Today I am about to share my experience and information about MHADA scheme, which is a Lucratively profitable Investment Opportunity.
The trigger to write about this is Current Ongoing MHADA scheme which till Saturday 30th Jan.
This is my third encounter of investment in MHADA scheme.
The first one was when we (my family) had bought a place in Oshiwara, Mumbai for my brother’s nursing home in 2005 via bidding process.
The second time was in Jan 2009 when they had invited Interested buyer to apply for the HOUSING UNIT( Apartment) and we had applied to it.
I just thought it appropriate to mention to let the readers know that I have gone through the complete procedure of theirs.
Key Highlights ofthe current scheme:
Scheme Name: MHADA Housing scheme Jan 2010
Approximates Units for Sale: 1800
Key Locations in scheme in Mumbai:
Pratiksha nagar (behind sion koliwada) tejbahadur railway station ,
Ghatkopar Canara Engineering
Powai
Bimbisar Nagar ( between Goregaon and Andheri on Highway)
Lokhandwala ( Swami Samarth Circle, or 10 mins drive from Dhirubhai Hospital)
Dindoshi , Goregaon Film City road ..near raheja s/w park
Last Date Of Application: 30th Jan
Forms Available at and To be submitted at: Saraswat Bank Ltd
They have defined 4 income groups for which they have decided 4 category of tenement type based on Salary or Income ( Professional or Business)
IncomeGrp^^IncomGrpNos^^^Monthly Income range ***Approx EMD
EWS^^^^^^^^ 01 ^^^^^^^^Rs 0000 to Rs 8000 ******RS 10000
LIG^^^^^^^^ 02 ^^^^^^^^Rs 8000 to Rs 12000 ******RS 15000
MIG^^^^^^^^ 03 ^^^^^^^^Rs 12001 to Rs 20000 ******RS 25000
HIG^^^^^^^^ 04 ^^^^^^^^More than Rs 20001 ******RS 50000 / 100000
I presume many of you fall under HIG income group ( where the salary of either and Individual or with his/her spouse is more than 20k) hence focus my article to their probable benefits.
Why MHADA flats are good Investment what are its PROS and CONS
Obivioulsy PROS outshadows the CONS is reason for Investment
Pros
• Clear title
• Good discount to market price
• Good Locations
• Standard Loading on Carpet Area ( no irrationally exuberant loading like recent trend)
• OK construction quality ( some might find this slightly crazy to put “Ok quality “ as pro but many builders provide pathetic quality of construction which might initially appear aesthetically appealing but later comes as unpleasant surprise) .
• In most of the investment cases MHADA investment turnout to be a fruitful investment from Rental Income Opportunity point of view.
• Cluster Development
• Relatively easy for bank loans
Cons
• 5 years Lock-In ( cannot sell flats immediately ..but people do sell it by power-of-attorney before completion of maturity period which has its own disadv and risks)
• Information Booklet is in Marathi Only
• Lack in Aesthetics both Interior and Exterior, Misses wow factor and amenities (tilings, fittings etc).
• Parking Issues
• No customer service
• Need to do little bit of running around in Mhada office and various department ( not very difficult but slightly irritating)
• Procedure of allotment is always matter of Doubt...but off late thanks to computerised process of Lottery Allotment has reduced the scope of Scrupulous manipulation of allotment to great extent .
( Jan 2009 the program for Lottery ie random selection of Application form was designed by TCS and NASSCOM)
• Delay in receipt of refund of Earnest Money Deposit (EMD) in few cases when application is not selected.
