I picked up my morning laxative thrown at my door in a shape and form called the newspaper. It's become more of a news magazine now, with the number of full page ads that cover the news cover page. Most of the "stare in your face" ads happen to be real estate related. Why shouldn't it be? After all, the company that publishes the newspaper barters its fourth estate for real-estate. Maybe here is a great model for me to barter my services for a dream house that I am yearning for.
Normally, I just skip the "best in the world" development ads put out by leading developers. Truth in advertising is not a strictly followed guideline and plastering stock photos of fabulous houses with pretty people are quite common to snare eyeballs. The apartment that I want honestly does not exist. Either the size is wrong, or the location, or the price, or the developer, or one of the many variables that come in the way of my "buy" decision.
Today was different though. The ad was eye catching. It read
"Luxury Affordable Homes
South Mumbai.
Majestic lobby with cafe and concierge services
Fabulous sea facing apartments.
Clubhouse and pool.
Parking included.
Designed by world famous architect.
Developed by India's best.
Fully Furnished Grand Studios starting from 49 Lakhs.
Possession guaranteed in 2018.
Project approved and construction in full swing
Full cheque payment.
No floor rise escalation.
Tailor made financing schemes possible.
Approved by leading banks.
Once in a lifetime opportunity
No calls please.
Visit site office for a presentation,
every hour from 10 am to 4 pm only."
The ad had no developer name, no fancy pictures, no phone number, just a site address.
I am a firm believer that when something is too good to be true, it surely is. There had to be a catch somewhere. No asterisk with "terms & conditions apply". But, the location checked out, so who knows, the rest would too. Sunday is my catch up on sleep day. But, I was left with no choice. I had to check it out. The advertiser was clever. the ad would attract a billion calls that no call centre would be able to handle. Making a trip was a sure sign of seriousness. With the High Court ban on further construction for some time, who knows when an opportunity like it would knock again?
What I had read surely fell in the realm of desire. Such a place had been on my wishlist for years. Perfect investment for the present, perfect retirement place for the future. Once kids are no longer kids, but well-settled adults, then all that one needs is a small and wonderful space.
Thank you Mr. Finance Minister for pushing developers to build such homes. Maybe the tax-free status will help in bringing down artificially inflated prices of buildings all over. Well, such is my hope.
I reached the site. As expected, there was a line to get in. Security at the gate was polite but strict. The guard searched me like I was entering an airport. I was told to deposit my cell phone in a locker. 'No recording or photography allowed Sir'. I would normally have freaked, but, with some 50 people up front doing the same, I was sure this was no exercise in some mass abduction. I was led to the reception where I was given a "visitor" badge, after filling in a detailed information form. Then I was escorted to a very nicely made up seminar room for the presentation. Hot and cold beverages, snacks, the works at the buffet counter. It reminded me of some of the time share presentations I had visited. there were several young lads and ladies dressed in business attire and one of them was asked to attend to me.
'You are a smart man Sir. This is a deal of a lifetime. You better secure your unit before they are all sold. You can see, the demand is much greater than the supply.' said the rep. He had that used car salesman smile on his face.
'I am here to close, so let's get started. Your ad said construction in full swing, I don't see any construction going on,' I said.
'What Sir? How can you say that? The room you are sitting in has been constructed, right? It is part of the common area where the cafe and club will come up. The building will come up next door. It may look like a temporary structure to you, which it is. Of course, this will be all be demolished, but rest assured, as per law, the construction has begun.'
Maybe this is how it works. So I let it be.
'Okay Sir, tell me how many unit would you like? We need you to sign up for at least three.'
'Three? But, I just need one. Why two? how big is each apartment.' I wasn't liking the way this discussion had commenced.
'Sir, can I get you some refreshments?' My look told him that I was not interested. 'Each apartment is 30 m2 in area. We need you to sign up for at least three, so as to merge them and provide you with a decent size Grand Studio apartment.'
'Excuse me,' I interrupted. 'Why do you need three units to make one apartment?'
'Ha ha ha! Don't joke Sir. How can anything "Grand" be made in 30 m2?' He asked with a mock laugh.
'I think 30m2 of carpet area is sufficient for a reasonably well laid out Studio. If you have a world famous designer, I am sure he or she must have worked with these sizes.'
