- Pay just 20 percent of flat value
- No interest payable for 12-24 months
- EMI can be paid only after taking possession of flat
- Subvention scheme in advance stage
- First time in Telugu States
- Last Date: January 31, 2022
King Johnson Koyyada : SMR Holdings has created a new record by being the first in the Telugu States to launch a subvention scheme at an advanced stage. This can be termed as a golden opportunity for those who want to realise their dream of owning a house in Hyderabad. One has to pay only 20 percent of the total value and book a flat, and no interest will be charged on the home loan for up to a year. After taking possession, one can getting the interiors done as per their taste and enter the flat. This can be considered as a bumper offer for the buyers in the current situation. The company says that the scheme will be applicable to those who buy flats in SMR Vinay Iconia at Kondapur-Gachibowli and SMR Vinay Boulder Woods projects at TSPA junction.
How is it useful for buyers?
Nearly 70 percent construction of Logan Tower at SMR Vinay Iconia in Kondapur-Gachibowli is done and it will be ready for possession within a year. People who do not have 20 percent of the flat value in their possession immediately, can pay 10 per cent now and the remaining 10 percent after three-four months. The company will pay EMI for entire 12 months.
Instead of paying high interest to banks, financial institutions and private individuals, SMR Holdings chose to pass on the benefit to the buyers with its new scheme. For those who are searching for their dream home, it is a golden opportunity.
Useful for construction companies!
-
- Construction at increased speed
- Timely payments from early buyers
- Can reduce cost of labour and construction materials
- Buyers will get benefited
- To complete any project, the developers normally depend on bank loans. Later, they will focus on private equity investments. To meet the rising cost of construction, loans are often taken from private individuals at high interest rates. As a result, the project cost increases significantly. Instead of paying interest to them, SMR Holdings felt that it could pass the interest benefit directly to the buyers.
- SMR Holdings does not have any bank loans on the Towers currently under construction where the construction of Logan Tower is 70 percent complete. Buyers who understand the benefit of the subvention scheme announced by the company, can purchase flats. The company spends the amount to complete the project quickly and enable it to deliver the flats before the deadline.
- If the project is completed before the scheduled timeframe, the buyers who purchased flats will pay the company according to the progress of the construction. As a result, payments to contractors and vendors become easier.
- If the construction work is expedited, the construction cost including labour and construction material cost, can be reduced significantly. If cash is available, the developer can invite quotations from multiple vendors and place the order to the vendor who quotes lowest price for supply of construction material. By purchasing construction material in such manner, the work can be completed at a lower cost than the market rate.
Useful for whom?
- A couple might have purchased a flat about 10-15 years ago. As their children grow up and their parents keep visiting regularly, the current flat might become congested. Such couples can avail this subvention schemes and move into larger size flats. If they can pay 10-20 percent initially, the rest of the amount can be adjusted from their respective parents, relatives or friends. Since they will have one year time, they can sell off their existing flat or any other property available to clear the pending amount at the end of one year and avoid home loans.
- If both the husband and wife are employees, the one-year time for starting EMI could be a blessing for them. With the increment that both of them get after an year, they can easily pay the EMI with the increased salaries.
- Employees who have recently moved from one company to another, also can consider buying a flat. As the subvention scheme allows them to pay EMI after 12 months, they can take advantage of it and settle down in the new company before starting to pay EMI.
- If there is a transfer of property between family members, then such person also can benefit from this offer to buy a flat in Hyderabad and pay the remaining amount after one year. If one can pay initial amount, the interest burden can be reduced.
- The uniqueness of SMR Holdings scheme is that it was not initiated at the time of construction and instead, has been announced only after the construction of the towers reached the advanced stage.
- Even if someone buys flats under this scheme initially, they can move to other regular schemes after paying some additional amount.
Minimum appreciation of Rs 2,100 per sft
The scheme which was launched last week, is getting a good response. The number of visitors to the project has increased. In February next year, the price of a flat in SMR Vinay Iconia is likely to reach Rs 9,400 per sq.ft. By the time the project is completed, the price is estimated anywhere near Rs 10,500 per sq.ft i.e. an appreciation of Rs 2,100 per sq.ft.
A win-win situation
Our aim is to complete the construction work of SMR Vinay Iconia in Kondapur-Gachibowli and SMR Vinay Boulder woods at TSPA junction, within seven-eight months rather than our initial deadline of 12-13 months. During this time, we will construct a built-up area of around 25 lakh sq.ft. The four towers in the advance stages will have a total of 1,250 flats. Of this, only 100 flats will be sold under the subvention scheme. If the funding is as per our expectations, we need not seek funding from any financial institutions. The scheme will cause an additional burden of Rs 600-700 per sq.ft.
But considering the 18 percent interest charged by financial institutions, realty consultants and processing fee among others, we are ready to bear the burden. Instead of spending a lot of money towards interest rates, we decided to pass the financial benefit directly to the buyers, creating a win-win situation for all. – S Ram Reddy, MD, SMR Holdings