(EMD is the token amount paid in lieu of your expression of Intent to Buy property)
Tenetive Upside in Investment based on Scheme Price and Current Price of similar MHADA tenament in same vicinity.( generally in MHADA flat there is 25% Plus loading on Carpet Area whereas other builder load 32-40%)
Scheme--------------- Powai are 690 sqft builtUp
Prevailing Price --- approx 52-55 lacs
MHADA scheme Price--- approx 32lacs
Scheme--------------- Versova are 700 sqft Built Up
Prevailing Price --- approx 65-70lacs
MHADA scheme Price--- approx 48lacs
Scheme--------------- Pratiksha Nagar are 571 sqft Built Up
Prevailing Price --- approx 42 lacs
MHADA scheme Price--- approx 25 lacs
Scheme--------------- Dindoshi are 571 sqft Built Up
Prevailing Price --- approx 36-38 lacs
MHADA scheme Price--- approx 25 lacs
(The above indicative market price are sourced from real estate brokers in the above location in Jan 2010 yet one may confirm the same for its validity and correctness)
Conclusion
The above tenements might not be bes for personal stay/ Use but they surely offer good upside to your investment looking at prevalent prices of MHADA flat in same location.
Also these investments earn good rentals hence better return on investment.
Lastly these opportunity come with benefits Margin of safety if any downside of prices in Real Estate in recessionary times.
Beacuse you never know till when the UPSIDE trend in Property Prices may continue..............
Disclaimer:
The above article putforth my personal views.All investments involve different degrees of risk. You should be aware of your risk tolerance level and financial situations at all times. You are free at all times to accept or reject all investment views and ideas
Wednesday, January 27, 2010
Monday, September 7, 2009
POWER OF MONEY: by Adam Khoo (singapore's youngest millionare)
Power of Money: By Adam Khoo
( Singapore 's youngest millionaire at 26 yrs.) Some of you may already know that I travel around the region pretty frequently, having to visit and conduct seminars at my offices in Malaysia , Indonesia , Thailand and Suzhou ( China ). I am in the airport almost every other week so I get to bump into many people who have attended my seminars or have read my books.
Recently, someone came up to me on a plane to KL and looked rather shocked. He asked, 'How come a millionaire like you is traveling economy?' My reply was, 'That's why I am a millionaire. ' He still looked pretty confused.
This again confirms that greatest lie ever told about wealth (which I wrote about in my latest book 'Secrets of Self-Made Millionaires' ). Many people have been brainwashed to think that millionaires have to wear Gucci, Hugo Boss, Rolex, and sit on first class in air travel. This is why so many people never become rich because the moment that earn more money, they think that it is only natural that they spend more, putting them back to square one.
The truth is that most self-made millionaires are frugal and only spend on what is necessary and of value. That is why they are able to accumulate and multiply their wealth so much faster.
Over the last 7 years, I have saved about 80% of my income while today I save only about 60% (because I have my wife, mother in law, 2 maids, 2 kids, etc. to support). Still, it is way above most people who save 10% of their income (if they are lucky).
I refuse to buy a first class ticket or to buy a $300 shirt because I think that it is a complete waste of money. However, I happily pay $1,300 to send my 2-year old daughter to Julia Gabriel Speech and Drama without thinking twice.
When I joined the YEO (Young Entrepreneur' s Orgn)a few years back (YEO) is an exclusive club open to those who are under 40 and make over $1m a year in their own business) I discovered that those who were self-made thought like me. Many of them with net worth well over $5m,travelled economy class and some even drove Toyota 's and Nissans,not Audis, Mercs, BMWs.
I noticed that it was only those who never had to work hard to build their own wealth (there were also a few ministers' and tycoons' sons in the club) who spent like there was no tomorrow. Somehow, when you did not have to build everything from scratch, you do not really value money. This is precisely the reason why a family's wealth (no matter how much) rarely lasts past the third generation.
Thank God my rich dad foresaw this terrible possibility and refused to give me a cent to start my business.
Then some people ask me, 'What is the point in making so much money if you don't enjoy it?' The thing is that I don't really find happiness in buying branded clothes, jewellery or sitting first class. Even if buying something makes me happy it is only for a while, it does not last.
Material happiness never lasts, it just give you a quick fix. After a while you feel lou sy again and have to buy the next thing which you think will make you happy. I always think that if you need material things to make you happy, then you live a pretty sad and unfulfilled life..
Instead, what makes me happy is when I see my children laughing and playing and learning so fast. What makes me happy is when I see my companies and trainers reaching more and more people every year in so many more countries.
