In Q4 2010, I came across a project called SNN Raj Serenity that caught my attention (http://www.snnbuilders.com/raj_serenity.html). SNN Builders is not a well known builder – but Sanjay, one of the owners of the company was living in my flat complex and he was a decent person. The project by itself was in a good upcoming location (behind IIM Bangalore) and the club house and overall design looked good. Further, the property was priced well and there were many investors who booked flats early. Seeing all this, I had recommended this to friends of mine.
One of my colleagues in the MBA institute (where I teach) booked a flat for 34 lacs. He also shared this with his friends and two of his friends booked two flats for 34 lacs each, purely as an investment.
Now the phase 1 of property is ready and residents are moving in and investors are moving out. The two friends of my colleague sold their flats for Rs 56 lacs each – their investment of 34 lacs over gave them a profit of 22 lacs each over 2.5 years –a 22% CAGR return.Was it difficult to sell the property? Not really.
Is SNN Raj a tier 1 builder? Not really.
But then the end product looks good and the location is good and the price is still fair.
Want a similar idea for investing today – you can get similar returns by investing today in Shriram Smrithi (http://www.shriramproperties.com/projects/smrithi/overview/) – very similar story – good location, well priced, good tier 2 builder and surely will appreciate over time.
If you want more such ideas - write to me.
If anyone has any such stories, and want to share it with my readers – then please write to me. I would want to speak to the investor first and then you can publish your story in my blog.