Hereby I will prove how the realty boomers arguments are false.

What are the boomers arguments?

1.) Buy today, houses always increase in value in the long run.
WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.

2.) Renting is just wastage of money.
WRONG. As said before renting is now much cheaper per month than owning. If you don't rent, you either:

* Have a mortgage, in which case you are throwing away money on interest, tax, insurance, maintenance, costs that increase forever.
* Own outright, in which case you are throwing away the extra income you could get by converting your house to cash, investing in bonds, and renting a similar place to live for much less money. This extra income is sufficient for emergency expenses,retirement etc.

Either way, owners lose much more money every month than renters and that's assuming prices don't correct to very high level & everything is smooth in the economy.

3.) As a renter, you won't have any money left as you will spend them on vacations,cars & hence won't have equity/savings etc.
WRONG. Equity is just money. Renters are actually in a better position to build equity/savings through investing in anything but housing. Renters can get rich much faster than owners, just by investing in conservative stocks & bonds.

* Owners are losing every month by paying much more for interest than they would pay for rent. The tax deduction does not come close to making owing competitive with renting.
* Owners must pay taxes simply to own a house. That is not true of stocks, bonds, or any other asset that can build equity/savings. Only houses are such a guaranteed drain on cash.
* Owners must insure a house, but not most other investments.
* Owners must pay to repair a house, but not a stock or a bond.
* Owners lose their money as house prices reduce. The EMI's remain constant in spite of reduction in rates. At the end of loan tenure, they would have paid almost twice than that of current renters who will buy at logical rates. Keep interest rates in mind. Most of the EMI is not principal amount but interest.

4.) There are great tax advantages to owning a house.
WRONG. Many people believe you can just reduce your income tax by the amount you pay in interest, but they are wrong. Buyers may not deduct interest from income tax; they deduct interest from taxable income. And even then, the tax advantage is not significant compared to the large monthly loss from owning.

If you don't own a house but want to live in one, your choice is to rent a house or rent money to buy a house. To rent money is to take out a loan. A mortgage is a money-rental agreement. House renters take no risk at all, but money-renting owners take on the huge risk of falling house prices, as well as all the costs of repairs, insurance, property taxes, etc.

5.) RE is based on local factors, it's not a national phenomenon. RE of Delhi-NCR,Bangalore & rest of the cities has nothing to do with Pune RE.
WRONG. Lending rates remain the same throughout the country. ALL loans are harder to get. This will drive prices down everywhere.

6.) A rental house provides good income. So, you can rent if you have purchased as investment.
WRONG. Rental houses provide very poor income in hyped areas and certainly cannot cover mortgage payments. Remember there is almost 300% difference between EMIs & rent for the same house.

It's pointless to do the work of being a landlord if you can make more money with no risk, no work, and no state income tax by investing in assured good returns bond.

7.) If owning is a loss in monthly cash flow, but appreciation will make up for it.
WRONG. Appreciation is negative. Prices are going down. It only adds to the injury of already high EMI's.

8.) As soon as prices drop a little, the number of buyers on the sidelines willing to jump back in increases.
WRONG. There are very few buyers left, and those who do want to buy will be limited by increasing difficulty of borrowing now that many house owners are near bankrupt as they don't save anything at the end of the month due to high EMI's.
No one has to buy, but there will be more and more people who have no choice but to sell as their payments rise. That will keep driving prices downward for a long time.

9.) House prices never fall atleast in Pune.
WRONG. If you see the RE scenario of 1996, prices crashed by 50% & took a whole 7+ years to recover.
Exact 1996 scenario may not be there today but strong correction is inevitable across the city.

10.) House prices don't fall to zero like stock prices, so it's safer to invest in real estate.
WRONG. House prices won't be zero, but the equity or the principal amount you paid can be zero or even negative. What you will pay as EMIs later in actual terms is not for the principal amount but only the interest as house prices dip. So, you will be only serving the bank.

11.) Prices will soften gradually, won't crash immediately.
WRONG. Prices are falling off a cliff. No one knows exactly what will happen, but it looks like prices will continue to fall for long time. These are just more manipulation of buyer emotions, to get them to buy even while prices are falling.

