Earn Rental Income of 12% to 20 % p.a. by investing in Hotel Apartments in the hottest IT, Commercial, Spiritual & Tourist Destinations across 32 top cities of India.
This serviced hotel apartment asset gives you rental income of Rs.30,000 to 90,000 per month on an investment of just Rs.30 to 90 lakhs, that too invested in 15 to 18 instalments over 3 years. You can earn 4 times greater rental income than that of traditional assets such as apartments & villas.
This asset is available exclusively by invitation, only to the patrons of G&C Global and is not otherwise available to the common public via the open market.
Table of Contents
For your quick reference, this entire offer document is organised in the below manner :
- What is Starlit Suites / Serviced Hotel Apartment concept?
- Why Should I Invest in Serviced Hotel Apartments ?
- How does Starlit Suites / Serviced Hotel Apartment model work and generate such high monthly rental income?
- What are the biggest benefits of investing in such serviced hotel apartments?
- What makes this income so predictable and stable?
- How much demand do such serviced hotel apartments have?
- Starlit Suites – Operator Profile
- What are my exit options from this investment and how easy is it to exit?
- 7 Nights Free Complimentary Stay
- Asset Becomes Free in 8 Years if You Invest using a Home Loan
- Who can benefit from investing in these hotel apartments by Starlit Suites?
- Where is this coming up in Pune? What is advantage of the location?
- Builder Profile and Background
- Financials – Returns Matrix, Payment Schedule, Booking Amounts & Home Loans
- Documentation Involved
- Booking Your Unit
- Contact Details of Our Team Members for Further Info or Bookings
What is Starlit Suites / Serviced Hotel Apartment Concept?
Starlit Suites is a leading 3 star serviced hotel apartment operator of India. They are currently managing hotel apartments in 4 locations in India (Delhi, Pune, Bangalore and Cochin) and work is in progress at few other key locations (Hyderabad, Tirupati, Kharadi (Pune), Trivandrum, Shirdi, Amritsar and Varanasi to name a few). They have also shortlisted 20 other high potential cities across India and abroad and are in constant negotiations with G&C or otherwise to finalize such signature hotel apartment towers.
Through this new age real estate asset, you earn highest monthly income against lowest investment by investing in an fully furnished, fully air-conditioned and fully serviced hotel apartment that will be built to the standards of a 3 star hotel, which is then managed on your behalf by Starlit Suites Group and marketed to the leading Indian corporates and MNCs in India as a 3 star corporate serviced hotel apartment. The total revenue generated through such rental pool income is then shared in a 50:50 ratio between you (the investor/owner) and Starlit Suites (the operator).
The above translates into rental yield of 10% to 12% in the beginning which grows to almost 20% over the 20 year lease period.
Continue reading to learn more and please DO NOT MISS to view all the important documents and links shown in the “ANNEXURE” section at the end of this offer document for exhaustive information on income projections, payment schedule, location map, floor plans and much more.
Why should I invest in Serviced Apartments?
As on date, all of us had no choice but to invest in an apartment, villa or shop space to earn regular monthly income. However, through such traditional assets, you cannot earn more than 2% to 3% ROI per annum (maybe upto 5% in case of shop space). Once you back out inflation and income taxes, you end up with almost NEGLIGIBLE or in some cases, NEGATIVE INCOME – i.e. you lose money, making such assets a very unproductive and dead investment.
On top of it, such low income assets come with all the hassles of maintaining the property on an annual basis as at present, to avoid ownership issues in the long run, such as unit being taken over by unscrupulous tenants, etc., most of the investors are going with a 11 months lease at a time, which puts the onus on them to take tedious decisions like whether to allow the tenant to continue or vacate, negotiation to increase the rent every year, constant costly repairs and maintenance, finding new tenants if not renewed, consequent loss of income when property falls vacant, delays in collection of rent and numerous other issues that make it a very inefficient and bothersome way of earning regular monthly income.
Of course some classy commercial assets may give you 10% to 11% ROI p.a. if you are lucky to find such an asset but in this case, you would need to invest nothing less than Rs.3 to 5 crores which may not be practical for everyone.
