Monday, March 2, 2009

Rent Today Own Tomorrow - convert your rent into down payment - revolutionary offer from Mont Vert

Perfect housing solution in recessionary times when job insecurity is a major concern for all of us!

How does it work?

Mont Vert's website says:
Through this unique offer you may rent and move into a new, ready-possession Mont Vert apartment (through a regular rental agreement) with an option to buy the same apartment at any stage during the rental period.

On purchase, all the rent paid till date would be adjusted against the purchase price of the apartment.

What if you don't want to purchase your rented flat?

Transfer the paid rentals and deposit amount to a friend or relative!

Which means, it is not compulsory to buy Mont Vert's flat.

You are free to trade your "rental savings" with your friend or relative.

You can collect cash from him and use that amount to book a flat in any project, anywhere in the world!

Rent paid is no more lost forever!

No doubt, renting is better than paying unrealistic, irrational property rate for the flat which may not appreciate but mostly depreciate, at least in the next few years.

But considering the job insecurity, you can't let the rent go down the drain every month. By this offer, renting becomes automatically saving money for buying your own flat!

Better than marrying landlord's daughter!

I find Mont Vert's offer awesome! Other wise till now there was only one way to save your rent - marry your landlord's daughter! Which is, recession or no recession, just like jumping out of the frying pan and into the fire. Take my word.

What do you say? Do you have any other option of not only saving your rent but converting it into down payment of your flat? Please, share your ideas in the comments. (Comments Policy)

Related Stories:

1) Shame, Shame, Shame ...
What is going on in Pune real estate market?

2) Rent Today Own Tomorrow
Here are the details of the offer:

3) Proactive Mont Vert once again devices plan to deal with uncertain times – launches innovative program for home-buyers

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  1. vrvisionaries@blogspot.comMonday, March 02, 2009 3:57:00 PM

    Dear Ravi,
    This seems to be a great idea provided other builders also follow suit. It is a welcome step. Keep us updated.
    Vivek Rao

  2. Hi Ravi:
    Me and my wife visited them on Sat after seeing the ad. It seems like they were giving things for free. A big mob of purchaser or renter or just curious Georges.
    It took 15-20 minutes wait and then we were taken to a seminar room along with 10-12 other folks for a group presentation. We all tried to find a catch and comprehend the deal for next 30 minutes. None of us could find a catch.
    It looks like a too good to be true deal. The rates were around 3100-3200 for their Pashan property.
    It would be very nice if you being from the real estate sector, can give us an honest opinion.
    They also told us that if we go for a straight purchase they will give 11 months rent as a cash back.
    or it knocks down the rates by about 100-120/- making it around 3000/-
    We really like their property but is this a right deal and right time? We are looking at direct buy option. Just wanted to see what you think or if you smell anything bad.
    Can you visit them and give us an in depth feed back? Everyone in my company is talking about this. Thanks in advance.

  3. Hi Ravi,

    If you read between the lines, this is a clear indication of builders facing severe credit crunch. Anyway's the rent of 12k/month for 2BHK is much higher than the current market price.

    This is just another gimmick from Mont Vert. They previously played gimmicks like free LCD,AC etc., some discounts etc. which turned out to be complete failures.

    People may rent here, but they definately won't buy the apartment at current rates.
    If current rates are affordable/logical then why rent at first place??

  4. Hi Ravi: Great Blog. I am a bit lost here. You said
    "This offer, this gesture, this builder is fundamentally wrong. Completely against the principal of PBAP. Why? I can explain it only in Hindi. "Agar ghoda ghas se dosti karega to bhuka mare ga." is the universal truth.

    Shame, shame, shame..."

    So do you think this offer is not good. or are you being sarcastic to PBAP?

    I read it in sakal and it sounded good. I think it is a great idea from Mont Vert only if there is no catch.
    I must disclose one thing... I own a flat in Mont Vert Grande' and therefore may be a little pro Mont Vert. But honestly please tell me what do you think.
    I love your blog though I am not out for buying anything. I just love the way you bring your point across but I was lost on the above comments.

  5. # ref= "Shame...Shame...Shame... sarcastic to PBAP?"

    Yes, I was sarcastic.

