Wednesday, July 2, 2014

Should I Buy a 1 BHK at Pimple Saudagar or a 2 BHK at Pirangut?

Ask Ravi Karandeekar:


Welcome Plaza at Mont Vert Vesta, Urawade, Pirangut, Pune

The other day, Mr. Jayant asked me:
Should I Buy a 1 BHK at Pimple Saudagar or a 2 BHK at Pirangut?

My budget is around 40 Lakhs. I have shortlisted 2 projects.

1) A 1 BHK Flat in G K Developers' Royal Rahatgi at Rahatani - Pimple Saudagar.

2) A 2 BHK Flat in Mont Vert Vesta at Pirangut.

I am confused.
Ravi Karandeekar, please, tell me - What should I do?
Should I go for a 1 BHK at Pipmle Saudagar or a 2 BHK at Pirangut?

1 BHK is not enough for me. Eventually, I will need a 2 BHK Flat.
But Pimple Saudagar is developed & convenient location for us.
Both of us are IT professionals - working in Hinjewadi - living in a rented flat in Pimple Saudagar.

Whereas, Pirangut is not developed and is far away from Hinjewadi.
But - in the same budget - 40 Lakhs - we can get a 2 BHK Flat at Mont Vert Vesta.
Which we will eventually need. Because - we are planning a baby - in the next 2 years. So, we will need a 2 BHK. (We got married 1 & half year ago.)

Ravi, what do you suggest? Pimple Saudagar or Pirangut?

Our combined monthly income income - in hand - is 90,000.

Bank executive told me that I can get 45 - 50 lakh home loan.

But we don't have 20 per cent own contribution - we don't have 10 lakhs - we have only 4 lakhs in our saving account. Actually - it's our emergency fund.

That's why we can't take full loan. We can't buy 50 - 60 lakh rupee property. So - we decided to go for 40 lakh flat.

Of course, 4 lakhs are not enough to book a 40 lakh rupee property. But we can raise 20 per cent own contribution & money for stamp duty, registration charges & VAT.

How?

By breaking fixed deposits & mutual fund investments for retirement. Or we can borrow from our parents. Or get a personal loan.

No. We don't have any ongoing EMI. I purchased a second hand car. Paid in cash.

My wife doesn't have a credit card. Only I have one. But we don't use it. So, no outstanding - overdue - credit card payments.

Why is our budget only 40 lakhs?

We are planning a baby! So, minimum EMI is safer & better.

So, in 40 lakh budget - we have only 2 options.
1) 1 BHK at Pimple Saudagar.
2) 2 BHK at Pirangut.

What should we do? What do you suggest?

Ravi Karandeekar's Advice:


The answer is in your question.

1) Baby is your top priority. Not a flat.

2) You don't have money to buy a home.
You can't use your emergency fund - 4 lakhs in saving account - for the down payment. You can get a home loan but you have no money for the down payment.

Your rational mind - knows all this. But your emotional mind doesn't agree. It is tempting you to take a risk. Go ahead and book a home - at any cost. Your emotional mind is misleading you. That's why you are facing a dilemma - 1 BHK or 2 BHK - Pimple Saudagar or Pirangut.

But the real question is - Am I ready to buy a home?

No. You are not ready to buy a home. Financially & emotionally.

At this point of time - your priority is having a baby.

At this point of time in your life - you invest in your married life - family life. Not in property.

Plan to live in your current rented flat in Pimple Saudagar.
Convenient & developed location for both of you, for your baby and your relatives.
During the pregnancy and after the birth of your baby.

Use your emergency fund - 4 lakhs in the saving account - if required - for the delivery.
Start saving for 20% down payment & other charges.  Keeping in mind the rate of inflation.
And buy a home when buying a home becomes your top priority.
And when you are - financially & emotionally - ready to buy a property.
And buy what you deserve and are eligible to own. Buy a 2 BHK Flat.

Your combined income - 90K per month is good. You are financially disciplined. You are a financially responsible person. You manage your money well. You don't use credit card. You are not in debt. You are saving for retirement. You can plan and succeed in saving enough money for owning a home.