What makes me really happy is when I read all the emails about how my books and seminars have touched and inspired someone's life.
What makes me really happy is reading all your wonderful posts about how this blog is inspiring you. This happiness makes me feel really good for a long time, much much more than what a Rolex would do for me.
I think the point I want to put across is that happiness must come from doing your life's work (be it teaching, building homes, designing,trading, winning tournaments etc.) and the money that comes is only a by-product.
If you hate what you are doing and rely on the money you earn to make you happy by buying stuff, then I think that you are living a life of meaninglessness.
Regards,
GOOD MAN
( Singapore 's youngest millionaire at 26 yrs.) Some of you may already know that I travel around the region pretty frequently, having to visit and conduct seminars at my offices in Malaysia , Indonesia , Thailand and Suzhou ( China ). I am in the airport almost every other week so I get to bump into many people who have attended my seminars or have read my books.
Recently, someone came up to me on a plane to KL and looked rather shocked. He asked, 'How come a millionaire like you is traveling economy?' My reply was, 'That's why I am a millionaire. ' He still looked pretty confused.
This again confirms that greatest lie ever told about wealth (which I wrote about in my latest book 'Secrets of Self-Made Millionaires' ). Many people have been brainwashed to think that millionaires have to wear Gucci, Hugo Boss, Rolex, and sit on first class in air travel. This is why so many people never become rich because the moment that earn more money, they think that it is only natural that they spend more, putting them back to square one.
The truth is that most self-made millionaires are frugal and only spend on what is necessary and of value. That is why they are able to accumulate and multiply their wealth so much faster.
Over the last 7 years, I have saved about 80% of my income while today I save only about 60% (because I have my wife, mother in law, 2 maids, 2 kids, etc. to support). Still, it is way above most people who save 10% of their income (if they are lucky).
I refuse to buy a first class ticket or to buy a $300 shirt because I think that it is a complete waste of money. However, I happily pay $1,300 to send my 2-year old daughter to Julia Gabriel Speech and Drama without thinking twice.
When I joined the YEO (Young Entrepreneur' s Orgn)a few years back (YEO) is an exclusive club open to those who are under 40 and make over $1m a year in their own business) I discovered that those who were self-made thought like me. Many of them with net worth well over $5m,travelled economy class and some even drove Toyota 's and Nissans,not Audis, Mercs, BMWs.
I noticed that it was only those who never had to work hard to build their own wealth (there were also a few ministers' and tycoons' sons in the club) who spent like there was no tomorrow. Somehow, when you did not have to build everything from scratch, you do not really value money. This is precisely the reason why a family's wealth (no matter how much) rarely lasts past the third generation.
Thank God my rich dad foresaw this terrible possibility and refused to give me a cent to start my business.
Then some people ask me, 'What is the point in making so much money if you don't enjoy it?' The thing is that I don't really find happiness in buying branded clothes, jewellery or sitting first class. Even if buying something makes me happy it is only for a while, it does not last.
Material happiness never lasts, it just give you a quick fix. After a while you feel lou sy again and have to buy the next thing which you think will make you happy. I always think that if you need material things to make you happy, then you live a pretty sad and unfulfilled life..
Instead, what makes me happy is when I see my children laughing and playing and learning so fast. What makes me happy is when I see my companies and trainers reaching more and more people every year in so many more countries.
What makes me really happy is when I read all the emails about how my books and seminars have touched and inspired someone's life.
What makes me really happy is reading all your wonderful posts about how this blog is inspiring you. This happiness makes me feel really good for a long time, much much more than what a Rolex would do for me.
I think the point I want to put across is that happiness must come from doing your life's work (be it teaching, building homes, designing,trading, winning tournaments etc.) and the money that comes is only a by-product.
If you hate what you are doing and rely on the money you earn to make you happy by buying stuff, then I think that you are living a life of meaninglessness.
Regards,
GOOD MAN
Wednesday, July 22, 2009
"Are we out of the woods yet"
I am happy to write my first blog post.
