Hi folks,

As I earlier mentioned I am going to visit Pethkar - Samrajya today. I am finalizing a 2bhk unit there. The last rate quoted was Rs. 4200. Lets see how much they reduce the price today. If anyone has more info on this project/builder then kindly share. :D
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  • Originally Posted by abeerbagul
    If I was purchasing at Samrajya for self consumption, leaving aside rent : price ratio, I would also look at affordability.
    1. EMI should be 40% or less of net take home pay.
    2. I should in liquid savings (FD, shares, NSC) equal or more to downpayment after paying downpayment.
    3. I should be willing to hold on to this flat for the next 10 years atleast. No short term / medium term investing.

    This applies to any project in Pune.


    100% Agree Abeer, I think people are making mistake on point no. 2 and making huge down payment(from onsite savings or inherited money considering its free money, totally ignoring, the loss of interest on that money)
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  • Originally Posted by mindguru
    When Samrajya comes to 40L, I am quite sure that time would be marked by good amount of layoffs in the economy. Many of us would not be able to afford the tantalising price of 40l. everything comes at a price.



    Dude, when Samrajya comes to 40L, people will say, its costly and not find it tantalising. Dude Buyers disappear when market becomes bearish.
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  • Originally Posted by Jitu_Sir

    Note: With support from members & moderator i just completed 500 posts and joined the senior club too.


    Congrats Jitu, so now when some one calls for help from "Senior members" you need to respond.:D:D
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  • Originally Posted by RAJESHP
    Dude, when Samrajya comes to 40L, people will say, its costly and not find it tantalising. Dude Buyers disappear when market becomes bearish.


    I feel sorry that you had to repeat things using your puny brain.
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  • Originally Posted by asdf2357
    Bheeshma, I don't agree with you on "Moral Responsibility".. (and note I'm buyer). You can not tell any businessman to take "Moral Responsibility" and reduce prices of his/her products/services. If you can afford buy it. If nobody buys it, he will reduce price. Simple equation.

    Even I can say, why do you want to buy home in Pune. Instead, please take moral responsibility and please go to small village and please use your knowledge to educate poor people. If many people think like this, then automatically prices in Pune city will reduce and also it will help India's growth in Rural sector...

    But, you know the truth..

    Builders are in a different. They are in the business of providing housing - a basic nececessity for urban living so in tha sense they are giving back to the society. They also have to make money because this an economic activity. My need is very simple. Builders should stick to their quoted rates for at least a year to give everyone an opportunity to buy the said home. By all means factor in your margins and other things while creating the price structure..... but dont start increasing the prices the moment you sniff an increase in demand. You are not selling soaps and shampoos. This can easily be done because in any case It takes only a fraction of the project ( my theory is 1/3rd to 1/4th of all the units ) to get sold out for builders to cover their costs. As for me moving to a village , my family has been living in here for more than 40 years now... it WAS a village when we first moved in here. Now its my home.

    Builders are in a different. They are in the business of providing housing - a basic nececessity for urban living so in tha sense they are giving back to the society. They also have to make money because this an economic activity. My need is very simple. Builders should stick to their quoted rates for at least a year to give everyone an opportunity to buy the said home. By all means factor in your margins and other things while creating the price structure..... but dont start increasing the prices the moment you sniff an increase in demand. You are not selling soaps and shampoos. This can easily be done because in any case It takes only a fraction of the project ( my theory is 1/3rd to 1/4th of all the units ) to get sold out for builders to cover their costs. As for me moving to a village , my family has been living in here for more than 40 years now... it WAS a village when we first moved in here. Now its my home.

    Builders are in a different. They are in the business of providing housing - a basic nececessity for urban living so in tha sense they are giving back to the society. They also have to make money because this an economic activity. My need is very simple. Builders should stick to their quoted rates for at least a year to give everyone an opportunity to buy the said home. By all means factor in your margins and other things while creating the price structure..... but dont start increasing the prices the moment you sniff an increase in demand. You are not selling soaps and shampoos. This can easily be done because in any case It takes only a fraction of the project ( my theory is 1/3rd to 1/4th of all the units ) to get sold out for builders to cover their costs. As for me moving to a village , my family has been living in here for more than 40 years now... it WAS a village when we first moved in here. Now its my home.