12.) The bubble prices were driven by supply and demand alone.
WRONG. Prices were driven by low interest rates and risky loans & good returns for investors in initial phases of boom in 2004-05.
Prices went up, interest rates went up & buyers savings went down. So prices are violating the most basic assumptions about supply and demand.

13.) There is lack of land.
WRONG. Ample of land is available & continue to be even in future in Pune. Sales volume are down. Even in Japan (small country with less land), prices went down. Current prices here are the same as that of 23 years ago. If we really had a housing shortage, there would not be so many vacant rentals.

14.) If you don't own, you'll live in a cheap neighborhood later.
WRONG. For the any given monthly payment, you can rent a much better house than you can buy. Renters live better, not worse. There are downsides to renting, such as being told to move at the end of your lease, or having your rent raised, but since there are thousands of vacant rentals, you can take your pick and be quite happy renting during the crash. There are similar but worse problems for owners anyway, such as being fired and losing your house, or having your interest rate and property taxes adjust upward. Remember, property taxes are forever.

15.) There's always someone predicting a real estate crash.
TRUE, yet irrelevant. There are very real crashes every decade or so. Even a broken clock is right twice a day.

16.) Local incomes justify the high prices.
WRONG. The mortgage should be more than your 3 years earning. It is much higher today. Most are already in danger/red zone.

17.) You have to live somewhere.
CORRECT. But that doesn't mean you should waste your life savings on a bad investment. You can live in a better house for much less money by renting during the down slide in RE.

18.) It's not a house, it's a home.
WRONG. Wherever one lives in it is home, be it apartment, condo, bungalow , mansion or house. Calling a house a "home" is a manipulation of your emotions for profit.

19.) If you don't buy now, you'll never get another chance.
WRONG. History proves otherwise.
Here's a beautiful quote from a analyst:-
"The real issue isn't whether you will be stuck being a renter all your life, she says. Its whether you'll get so scared about being shut out that you'll buy at the market's peak and be stuck in a property you can't afford or sell."

20.) It would take major economic recession or a major earthquake that wipes out this area in order for the price to fall by over 50%.
WRONG. Even today, if the prices fall by 50%, there will still be very few people who can buy at this levels due to uncertainty in jobs & most importantly high EMIs. Also, look at the rental rates for equivalent houses. Which loss per month is larger? EMI or rent?

contd....
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  • Hajmola le kar bhi ye rate pacha nahi payenge :(
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  • Originally Posted by realacres
    +1 harshal, enduser.

    The problem which I feel here is that the aspect of having own house is much larger than having a good life. Some people mix up the two & then get screwed up.

    As far as corruption is concerned, it is mostly due to poverty. A politico who has never seen INR 1L suddenly sees few crores. Then he wants more money so that he can INVEST this money in SECURING his seat to earn more money. Later, these people try to keep poor people poor as they know that if poor get rich, they will be kicked out. This then becomes a vicious circle.

    Elections are won on voting %age of about 40%:bab (45): & we don't vote. Imagine if all of us vote, it will be us who will decide the power centre as we constitute 60%. Add to it, we together can also demand Right to NO VOTE on EVM as well.

    Man, whatever happens, good or bad, the rich & poor are insulated as one has lot of resources, the other is just making an existence. The one who is affected the most is the middle, upper middle class people. Now it is upto you to decide whether you want to stay in the same circle or change it .


    Good point real regarding voting... But just as a different point of view...

    Even if all the so called educated guys vote or go for the NO VOTE option, will the situation really change? How many politicos can you really trust. We can count the real trustworthy guys on our fingers and even then we cannot be 100% sure. Inspite of our curent PM being the most honest person, there are so many scams that are happneing right under his nose.

    Even when BJP was in power, so many scams happened and has anyone been punished. Sometimes, I just feel like going out there with a gun, kill as many as I can and then shoot myself coz I am sure, I won't survive after killing so many :).

    Problem is there is no fear amongst the people who have the power and unfortunately this privilege gets extended to their families, relatives, friends and distant relatives as well. Everyone tries to make misuse of the political connections that he/she may have and there is a different sense of fearlessness once they know that someone up there will save them come what may.