    I admire Mont Vert for this offer.
    For treating property buyer respectfully.
    Aligning themselves with the property buyers.
    Listening, understanding and accepting the fact that majority of the buyers were preferring to rent than buy and offering the win win solution.
    This is a customer friendly approach, very rare in Pune real estate market.

  6. Hello Parimal!

    # ref: " clear indication of builders facing severe credit crunch."

    Yes, you are right. This is a public acceptance. You don't need to read between the lines! But not of "credit crunch", not at least for Mont Vert. Because it shows that they can build without booking. So it shows that "inventory" of "unsold flats" is becoming a big issue, once again, for the builder. Means, boom is over. "Slow down" has gone down to the level of 1999 - 2000!

    (Before 2001, builders could never managed to sell all flats when the project was under construction. But builders used to call these unsold flats as blank cheques or FD receipts which they can en cash whenever they need funds! Organizing "weekend sale of ready possession flats" was my specialization.)

    # ref: "gimmick"
    Means promotional offer! Yes, it was "to motivate" the buyers who wanted to book in the Mont Vert project but were not booking. I have heard that most of the buyers opted for the option of cash discount of Rs. 2 lakh than the white goods.
    (Only some of those who had already booked asked whether they can get those add ons!)

    # ref: "but they definately won't buy the apartment at current rates."

    Yes, you are right. I asked this question about "property rate for booking". Because as you know, Mont Vert Seville is 2nd on the list of most expensive projects in Wakad! 1st is Kasturi Housing's apostrophe

    I was told that in the next 12 months property rates are going to go down and Mont Vert will keep on informing the current month's booking rate to the people who are staying on rent.

    As it is, those who will be taking flat on rent, i am sure, will be aware about the price difference between Mont Vert project and other in the neighborhood.

    I think that by renting, they will get an opportunity to evaluate the price and if they are convinced that the difference is worth paying they will opt to buy.

    "Testing the quality of the construction by living in the flat" is an unique opportunity for the property buyer. Otherwise we only see the sample flat and say good or bad!

    More than property buyers will buy or not, for me as a blogger who blogs to help the property buyers to book, getting this opportunity to check whether you are getting value for your money or not is important!

    # ref: "If current rates are affordable/logical"

    This offer is not only about current property rates.

    It is about "wait for 6 months".
    It is about "job insecurity".
    It is about what will happen in the next 6 - 12 months?
    It is about 'how much rates will go down?'
    It is about 'what about pink slip, bench, no raise, cut in the veritable portion of my salary?'
    It is about uncertainty.
    "How to survive this uncertainty?"

    This offer lets you manage to save the rent which you would have had paid and gone down the drain anyway.

    I think, this will appeal to those who have families, are renting and worried about 2009-10.

    Not to the critics or builders!

  7. # ref:"Can you visit them and give us an in depth feed back?"

    Really? Happy to hear about the response. Sorry, i was not well. I missed it. Yes, i will do it today!

  8. Hi Ravi:
    good blog and good reasoning point to point. Do you know if I was to walk out after 8 months are there any penalties besides lost rent. I am thinking of getting a place with seriuos intention to buy a 2BHK but just in case things got worst. Is there a catch. Both me and my wife are currently in IT jobs but planning for at least one job loss in future.
    Please advice. My father thinks its a good alternative but insists that I should just buy since they have reduced their property values.

  9. # ref: " Do you know if I was to walk out after 8 months are there any penalties besides lost rent."

    - Rent you pay is credited to your down payment - or your friend's - so there is no loss. Of course, you have to take efforts to find someone! Point is no rent you pay is not lost.

    # ref: " Is there a catch. Both me and my wife are currently in IT jobs but planning for at least one job loss in future."

    No. There is no catch.

    In case of one job loss, this is right for you.

    # ref: "I should just buy since they have reduced their property values."

    Even if you buy right now, without renting, you are going to get the benefit of "Rent Today Own Tomorrow"! Means, you are going to get (rent of 2 bhk flat) 12,000 * (12 months) discount!

