Friday, September 27, 2013

Here is one more story of someone who made 22 lacs by investing 34 lacs within 30 months

In Q4 2010, I came across a project called SNN Raj Serenity that caught my attention (  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 ( – 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.

Saturday, September 21, 2013

One good story of someone who tripled his money in 7 years (and made Rs 65 lacs in profit)

In 2006, a friend of mine, working in Saudi Arabia visited us in Bangalore – and invested in a 3 bed room, 2000 sq ft flat in Prestige Shantiniketan  in Whitefield  (
The logic then was that the location is good – IT companies are all around and this property was a large project – 3000 flats, a five star hotel, a mall, a 2 million sq ft office complex and a convention centre– all within the same compound.  Bangalore did not have anything like it then.
That time, the flat was costing appx. Rs 50 lacs – he invested  Rs 10 lacs from his side and took a loan for the remaining amount from HSBC.  His decision was impromptu – he did not come to Bangalore looking for a flat.  But he nevertheless took the call and invested. Did he have Rs 10 lacs? No – how he managed it is another story :-)
Over the next few years, quite a few things happened globally that I do not want to dwell upon. There was also a serious accident in the project site where one of the towers being built just collapsed and that delayed the project by about 2 years – finally in 2010-11 the project was completed.
Now it is a great place to live and work and is a well known address in Whitefield for mid level and senior professionals.
My friend is now looking at selling the property. The flat will go at an estimated Rs. 140 lacs now. Of this Rs. 140 lacs, he will need to repay his 40 lac loan. He will be still left with Rs 100 lacs. The pre emi he has paid over the past 7 years is about 25 lacs.
So his investment of 10 lacs and Rs 25 Lac emi payments over 7 years has given him Rs 100 lacs now - he has tripled his Rs 35 lacs to Rs 100 lacs.
Do you want to do a similar act now?  Write to me and I will give you a few similar ideas.