    It is the lack of this fear which allows people to drive over alive human beings, indulge in illegal constructions and then come forward saying that they are willing to pay the fine, indulge in corruption and so many other illegal things.

    Coming back to the point of voting, even if 100% people vote, there is no guarantee that the selected candidate will be an honest man. It is a heady cocktail of power and money that has so much of strength that it can test the mattle of any individual. Once you are in the seat comforted by so many advisors and you have the power to tweak around with rules and form new rules, you start behaving as the God and then this is considered as a lifetime opportunity to mint money and save the future of coming 8-10 generations.

    Even if the educated class decides the NO VOTE option, the fate will be decided by the remainig votes which are allegedly rigged or are votes from people who are forced to vote to an individual/party which is again rigging only. Problem is to choose the least corrupt amongst a brigade of corrupted individuals.

    So, sometimes, it is really a dreadful scenario. 80% of the population is India fights to arrange food for two times and are willing to do anything that guarantees them food. Remaing 12-15% are living in a false world where they think things are going on well and they ar eprogressing whereas the remaining 5% has all the power and money and they think they rule this country.

    One needs either Power or Money. If you have other will follow. The whole judiciary systems has been made a mockery of time and again. What can an individual do... Yes, one can at least start fight against it and see if things can be changed at least in his sphere of influence whether it is a problem with the tax authorties, or the local bodies etc... but after a certain point, one realizes that it is too big to be changed. Yes, things can happen but it will take dedicated efforts for a sustained period of time to make these changes and can't be done by a handful of people. How many of us really have the willingness to go that route... Many of us would have started doing something, and beyond a point relaized that it will take much more effort and time and you will loosed out on the other more important things in your life.

    The things which can change it over a long period of time are : -

    i . Lesser population
    ii. Educated people
    iii. Sustained effort towards improving the system
    iv. Discipline in all walks of life

    Somtimes, I feel as if it is Jungle Raj. One has the power can do anything (literally anything) which is exactly what happens in jungle. Things get worse in our world because if a Lion is not hungry, he will not kill another animal. But in the human world, there is never a state of being not hungry and human beings are always hungry for more.

    Sorry folks for sounding pessimistic and dejected. But I just wanted to bring in another aspect also as many a times, we discuss and get lost in idealistic conversations. But when it comes to real implementation, things are much more difficult on ground if something has to be changed fundamentally...
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  • If you read today's Indian express, the HC says this is Gunda Raaj - Deepak Mankar case -

    You shamed your vardi: HC to city cops in filmmaker land-grab case



    Express News Service Tags : Bombay High Court, Deepak Mankar Posted: Fri Jun 18 2010, 04:27 hrs Pune:







    The Bombay High Court on Thursday pulled up two officers of the Pune police for their handling of a land-grab case. The court issued showcause notices to senior inspector Rahul Yewale (now suspended) and PSI Sandip Ghorpade of Shivajinagar police asking them why they should not be made co-accused in the case.


    “They have shamed the Vardi...They don’t deserve it,” the judges said when it was pointed out that Yewale and Ghorpade were present during the incident but did nothing.


    According to the petition filed by Pune-based documentary-maker Poornima Prabhu, some 50 goons ransacked her rented house in Shivajinagar area on December 29, 2008. Her brother, Rajiv Prabhu, was badly beaten up and had to be hospitalised. The goons were allegedly sent by Congress corporator Deepak Mankar and his brother Shivaji to evict the Prabhus from the place. Mankar, who is an accused in at least five land-grab cases, claims to have purchased the property but the Prabhus claim to know nothing of the ownership transfer and say they have been living in the house as tenants for around 50 years.
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  • Originally Posted by monds
    RealAcres, you can certainly help people in this process, can we register our name in the list any time in the year or are there specific days/period to do this...where to register, where we get forms etc.

    Let's discuss this more on a separate thread..

