when he knows Krescent will happen (say construction has reached 15-20 floors - WT deliveries have started in earnest) - but dont get in the trouble of buying in Olympia - timing the market and liquidity, hoping Olympia has outdone Krescent, selling it right and otherwise hassling himself with the fear of the unknown (I am doing this for something - but trust me, when it does not go as per plan - its not a nice feeling)

    Or if he def wants to invest in RTM - do it in Olympia with a care all attitude - i.e. the worst that can happen is he buys Olympia, cannot sell in time, Krescent turns out as per plan and that option is now closed - well not too bad - he still has Olympia

    But if I was him - I would now be really looking hard to get a top unit in KH - which one may get now but 2-3 years down will be difficult
    CommentQuote