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Small builders or big builders

Last updated: September 2 2010
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  • Small builders or big builders

    Please suggest me !!!!
    Which is a better option to buy a flat from small builder or big builder

    i am worried about big builders how are they going to hand over possession of more than 25 acres with 15 months

    whereas small builders seems to be a better option as they have just acquired 5 -10 acres of land

    good thing about big builder is have good name in market
    but how about delivery of the project
  • #2

    #2

    Re : Small builders or big builders

    Thot of re-starting this old thread as we are seeing so many new and virtually unknown builders coming up and the biggies are already thriving.

    Whats your opinion whether to go in for a big builder or go with a small builder?
    MM

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    • #3

      #3

      Re : Small builders or big builders

      From investment viewpoint:
      I think small builder is good for investment purpose for short term gain. You can really get a good discount, and rates below market.
      Big builders leave nothing on table for investers generally.

      For personal use: Risks associated with small builder are more. So, if anyone is buying his 1st home, and is funded by bank loan, he should go for big builder. For people having surplus money and buying 2nd house, can take any shot depending on other criteria for house selection. For him, builder reputation doesnot matter as much as it matters for 1st time buyer.
      Again my comments: BUILDER is a BUILDER. Big or Small, he is born to mint money. Dont praise under consunstruction properties too much of ny builder. Ideally 1st time buyer should buy flat only after it is ready to possession.

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      • #4

        #4

        Re : Small builders or big builders

        Both have their pros & cons.

        If u go with a small/unestablished/new builder , u r putting yr. money to risk, u do not know whether the project would be delivered in time, no surety on quality of construction, suspense on whether the project would ever be completed , would ever become bankable , resale value etc. etc.. but u save on psf rate. If everything goes right with the project, u make an handsome ROI. Here the big question is "if everything goes right"

        With a big/established builder , u pay more on psf , but r normally free from the rest of the hassles. U probably make less profits comparatively .

        Personally , i would prefer going with a big builder,doing a small to a mid size project. I might go for a small/unestablished/new builder , if i can comfortably put a few lacs to risk.
        Please read IREF rules | FAQ's

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        • #5

          #5

          Re : Small builders or big builders

          Originally posted by luckysir View Post
          From investment viewpoint:
          I think small builder is good for investment purpose for short term gain. You can really get a good discount, and rates below market.
          Big builders leave nothing on table for investers generally.

          For personal use: Risks associated with small builder are more. So, if anyone is buying his 1st home, and is funded by bank loan, he should go for big builder. For people having surplus money and buying 2nd house, can take any shot depending on other criteria for house selection. For him, builder reputation doesnot matter as much as it matters for 1st time buyer.
          Again my comments: BUILDER is a BUILDER. Big or Small, he is born to mint money. Dont praise under consunstruction properties too much of ny builder. Ideally 1st time buyer should buy flat only after it is ready to possession.
          Investing for short term with small builder will have problem of Resale..In such case , Branded builder is must..

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          • #6

            #6

            Re : Small builders or big builders

            Originally posted by tinesha View Post
            Investing for short term with small builder will have problem of Resale..In such case , Branded builder is must..
            Which branded builder can you trust for under construction project? Can you name them Pls ...

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            • #7

              #7

              Re : Small builders or big builders

              Originally posted by luckysir View Post
              Which branded builder can you trust for under construction project? Can you name them Pls ...
              No builder is good but we have 2 select best one like 3c , logix , patel , Mahagun , Ajnara

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              • #8

                #8

                Re : Small builders or big builders

                Originally posted by tinesha View Post
                No builder is good but we have 2 select best one like 3c , logix , patel , Mahagun , Ajnara
                So you say , 3c , logix , patel , Mahagun , Ajnara are big branded builders...
                I thought DLF, Unitech, Omaxe, HDIL, are big branded ones..

                Upto you ....Ideally never praise any bldr for under construction projects.

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                • #9

                  #9

                  Re : Small builders or big builders

                  My thots in bold.


                  Originally posted by MANOJa View Post
                  Both have their pros & cons.

                  If u go with a small/unestablished/new builder , u r putting yr. money to risk, u do not know whether the project would be delivered in time, no surety on quality of construction, suspense on whether the project would ever be completed , would ever become bankable , resale value etc. etc.. but u save on psf rate. If everything goes right with the project, u make an handsome ROI. Here the big question is "if everything goes right"

                  There are classic examples where small, relatively unknown and new builders have delivered excellent projects on time. Even DLF started as a small company. It all depends which builder is professional, customer driven and quality conscious.

                  With a big/established builder , u pay more on psf , but r normally free from the rest of the hassles. U probably make less profits comparatively.

                  Not sure what u meant by less profits If a builder is renowned and delivers good quality , his projects will always be in demand and profitable.

                  Personally , i would prefer going with a big builder,doing a small to a mid size project. I might go for a small/unestablished/new builder , if i can comfortably put a few lacs to risk.
                  Yes this is a good way of looking at getting VFM and good returns.
                  Issue is i have never seen this happen. a big builder is always gunning for big ticket projects. In UAE builders have a lot of prestige issues, if one builder builds a tower of 80 floors, his competitor will come up with a plan to build a 90 storeyed tower
                  MM

                  Comment

                  • #10

                    #10

                    Re : Small builders or big builders

                    MM,

                    I do not agree , to yr. statement that " There are classic examples where small, relatively unknown and new builders have delivered excellent projects on time. Even DLF started as a small company. It all depends which builder is professional, customer driven and quality conscious." ,

                    But u have very limited examples of small builders delivering. For every new builder, who has delivered, there would be 10 builders, who have run away with investors money/not delivered/delivered crappy construction etc . etc. There would always be exceptions, but exceptions cannot be taken as a rule.

                    On yr. remark that "Not sure what u meant by less profits If a builder is renowned and delivers good quality , his projects will always be in demand and profitable". .

                    I am just comparing ROI between a new builder , who delivers, as per promise & an established builder. Since, u have booked , at a lesser psf with the smaller builder, ROI for an bigger builder would be less in comparison.
                    Please read IREF rules | FAQ's

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