Invest in projects like Happy Homes in Shamirpet on the outskirts of Hyderabad thinking of living in eternal bliss. If you did not check the background of the builders making attractive offers, the buyers would have to feel sorrow forever, according to indications available from the market. The pragmatic analysis of the project cost puts that builder offering flats at such cheap rates is not feasible at all.
Devas Infra Builder gave high-sounding publicity to his gated community project, titled: Happy Homes, coming up on a 10-acre site. He put the per sft price of his project, being built in G+9 structures, at Rs 2399. He plans to build over 1160 flats. He promised to get the customers 75 per cent of the flat cost as loan and offered amenities worth Rs 5 lakh free of cost.
Let us analyse the feasibility of the project in the light of the recent war between Russia and Ukraine. To build a G+9 structure, it would cost the builder at least Rs 2500 per sft. But the builder is offering it for Rs 2399 only. The cost of cement and steel have gone up due to the impact of the war by at least 20 per cent. The builders have been crying foul over the increased cost of construction. They have no alternative except hiking the price of the apartments. They want to increase the prices from April 1, 2022. However, the builder of the Happy Homes project is apparently trying to hoodwink customers by offering to sell flats at Rs 2399 per sft. How can that be feasible? Is he going to reduce the quantity of steel that go into making of the Happy Homes?
Is he going to use sand instead of cement as mortar to build the structure? God alone knows how the project is going to be executed. The builder is not doing any social service for charity, but is a shrewd businessman. His objective would be to earn 10 times more than his investment. But, he cannot afford to sell his project at price less than that of the cost of construction. Can he do it? If one applies his mind, one can easily see through the trick behind the offer.
Customers, attracted by such offers, are sure to walk into the trap. Afterwards, they feel pinched. To get flat at that price, one should pay the whole amount 100 per cent upfront. Even if the builder starts the project afterwards, it would take at least four or five years to complete, if every thing goes well. Otherwise, none knows when the project is going to be ready. If such builders amass money and disappear into thin air, the customers would have to suffer. Many such scams have surfaced so far relieving investors of their hard-earned money. Many buildings devising such nefarious schemes have been cooling their heels behind the bars.
Before investing in any project, the customers should study the background of the builder thoroughly. Did he execute such projects before? In fact, the Happy Homes project is RERA approved or not. If it is a RERA approved one, then it is fine. Otherwise, it is advisable to stay away from such projects. There are many scamsters waiting for an opportunity to relieve the money of the gullible investors. Stay away from persons. It is the responsibility of the investor to protect his life savings from being frittered away.
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