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

    Originally posted by realacres View Post
    Didn't that friend tell you that builders are charging 100% terrace and 30% loading even on terraces now ??
    Didn't that friend tell you that land purchase is done only once & not everyday for same piece of land ?
    Didn't that friend tell you that BR will not be having conveyance deed done with the buyers ?
    And man, all these increased cost are nothing in front of 100%+ profit margins. Fact is builders still can remain in profit, just that they want high prices to keep investors happy. You know more than 50% flats in such projects are bought by investors. Builder cares more for investors & not buyers. Had that been the case, the layout would not have been changed mid-way, nor had possession by delayed by such a long period of time.
    My comments were for RE in general...obviously projects like BR are making money like crazy...but why dont we give them some benefit for their ability to create such projects...not everyone has that kind of money + execution ability...end of the day they are in business not charity

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

      No crash, only a correction in real estate: Keki Mistry, VC and MD, HDFC

      The largest mortgage lender in the country HDFC is hopeful of achieving 19% growth this year, with housing loan as a proportion of GDP being at 8% against 20% in China. In an interview with The Economic Times, Keki Mistry, the company's VC and MD, said that though there could be some correction in real estate prices, it would not collapse. Excerpts:

      Do you think high interest rates are holding back people from buying homes and affecting the mortgage market?

      For the middle class, interest rates do not determine, affordability does. There are tax benefits on housing loans and repayment of housing loans is one of the avenues of saving tax. Total outstanding housing loan as a proportion to GDP is close to 80% in the US. But in emerging markets like China, it is 20%. In India, the total housing loan as a proportion to GDP is only 8%. We are talking of doubling it to 16% in 10 years. Saturation level for India is still very far away and our pace of business will continue to grow at 18-20% a year for a long time. Another factor that will determine high growth is demographics. We know India is a young country where 60% of population is less than 30 years. People think of buying a house and taking a loan when they are in their mid-thirties. Affordability is 4 to 5 times of their annual income.

      There are not too many properties within Mumbai limits. Most of the demand is coming from Navi Mumbai and Kalyan area. Only Mumbai has variations like this where property prices could range from 3,000 a square feet in Virar to Rs 1 lakh a square feet in South Mumbai.

      What is the competitive strength of HDFC?

      We have core competence about the housing market: for us, housing is the only business. In the 90s, banks were aggressively getting into housing. We realised that we have to keep the cost low. We are operating at a cost-to-income ratio of 7.6%, compared to 30% for most banks. For us, asset quality has been very important. Our total loan loss has been 0.04% from the time we started writing business in 1977. We have four objectives: our return to equity must rise every year, cost-income ratio should be lower, NPAs should come down, and we should grow at a pace that we have set for ourselves.

      What is your view on real estate prices in Mumbai?

      I don't see any big collapse. Price of a product is the function of demand and supply. There is some correction in some places. The infrastructure in the city has to improve, with sea on three sides, sewage and healthcare. For a customer buying a house, the confidence comes from a steady job. If demand slows down significantly, prices will come down in big cities like Mumbai or Delhi. For a city like Mumbai, demand for a house is always going to be there. But transport has to be eased either through the coastal road or through bridges. Water, power, schooling, healthcare are relatively easier to solve than transportation. Housing in Mumbai is expensive. If you go to smaller cities, it's affordable.

      You spoke of supply being short but inventories high?

      What used to happen 7-8 years ago - builder announced projects with minimum tenure - have changed now. People saw delays happening in 2008. Now, they want to see a structure in place.

      Is the average loan ticket size going up every year?

      We have seen average ticket size going up: it ranges between 8% and 12%. Our average ticket size for new loan is Rs 21.4 lakh and the average price of a house is Rs 33 lakh. Mumbai used to be our biggest centre but now it has slipped to number 3. Today, Delhi NCR is No 1, Chennai is No 2, Pune 4 and Bangalore 5.

      Do you see competition from banks?

      We saw aggressive competition from a large bank two years ago when it came up with lower interest rate products. There was competition from other private and foreign banks in early 2000. Housing loans in the system grew by 14.7% but our growth was 19%. We have never been in the market share game.

      Has there been a rise in defaults?

