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Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

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Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

Last updated: August 7 2017
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  • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

    Originally posted by realpune View Post
    Realacres,
    It's very much obvious these days on almost all IREF Pune threads where builder's salesmen pretend to be end users. They somehow try to keep the thread alive, listing positives about the project, ganging up against critics.

    For hinjewadi based projects, iref one of the best sales tools where their prospective NRI buyers can easily land. With little effort, such salesmen can be easily spotted.
    I don't think so. I have read most posts in this thread and I don't see any salesman. If you think anybody is a salesman of a builder, do let us know so we can give the guy a chance to come clean.

    I am RE bear but I am deeply invested in it (including BR). Reason? I am unable to figure out if current prices are truly very high!!! I know thats an atrocious statement to make. But bear with me.

    Most of us have spent our childhood in small 2 room rented houses. That despite having well employed father. Our parents moved into own bungalows when we were fairly old (12-18 years of age). And they put all of their money in that house and didn't eat out as often as we do.
    So apparently houses were not cheap even in 80's.

    Why do we have this sense of entitlement of owning the house much earlier than them? Do we beleive that our jobs are far better than theirs? If we factor in inflation, our salaries don't look that great. So why this moaning about RE prices being high?

    A 2 BHK flat in new areas of Pune is 50 lakhs and is aimed at people who make 10 lakhs per year. i.e. 5 times their yearly salary. Was this proportion much different 25 years ago? I still remember 1 lakh first price money lottery tickets which was considered a lot of money then.

    In last decade RE prices have gone thru the roof...I bought my first house in 2005 for Rs 1100 per sqft and now it is probably at Rs 4500-5500 per sqft (4-5 times rise in a decade). Yes, it has beat all asset class in last decade and now it is showing stagnation. It should stagnate at this price for a couple of years if our economy remains in doldrums. If we see heavy economic activity, our incomes will grow and so will RE prices.

    To me, RE prices are justifiable if we factor in labor rates of Rs 300 per day, bricks at Rs 9 each and cement prices. Builder's margins are going to remain 100% over the period of 3 years (i.e. 25% per year profit).

    SO if construction cost is Rs 2000 (including cost of the lans), a flat should cost Rs 4000. What do you say? I know this post is not specific to BR, but just sounding my opinion.

    In 2013, an ITG with 6 years of experience earns 50,000 per month and rents are 12000 for good 2 BHK and a flat costs 50 lakhs.
    In 1993, class 1 gazzetted officer earned Rs 5000 per month and rents were 1200 for a good 2BHK and good small houses costed 2-3 lakhs. So yes, prices have moved a bit faster than salaries...but only marginally....but quality of housing is far better now.
    Last edited by NG2012; January 9 2014, 03:05 PM.

    Comment


    • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

      Originally posted by NG2012 View Post
      I don't think so. I have read most posts in this thread and I don't see any salesman. If you think anybody is a salesman of a builder, do let us know so we can give the guy a chance to come clean.

      I am RE bear but I am deeply invested in it (including BR). Reason? I am unable to figure out if current prices are truly very high!!! I know thats an atrocious statement to make. But bear with me.

      Most of us have spent our childhood in small 2 room rented houses. That despite having well employed father. Our parents moved into own bungalows when we were fairly old (12-18 years of age). And they put all of their money in that house and didn't eat out as often as we do.
      So apparently houses were not cheap even in 80's.

      Why do we have this sense of entitlement of owning the house much earlier than them? Do we beleive that our jobs are far better than theirs? If we factor in inflation, our salaries don't look that great. So why this moaning about RE prices being high?

      A 2 BHK flat in new areas of Pune is 50 lakhs and is aimed at people who make 10 lakhs per year. i.e. 5 times their yearly salary. Was this proportion much different 25 years ago? I still remember 1 lakh first price money lottery tickets which was considered a lot of money then.

      In last decade RE prices have gone thru the roof...I bought my first house in 2005 for Rs 1100 per sqft and now it is probably at Rs 4500-5500 per sqft (4-5 times rise in a decade). Yes, it has beat all asset class in last decade and now it is showing stagnation. It should stagnate at this price for a couple of years if our economy remains in doldrums. If we see heavy economic activity, our incomes will grow and so will RE prices.

      To me, RE prices are justifiable if we factor in labor rates of Rs 300 per day, bricks at Rs 9 each and cement prices. Builder's margins are going to remain 100% over the period of 3 years (i.e. 25% per year profit).

      SO if construction cost is Rs 2000 (including cost of the lans), a flat should cost Rs 4000. What do you say? I know this post is not specific to BR, but just sounding my opinion.

      In 2013, an ITG with 6 years of experience earns 50,000 per month and rents are 12000 for good 2 BHK and a flat costs 50 lakhs.
      In 1993, class 1 gazzetted officer earned Rs 5000 per month and rents were 1200 for a good 2BHK and good small houses costed 2-3 lakhs. So yes, prices have moved a bit faster than salaries...but only marginally....but quality of housing is far better now.
      >>> but quality of housing is far better now

      Good post. Disagree with above though. Most new constructions I see in Baner/Hinjewadi/Wakad have much lower construction quality than older buildings in Aundh/Kalyaninagar/SB Road. Unless you consider amenities etc.