'Who sells anything on carpet area in Mumbai? Sorry, I stand corrected, in India Sir. The carpet area of each unit is about 12.0 m2
I did some mental math. 36 m2 at some Rs. 147 lakhs (14.7 million) was still not a bad deal for the location. It was nearly half the price prevailing in the area, and this one came fully furnished. Now that's a big plus. 'So, you saying I have to buy 3 units for 147 lakhs to amalgamate into one Grand Studio. Right? But, don't you guys have to sell only one apartment per family to claim tax benefits? This will qualify for 3 or have I got it wrong?'
'You are both right and wrong. I will tell you, but please tell me you are not working with the IT Sir, are you?'
'What has where I work got to do anything with this transaction?' He looked at my form and his eyes stopped at "OCCUPATION".
'First, good that you don't work for Income Tax dept., else I would have had to stop our discussion. Second, we are not selling them to you, but leasing them for 20 years. So technically, we are not violating any rule,' he said with a smile.
'Then that defeats the very purpose of tax shelter, right?'
So clever you are Sir.' His smile even wider now. 'Don't worry, each unit is being sold to a person. No one person or any of his family being sold more than one unit in this building. You see, we are simply building this on a former slum, and each slumdog buying is being offered an income in perpetuity on a buy and lease back arrangement. in any event, that's what all SRA projects end up as. The real owner never occupies the flat. goes and lives in a slum somewhere else using the rent earned to pay rent elsewhere. Below the tax radar. so "sab kuch chalta hai". All legal Sir.'
'Wow! so this is really an upmarket SRA project. I am sure you guys must have thought of ways to write up an iron clad agreement.'
He nodded sheepishly. 'From the best of best Sir, no compromise.'
'Now that I know it's a 20-year lease, what exactly is the 147 lakhs I pay going towards? And, what happens after 20 years?'
'Deposit and advance rent. Now HRA benefits have increased too so good for you. If you want to know how, please consult a Tax professional. My knowledge is limited. After 20 years, who knows what the law is, or who is alive or dead. In any case, you are in adverse possession.'
'That's a lot of risks you are asking me to carry my friend.'
'How do you suppose you are getting an apartment so cheap at this location my friend?'
Fair point I suppose. 'Please show me the layout plan and tell me which apartments have the best view.'
'Good decision Sir. All apartments either face the harbour on the east the sea on the west. It's very hard to guarantee views in Mumbai as no one can say what will comes up when. As of now, no worries. Parking up to 20 floors. Apartments all above that. Any other questions Sir?'
'Yes several. What about parking, club use, designer, developer...?
'Oh yes Sir. Parking is guaranteed... there is a small charge of Rs. 5,000 per month. Club charges Rs 10,000 per month as maintanence in addition to pay per use fees. Maintenance, security, conceirge and administration fee Rs. 25,000 per month. Municipal taxes on actual. Sub-sub leasing fee, in case you too are leasing it to someone... Rs. 25,000 per month, and of course the furniture and fitting deposit of Rs 50 Lakhs, and...'
I cut him. 'That's fine. Thank you. Maybe this is not fore me.' The designer and developer became inconsequential, as did my dream to own an affordable luxury home in this City.
Why is it that in the game between the authorities and developers, the latter somehow always comes out ahead?
Mar 06 2016 : The Times of India (Mumbai)
Nauzer Bharucha
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Mumbai
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BMC could challenge HC ban on new constructions
Richa Pinto | TNN | Mar 1, 2016, 10.56 PM IST
Mar 06 2016 : The Times of India (Mumbai)
Realty bill may be reality soon
New Delhi:
TIMES NEWS NETWORK
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Mumbai: MHADA goes the builder way, sells on built-up area
- See more at: http://www.mid-day.com/articles/mumbai-mhada-goes-the-builder-way-sells-on-built-up-area/16135194#sthash.C8qvKk4Y.dpuf- See more at: http://indianexpress.com/article/cities/mumbai/maharashtra-government-tweaks-housing-norm/#sthash.Yxv2ejsn.dpuf
20% of large plots must be used to build tenements for poor: Bombay High Court
The Bombay high court on Thursday upheld a government notification of November 2013 in a decision that will benefit the poor in terms of housing. The notification states that while developing a plot measuring 4,000 sqm or more, 20 per cent of it should be used to construct tenements for the economically weaker sections (EWS)/ low income groups (LIG). Fri, 6 Feb 2015-06:05am , dna
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