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
Read more
Reply
13 Replies
Sort by :Filter by :
  • 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?
    CommentQuote
  • 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.
    CommentQuote
  • 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.
    CommentQuote
  • Originally Posted by luckysir
    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..
    CommentQuote
  • Originally Posted by tinesha
    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 ...
    CommentQuote
  • Originally Posted by luckysir
    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
    CommentQuote
  • Originally Posted by tinesha
    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.
    CommentQuote
  • My thots in bold.


    Originally Posted by MANOJa
    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:)
    CommentQuote
  • 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.
    CommentQuote
  • Originally Posted by luckysir
    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.


    While brand is important for safety of funds but if such brands (like Jaypee , Amarpali, Supertech) are launching project almost every week than it is not recommended for investment....
    CommentQuote
  • Originally Posted by MANOJa
    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.


    Hi Manoj,
    What i was referring to that if u are searching for property then u might get hold of a project with a relatively 1st timer which may turn out to be decent(i have bought myself). thats why i used the word classic and u know classic is normally a rarity.

    Basically under-construction property requires a lot of research and still one is never sure if the decision is correct. :)
    CommentQuote
  • Yes MM. As an invester we know that we can make money even in a bad project . But buyers should generally avoid pre-launches . Just to save Rs100-RS200 Sqft, they should not spoil their peace of mind as chances of things going wrong are very high during prelaunch. e.g. location can change, area can change, specification can change, commitments can change, good banks may not approve ( and then u endup paying higher rate of interest to LIC/other HFCs), etc etc...
    CommentQuote
  • Valid points MM & luckysir.


    Originally Posted by Munish Malhautra
    Hi Manoj,
    What i was referring to that if u are searching for property then u might get hold of a project with a relatively 1st timer which may turn out to be decent(i have bought myself). thats why i used the word classic and u know classic is normally a rarity.

    Basically under-construction property requires a lot of research and still one is never sure if the decision is correct. :)
    CommentQuote