    It is simple. Don't do anything on your own of now as you will have to run from pillar to post. Wait for some elections, the political parties will set up stands for these forms for giving & accepting it. See which political part has it's Karyalaya for election purpose near your house. Tell them that you are their loyal voter (you can say this to NCP as well, after all we just want our work to be done:D) but as you have shifted the name is not there in the list. These party workers will then do the rest once you submit the docs.

    So, wait for elections & get all the things done fast sitting in your home:bab (34):.
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  • Pjain, thanks for putting in right words

    Pcpune, this must be published as much as possible so that that Gunda Mankar never wins again

    Realacres, i am ready to join political party(except BJP and Shiv Sena or even MNS) but is it good to be in political party - I think many people in political parties have no sense of talking properly?
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  • Originally Posted by realacres

    Man, if you want to clean the garbage, you have to get near the garbage. You can't clean garbage in your house standing on road.


    BJP loss the power because the beneficiaries (real state, sensxe etc.) are middle class who sit in the AC drawing room and talks about the situation. Even in election they like to see the pre poll result on TV and don’t bother to go out side and VOTE. And these politicians use the lower class people for bogus voting at cost of a chicken and a Khabma.
    That is the only problem, we even I only discuss these on the forum and concluded no one can change this.:bab (38):
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  • Realaces :
    very good logical post.

    There are 3 reasons why prices didnt crash in 2008-2009

    1.Black money funding builders
    2.QIP raised by builders to pay off debts.
    3.Adjustment of payment terms by banks for builder loans.

    All these three supported the prices even as investors/NRI's and end-users vanished.

    Frankly prices of everything including services like plumber, carpenter have tripled over the past 4years.

    The repair work done by my apartment in Mumbai costs 3x of what it did in 2005.

    I'm not justifying prices but I am saying that India is not US just as US is not India however greed and fear are universal.
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  • Originally Posted by puser
    Realacres, i am ready to join political party(except BJP and Shiv Sena or even MNS) but is it good to be in political party - I think many people in political parties have no sense of talking properly?

    Hey, so you want to join NCP?D Anyways, post Sharad Pawar, there won't be any NCP, some elements will go in SS, others in Cong.

    Btw, now if you want to join Cong, I suggest you go to Congress Bhavan near PMC; get all the details & see what suits you better. You join the IYC (Indian Youth Congress). Now they have also started conducting interviews to some extent, so if you become an asset to the party, you may become a good political heavyweight in Wanowrie;). Post Congress bhavan visit, they will guide you based on your locality & yes, remember that you focus on MLA constituency & not ward (corporator) coz you (like me) stay on rent & change in ward due to house purchase will again have it's own issues. Keep me updated.

    Btw, ever thought why these chaps don't have sense to talk properly? Coz people like you are absent:o. I though appreciate your action:).

    For rest, who don't want to join any party, join or make a 'Mohalla Committee'. It will be an org of local citizens group taking the issues with concerned authorities:).
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  • Originally Posted by Saurabh01
    BJP loss the power because the beneficiaries (real state, sensxe etc.) are middle class who sit in the AC drawing room and talks about the situation. Even in election they like to see the pre poll result on TV and don’t bother to go out side and VOTE. And these politicians use the lower class people for bogus voting at cost of a chicken and a Khabma.
    That is the only problem, we even I only discuss these on the forum and concluded no one can change this.:bab (38):

    +1. Can't agree more. However, you won't believe, during last time elections, we were able to make over 30 people in our society to vote. The way was simple:- Go, ring the bell & say, I am going to vote, are you coming with me? We just said this & majority of these 30+ people came out instantly:bab (35): but my plan of voting flopped as my name was missing:o, later found out that it went in some other area:(.

    Btw, one of my friend was shown as a girl & the polling agent was not ready to let him vote, though after some discussions, he was allowed:D.
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  • Originally Posted by rameshyahoo
    3.Adjustment of payment terms by banks for builder loans.

    These banks had lent INR 80,000 Cr to RE & if builders had gone bankrupt, the NPAs would have been huge, leading to loss for the banks. Hence, restructuring of loans was done for these crooked builders. The bad part was that banks then started the TEASER RATES for the buyer so that they would in one way help the builders to sell their stock.

