- Country: India
- Industry: Real Estate
- Stage: Start-up
- Investment size: $10,000 / min. $10,000
Two cooperative societies are being formed in the NCR region, one each at Gurgaon and Noida. The societies would develop group housing apartments for its members on no profit no loss basis.
Two group housing societies are being developed in the NCR region. One at Noida and another at Gurgaon. These would construct apartments for its members at no profit no loss basis. Around 300 apartments would be constructed at each location, which would include 3/4 bedroom apartments and few expandable villas. Membership is available in these societies based on certain parameters.
These would be low rise apartments (less than 10 floors) with all modern amenities of swimming pool, club house, gym, etc, and no additional charges would be payable for these amenities. The entire purpose of the cooperative society would be to transparently compute costs and pass on each apartment on cost to cost basis to its members.
The cost of the apartments for members is expected to be at least 30% lower than the market rates in similar group housing projects around the areas. There would be a lock in period only upto project delivery date and the members would be free to sell their ownership in the market at market determined prices once the project is handed over.
This is a once in lifetime opportunity. Please send enquiries of interest asap to avoid disappointment. The closing date for accepting membership is November 15, 2011. Membership would be provided in the company/society through transfer of shares, and each member would be co-owner to the extent of shares bought. Investment would be completely secure, transparent and above board.
Membership would be granted only through an interview, and membership is open only to salaried individuals, or business owners (other than in the real estate business), and entrepreneurs. Membership is not open to relatives of builders and real estate brokers, etc.
There are no other existing cooperative societies doing similar development in these areas. There is a guaranteed benefit over existing market prices, and since the society would only be involved in developing for its members, the members themselves would choose the timelines, and escalation clauses, etc. Needless to say, the agreements would be pro members and the overall proposition is excellent.
Rationale for the deal
This is a no profit no loss deal for the company/society. We are brokers to the deal and earn our commission from each membership @2% of the gross amount of apartment for which membership is sought (this commission is not negotiable). The management consultants, architects, planners, construction contractors, landowner, etc are paid on market determined rates. The books are open for audit by its members or appointed authorities as per the bylaws/articles of association of the society/company.
Use of financing
The entire amount of membership as also construction linked payments would be towards development of the group housing society. 10% of the amount is payable at the time of membership, and another 40% before construction starts. Thereafter 10% each is payable every 6 months. There are no interest charges and no discounts on upfront payment. Payment calls would be made by the governing body after laying down financials for every six months, based on estimates of costs for next 12 months. Either a bank guarantee or a bank loan committment through a scheduled bank shall be furnished by the member at the time of joining the society for the entire amount of dues based on tentative costs of the apartment which the member books through his/her membership.
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