And I am sure, you must be loving your wife too. You will not force her to work - at any cost - during the pregnancy & after the birth of your baby.

You will see that your wife has a freedom - financial freedom - to live her life as per her wish - when she is in a family way or has just given a birth to a baby.

Because you are a man. A financially responsible & rational husband.

I haven't told you anything new. These are your thoughts. Your ideas. Your beliefs.  Your way of life.
Don't let the pressure of home ownership force you to change the way you prefer to live. Be strong. Be yourself.

From me - you didn't want an answer. You just wanted - confirmation.

Am I right?

What about you?


This is my advice to Jayant.
What say you? Do you agree with me?
Please, share your views in the comments.

If you want to ask me, feel free to call me on 919860044110.  First 3 minutes are free! And for more than 3 minutes - pay as you wish - you decide the value of my advice.

Of course, for a serious discussion, better fix an appointment at a time convenient to both of us. So that we can have uninterrupted & in depth discussion on my mobile (919860044110)
- on Video Hangout on Google+
- or on Skype (ravikarandeekar) .

For more than 3 minutes and up to 30 minutes - pay as you wish. After the conversation - transfer the money to my bank account. As much as you wish. From a few hundred to a few hundred thousand crore of U S Dollars or Indian Rupees. Here are my bank account details:

Ravindra Karandeekar,
Bank of Maharashtra.
Savings A/c no- 20047674794.
Branch- Bajirao Road Pune MICR Code 411014010.
IFSC- MAHB0000001

Related Stories:


1) What is so good about La Cabana at Sus Gaon?

2) A 2 BHK for 73 & 3 BHK for 103 Lakhs on Baner Road!!

3) A 2 BHK Flat for Rs. 72 Lakhs & 3 BHK for 89 Lakhs on Baner Pashan Link Road!

Wednesday, March 12, 2014

Wake Up, Chief Minister of Maharashtra! It's Your Duty to Protect the Flat Buyers in Hubtown!!

Helping 3,000+ Hubtown Flat Buyers 
to Takeover & Complete the Projects 
is the Duty of State Government 
- says Mr. Vijay Kumbhar, RTI Activist!


What Can Flat Buyers Do When a Builder Does Not Complete a Project?




In 2009, Hubtown Ltd. launched 3 affordable housing projects for urban middle class. Ackruti Hubtown Countrywoods Kondhwa in Pune. Hubtown Greenwoods at Thane. And, Hubtown Gardenia at Mira Road in Mumbai.

Now, it's 2014, even 5 years after the launch, Hubtown Ltd. hasn't completed these 3 projects.

One & half year ago, 32 Flat buyers in Ackruti Hubtown Countrywoods had gone to Consumer Court for compensation for delayed possession. In their flat agreement - possession was promised in 2010 - 2012. On this 15th March 2014, there is a final hearing of their case.

Hundreds of flat buyers in Ackruti Hubtown Gardenia at Mira Road, a couple of months ago, organised protest march & demonstration for possession of their flats. "I will commit suicide if Hubtown doesn't give possession of my flat" - a lady flat buyer in Hubtown Gardenia had announced.

Besides, demonstration - protest & consumer court,  these 3000+ flat buyers in 3 Hubtown projects can file criminal complaint against Hubtown Ltd.,.

LIke the flat buyers in DLF Park Palace & Belaire, these 3,000+ Hubtown flat buyers can go to Competition Commission of India (www.cci.gov.in).

What about Complete  & True Ownership of a Flat?



(To View More Photos - Put Your Cursor Over the Current Photo)

But, what about the completion of these 3 Hubtown projects?

Penalising the builder and getting compensation is not enough.

Even getting possession of your flat is just a first step. Not the end.

These 3,000+ flat buyers should become the true owners of their properties.

These 3,000+ flat buyers have paid to Hubtown for the true ownership of their flats.

To become a true owner Hubtown Ltd. must complete the project & handover the ownership to the Co-Op Housing Society of the flat buyers.