    These banks are bigger crooks than builder, they use your own money which you park in as FD, fixed min balance for savings etc. & lend this to builder. Your own money is used to make house expensive for you.
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  • Originally Posted by realacres
    +1. Can't agree more. However, you won't believe, during last time elections, we were able to make over 30 people in our society to vote. The way was simple:- Go, ring the bell & say, I am going to vote, are you coming with me? We just said this & majority of these 30+ people came out instantly:bab (35): but my plan of voting flopped as my name was missing:o, later found out that it went in some other area:(.

    Btw, one of my friend was shown as a girl & the polling agent was not ready to let him vote, though after some discussions, he was allowed:D.



    Hats off to you realacres for doing this. I like this very much. I would do this next time I get a chance.

    Every one should do this as part of their social responsibility.
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  • Originally Posted by realacres
    These banks had lent INR 80,000 Cr to RE & if builders had gone bankrupt, the NPAs would have been huge, leading to loss for the banks. Hence, restructuring of loans was done for these crooked builders. The bad part was that banks then started the TEASER RATES for the buyer so that they would in one way help the builders to sell their stock.

    These banks are bigger crooks than builder, they use your own money which you park in as FD, fixed min balance for savings etc. & lend this to builder. Your own money is used to make house expensive for you.



    This sounds to be leaf out of Insignia Posts!

    ----- Forwarded Message ----
    From: Maximus Concepts
    To: insignia_pune yahoogroups. com


    Sent: Sun, June 6, 2010 4:15:54 PM
    Subject: A unique proposal Catalyst Echo for Economical Housing.

    Dear Sir,



    Maximus Concepts & Technologies offers a unique program ‘Catalyst Echo’ to catalyze economical house buying for the end-users. We have seen the success of your group in facilitating economical housing and hence would like to offer this unique proposal to your group members in line with the housing project launched by your group.


    Current Real Estate Scenario

    At present the real estate prices have been kept afloat in spite of the general market conditions not in conformity of justifying such scenario. One perspective for such phenomena points fingers directly to the buyers and general public itself.

    One needs to observe and understand following facts very closely-

    The real estate industry and property developers in India have been given a helping hand by the banks and financial institutions by restructuring the loans given to them. If they had not extended such hand, the banks themselves would have faced a very tough situation. In the falling markets Real Estate companies were unable to pay back to banks. With such defaults, had banks not restructured the loans they would have had to declare large portion of Rs. 80000 crore loans given to real estate industry as NPA which have wiped the profits of these banks. With such wiping of profits, bank shares would have fallen and the public would have withdrawn the savings from these banks. In end real estate prices would have fallen sharply.

    However the real estate companies which have a strong lobby – lobbied hard with government and banks and then banks were too happy to help in order save builders and themselves. With restructuring these loans, they kept the real estate companies and themselves afloat and so remained afloat the real estate prices. Thus the public saving money in banks is helping banks and thereby the real estate companies to keep houses at high costs irrespective of prevailing market conditions. In other words an individual saves money resulting to higher price for his house.

    Is there a way to overcome this?

    In order to overcome this situation for at least to a limited no. of buyers, we offer a direct route of saving and real estate finance. When any real estate company is financed by a financer / finance company or bank, they take their pound of flesh either by having large share of developed property at much lower price, or by offering funds at substantially higher costs / rate of interests. The real estate company in turn recovers these costs and makes its profits by selling balance of the developed property to individual buyers at much higher premium.

    Instead of routing the savings of individuals in such manner which only puts the individuals to disadvantage, we facilitate direct offering of funding to developers for offering us the properties at economical – lower than market rates (by up to 25%). We offer the housing to individuals in our clientele with this price advantage. In order to do this it is necessary to have the individuals in cluster as that facilitates leveraging of offering large funding to the developers. Only reputed developers are engaged / allied with for their ongoing as well as planned projects for this purpose.

    Our offer to the members in your group

    Our offer to the members in your group is as under ........
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  • Originally Posted by utopian2009
    This sounds to be leaf out of Insignia Posts!