Now that this new age family asset – i.e serviced hotel apartments – option is available to you, you must go for atleast 1 unit to start with as the same gives you 12% to 20% ROI p.a. – which is 4 times greater ROI than rental income from traditional apartments and villas – without any of the associated hassles described above.
The biggest benefits of investing in a serviced hotel apartment are :
1. Four Times Greater Rental Income than that of Normal Apartments or Villas
Serviced hotel apartments give you 12% to 20% per annum in the beginning which gradually doubles to almost 20% in 15 years – which means you earn Rs.30,000 to Rs.90,000 per month in the beginning on an investment of Rs.30 to 90 lakhs (invested in 16 to 18 instalments over 2 to 3 years) and this will double to as much as Rs.60,000 to Rs.1,80,000 per month in 15 years.
In comparison, a residential asset that costs Rs.1 crore will fetch around Rs.30,000 per month (3% p.a), whereas the same investment in Starlit Suites will earn Rs.1 lakh per month in the beginning on average.
2. Zero Maintenance Cost + Stress Free Management
- These hotel apartments are managed by a leading hospitality partner on your behalf where you are not at all involved in the day to day management and hence are free of all the hassles that are typically involved in renting out property on your own. Imagine 20 years of hands off management versus renewing a lease every 11 months besides continuous monitoring month after month as is the case with traditional apartments / villas.
- Complete maintenance of your property is taken care of by the operator, at no expense to you as all operating expenses are borne only by the operator. This also includes replacing of damaged furniture and appliances.
- This completely eliminates the need of your physical presence – which means you can simply sit back and enjoy your income no matter which part of the world you reside in.
3. Highly Affordable Ticket Sizes & Relaxed Payment Schedules
- Starting as low as just Rs.30 lakhs which itself is payable in 16 to 18 instalment over 2 to 3 years, these hotel apartments are very affordable and easy on your finances.
- You can also get a home loan where upto 60% of unit cost is funded via loan and hence, you have to pay only 40% of unit cost from your pocket that too spread over a period of 2 years.
- Therefore, you can get started with as less as just Rs.12 to 20 lakhs in your pocket – which itself is payable in instalments spread over 2 years.
4. Asset Pays for Itself & Becomes Free in 8 Years
- If you invest in a normal apartment using a home loan and then rent out that property, the EMI you would pay on the loan would be atleast 3 times greater than the rental income, which means you lose money if you invest in a normal apartment to rent it out.
- In the case of these hotel apartments, your income is greater than the EMI you pay on the loan and hence, once income starts, you no longer have to pay from your pocket as the income is greater than the loan EMI – i.e. the asset pays for itself.
- Further, due to excess income left over after having paid off the EMI, you will accumulate enough funds to recover your entire initial investment (i.e. 40% of unit cost) in 8 to 9 years, unlike a regular apartment which can take upto 20 years to achieve the same.
5. Tried & Tested Model + Exploding Demand for Hotel Apartments
Numerous investors round the world have been reaping benefits of this concept as the Starlit Suites Group – with their combined experience of over 40 years of setting-up and running numerous star hotels – has perfected this concept over the last 6 years as they have been successfully running 4 such hotel apartments at key locations.
6. Timely & Automated Receipt of your Monthly Income through ECS
Each month’s income is credited directly to your bank account through ECS on the 25th of the following month, making collection of rent a stress-free and automated experience. You don’t have to worry about whether or not you’ll receive your rent on time or run around to collect and deposit rent cheques, etc.
How does Starlit Suites serviced apartment model work and generate such high monthly rental income?
Starlit Suites operates in the following manner to generate high monthly rental income for you :
- A serviced hotel apartment tower is constructed by a leading builder on a built-to-suit basis, with all the facilities of a 3 star hotel. A typical signature tower includes gym, pool, bar & restaurant, meeting rooms, etc. on ground and 1st floor. From the 2nd floor onwards, the tower consists of Studio, 1 BHK, 2 BHK and 3 BHK units (the mix of inventory varies at each location based on demand), which are fully furnished to support extended stays with facilities like microwave, cooktop, fridge, etc. In some locations, based on market dynamics, the signature tower may have commercial complex / convention halls on the ground floor and all the way upto 3rd to 5th floors.