I intend to use this blog page as to share, communicate ...misguide :-) with my understanding about Investments in SHARES- REAL ESTATE- COMMODITIES.
I also intend to share all the article in any form of media that I may come across pertaining to this subject.
"ARE WE OUT OF THE WOODS YET "
This is one question that seems to be pondering in mind in most of people.
But I wish I knew the answer to this question. ...
OH WAIT !!!! Please don’t stop reading here since I do not have the answer.
I have few interesting observations that might help you to be Vigilant and Cautious.
1) Markets globally have rallied between 30 -90% from the bottom in March 2009 are near to there resistance levels
2) Copper a base metal commodity, of which China and US are main consumers finds its prime use in Housing and Industrial sector and contributes to major demand of this commodity.
In rupee terms after making
high of 370 (June 08 ) and
lows of 145 ( Jan 09) has rallied almost 97% from the bottom to 265 levels or
the other way to look at is --the commodity has corrected merely 25- 30% from highs of June 08.
(Note now near its stiff resistance zone of 267-285).
I fail to understand from what corner of world this demand is pushing this commodity. (Try to understand, just in March we were in most pessimistic economic environment).
This makes me feel fishy about the rally in this commodity.
(I know generally analyst say commodities turn UP before mkts improve.howsoever for me rally of this magnitude especially in this commodity is hard to digest.)
3) Gold is indicator of fear in mkt
Gold had slid from high of 1060 to 780 levels and is now at 940 levels ( in USD per troy ounce) .
Generally banks and retail (general public) are two categories of customers that drive the demand of this commodity.
Lets try to understand why this commodity is Strengthing and who is BUYING it.
IS BANK BUYING? probably yes if retail USERS/Consumers are not buying .
..so lets check if retailer is Buying it?
Do u think retailers in India and Dubai ( major demand dominating markets).. buy gold for use in ornaments .. at RS 15000? here i mean to say
Would people be buying same quantity they used to buy at Rs8000 for 10gm ?
I dont think so.
I would share a experience of my friends.
My friends family were intending to Buy 150 gms (15 tolas) of gold for her marriage and waited in anticipation that prices of gold would come down to 9000 Rs.
They missed the opportunity BUY gold during the fall in Nov 2008
Now the prices have escalated.
Her parents had to choose the option of using the existing ancestral Gold saving ..instead of Buying Intended Quantity.
Like wise there may be many whose finance may restrain their allocation to the precious commodity.
so my understanding is the firmness in Gold is as a result of Buying by Institutional Investor , HNI's and Bank.(some may argue there is not enough evidence that Banks have bought gold recently ......to them I say I havent come accross any information where Banks and Institution who invested in early 2004--20005 exiting this investment ....specially then there were mouth watering levels in equities and Bonds Globally.)
When do Bank buy gold...
during war
during uncertain economic conditions
during inflation worries
In scenario of weaker dollar … as a Hedge
When do Investor Buy gold ..Ans: When he expects the price to rise ( simple answer)
the difficult question is what would cause the price in Gold ( some say there are Finite reserves of gold .... same was the reasoning for Crude when it topped out at $145 ..Finite reserves ..limited reserves ,etc)
My reading is Banks and Institutions still find it as safe heaven because econmic conditions are still uncertain.( of late we have started hearing about one of large financial institution in US i.e CIT group is battling to avoid filing bankruptcy .http://finance.yahoo.com/q?s=CIT )
4) Markets generally consolidate for quite sometime before it comes out of recession and not run like marathon sprinter with Adidas shoe on its foot.
It is seen in past that whenever mkt rise from fall different breed (group) of stock lead the rally.But this not the case in Indian Mkt since stocks like Educomp, RELIANCE , RNRL,RCAP, SUZLON, IFCI , DLF the darlings of yesteryear are still raking the moolah of volumes on bourses.
Markets haven’t seen substantial phase of consolidation yet.... its just zig zag and see-saw movements.
5) Volatility has increased in Indian Markets.