    ----- Forwarded Message ----
    From: Maximus Concepts
    To: insignia_pune yahoogroups. com


    Sent: Sun, June 6, 2010 4:15:54 PM
    Subject: A unique proposal Catalyst Echo for Economical Housing.

    Dear Sir,



    Maximus Concepts & Technologies offers a unique program ‘Catalyst Echo’ to catalyze economical house buying for the end-users. We have seen the success of your group in facilitating economical housing and hence would like to offer this unique proposal to your group members in line with the housing project launched by your group.


    Current Real Estate Scenario

    At present the real estate prices have been kept afloat in spite of the general market conditions not in conformity of justifying such scenario. One perspective for such phenomena points fingers directly to the buyers and general public itself.

    One needs to observe and understand following facts very closely-

    The real estate industry and property developers in India have been given a helping hand by the banks and financial institutions by restructuring the loans given to them. If they had not extended such hand, the banks themselves would have faced a very tough situation. In the falling markets Real Estate companies were unable to pay back to banks. With such defaults, had banks not restructured the loans they would have had to declare large portion of Rs. 80000 crore loans given to real estate industry as NPA which have wiped the profits of these banks. With such wiping of profits, bank shares would have fallen and the public would have withdrawn the savings from these banks. In end real estate prices would have fallen sharply.

    However the real estate companies which have a strong lobby – lobbied hard with government and banks and then banks were too happy to help in order save builders and themselves. With restructuring these loans, they kept the real estate companies and themselves afloat and so remained afloat the real estate prices. Thus the public saving money in banks is helping banks and thereby the real estate companies to keep houses at high costs irrespective of prevailing market conditions. In other words an individual saves money resulting to higher price for his house.

    Is there a way to overcome this?

    In order to overcome this situation for at least to a limited no. of buyers, we offer a direct route of saving and real estate finance. When any real estate company is financed by a financer / finance company or bank, they take their pound of flesh either by having large share of developed property at much lower price, or by offering funds at substantially higher costs / rate of interests. The real estate company in turn recovers these costs and makes its profits by selling balance of the developed property to individual buyers at much higher premium.

    Instead of routing the savings of individuals in such manner which only puts the individuals to disadvantage, we facilitate direct offering of funding to developers for offering us the properties at economical – lower than market rates (by up to 25%). We offer the housing to individuals in our clientele with this price advantage. In order to do this it is necessary to have the individuals in cluster as that facilitates leveraging of offering large funding to the developers. Only reputed developers are engaged / allied with for their ongoing as well as planned projects for this purpose.

    Our offer to the members in your group

    Our offer to the members in your group is as under –

    For specific projects in Pune we shall offer housing at price lower than the floor price (in market) – lower by about 15 % to 20%. The members are required to be in a cluster of 50 as for a single buyer even with 100% finance paid in advance, NO real estate developer will offer price benefit of even 10%.

    The individuals shall have to make advance payment of the portion of the cost of house that they intend to purchase. They will be entitled to price benefit equivalent to the advance payment made by them not higher than 25%. In order to facilitate the transaction for housing, the facilitation time period of minimum 90 days is required from the date of payment of advance. We shall pay simple interest 6% pa on this advance calculated on no of days. In case the transaction is not completed within 6 months, your member can have option to extend the period or ask for return of money with interest for the no. of days money is advanced to us at 6% pa.
    Illustration of the proposal

    We are giving an illustration of the proposal as under –

    For a particular location ‘L’ and / or Project ‘P’ we have cluster of 50 individuals where individuals A1 to A50 make advance payments ranging from 20% to 25% depending on their choice and funds availability. Suppose Person ‘A1’ as part of cluster intends to buy a house at price of 40 lacs. As part of this offer he pays 25% of this cost as advance payment and similarly person A2 for house of 50 lacs makes advance payment of 20%. We facilitate clustering of individuals and finalization of terms with the reputed developers for the location L preferred or the identified Project P by the individuals. The person A1 gets price benefit (discount) equivalent of the advance payment less 5% i.e.
    (25-5 = 20%) of Rs.8 lacs on 40 lacs and A2 gets benefit (discount) of 15% (Re.7.5 lacs) on 50 lacs in the same manner. The individuals also get interest on the advance during the period of finalization of the project.

