Properties, Homes & more

Jerry Rao, founder of IT firm Mphasis, is completely immersed into his next business innings: Nano housing. Just like the Nano car, he wants to deliver homes to buyers looking for affordable homes: including drivers, housemaids, plumbers and electricians. Jerry Rao’s new venture, Value and Budget Housing Development Corporation, is targeting building a million homes in 10 years in 17 cities.

In an exclusive interview to Economic Times, Jerry Rao said, unlike conventional developers, his business model would treat land as an inventory and not a capital asset. If he is able to roll out his project and deliver in 12-18 months, the returns would be in the region of 30-40% almost similar to what the IT industry enjoyed in its dream run. Excerpts from the interview:

Interviewer (I): After IT, banking and angel investing, what made you think of housing?

Jerry Rao (JR): I could retire and do nothing. At 57, I have got at least another 5 to 10 years to do something else. I did want to stay away from IT and banking and wanted to do something of scale. I looked at agribusiness, education, health care and it seemed to me that I could leverage my IT and project management skills in housing. And, there was no paucity of demand. So, you could scale this business and create a big impact.

I: What is the difference between your business model and how conventional realty operates?

JR: Unlike conventional realty, we want to think of land as inventory and want to sell it as soon as we can. That is the basic difference that sets us apart. I thought it would be a high risk model. But, the downside here is very low. We are using equity to buy land. We will have access to construction finance and then we also get 25% down payments from buyers. So, even if the project goes bust, we can still repay all the loans and also repay equity. But, if we get it right and build and sell the project in 12-18 months, then the return on equity will be in the 30-40% range. It is actually quite an attractive place to be in.

I: Then, how come nobody else has entered the space?

JR: Why did nobody create a low-cost detergent before Nirma? The high-cost market was profitable enough. One, it is partly a supply side problem that people do not re-engineer. Two, the middle-class and upper-class segment, Rs 0.50-1 crore, has been very profitable. Three, if you are looking at land as a capital asset, you would not do it. This model requires a mindset shift.

Do not forget to read PART 2 of the interview…

Connecting Thane to Mumbai, Mulund has become a hotspot for property buyers, due to its all-round development. Located on the central line, Mulund is a developing suburb between Bhandup and Thane. During the ’60s, Mulund was a small settlement with very little population, which mostly consisted of middleclass families, as companies like Johnson & Johnson, Gabriel, Richardson and Cruddas established in Mulund. Mulund today has become a multi-linguistic suburb.

Mulund is divided into two parts - Mulund West and Mulund East. The West is comparatively more developed than the East. Mulund underwent a drastic change after 1990, as builders took notice of its potential and started floating new constructions. Nirmal Lifestyles came up with its first project Mayur Pankh in the year 1976-77 and gradually progressed with prestigious projects like Nirmal Lifestyle and City of Joy that completely changed the landscape of Mulund.

Mulund wins the cake in terms of infrastructure too, as it is centrally located and has easy access to Mumbai, Thane and even Navi Mumbai. Road connectivity through vast network of BEST buses and frequent train availability has benefited Mulund.

Fortunately, Mulund is blessed with greenery due to places like Yogi hills and Cyprus. A morning walk amidst the greens rejuvenates Mulund residents. The suburb is strategically planned, fulfilling the requirements of modern-day living. Looking at the phenomenal growth, some of the best educational institutes like Lokmanya Tilak English High School, St Pius, St Mary’s, Holy Angels have come up in the past few decades. Mulund boasts of good colleges like V. G. Vaze College, Vani Vidyalaya and Mulund College of Commerce.

