Monday, May 21, 2007

House Search at Pune - A big joke

*** Author unknown ***. This piece is about Pune, India.

I work in a Small IT firm at Pune. I have been looking for a house at Wanawadi area for last six months. I have visited several new Constructions as well as contacted various dealers.

i have had discussions with agents, who quoted Rs 45 lakhs on PHONE FOR A 3bhk and which went up to 55 lakhs the moment he come to know that I work in an IT Company.

I finalised a Dupleix for 30 lakh only to see the owner jack its price to 40 lakhs because some agent in his society told him that he is selling him cheap and he should sell at 40 lakhs. Till now the flat is unsold and i am now quoting 25 lakhs for it.

I have visited new constructions and they keep on hiking prices by 200 every week till last month. Its a another fact that most of the units are not yet sold.

One Builder in Lullanagar keeps on increasing his flat rate by 8 lakhs every four months with atleast 30 flats not yet booked. He has completed his construction four year back. This alone shows the type of demand.

In one society the rate has gone from 1800 to 3100 in one year and with the fact that only 50% of the flat has been sold and most of them at below 2100.

So what make them think that they are worth 3100 per sq feet or 60 lakhs for a 3 BHK when the going rate was half a year back.

The common answer is - IT is coming. They have very high salary and low mental aptitude and can easily be fooled into paying that rate.

There is an another angle to it. It is the agent lobby. They have now started to work on anything beyond X is mine policy.Talk to any agent and you find that They have flats at baner worth 1 crore and if you dont buy it in a day it will go. If you happen to meet the same agent six months back, he had said the same thing abouth that flat at Baner, but at 25 lakhs.

Suddenly Baner, Kharadi has become as expensive as the heart of Pune.

Its a another fact that it still resembles a Village and if you have not got your own car, you will be skimmed big time by any auto that you find after waiting for one hour.

House search is a big joke. I have simply laughed at whenever any agents tell me that if I dont take a decision in another Ten minutes,someone else will buy the flat. Trust me, no one is going to buy that. Ask your wife to call that same gentleman again after 2 months and he will still be selling you at the same time.

I have the following suggestion for any flat hunters-

1. Tell them beforehand that you are from IT and listen to whatever price they quote.

2. Go and see the flat.

3. Meet the owner.

4. Quote him and not the agent around 10-15 lakh lower than its price.

5. Come out.

Trust me, if he really wants to sell he will follow you after a month.

Till the time you can live on rent. At the maximum a 2 BHK will cost you 10000. Please remember that if you buy anything for the rate they quote and if you need to shift to Bangalore, you wont even get half of it. The same agent who sold you at that rate will quote 75% when you plan to sell.

Remember all the resale flats are owned by investors who themselve are feeling the pinch of high interest rate and want to get out. Its the greed installed by the agents which is stopping them.

Call every builder you get. Tell them that you work in Oracle and IBM etc. They will tel you that only two units are left. Then say that you dont want because you need a choice. They will then say that there is lot of flats from which you can choose.

Now ask for the price. The moment they quote laugh heavily and say that they must be joking and then disconnect. Please remember to give them your phone number. Trust me I still get calls from these guys.

This strategy has worked for me. Prices have come down from 65 lakhs to 50 lakhs now and I have become greedy. Remember Pune is not Mumbai. Just drive through 10 kms and you see so much empty land.

This is just greed where they have assumed some wrong things about IT


They all are idiots.

Every IT person makes 1 lakh and above.

Again they are fools.

Remember there are guys out to exploit you.


Anonymous said...

100 % agree.... Suddenly both the property prices and rents have increased... It's making search of "Home Sweet Home" much more difficult..

Anonymous said...

Anonymous said...

Excellent one dear !

COEPStrider said...

hey, cool
i had the same exp in mumbai. the moment the real estate agent comes to know that i m working in IT industry, they refuse to reduce the rent or the deposit..

Anonymous said...

It is really a TRUE story in Pune.

Everyone wants to Suck the IT person, right from Autowala ( He identifies you by a laptop bag :) Says FIF "TY" instead of FIF "TEEN".).

Real Estate :

Today if you book , will get it for Rs. 2800/- per Sq. Ft. (Time now is 5:45 PM and office closes by 6:00 PM) else from tomorrow morning Rs. 3000/- per Sq. Ft.

It is really a great joke in Pune.

Amolw said...

the perfect article..I would say.
though I read it in July 2010...the things are same or have become more pathetic. everybody want to suck money from the IT people. Don't they understand that we also work hard till late night and burn mental calories in day to day work.