These 3,000+ flat buyers can get true value of the money they have paid for their flats - only when these 3 projects are hundred percent complete with completion & occupancy certificate, all amenities & essential basic infrastructural services are operational.

As per the current market trend, Hubtown Ltd. will do the conveyance deed and handover the ownership of the buildings & the plot of land of the entire project to these 3,000+ flat buyers only when the entire project is complete.

It means that, when the builder is not in a position to complete the project - flat buyers can not become true owners of their flats. They don't get  their money's worth.

Flat Buyers, Takeover & Complete the Project on Your Own!


)

"But what can property buyers do to complete the project?," I asked Mr. Kedar Vanjape of Kedar Vanjape Developers Pvt. Ltd.

"When flat buyers sign flat agreement they become deemed owners of the project. So, if the builder is not in a position to complete the project - it's flat buyers' right to takeover the project and complete it on their own - with the help of the banks which have provided home loans to them!," Kedar said.

Banks are not only the stake holders!

Government of Maharashtra is also a party. Government of Maharashtra has collected stamp duty, registration charges & VAT from these 3,000+ flat buyers!

Government of the People for the People, by the People!


)

"Isn't it the duty of Government of Maharashtra to help these flat buyers to become true owners of these projects?," I asked Mr. Vijay Kumbhar, RTI Activist.

"Yes! It is the duty of State Government to protect citizens' rights!," Mr. Kumbhar said.

"What should these 3,000+ flat buyers do to get help from Maharashtra Government?," I asked.

"Ideally, Government should intervene on it's own. Because protecting citizens' rights is Government's responsibility. But, when the Government is blind & deaf  - when it doesn't acts on it's own - unfortunately, citizens have to become proactive and remind the government it's duties," said Mr. Vijay Kumbhar.

"Proactive means what? Demonstration - protest march - morcha - uposhan - hunger strike - satyagraha -  atmadahan - self immolation - setting oneself on fire - what should these 3,000+ flat buyers  do?," I asked.

"I said - become proactive. I didn't say 'harm yourself'! I said - remind the government it's duties. I didn't say 'destroy yourself'! Are you aware that you - the citizens - are the owners of this country? Not the elected representative - who form the government - but you - the citizens - who elect this Government - are the owners of this country?," Mr. Kumbhar said.

"True! But would the government listen?," I asked.

"What else can government do? If you tell in a proper way - government must listen and act. Government can't avoid it's constitutional responsibilities  & duties," said Mr. Kumbhar.

"What do you mean by proper way?," I asked.

"The right person in the government should realize that if he doesn't do what you are asking for - he would be in trouble!," Mr. Kumbhar said and added that RTI could be one way to remind the right person in the government about his duties & responsibilities.

Not only that! Mr. Vijay Kumbhar offered his guidance to these 3,000+ flat buyers of Hubtown.

Shri Prithviraj Chavan - The Protector of Home Buyers


)

After talking to Mr. Vijay Kumbhar, who has single-handedly reminded Mr. Manohar Joshi, then chief minister of Maharashtra, about his duties & responsibilities, I was convinced that Government of Maharashtra has no option but to help these 3,000+ flat buyers to takeover & complete the projects on their own.

In fact, principally, Government of Maharashtra has already accepted that when the builder is not in a position to complete the project, the flat buyers have a right to takeover & complete it on their own.

The Maharashtra Housing (Regulation and Development) Bill 2012 - which was presented in Maharashtra Assembly had an important clause about the abandoned projects. As per the news in Indian Express, the clause was -
If the housing regulator is satisfied that the builder is unable to complete a project, it can pass an order forming a legal entity comprising 60 per cent of the buyers, appointing this entity as an escrow agent for taking over possession of the building, directing the transfer of the retained flats in the name of the escrow agent within a prescribed period and authorising the escrow agent to appoint contractors, consultants and other agencies required to complete the construction and obtain occupation certificate.

Now, The President of India has given his assent to housing bill 2012 and Maharashtra has become first state in India which got a housing regulator. In the second half of 2014, Government of Maharashtra will establish the housing regulatory authority.