Hospitals like ESIS, Municipal hospital and private hospitals like Dhanvantari, Upasani, Saidhan Hospital and high-end hospital like Wockhardt cater to medical needs. Mulund has religious places like Ambaji Dham, Santoshi Mata Mandir, Jain temple, to name a few. For entertainment purposes, Mulund has single screen theatres like Jai Ganesh, Mehul and multiplexes like R-Adlabs, PVR Cinema. Malls have become the Mecca for the cinegoers in Mulund. L.B.S Marg in Mulund can be called as the hub of malls, with huge malls like Nirmal Lifestyles and Runwal Mall. From restaurants like McDonald’s, Pizza Hut to trademark hotels like Vishwa Bharati, Vishwa Mahal, Mulund has everything to offer. Mulund also has some well-known clubs like the Rotary Club of Mulund.

The property market in Mulund is flourishing with ever growing malls and its connectivity. Recently, property  rates in Mulund range between Rs. 5,000 to 7,000 per. sqft. A number of huge residential and commercial projects are coming up. With the kind of construction and developments coming its way, Mulund surely looks to be the destination for future.

I have staying in a rental home since last 3 years. The moving-home process, in my opinion, is a bit difficult and cumbersome. For my first move, I and my wife did all the packaging and transport, all by ourselves. We were, of course, frustrated and decided that we’ll take services of packers & movers (P&M) in my city. Well, for my next relocation, I promptly called up 5-6 P&M’s servicing my area and shortlisted one based on the lowest price. Believe me, I am still regretting my decision! The P&M that I had called (name withheld to protect identity) was absolutely crappy. They were handling items & furniture in my home in a way a kid would handle. I was completely disappointed and hence decided to take services only of a thorough professional P&M and I started my search well in advance before my third relocation came up.

My fierce search led me to MoveMe.com – a end-to-end complete moving-solutions provider. They are thorough professional house-movement experts & provide expert services while moving your homes. I checked their online portal and was immediately impressed by the range of services they provide and customer testimonials. I was though bit taken back by the price but I was convinced that it was worth it. Needless to say, I immediately requested free legal quote as well!

Once I fixed my deal, experts from MoveMe visited my home, took an overall idea of what all items need to be moved, distance and position of “from location” and “to location”, and offered me the best and most convenient way of transport. I must admit that the way they package things is impressive. There were only 2 damages during transport (as compared to over 15 in the earlier case) but these were not critical for me. I was told in advance what their route would be, contact numbers of those present on field, and online monitoring too! To check their fat claims, I logged on to check whether it really works, and I was surprised to see that I could actually track my “consignment” online! Wow!! This is incredible. I was out-n-out satisfied with MoveMe. By the way, did I mention that they insure the “consignment”? I would also refer MoveMe if you are looking for a property solicitor. This conveyancing firm helps you get the best legal aid for all your property-related appraisals / disputes.

Painting your home? Here are some of the tips which you can’t afford to ignore…

1. A primer must be used before applying latex over oil base paint.
2. Use water based acrylic latex paint for exterior use. These paints are known for quick drying, ability to cover previous colour, less odour and washable nature.
3. Use oil based paints for interiors. The gloss and resistance to water of oil based paints will work best for your kitchen and bathroom walls. Although oil based paints dry slowly, require special thinner for cleanup and emit strong fumes, they are extremely durable.
4. Oil based paints can also be used for the doors, wooden furniture and metal works.
5. While purchasing paints, go for a reputable brand and tailor your choices as per the project. Apart from colour take factors like abrasion, weather, water contact, sunlight etc into mind before making a decision.

Times Property proudly present the most awaited and widely appreciated property exhibition in Mumbai from July 3 - 5. This exhibition, like its earlier sessions, promises big bang in the property market. Various reputed builders (including small to big sharks) would showcase their properties in this exhibition. There would be ready possession, almost ready, and upcoming projects up for grabs. Besides homes, there would be plots, penthouses, second (or weekend) homes, commercial properties (including office space, IT parks, etc.), interior designer shops, and other stalls selling useful home-making materials. One can also book their dream homes in this expo and they would get handsome discounts right there!! Needless to say, there are tens of exciting offers from loan-lenders too. Spot discounts and instant approvals are complimentary.

Do not forget to attend this grand event…