6) What made US govt to ask the 26 -28 banks close shutter in the year 2009, higher in number than those in 2008 in the improving economic
conditions. If I am not wrong probably 4-5 banks have gone bankrupt in last two months.
7) Housing Sector has shown some "S O M E " signs of improvement ...thanks to concentrated effort of govt and generous distribution of money to first time home buyers along with reduced interest rates.
8) Tech stocks are outperforming.
see TCS ..INFOSYS..PATNI...MPHASIS.....
are mkts expecting dollar to stay where it is or weaken or strenghten.
Its ok as long as dollar stays in range ....but gold is firming up which may indicate a weakness in dollar in future.
Rising gold and dollar to strengthening are rare phenomenon in Recovery and Improving economy phase.
So there is this disconnect to watch out for ...either gold will go down if dollar appreciates ....or gold goes up in dollar depreciates...which in turn decides the direction tech stocks in India.
Also remember if dollar strenghten furthers that would be bad for pharma-- for forex losses...few of indian pharma like ranbaxy, wockhard are carrying their mark to market losses...and not accounted in P&L .
Am not sure if market is even considering the remote possibility of Inflation starts escalating?
The above mentioned were the BEARISH reading about mkt.
On the other hand few BULLISH "r e a s o n i n g"( though not comforting...defying logic)
Mkts bounced almost 2-3% in last 4-5 trading session out of 7..where as drawdowns have not been more that 1.5% in those trading session on closing basis.
China still holding strong and moving ahead .
Lastly and most importantly many are expecting the mkts to correct.... ( mkts surprises the consensus) .
Hence in such scenario I wont suggest to go short on MKT...... but would definitely recommend to be very selective on BUY .
Also probably book profit at every rise or cut losses in some of their holdings (previous gold medals which they might had bought in mid 2008 ) and wait on sideline with cash in HAND.
It is wise to be CAUTIOUS than to be HEROIC.
I know my post has been too long ...and would try to convey my points in better and shorter manner.
Look forward to your Criticism as CRITICS are your best friends :-).
Thank you for spending your valuable time to read my post.
All the Best!!
I intend to use this blog page as to share, communicate ...misguide :-) with my understanding about Investments in SHARES- REAL ESTATE- COMMODITIES.
I also intend to share all the article in any form of media that I may come across pertaining to this subject.
"ARE WE OUT OF THE WOODS YET "
This is one question that seems to be pondering in mind in most of people.
But I wish I knew the answer to this question. ...
OH WAIT !!!! Please don’t stop reading here since I do not have the answer.
I have few interesting observations that might help you to be Vigilant and Cautious.
1) Markets globally have rallied between 30 -90% from the bottom in March 2009 are near to there resistance levels
2) Copper a base metal commodity, of which China and US are main consumers finds its prime use in Housing and Industrial sector and contributes to major demand of this commodity.
In rupee terms after making
high of 370 (June 08 ) and
lows of 145 ( Jan 09) has rallied almost 97% from the bottom to 265 levels or
the other way to look at is --the commodity has corrected merely 25- 30% from highs of June 08.
(Note now near its stiff resistance zone of 267-285).
I fail to understand from what corner of world this demand is pushing this commodity. (Try to understand, just in March we were in most pessimistic economic environment).
This makes me feel fishy about the rally in this commodity.
(I know generally analyst say commodities turn UP before mkts improve.howsoever for me rally of this magnitude especially in this commodity is hard to digest.)
3) Gold is indicator of fear in mkt
Gold had slid from high of 1060 to 780 levels and is now at 940 levels ( in USD per troy ounce) .
Generally banks and retail (general public) are two categories of customers that drive the demand of this commodity.
Lets try to understand why this commodity is Strengthing and who is BUYING it.
IS BANK BUYING? probably yes if retail USERS/Consumers are not buying .
..so lets check if retailer is Buying it?
Do u think retailers in India and Dubai ( major demand dominating markets).. buy gold for use in ornaments .. at RS 15000? here i mean to say
Would people be buying same quantity they used to buy at Rs8000 for 10gm ?
I dont think so.
I would share a experience of my friends.