At this point of time, it is not clear whether this Housing Regulatory Authority can do anything for these 3,000+ flat buyers in 3 incomplete Hubtown projects - launched in 2009.

But, the person who was instrumental in formulation of Maharashtra Housing (Regulation & Development) Bill 2012 can do a lot. Because this person is non other than Chief Minister of Maharashtra - Shri. Prithviraj Chavan - whose portfolio includes - Urban Development, Housing, Law & Judiciary!

In the letter requesting Union Minister for Housing to get president's assent to Maharashtra Housing Bill, Mr. Prithviraj Chavan has written -
The Bill will go a long way in safeguarding the interests of home buyers and ensuring transparency in property deals.

The biggest benefit of the Bill is that home buyers and investors can lodge complaints against builders (in cases of violations and non-compliance of agreement) to a regulatory authority, which will study the issue and pass an order within three months of the complaint being lodged.
At this point of time, unfortunately, Housing Regulatory Authority & Housing Appellate Tribunal is not yet formed. So what? The Chief Minister of Maharashtra will not refuse to protect these 3,000+ flat buyers in 3 Hubtown projects.

After all, the day Mr. Prithviraj Chavan became Chief Minister of Maharashtra, he has done his best to break powerful builder politician nexus (more powerful than Sugar Lobby in Maharashtra!).

In the last four years, CM of Maharashtra has tried his best to free home buyers from the clutches of builders. It was he who announced that builder's NOC is not required while selling the flat.

CM also started the drive of deemed conveyance in Maharashtra. Because of this drive, by December 2014, thousands of cooperative housing societies can become owners of the land & buildings in their societies. Congratulating Chief Minister for this initiative, Mr. Sanjay Nirupam has said, "‘This landmark decision will go a long way in protecting the interest of the common man against the powerful builder lobby"

By alerting the Development Rules (DC Rules), Chief Minister has curtailed the corrupt practices of Mumbai builders. These builders were using "flower beds, voids, terraces and lily ponds" to loot the home buyers & to dupe the State & Municipal governments.

CM Of Maharashtra changed the development rules in all municipal corporations in the state and made it compulsory for the builders to construct 20 per cent smaller flats  (300 to 500 sq.ft.) for economically weaker section  -  when the plot is 2,000 square meter or larger in size. Mr. Chavan said that this decision was taken to ensure that economically backward section too can get an opportunity to buy a home in upmarket areas in Pune & Mumbai.  

Mr. Prithviraj Chavan's tough stand against 10 FSI offered to builders for rehabilitating slum dwellers in Kothrud & Kalyani Nagar in Pune became a point of friction between the Congress and its alliance partner, Nationalist Congress Party (NCP).

According to India Today, from  day one, Mr. Chief Minister of Maharashtra has been going against the unholy nexus of builders, politicians & bureaucrats and trying to help the home buyers by regulating real estate business.

And, now, in the year of general elections, these 3,000+ flat buyers in Hubtown project are giving an opportunity to Shri Prithviraj Chavan, to take a solid step and leave a permanent mark as the protector of upwardly mobile young first time urban middle class home buyers in Maharashtra!

Related Stories:


1) 32 Flat Buyers & Hubtown Countrywoods - David & Goliath

2) What can 3,000 flat buyers of Ackruti Hubtown do?

3) What happens if a bank takes over a housing project? 

4) Ivy Estate Wagholi to Start Giving Possession of Flats!

5) Get Compensation for Delayed Possession of Flat in Ivy Estate Wagholi

6) Kolte-Patil Developers - Tell the Truth and Shame the Devil

Feel free to call me:


I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 3 minutes!) Call 919860044110

If you like to chat, join me, RaviKarandeekarsBlogs on Google Talk.

Yes, my email id is RaviKarandeekar@RaviKarandeekar.com Feel free to write to me. I reply as soon as i can.

Join me on Google+
   

Wednesday, February 26, 2014

What can 3,000 flat buyers of Ackruti Hubtown do?