    # Here are the details of
    "Rent Today Own Tomorrow" offer

  10. Simple mathematics here !

    If you stay for a year in a 2 BHK (assuming 1100 sqft area for a 2BHK) and pay a rent of say 1.5 lacs/annum. When you buy this property Monte vert will adjust this 1.5 lac against your dues. This sum is very less in comparison to the loss they will make even if they reduce the price by say petty 200 Rs/sqft for a 1100 sqft flat (total saving of 2.2 lacs + registration + other proportional charges). And thus they will not budge to reduce the price; and will quote this rent scheme as an extra benefit. This works cheaper for Monte vert and sounds impressive for the buyer. However, the returns are significantly less for the buyer vis-a-vis the builder.

    Now if you don’t buy they are getting the premium rent for a flat they are not able to sell in this recession time.. Net-Net some cash flowing in for them and a chance to sell the property once the market revives.

  11. Hello Parimal!
    I have rejected your comment.
    You know what word you used.
    I request you, please, do not use this type of words.

    Please, read the blog and comments, you will find answers.

  12. Yes there's a catch for those who want to plan for breaking the rental agreement before 11 months are over. Just like any lease and leave agreements, there must be a penalty clause in the agreement like "you pay rent of 2 months from the day you give a notice to break the agreement". So if you have lived for 8 months and now you are thinking of leaving you have to pay for 2 more months and then leave. that leaves only 1 more month's rent to be paid to complete the agreement so you are in a precarious situation.
    also I don't believe that you'll get all your security deposit back for any of the small damage which otherwise would be considered regular wear and tear.
    At the same time you are paying a lump sum of 10months rent as security deposit too. So I don't think there's a lot of win for the renter.
    Bottom line is "if you think there's a good enough chance you will just not buy the property, then don't go anywhere near this." chances are that you'll repent getting anywhere near Monte Vert if you don't buy it. And I think it'll still not be a winning deal even if you buy it based on the so called premium rates they'll charge.

  13. My question is if Monte Vert is so confident of giving possession of these flats in June, then why have they delayed possesion of the flats in few of their flats for past 3 years?
    Ravi can you please give a declaration like the business analysts give on Stock Market stocks that you are not actually working for Monte Vert in any capacity? That might put away the little doubt that's coming up in my mind after reading about 5-6 Monte Vert blogs on both your blogs. Since I dont see anything new in all those blog postings, I'd assume that 1 blog posting would have been sufficient on each blogs. IMHO.

  14. # ref: " "if you think there's a good enough chance you will just not buy the property, then don't go anywhere near this."

    _ Yes! You are absolutely right. I will put it this way:
    Go for "Rent Today Own Tomorrow" if you are sure about booking a flat but need some time (job, property rate) to make up your mind.

  15. # ref: "My question is..."

    - You know the answer.

    # ref: "Ravi can you please give a declaration..."

    - Sure. Thanks for reminding me.

    I blog to provide information and discuss projects and happenings in Pune real estate market.

    I am not representing, employed or associated with any builder.

    At the same time, i am not "estate agent" or "a broker".

    Consider my blog as conversation between friends. My role is: i just start the conversation. All those who join the conversation command same importance and respect as me.

  16. Hi ravi,

    first of all thanks for such a wonderfull provides nince information to the outsiders like me in pune.I need some information on property rates in baner road for rent,to be more specific in someshwarwadi(hotel rajwada area).is it worth to pay 11k there?let me know your comment.

  17. Hi Ravi..!

    First I heartly thank you for starting such a informative blog for all puzled home seekers..

    My question is wat about the security deposit customer pays.
    Is it added into down payment or return back to customer.

    Wat is the experince of other people about monte vert builders as well as the construction quality

    Vishal Deshmukh

  18. Sorry, PK! I had to reject your comment because that builder is "too good."

    I want to talk about only "good" builders and good projects.

  19. Hello PK!

    I am associated, on a personal and on a professional level, with that company for more than 20 years.

    You will agree with me that developing new relations is as important as maintaining old.

    Sorry, i am rejecting your comment. Did you get me?

  20. Hi Ravi

    I have booked a 3BHK flat in Montvert Belair and also paid advance of 1Lac. The project do not have Collector NA as yet the builder is been telling me that they will get the NA in 15days but already a month passed but they are insisting me to pay 15% Margin money, in there any risk, pls gude

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