- Individual investors like yourself would buy 1 or multiple units which will be owned by you and at the time of booking itself, you and other investors are also required to compulsorily enter into a 20 year rental management agreement with Starlit Suites (the hotel operator), as this asset is only meant only for you to earn high monthly income and not for end-use / self-occupation.
- The price that you pay for the unit is all inclusive – that is, basic cost of the unit plus cost of furniture, fitouts, taxes, deposits, registration and stamp duty.
- Since these hotel apartments are categorized as residential property in most locations (most of the states in India barring a few, have statutory provision to allow residential towers to be operated as serviced apartments), you can also apply for a home loan through which upto 60% of unit cost can be funded via the loan and you need to pay just 40% from your own funds, making this highly affordable and easy on your finances.
- Like with any other residential apartment, you pay the cost of the unit in 12 to 18 instalments (depending on number of floors of the tower) linked to progress of construction (typically 2 to 3 years) which means even the 40% that you have to pay from your own funds, can be paid in instalments over 2 to 3 years.
Incase of a particular state not allowing serviced apartments in residential category, you can still get a loan but the same will then be a loan against property which you can apply for at the time of completion.
- Once construction of the tower is complete, the unit is registered in your name and will be completely owned solely by you forever and will be inherited by your children like any other traditional apartment or villa. After registration, you along with all other unit owners in this hotel apartment will then handover your respective units to Starlit Suites (the operator).
- Starlit Suites (the operator) will then bring in their back end infrastructure, manpower and invest working capital to run this hotel apartment and rent out the units for long/extended stays to India’s leading corporates and MNCs (including Fortune 500 companies) with whom Starlit Suites (the operator) has rate contracts that pre-determine demand for the rooms across the country. A typical stay in these extended stay hotel apartments lasts for around 10 – 14 days.
- The total gross income from renting all the units in the hotel apartment tower is pooled into one single account at the end of each month and then 50% of such total income is distributed equally among all investors – ofcourse based on the proportion of area owned by them in the tower like Studio, 1 BHK or 2 BHK.
- Since entire building’s income is pooled into a single bucket and then divided among all unit owners, you will earn as much income as any other similar unit owner in the building irrespective of whether your own unit is occupied or not.
- Also, since you and other unit owners are being given 50% of the TOTAL / GROSS income (that is, the total revenue before any expenditure incurred by the operator for running the hotel apartments are deducted) you will always earn high rental income irrespective of the expenses incurred by the operator.
In other words, your income does NOT depend on the expenditure incurred in running these hotel apartments and hence you do not have to bother about its profitability as you will earn your high monthly income irrespective of the same.
- Your share of the above 50% of total revenue paid out to all the unit owners will translate into an ROI of approx 9% in the first year, 12% by the 3rd year and will grow to as high as 20% by the 20th year of operations. This is 4 times greater than the rental income of a regular apartment or villa (which ranges between 2.5% to 3% at the best). This revenue model results in doubling of your capital value in 5 to 6 years of stabilized operations.
- Your share of the rental income will be credited to your bank account every month through ECS credit (normally 25th of every month for the previous month’s income), creating a high passive income stream that needs absolutely no maintenance or monitoring.
- Lastly as a bonus, for every unit that you own in this hotel apartment, you will get 7 days of free/complimentary stay per year. This is explained in greater detail further down this article.
Zero Operational Expenses to the Investor
The beauty of this model is that the investor does not bear any costs incurred in running the hotel apartment. All the major expenses shown below are completely borne by the operator and since you are being given 50% of total GROSS INCOME (i.e. income before any expenses are deducted) you need not even bother about the nature or extent of expenditure being incurred by the operator to run these hotel apartments.
Staff salaries, electricity and water costs, licenses and annual renewals, AMC contracts, etc. and all other expenditures involved in running these hotel apartments are completely under the purview of the operator and hence will NOT be paid by you – the investor.