      We have seen 30 consecutive quarters decline in non performing loans (NPLs) vis-a-vis same quarter previous year. We are seeing 1-2 basis points decline in NPLs. Our total non-performing level is 77 basis points fully provided for. Our NPLs are 0.79 and loan loss 0.04% cumulatively over 35 years. We recognise the fact that we are lending to middle class and the loan can stretch for 10-12 years.

      Do you think inefficiency of banks will help HDFC grow?

      Efficiency levels have changed over time. In the 90s, if you wanted to place a deposit, it used to take three months to get deposit receipts. It has changed a lot.

      After RBI banned pre-payment charges on loan closure, do you see people switching loans?

      Indians are debt-averse and that's why they come early and pay. In the past 10 years, 10-14% loans were prepaid either in full or in part. For the year ended March 2012, when charges were abolished, 12% went up to 13%. It is not a common phenomenon.

      What proportion of housing is funded by bank loans?

      In urban areas, a very significant part of over 80% is funded out of loans.

      If you want to buy house from the secondary market, there's always a cash element?

      Everyone knows there's a cash element. But over the past 20 years, the cash element has come down. There was a section in Income Tax, which gave tax authorities the right to acquire a house if they thought there was an under valuation. This section was deleted. Today, you can buy property anywhere in the country with cash payment.

      Are you funding the builders?

      Builders are making good margins, but not fancy margins. Builders are making not more than 15-20%. We are financing projects only for construction. All cash flow from sales of units in the project is escrowed, which ensures that HDFC gets the money.

      Since the 2008 crisis, how has the builder community adapted to the squeeze in funding?

      2008 was tough - things have not been so bad since then. The previous year was euphoric and every investment banker would suggest builders to do an IPO. They were building a large land bank. In those days, builders went for high-end apartments. Post Lehman, most builders have recognised that for every high-end project they also do one mid-income project. So, in difficult times, when the high-end projects may not sell, the low-end ones would. That's one change. The second change is that developers have stopped going on a land buying spree.

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

        Originally posted by simsagar View Post
        Looks like Parnajape is one builder ready to face the customers on VAT issue - other just send letetrs/notices and demand 5% of agreement cost.

        Does it mean Parnajape is better prepared to deal this for his customers?

        Lets wait for Oct 14 meetign to happen - hope some one posts the outcome of that meeting

        regards
        SS
        Yes. One of the better builders in Pune.

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

          Originally posted by herohiralal View Post
          Yes. One of the better builders in Pune.
          That's quite reassuring.
          Thanks

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

            Any updates about the meeting ??

            puneri12,

            +1 about land thing. And by conveyance I mean that the land will never be owned by the flat owners here.
            If you are happy, you are successful.

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

              Originally posted by realacres View Post
              Any updates about the meeting ??

              puneri12,

              +1 about land thing. And by conveyance I mean that the land will never be owned by the flat owners here.
              BR has agreed to reduce VAT amount to 1.75% from 3.5% and also agreed to provide detail VAT calculations on a written letterhead, until that is received we are not going to pay the requested amount
              also. the group is trying to negotiate furthur
              if any person in this forum is affected by this VAT issue (only BR project)
              send me your email id and i will add you to the group communication mails.

              Comment


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

                Has anyone paid VAT to BR yet ?
                Last edited by jaip22; October 16 2012, 03:27 PM.

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

                  Originally posted by puneri12 View Post
                  BR has agreed to reduce VAT amount to 1.75% from 3.5% and also agreed to provide detail VAT calculations on a written letterhead, until that is received we are not going to pay the requested amount
                  also. the group is trying to negotiate furthur
                  if any person in this forum is affected by this VAT issue (only BR project)
                  send me your email id and i will add you to the group communication mails.

                  Are you sure builder has agreed for 1.75% VAT?
                  One of my friend already paid 3.5% VAT on his 2 BHK flat registered in March 2009.

                  Comment


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

                    Originally posted by jaip22 View Post
                    Are you sure builder has agreed for 1.75% VAT?
                    One of my friend already paid 3.5% VAT on his 2 BHK flat registered in March 2009.
                    Why was your friend in a hurry to pay. The matter is still sub judice. You need not pay anything till it reaches conclusion from the supreme court. 31oct deadline is for the builder, not the buyer. No need to panic.

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

                      Cooool down man
                      Visit the below post and save it
                      http://www.indianrealestateforum.com...9-page640.html

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