Flat buyers should takeover the project and 
complete it on their own! 
- Suggests Mr. Kedar Vanjape, 
of Kedar Vanjape Developers Pvt. Ltd. (www.kvdl.in)


Delayed Possession of Ackruti Hubtown Countrywoods, Kondhwa, Pune:




32 Brave flat buyers in Ackruti Hubtown Countrywoods Kondhwa have gone to the consumer court against the builder Ackruti Jay Developers. In their prayer to the court they are demanding compensation for delayed possession.

These flat buyers had booked flats in 2009 / 2010. Possession date in their agreement was 2010 / 2011. But, they haven't yet got possession of their flats.

Same is the case of Hubtown Ltd's two other projects. Ackruti Hubtown Greenwoods in Thane. Ackruti Hubtown Gardenia in Mira Road. These two projects are also delayed by 4 - 5 years.

Recently, I visited the site of Ackruti Hubtown Countrywoods Kondhwa. Looking at  the construction status of the project, I realized that the issue is not only about delayed possession. Question is about the completion of the project.

Let us assume that these 32 flat buyers will get the compensation for delayed possession. But is it enough?

How can the flat buyers live comfortably if the builder cannot complete the entire 15 acre project - Ackruti Hubtown Countrywoods?

How can the flat buyers live comfortably if the builder cannot provide all essential services?

How can the flat buyers get all promised amenities if the builder does not complete Ackruti Hubtown Countrywoods?

How can the flat buyers get value for their money if the entire 15 acre township is not complete?

And this is not only about 1,200 flat buyers in Ackruti Hubtown Countrywoods Kondhwa.

This is about 1,000 flat buyers in Ackruti Hubtown Greenwoods in Thane.

This is about 1,000 flat buyers in Ackruti Hubtown Gardenia in Mira Road.

It means this is about nearly 3,000 + flat buyers in 3 delayed projects of Hubtown Ltd.

Are these 3,000 + flat buyers left to the mercy of Hubtown Ltd?

For how many more years these 3,000 + flat buyers will be forced to wait for completion of these 3 projects?

What is the point in waiting when it's clear that Hubtown Ltd is incapable of completing these 3 projects?

Can these 3,000 + Hubtown property buyers do anything to complete their projects?

I asked myself.

Maharashtra Housing (Regulation and Development) Act, 2012


What can the property buyers do when the builder delays the project by a couple of years and may not be able to complete it for a few more months?

Without mentioning Ackruti Hubtown Countrywoods & Hubtown Ltd. BOM:532799 (www.hubtown.co.in), I started exploring the solution.

"Yes, something can be done - after Government of Maharashtra starts implementing 'Maharashtra Housing (Regulation and Development) Act, 2012' - establishes Real Estate Regulator & Housing Appellate Tribunal - something can be done," some said.

"Means approximately when?," I asked.

"Recently, President of India has given assent to the act, now - may be - around June 2014 - or by the end of 2014 - State Government - may - start implementing the Act & - may - set up - Housing Regulator & Appellate Tribunal, - may be - then," someone said.

"That's great! How will the Housing Regulator & Appellate Tribunal  help these property buyers?, " I asked.

"If the housing regulator is satisfied that the builder is unable to complete a project, the regulator can let the property buyers come together and appoint contractors and consultants to complete construction of the project," someone said.

"That's great! Would the Housing Regulator & Appellate Tribunal applicable to the projects launched in 2009?," I asked.

"Not sure....not yet clear....depends upon what would be decided when the state government starts implementing the act & sets up the Regulator..," someone said.

"Thanks - not may be - certainly, thanks a lot for the info," I said to Mr. Someone May Be.

Flat Buyers Should Takeover the Delayed Project & Complete It On Their Own - Mr. Kedar Vanjape:




Actually, I had gone to see Mr. Kedar Vanjape to know about his upcoming Nisarg Srishti - 110 Fully Sanctioned N A Bungalow Plots Project near Shirwal on Mumbai Bangalore Highway.

But instead of that I asked him,  "Kedar saheb, what can property buyers do when builder delays project by a couple of years and may not be able to complete it - for a few more months?"

"Flat buyers should takeover the project & complete it on their own!," Mr. Kedar said.