    Builders are in a different. They are in the business of providing housing - a basic nececessity for urban living so in tha sense they are giving back to the society. They also have to make money because this an economic activity. My need is very simple. Builders should stick to their quoted rates for at least a year to give everyone an opportunity to buy the said home. By all means factor in your margins and other things while creating the price structure..... but dont start increasing the prices the moment you sniff an increase in demand. You are not selling soaps and shampoos. This can easily be done because in any case It takes only a fraction of the project ( my theory is 1/3rd to 1/4th of all the units ) to get sold out for builders to cover their costs. As for me moving to a village , my family has been living in here for more than 40 years now... it WAS a village when we first moved in here. Now its my home.
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  • Originally Posted by abeerbagul
    If I was purchasing at Samrajya for self consumption, leaving aside rent : price ratio, I would also look at affordability.
    1. EMI should be 40% or less of net take home pay.
    2. I should in liquid savings (FD, shares, NSC) equal or more to downpayment after paying downpayment.
    3. I should be willing to hold on to this flat for the next 10 years atleast. No short term / medium term investing.
    This applies to any project in Pune.

    Bang on target man, well said:). What I liked the most is point 2. People make downpayment & then have no money to go on a holiday. It is just like hand to mouth living as despit earning reasonable amount, you end up having nothing as all the inflows goes towards the banks & builder. Had people thought about this; RE boom & rise in home loan NPAs wouldn't have happened at first place.
    Originally Posted by Jitu_Sir
    We need to pay premium charges to PMC for terraces/ balconies/ passages. Only Architectural projections are covered under free FSI which doesnt come under carpet area.

    Jitu, the premium charges for this is much cheaper than 50% rate/sq ft which is generally charged (some charge even 100%), not to forget that MOFA states that only 30% of balcony, terrace should be charged. Rest of the areas are already taken into account by having loading factor of minimum 25%, so buyers pays a lot more than what builder pays to PMC/PCMC.
    Originally Posted by mindguru
    When Samrajya comes to 40L, I am quite sure that time would be marked by good amount of layoffs in the economy. Many of us would not be able to afford the tantalising price of 40l. everything comes at a price.

    Man, now let us consider the inverse. Prices of RE go up, then does it necessarily mean that the earnings have gone up? As far as stating that everything comes at a price, the Tata Nano would have by now costed atleast 15L due to good economy & high demand:D. But the fact is that if Tatas price Nano for 15L, people won't buy it, as simple as that.

    Demand is there for RE, but at right valuation. RE prices can't go up continuously as people's incomes are not infinite, had this been not the case, not a single flat would have remained unsold in Samrajya or any other project for that matter.
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  • Egg-xactly. Some builders have to know that the prices have to be rational, and not going only one way always. So do the buyers, also need to understand that if the prices are unreasonable, then don't buy it. Simple logic.

    Originally Posted by realacres

    Demand is there for RE, but at right valuation. RE prices can't go up continuously as people's incomes are not infinite, had this been not the case, not a single flat would have remained unsold in Samrajya or any other project for that matter.
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  • I think we are repeating the same points over and over again.The builders are here to make money, and most people make money in unorganized unregulated sectors.But, it only lasts till the euphoria and the bubble lasts, and people who try to catch the falling knife are the ones who really bleed.So, common sense suggests that -
    1. The real estate cycle in India and globally lasts for 7-15 years, let it play out.If we consider 2007 as the peak, we should only look at buying around 2013-2015.By then, we should see some regulation in the industry as well.
    2.However, the other condition is to buy when the real estate rates are stable over 1-2 years,with more people wanting to sell rather than buy.
    3.Third, the Cost of construction + Cost of land should be justified and comparable to other cities/markets. For eg, Parsavanth is still selling a 2 BHK in Ahmedabad for 1100-1300 Rs per sq feet, making good profits with lower margins. So, why is the minimum rate in Pune around 2200 Rs per sq feet.It only suggests that the margins that the Pune builders still make are in the range of 300-1000%.This may not be applicable for new launches as people have increased the prices of the land itself, but it is only a notional gain. I myself have seen the price of land in Baner go up from 1100 sq feet to 1700 sq feet in a matter of 3-4 weeks after Diwali 2009.THIS IS A BUBBLE.
    4.No point asking the builders to help the consumers, as none of them wants to grow and become a big or a legend.They just want quick bucks,and only understand profits and losses. We need more companies like Tata,Godrej,etc in the real estate industry.
    5.Why not stay in a rented place which is a lavish one and enjoy some of the fine years of your life.You can holiday,build up some cash/equity,buy a car, live a good life.
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  • Egg-xactly. I suggest this to all my friends who are on the verge of buying something, becoz they are under pressure from their family members and also scared that within a few years they may not be able to afford, if the bubble doesn't burst.