      Comment


      • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

        ""Unless you consider amenities etc.""
        Quality of constructions are defiantly lower nowadays.Amenities are not relevant in the discussion of quality.
        Cracks develop quickly.Seepage,leakage is too quick to appear.
        Quality control has been sacrificed to some extent by builders,though prices keep going up.

        Comment


        • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

          Originally posted by NG2012 View Post
          I don't think so. I have read most posts in this thread and I don't see any salesman. If you think anybody is a salesman of a builder, do let us know so we can give the guy a chance to come clean.

          I am RE bear but I am deeply invested in it (including BR). Reason? I am unable to figure out if current prices are truly very high!!! I know thats an atrocious statement to make. But bear with me.

          Most of us have spent our childhood in small 2 room rented houses. That despite having well employed father. Our parents moved into own bungalows when we were fairly old (12-18 years of age). And they put all of their money in that house and didn't eat out as often as we do.
          So apparently houses were not cheap even in 80's.

          Why do we have this sense of entitlement of owning the house much earlier than them? Do we beleive that our jobs are far better than theirs? If we factor in inflation, our salaries don't look that great. So why this moaning about RE prices being high?

          A 2 BHK flat in new areas of Pune is 50 lakhs and is aimed at people who make 10 lakhs per year. i.e. 5 times their yearly salary. Was this proportion much different 25 years ago? I still remember 1 lakh first price money lottery tickets which was considered a lot of money then.

          In last decade RE prices have gone thru the roof...I bought my first house in 2005 for Rs 1100 per sqft and now it is probably at Rs 4500-5500 per sqft (4-5 times rise in a decade). Yes, it has beat all asset class in last decade and now it is showing stagnation. It should stagnate at this price for a couple of years if our economy remains in doldrums. If we see heavy economic activity, our incomes will grow and so will RE prices.

          To me, RE prices are justifiable if we factor in labor rates of Rs 300 per day, bricks at Rs 9 each and cement prices. Builder's margins are going to remain 100% over the period of 3 years (i.e. 25% per year profit).

          SO if construction cost is Rs 2000 (including cost of the lans), a flat should cost Rs 4000. What do you say? I know this post is not specific to BR, but just sounding my opinion.

          In 2013, an ITG with 6 years of experience earns 50,000 per month and rents are 12000 for good 2 BHK and a flat costs 50 lakhs.
          In 1993, class 1 gazzetted officer earned Rs 5000 per month and rents were 1200 for a good 2BHK and good small houses costed 2-3 lakhs. So yes, prices have moved a bit faster than salaries...but only marginally....but quality of housing is far better now.
          superbly put

          Comment


          • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

            Originally posted by NG2012 View Post
            I don't think so. I have read most posts in this thread and I don't see any salesman. If you think anybody is a salesman of a builder, do let us know so we can give the guy a chance to come clean.

            I am RE bear but I am deeply invested in it (including BR). Reason? I am unable to figure out if current prices are truly very high!!! I know thats an atrocious statement to make. But bear with me.

            Most of us have spent our childhood in small 2 room rented houses. That despite having well employed father. Our parents moved into own bungalows when we were fairly old (12-18 years of age). And they put all of their money in that house and didn't eat out as often as we do.
            So apparently houses were not cheap even in 80's.

            Why do we have this sense of entitlement of owning the house much earlier than them? Do we beleive that our jobs are far better than theirs? If we factor in inflation, our salaries don't look that great. So why this moaning about RE prices being high?

            A 2 BHK flat in new areas of Pune is 50 lakhs and is aimed at people who make 10 lakhs per year. i.e. 5 times their yearly salary. Was this proportion much different 25 years ago? I still remember 1 lakh first price money lottery tickets which was considered a lot of money then.

            In last decade RE prices have gone thru the roof...I bought my first house in 2005 for Rs 1100 per sqft and now it is probably at Rs 4500-5500 per sqft (4-5 times rise in a decade). Yes, it has beat all asset class in last decade and now it is showing stagnation. It should stagnate at this price for a couple of years if our economy remains in doldrums. If we see heavy economic activity, our incomes will grow and so will RE prices.

            To me, RE prices are justifiable if we factor in labor rates of Rs 300 per day, bricks at Rs 9 each and cement prices. Builder's margins are going to remain 100% over the period of 3 years (i.e. 25% per year profit).

            SO if construction cost is Rs 2000 (including cost of the lans), a flat should cost Rs 4000. What do you say? I know this post is not specific to BR, but just sounding my opinion.

