Found this concept with one of the builders -

Rashmi Realty Builders Pvt. Ltd.: Apne Dam Par Concept

It has basically removed the need for a bank to finance projects. The builder himself is asking for payments in form of EMIs with a downpayment and a possession payment.

Are any builders providing such a facility in Pune?
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  • Different concept and needs to check Pros and Cons. I don't think any builder providing such facility.
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  • Originally Posted by JumboHulk
    Different concept and needs to check Pros and Cons. I don't think any builder providing such facility.


    I think the market needs to be saturated to find 'customer' friendly policies like this in Pune. Right now its a sellers market and so i feel no option of having such facilities
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  • Originally Posted by JumboHulk
    Different concept and needs to check Pros and Cons. I don't think any builder providing such facility.


    This might work if the overall cost of the property is within 20 lakhs or so..

    The example given on their website is for a flat of 17 lakhs. The break-up is 5 lakhs down payment on booking + 50 EMIs of 10,000 (5 lakhs) + possession amount of 7 lakhs.

    However, if the ticket size is higher then the component that you will need to pay as down payment as well as the possession amount will be much higher..which might be difficult to pay without a loan..
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  • The possession amount is to be paid after 4 years which means possesion would be given afer 5 years may be. If it is so, then there is no point in investing 5 lacs where you would be putting money without any return.

    Who knows if after 2 years recession comes prices may go down.
    I recently read the news that HDFC is saying that the mumbai housing pricees would no go down. Why HDFC has to say this??

    Remember smoke comes only when there is something burning. The real estate market has slowed down also the supply is high as compared to demand
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  • Gh@nta concept...
    my 2 cents.. only fools will fall for such offers... simple mathematics can prove it.
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  • Originally Posted by kk83710
    Gh@nta concept...
    my 2 cents.. only fools will fall for such offers... simple mathematics can prove it.

    Do explain. I quite bought the idea. Would like to know what am I missing.

    I am fine with the large downpayment/end payment example, assuming the agreement mentions the same.

    Originally Posted by vision2012

    Who knows if after 2 years recession comes prices may go down.
    I recently read the news that HDFC is saying that the mumbai housing pricees would no go down. Why HDFC has to say this??

    HDFC has a lot of stake in several housing units. I remember it being involved in Nahar Amrit group at Powai(Chandivili). It is to its benefit to make such statements.
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  • Originally Posted by AnkitS
    This might work if the overall cost of the property is within 20 lakhs or so..

    The example given on their website is for a flat of 17 lakhs. The break-up is 5 lakhs down payment on booking + 50 EMIs of 10,000 (5 lakhs) + possession amount of 7 lakhs.

    However, if the ticket size is higher then the component that you will need to pay as down payment as well as the possession amount will be much higher..which might be difficult to pay without a loan..


    Thats right!! However the monthly repayment amounts seem to vary on ground for the projects they have. 2-2.5 years with EMIs of 30 - 35K followed by the possession amount. The builder doesn't stop you from taking a loan for just paying the possession amount

    Its aptly suited for people who have a significant saving of about 10-15L (to make the initial downpayment). They later can pay the EMI as asked by the builder and at the end take a loan from bank for the possession amount. In this way you postpone your loan 'liability' and lock in the asset price before it appreciates. You don't shell out more and since you have made a substantial payment before you do the lumpsum payment at the end, you take up only 30-35% of the asset price as loan and pay less interest to bank
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  • Originally Posted by kk83710
    Gh@nta concept...
    my 2 cents.. only fools will fall for such offers... simple mathematics can prove it.


    Fools don't do simple mathematics and take such a big decision :bab (24): You need to answer the following and apply this concept.

    1. Whats the opportunity cost? (Appreciation Vs Putting the money in FD)
    2. What kind of locality are you looking into to invest?
    3. Rates once the project is over and you book a ready for possession flat (if its available)
    4. The infrastructure that will shape up around post your investment
    5. Home Loan Rate and quantum of amount required (2-3 years down the lane for paying up the possession amount you would need less loan amount and probability of your loan getting approved is higher)
    etc,.

    Then you arrive at the conclusion :bab (56):
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  • Originally Posted by ninjatalli

    HDFC has a lot of stake in several housing units. I remember it being involved in Nahar Amrit group at Powai(Chandivili). It is to its benefit to make such statements.


    :bab (3):

    The government should make note of this and maybe order an enquiry

    Financial institutions of national importance should not indulge in such activities
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