"Is it possible?," I said.

"Yes. It's unique solution. But it's practical solution. It's simple solution," Mr. Kedar said.

"You say as if it's easy!," I said.

"Yes. It's easy. See, in real estate business - constructing & completing project is an easy task - procuring land, designing right kind of a floor plan, getting sanctions & approvals are tough tasks, " Mr. Kedar said.

"Wait...wait let me video record you - what you say will save lives of thousands of families - they must hear you. Can I?," I said.

Mr. Kedar gave his consent and let me video record him. Of course, Mr. Kedar Vanjape didn't know that he was talking to 3,000 flat buyers in 3 Hubtown Ltd projects. Mr. Kedar was just thinking out of box. Here is a summery of what Mr. Kedar Vanjape said in Marathi -

 When you sign a flat agreement - under the 'Force Majeure' - you have given a liberty to a builder to delay possession - in reasonable limits.

But when the delay is beyond reasonable limits - the flat buyers have a right to takeover the project and complete it on their own.

There is no law which prevents them from doing this.

Because of the agreement, the flat buyers are already deemed owners of the project. If the builder has completed the project - he would have formed the Co-op Housing Society and would have done the conveyance - and would have handed over the ownership to the flat buyers.

If a builder is unable to complete the project - who can prevents the flat buyers from taking over the project to complete it?

In fact, the financial institutions & banks who have given home loans - should support the flat buyers to takeover the project & complete it. Completion of the project is in the interest of the banks. By helping flat buyers  get the possession of their flats - actually, banks are helping themselves. So, helping the property buyers is bank's duty.

Only compensation is not enough - consumer court should see that - the flat buyers get the possession of their flats. Because the flat buyer wants a home - so, all flat buyers should collectively request the consumer court to let them takeover the project and complete it on their own and occupy the homes they have paid for.

Why not ask Chief Minister of Maharashtra for help? It's the  responsibility of the state government to help taxpaying citizens. Government has a machinery to assess the seriousness of the situation and  power to take a decision.

This is the right time . We are living in a democratic country. Elections are due. How can government afford to say no to thousands of flat buyers?  The government has to protect the interest of  the citizens. And prove that this government is of the people - by the people - for the people.

Point is -flat owners can takeover the project - banks, consumer courts, government will help them to takeover the project.

Problem is the flat buyers don't come together and demand. Rope in banks, consumer court, government to get builder's consent. And yes, to recover their outstanding bill payments -  the sub-contractors - vendors - agencies will also join the flat buyers!

After takeover, under the supervision of project management consultants - flat buyers can complete the project.

After all what builder does? Builder works as facilitator. He gets the things done.

The same agencies will work for the project management consultant appointed by the flat owners to complete the project..

Instead of paying to the builder - banks will pay to the vendors & subcontractors.

And after possession, banks can start collecting EMI from the flat owners - for the next 20 - 25 - 30 years.

Point is flat buyers should takeover the project and complete it on their own.

It's easy.

It's a unique but practical solution. Flat buyers should go for it.

What say you, flat buyers of Hubtown Ltd.?


Dear 3,000 flat buyers in Ackruti Hubtown Countrywoods Kondhwa, Ackruti Hubtown Greenwoods Thane, & Ackruti Hubtown Gardenia Mira Road, would you like to takeover and complete your projects?

Kedar's just perfect solution will give you your just perfect homes.

What say you? Please, share your views in the comments.

Related Stories:


1) 32 Flat Buyers & Hubtown Countrywoods - David & Goliath

2) What happens if a bank takes over a housing project? 

3) Ivy Estate Wagholi to Start Giving Possession of Flats!

4) Get Compensation for Delayed Possession of Flat in Ivy Estate Wagholi

5) Kolte-Patil Developers - Tell the Truth and Shame the Devil

Feel free to call me:


I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 3 minutes!) Call 919860044110

If you like to chat, join me, RaviKarandeekarsBlogs on Google Talk.

Yes, my email id is RaviKarandeekar@RaviKarandeekar.com Feel free to write to me. I reply as soon as i can.

Join me on Google+