            In 2013, an ITG with 6 years of experience earns 50,000 per month and rents are 12000 for good 2 BHK and a flat costs 50 lakhs.
            In 1993, class 1 gazzetted officer earned Rs 5000 per month and rents were 1200 for a good 2BHK and good small houses costed 2-3 lakhs. So yes, prices have moved a bit faster than salaries...but only marginally....but quality of housing is far better now.
            ------------------------------------------------------------------------------------------
            It is not easy to identify sales persons. I may be & also you may be. as per your own statement price of good 2BHK house was 40 to 60 times the monthly salary. today it is 100 times monthly salary as per your own statement. so the price/salary ratio has been doubled. It can't be said a BIT faster movement

            Comment


            • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

              for salary the underlying asset is the person getting employed
              for prices the underlying asset is the house.
              salary to prices discussion is not really the most perfect analysis. It is like comparing apples to oranges.

              The only ratio which has a more relevant meaning is the rent to price ratio.
              that way the underlying asset remains the same [the house].

              can anyone share historical data on rent vs price in the last 10-25 years?
              e.g.
              1990: monthly rent was 100 and the price was 8000
              2005: monthly rent was 500 and the price was 30000
              or something like the above for pune city.

              Comment


              • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

                Originally posted by NG2012 View Post

                Most of us have spent our childhood in small 2 room rented houses. That despite having well employed father. Our parents moved into own bungalows when we were fairly old (12-18 years of age). And they put all of their money in that house and didn't eat out as often as we do.
                So apparently houses were not cheap even in 80's.
                House was never cheap... no one is saying that! Even earlier generations used their life time income to buy house for END USE.

                Your example also correctly says that the generations stayed on rent for long, saved money till their kids get to 12-18 year old (in some cases get job etc) and then bought the houses with minimum leverages. Many of them used their retirement savings without any loan components.

                The problem right now is
                1. Over leveraging - Someone at the age of 27 is trying to buy a house worth 50L (21 + 6 years exp earning 50K - I doubt if more than 10-20% ITGs earn 50K post tax in hand package after 6 years). In this case the person is betting all the future earnings with hopes that everything will always be good. But the economy in India is a roller coaster now and you never know what will happen.

                2. RE as investment - Earlier generations didnt invest in RE by over leveraging. Sure many of them bought plots in the (then) fringe areas but they were with full payments and not bank loans. Many people still do that and it is a good investment if you know the land dynamics. But the typical families you explained, never invested in houses the way it is getting done today. The speculative aspect of it can be dangerous.

                Comment


                • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

                  Originally posted by realpune View Post
                  Realacres,
                  It's very much obvious these days on almost all IREF Pune threads where builder's salesmen pretend to be end users. They somehow try to keep the thread alive, listing positives about the project, ganging up against critics.

                  For hinjewadi based projects, iref one of the best sales tools where their prospective NRI buyers can easily land. With little effort, such salesmen can be easily spotted.

                  ROFL. Sour grapes?


                  Sent from my iPad using Tapatalk

                  Comment


                  • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

                    Originally posted by punerebuyer View Post
                    House was never cheap... no one is saying that! Even earlier generations used their life time income to buy house for END USE.



                    Your example also correctly says that the generations stayed on rent for long, saved money till their kids get to 12-18 year old (in some cases get job etc) and then bought the houses with minimum leverages. Many of them used their retirement savings without any loan components.



                    The problem right now is

                    1. Over leveraging - Someone at the age of 27 is trying to buy a house worth 50L (21 + 6 years exp earning 50K - I doubt if more than 10-20% ITGs earn 50K post tax in hand package after 6 years). In this case the person is betting all the future earnings with hopes that everything will always be good. But the economy in India is a roller coaster now and you never know what will happen.



                    2. RE as investment - Earlier generations didnt invest in RE by over leveraging. Sure many of them bought plots in the (then) fringe areas but they were with full payments and not bank loans. Many people still do that and it is a good investment if you know the land dynamics. But the typical families you explained, never invested in houses the way it is getting done today. The speculative aspect of it can be dangerous.

                    Half the things are solved if you start thinking like a winner.

                    If you know what I mean


                    Sent from my iPad using Tapatalk

                    Comment


                    • Re : Blue Ridge by Paranjape Schemes in Hinjewadi, Pune

                      Originally posted by realpune View Post
                      Realacres,
                      It's very much obvious these days on almost all IREF Pune threads where builder's salesmen pretend to be end users. They somehow try to keep the thread alive, listing positives about the project, ganging up against critics.

                      For hinjewadi based projects, iref one of the best sales tools where their prospective NRI buyers can easily land. With little effort, such salesmen can be easily spotted.
                      It is unlikely that BR salesmen will get online to attract customers. BR's marketing strategy hasn't worked much on the internet. I haven't seen a single BR ad on the internet or even on RE websites like magicbricks or commonfloor. They are more into advertising on large widescreen hoardings. I think they have even stopped newspaper advertisements though once in a while, you do see the important announcements like - golf inauguration or the air show.

                      Comment

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