SG Estates Ltd. - Rajnagar Extn. still customers prefered choice due to budgeted homes(India Today Coverage)

Rajnagar Extn. still customers prefered choice due to budgeted homes says Gaurav Gupta Director SG Estates Ltd.(India Today Coverage)

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Is the RBI decision of curbing 80:20 schemes right in this tight money market scenario?- Brief View Point by Gaurav Gupta, SG Estates Ltd.

Real Estate Industry is a highly capital intensive industry and no matter how much capital you invest in, funds are always scarce to acquire new projects due to sky rocketing land prices and all sorts of curb put in place by RBI on land funding by banks. Current market scenario is not very encouraging due to negative economic sentiment, global factors and falling domestic economy. In this situation of low sales and resultant liquidity woes, developers innovated the idea of old subvention schemes in the name of 80:20 or 75:25 schemes where buyer just have to put in initial margin money, banks used to fund the balance to developer on behalf of customer and builder used to service the EMIs on behalf of customer. So it was a win win situation for all 3 parties- Customer, Banks and Builder. Customer doesn't have to bear the burden of EMIs, banks disburses all and poor builder gets the money.
So where is the problem and why did RBI acted as a party spoiler.
RBI is of the opinion that if builder defaults in paying EMIs to the bank, it will be considered as default on part of buyer and also credit score of buyer will be affected. Also RBI wants to curb fund diversion which might happen due to surplus funding with the builder. But I believe that surplus funds with developer is a myth and not reality in the current situation.
It would have been better if the scheme would have continued for some more time. Though SG Estates Ltd. does not have any such scheme on any of the project at present but industry at large needed this support at this time.
RBI though has done a wonderful job in protecting the interest of the customers and has ensured safe landing but it is also expected that Real Estate Industry be given the due hand holding that is required. Real estate industry supports more than 100 ancillary industries and if real estate grows, so does economy.
Gaurav Gupta, Director, SG Estates Ltd.

Why don't we make sample flats?

A house is a dream for every woman and a man.
Their aspirations, their dreams are all linked with that one house of their’s. Whether It is a mansion, a self-independent house or a budgeted flat in a multi housing society...... everyone has their own vision, dreams and emotions attached to it.
When we as a customer go out to look for the housing options, first thing we ask is if the builder has the Sample Flat Ready as we want to see what kind of house we will get. Sample house are specially designed by developers as a show case flat to perspective customers and attention is paid to the interior decoration work  like color of curtains, furniture placement, kitchen accessories, flat Tvs etc. On seeing them we are forced to believe that this is your ultimate address. One is so spell bounded by the beauty of the sample flat that one gets assured that he is going to reside in the ultimate luxury. We love it and hence start living with that picture/impression in mind that we saw in the sample flat.
However in many cases builders clearly mention in the flat as to what all is not included as part of the flat to be delivered. But that in many cases is ignored as we are so much occupied with the picture of future House in mind.

When the actual flat is offered for possession then the problem starts because the accessories shown is the flat are not part of the standard flat and also the flat is without interiors.
At this stage, it brews a feeling in the client that dream house is not delivered to him. Heart is broken and vision shattered.  It is human nature to expect the same that was visually shown to us and when we do not get that in front of our eyes after such a long wait, we turn negative resulting in  the blame game and trust deficit. Here the customer is right to the extent that he has booked a dream home on seeing something and Builder is right to the extent that the specifications were duly mentioned in agreement and accessories shows are not part of the actual flat.

To avoid this confusion, we at SG Estates Ltd. believe in making the Actual Flat when the major civil work has completed that we will deliver to our client. This avoids the future confusion between us and client. Many perspective buyers ask for sample flat, we try to explain them the reason for not making sample flat. It is true that we lose some sales due to non-availability of sample flat but this is acceptable but it accepted policy of the as regards to customer satisfaction, trust and delight which is of paramount importance to us.

We just have got the actual flat ready in SG Homes, Vasundhara, Ghaziabad for our project SG Homes, which many existing clients are seeing and sharing their feedback/suggestions.  The same approach was used for SG Impressions 58, SG Impressions Plus, SG Ivory Tower.

                                  SG Estates Ltd. wishing you all a very happy Rakshabandhan

WISH YOU ALL A Very Happy INDEPENDENCE DAY FROM SG ESTATES LTD.

            WISH YOU ALL A Very Happy INDEPENDENCE DAY FROM SG ESTATES LTD

Important Points to consider When signing Purchase/Builder Buyer Agreement

Buying an house is one of the most important decisions we take in our life and after choosing on the house to buy, builder buyer agreement or the purchase agreement is the back bone of the deal to be concluded over a period of time, assuming the possession will be offered later. 

Following points are important to be considered when signing the Builder Buyer Agreement:

1.	Clear Identification of Piece of Land and clear title
2.	Flat No., floor, Super Area, Built-up Area, clearly mentioned
3.	Name and  Address of Allottee  correctly spelled
4.	Pricing  of flat & other  charges /Taxes clearly mentioned along with charges to be paid at time of possession like maintenance charges, sinking fund and other common recurring charges
5.	Payment Plan  viz. CLP/Flexi/Down payment plan
6.	Penalty /Interest on account of delayed  Payment
7.	Time Schedule  for Handing Over Possession of Property along with grace period if any and definition of force majeure
8.	Penalty on Developer if  delay in Handing over  Possession of flat
9.	Facilities & Specifications of property proposed to be delivered clearly defined
10.	What if the buyer wants to cancel the unit or builder is unable to deliver the unit

"We at SG Estates Ltd. incorporate all the above points and clearly define the duties and responsibilities of both builder and buyer"says Gaurav Gupta, Director SG Estates Ltd. 

Reasonable Increase in Stamp Duty in Ghaziabad: Gaurav Gupta, Director SG Estates Ltd.

We are happy that our representation to Honourable DM of Ghaziabad has been considered and the increase in circle rates are as per the market norms rather than the exorbitant rates proposed earlier. SG Estates Ltd. as member of Raj Nagar Extn., strongly opposed the exorbitant increase in rates and put forward the point that if the rates are accepted as per the proposal, then not only the real estate activities in Ghaziabad will come to halt but also the state government will loose on the revenues. This will bring relief to buyers who have bought properties in Raj Nagar extn., Ghaziabad"  says Gaurav Gupta.

SG Estates Ltd. through its Director Shri Gaurav Gupta has been very proactive  in contributing to policy formulation in Ghaziabad who is also the joint secretary of Raj Nagar Extn., Developers Association.