    Originally Posted by piyushchamedia

    5.Why not stay in a rented place which is a lavish one and enjoy some of the fine years of your life.You can holiday,build up some cash/equity,buy a car, live a good life.
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  • Originally Posted by bheeshma
    Dear Mr Pethkar
    This 25% loading is supposed to take care of the walls and other things not forming part of the liveable area.. however u charge this from ALL the buyers... when most of the times each flat shares a COMMON wall... that means you are getting 25%* Thickness of 1 wall* Rs 5200 extra by selling 2 flats. The same applies for the ceiling... because that also is being shared with the flat on the top floor.

    Dear bheeshma,
    In case of Samrajya there is hardly any wall which is shared in between two flats. Moreover while evaluating builtup area like walls, staircase, passages etc is done by using tools in AutoCAD, so common walls if any are taken care of.
    Ceiling area is not covered under builtup area.
    Originally Posted by bheeshma

    I like your objective i.e providing "quality" homes.... but please do not presume that you are providing some "service" to the society that you have taken so much from. You and your partners are in the business of developing land for profit and providing "quality" homes is one of the way to achieve it. Its not a moral responsibility but a necessary condition to make money .. else who will buy?:)

    I am committed to those who have purchased flats in Samrajya and hence provide service to our clients. Ethics, Morals & Values should be linked with service while one can have a different opinion about logical pricing.
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  • Originally Posted by RAJESHP
    Dude, when Samrajya comes to 40L, people will say, its costly and not find it tantalising. Dude Buyers disappear when market becomes bearish.

    Dear rajesh,
    I agree as when the rates bottomed in 2008 still hardly anyone turned up. People used to enquire and were speculating more reduction in prices while the break-even gone un-noticed.. Some looked it as an opportunity while rest are waiting for that time to come again.
    Originally Posted by RAJESHP
    Congrats Jitu, so now when some one calls for help from "Senior members" you need to respond.:D:D

    Thanks, I will always provide relevant help as and when required.
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  • Originally Posted by Jitu_Sir

    I am committed to those who have purchased flats in Samrajya and hence provide service to our clients. Ethics, Morals & Values should be linked with service while one can have a different opinion about logical pricing.


    You are committed to provide service to the clients who are willing to pay the price you are asking. As Bheeshma said, this is a necessary thing anyway, so you are not doing anything different than expected.

    Logical pricing cannot be debated with anyone who is justifying the illogical prices (read: pune builders)... :):)
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  • Originally Posted by punerebuyer
    Logical pricing cannot be debated with anyone who is justifying the illogical prices (read: pune builders)... :):)

    Dear punerebuyer,
    There are also some other important aspects of RE on which one can have a healthy debate.
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  • Originally Posted by Jitu_Sir
    Dear bheeshma,
    In case of Samrajya there is hardly any wall which is shared in between two flats. Moreover while evaluating builtup area like walls, staircase, passages etc is done by using tools in AutoCAD, so common walls if any are taken care of.
    Ceiling area is not covered under builtup area.

    I am committed to those who have purchased flats in Samrajya and hence provide service to our clients. Ethics, Morals & Values should be linked with service while one can have a different opinion about logical pricing.


    Autocad is a tool. It doesnt tell you how much loading to charge. its a decision by the the developer. I appreciate your committment and i am sure that you will fulfill your promises. Wish you all the best.
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  • Originally Posted by Jitu_Sir
    Dear rajesh,
    I agree as when the rates bottomed in 2008 still hardly anyone turned up.


    Thanks for the info Jitu. This is exactly what will happen when market takes bearish mode. Last dip was hardly any bearish mood.

    This also confirms that in last dip, builders raised the prices, even when there was no buying activity, and this price rise(can call this artificial, since its not supported by demand or input cost rise) was the one that triggered some buyers to jump in.

    I wish all these buyers best of luck.
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