    With this the individuals offer funding in combined manner instead of routing their savings through banks and bargain hard in bunch for price benefit with muscle of substantial cash in hand.

    What is our benefit in this?

    Maximus works as Catalyst for facilitating this.

    We charge handling and facilitation fee of 2.5 % on the property value from each buyer. For your group we would extend reduction of 20% of our charge and fee would be 2% of the discounted value of the house.


    We would like to know from you about your interest about participation in our endeavor of reengineering the process of saving by individuals for housing leading to maximized benefits to house buyers instead of their own savings causing them pay higher price for the dream house.


    i failed to understand what is unique...broker anyways charges 2% as brokerage and also no hassle of finding a group of 50/ paying money for nothing in advance!! a 6% interest is also nominal as compared to what u cud hv got from the bank (might be wrong here!!) ..also normally the local borker has better information about the fair price that the builder will be able to offer..

    I understand the eagerness of a lot of folks to en cash the desperateness of Pune RE buyers...but would appreciate if the venture is actually something beneficial for end user even if they are charging for the services...
    CommentQuote
  • Originally Posted by chinmay686
    i failed to understand what is unique...broker anyways charges 2% as brokerage and also no hassle of finding a group of 50/ paying money for nothing in advance!! a 6% interest is also nominal as compared to what u cud hv got from the bank (might be wrong here!!) ..also normally the local borker has better information about the fair price that the builder will be able to offer..

    I understand the eagerness of a lot of folks to en cash the desperateness of Pune RE buyers...but would appreciate if the venture is actually something beneficial for end user even if they are charging for the services...



    buddy you seem to have missed point that for advance payment made - we get discount of 20% on the floor price! That will be the benefit for endusers against market rate.

    My concern is how we can safeguard our money once paid. Anyways my idea of sharing the post was not promote such proposal for the Insignia Group!
    CommentQuote
  • Originally Posted by utopian2009
    buddy you seem to have missed point that for advance payment made - we get discount of 20% on the floor price! That will be the benefit for endusers against market rate.

    My concern is how we can safeguard our money once paid. Anyways my idea of sharing the post was not promote such proposal for the Insignia Group!

    no dude!! i didn't miss tht point..tht infact is the whole essence of the deal...

    lemme understand through a calculation..currently price in LocA is say around 3000 psf (just assumed for ease of calculation) idealiitic 20% discounted rate is 2400 psf...now if u see honestly noone pays the floor price even if they go as an individual...everyone gets atlst 100-150 sg ft depending on bargaining power, in most case more than that...the brokerage is say 2% - with combined value of the flat as the base of calculation it is smwhr arnd 100 psf..so ideally what you are saving is 300 psf...and for 50 bulk deal (out of say 100 flats) tht project in most of the cases will be UC (infact i will be surprised even if 10% construction would have completed)...ni tht case Builder anyways gives you a gud discount for believing in him blindly :) ..go with a group of 10 and you can get it easily :)

    Please treat the above calculation just an indicator of the point i am trying to derive!!


    My frends booked tht too for a project almost 80% complete at market price - 400 psf myself with 15 people!! and if the project is like Blue Ridge / or any large project, the chances of getting even more discount is possible!!

    (Maximus Concepts & Technologies???) -- what kind of name is that?

    also quoting from the mail "
    For specific projects in Pune we shall offer housing at price lower than the floor price (in market) – lower by about 15 % to 20%"

    A
    floor price is how low a price can be charged for a product rather than the market price
    , as suggested above...before putting a business proposal if they are not so careful about the wordings, then i guess you sudn't expect them to be too professional as well :)

    Not discouraging you from going for this..i might be wrong as well..this is just my 2 cents from the mail..may be a bit of tweaking in terms and conditions will help you get a better deal here...but the question is if it will be worth it!!

    Disclaimer : I am not questioning the intention of this proposal and will be delighted to see some unique business proposal, which can actually help the end user!! I know of a big time Technology evangelist of India getting into Low cost housing and hopefully the formal launch will happen in days to come!! Only such people can change the state of this industry now, else....
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