My friends family were intending to Buy 150 gms (15 tolas) of gold for her marriage and waited in anticipation that prices of gold would come down to 9000 Rs.
They missed the opportunity BUY gold during the fall in Nov 2008
Now the prices have escalated.
Her parents had to choose the option of using the existing ancestral Gold saving ..instead of Buying Intended Quantity.
Like wise there may be many whose finance may restrain their allocation to the precious commodity.
so my understanding is the firmness in Gold is as a result of Buying by Institutional Investor , HNI's and Bank.(some may argue there is not enough evidence that Banks have bought gold recently ......to them I say I havent come accross any information where Banks and Institution who invested in early 2004--20005 exiting this investment ....specially then there were mouth watering levels in equities and Bonds Globally.)
When do Bank buy gold...
during war
during uncertain economic conditions
during inflation worries
In scenario of weaker dollar … as a Hedge
When do Investor Buy gold ..Ans: When he expects the price to rise ( simple answer)
the difficult question is what would cause the price in Gold ( some say there are Finite reserves of gold .... same was the reasoning for Crude when it topped out at $145 ..Finite reserves ..limited reserves ,etc)
My reading is Banks and Institutions still find it as safe heaven because econmic conditions are still uncertain.( of late we have started hearing about one of large financial institution in US i.e CIT group is battling to avoid filing bankruptcy .http://finance.yahoo.com/q?s=CIT )
4) Markets generally consolidate for quite sometime before it comes out of recession and not run like marathon sprinter with Adidas shoe on its foot.
It is seen in past that whenever mkt rise from fall different breed (group) of stock lead the rally.But this not the case in Indian Mkt since stocks like Educomp, RELIANCE , RNRL,RCAP, SUZLON, IFCI , DLF the darlings of yesteryear are still raking the moolah of volumes on bourses.
Markets haven’t seen substantial phase of consolidation yet.... its just zig zag and see-saw movements.
5) Volatility has increased in Indian Markets.
6) What made US govt to ask the 26 -28 banks close shutter in the year 2009, higher in number than those in 2008 in the improving economic
conditions. If I am not wrong probably 4-5 banks have gone bankrupt in last two months.
7) Housing Sector has shown some "S O M E " signs of improvement ...thanks to concentrated effort of govt and generous distribution of money to first time home buyers along with reduced interest rates.
8) Tech stocks are outperforming.
see TCS ..INFOSYS..PATNI...MPHASIS.....
are mkts expecting dollar to stay where it is or weaken or strenghten.
Its ok as long as dollar stays in range ....but gold is firming up which may indicate a weakness in dollar in future.
Rising gold and dollar to strengthening are rare phenomenon in Recovery and Improving economy phase.
So there is this disconnect to watch out for ...either gold will go down if dollar appreciates ....or gold goes up in dollar depreciates...which in turn decides the direction tech stocks in India.
Also remember if dollar strenghten furthers that would be bad for pharma-- for forex losses...few of indian pharma like ranbaxy, wockhard are carrying their mark to market losses...and not accounted in P&L .
Am not sure if market is even considering the remote possibility of Inflation starts escalating?
The above mentioned were the BEARISH reading about mkt.
On the other hand few BULLISH "r e a s o n i n g"( though not comforting...defying logic)
Mkts bounced almost 2-3% in last 4-5 trading session out of 7..where as drawdowns have not been more that 1.5% in those trading session on closing basis.
China still holding strong and moving ahead .
Lastly and most importantly many are expecting the mkts to correct.... ( mkts surprises the consensus) .
Hence in such scenario I wont suggest to go short on MKT...... but would definitely recommend to be very selective on BUY .
Also probably book profit at every rise or cut losses in some of their holdings (previous gold medals which they might had bought in mid 2008 ) and wait on sideline with cash in HAND.
It is wise to be CAUTIOUS than to be HEROIC.
I know my post has been too long ...and would try to convey my points in better and shorter manner.
Look forward to your Criticism as CRITICS are your best friends :-).
Thank you for spending your valuable time to read my post.
All the Best!!
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