Land Investors Group
Harish Khosla
Proposal:
Dear ,
This is small note to apprise you on a proposal to buy land around Pune amongst friends. The returns on fixed deposits have been unable to offer returns in excess of the rate of inflation. In notional terms with an inflation rate of say 10 percent per annum the interest received on this deposit is nullified. In addition, at this rate of inflation the capital value technically becomes zero in say 10 years and to top it all the interest received becomes taxable too.
To enable us to move out of this circle we, a group of like minded friends have decided to jointly invest in land in developing areas.. As of today we have around twenty three friend together in this group. We are looking at a target of around fifty to sixty friends in this group to bring in the economies of scale for internal development in the property and also in obtaining various permissions.
Broadly speaking we are proposing an investment of around Rs. 15 Lacs to Rs. 20 Lacs per person. Availability of a constant source of water being the premier consideration, a motorable road and electricity amongst others.
Target areas would be developing areas around Pune, Lonavala, Karjat, Khopoli, Alibaugh, Mulshi, Rajgurunagar and Roha. The idea being to buy these lands, jointly develop them and re-sell them as plots for bungalows. Some like me are looking to build a weekend home and invest in additional land whilst others looking purely as an investment.
The time required for investing the money in the land is normally around 60 to 90 days of approval of a parcel of land.
Having scouted around Pune for a number of such properties with various builders and developers around Pune, we found the lack of a guaranteed perennial supply of water or the mark up on the properties seen was so much that the property was in simple terms not worth it. Purchasing it our self made more sense as we would retain the escalation and margins. Lots of developers have been carving out agricultural lands and re-selling them. The buyers may not even be aware that you need a minimum of 0.4 hectares to .6 hectares to build a farm house having a built up area of not more than 150 sq. mtrs. We propose to buy larger chunks of agricultural land, convert them to make them suitable for development and construction and re-sell them in the open market.
For the execution of this project, we propose to form a core committee for the decision making process and also have an Advocate on such committee in an advisory capacity.
As for me, since leaving the Navy, I have been sourcing lands for my corporate clients for over 24 years now . The areas of my operation include Maharashtra, Goa, Bangalore and Hyderabad. The last major transaction executed by me was for a subsidiary of Peninsula Land. The land was located at Jaya nagar, Bangalore and valued at Rs. 102 Crores.
Look forward to you coming on board with us.
Thank you,
Warm regards,
Captain Harish Khosla,
Bungalow No. 22, Kahun Road,
Pune 411001
India
Cell: +91 9823088480