Every unit that you purchase comes included with the furniture, appliances and fitouts, which are executed by Starlit Suites themselves to ensure highest quality. However, incase of any damage to the items in your unit, the same will be replaced or repaired at the cost of the operator only and hence you as an investor, need not worry about the quality and safety of your furniture.
The operator takes complete responsibility of maintaining the property on the lines of a 3 / 4 star accommodation to ensure highest occupancy. This automatically ensures the highest upkeep of your property and strong capital values and appreciation.
What are the biggest additional benefits?
Besides earning 4 times greater income than that of traditional apartments or villas with zero maintenance on your part, you can also enjoy below additional benefits :
Seven Days Free Complimentary Stay at Starlit Suites
You get 7 days free stay with complimentary breakfast per year for every unit owned by you. Out of these 7 days, 4 days can be availed at any location where Starlit Suites is operating (4 locations already operative at Bangalore, Delhi, Pune, Cochin & almost 9 locations under progress like Tirupati, Hyderabad, Trivandrum, Shirdi, Varanasi, Mumbai, Amritsar, etc besides 20 more key cities in pipeline). You can accumulate the same for 2 years and also can gift it to family, friends and colleagues.
Due to this unique feature, many industrialists, IT company owners and budding entrepreneurs from abroad and India having or setting pan India operations are taking full advantage by investing in multiple units at various locations as this way, they can save cost to the company besides rewarding vendors, associates, loyal employees and so on by utilizing their 7 days free stay benefit for every unit owned by them.
For example, one of our investors has decided to invest in atleast 36 units, which will give him a complimentary annual stock of 252 FREE star nights across the country besides generating a massive stream of monthly income.
Chance to Acquire Property in Prime Commercial Locations
Apart from monthly income, you are also going to earn capital gains as you are acquiring an asset in very prime and key commercial localities of key cities of India. Normally, it would be impossible to acquire such prime property at such low ticket sizes and because of this, you will also enjoy tremendous capital gains in addition to high monthly income.
Once in a lifetime opportunity for HNIs and professionals to spread their capital in small ticket sizes across most diversified markets of India
This concept is an excellent way for you to build a diversified portfolio of assets by investing small amounts in multiple locations, which is a lot less risky than investing all your money into a single asset or city which is a very dangerous way to invest, as experienced by many in the past.
What makes this income so predictable and stable?
In other words, what is the guarantee that I will earn the income that is being showcased here and what if it does not work? What can go wrong?
This model is tried and tested and has been running successfully for the last few years at Delhi, Pune and Bangalore with Cochin being the latest signature tower to become operational. Also, the below 5 features make it a foolproof investment where all your interests as an investor are safe guarded and no one can manipulate your investment and returns.
1. Stable & Predictable Demand Locked-In In Advance :
- The operator has already established relationships with many MNCs (and signed definitive rate contracts with a good number of top notch companies among them), many of which are Fortune 500 companies, unlike most hotels where there is no way to safely predict the occupancy levels in advance.
For example, if an executive of HCL Chennai tours any other key city of India where Starlit has operations, the company (HCL) books his or her accommodation centrally and directly with Starlit Suites as they have annual rate contract and the same executive cannot book any other hotel directly ensuring predictable and almost guaranteed occupancy.
- Due to such annual rate contracts with many established companies, the operator can safely predict and assume consistent and healthy occupancy levels, which in turn ensures consistent and high monthly income to you as projected in their income projections.
- This also acts as a virtual guarantee to the fact that the operator will almost always deliver as per his initial income projections (this income projection sheet is available at the end of this page in the annexures area).
- You can view a short list of some of their marquee clients in the operator profile available at the end of the page in the annexures section.
2. Gross Income Sharing : No Scope for Operator to Cheat You
You are given 50% of Gross Income before any expenses are deducted by the Operator and hence there is no scope for manipulation of your income as you are getting 50% of total income BEFORE any expenses are deducted – making your income independent of running expenses incurred by the operator. This means operator cannot inflate expenses and show less profit to try and cheat you etc.
3. You Earn Income Irrespective of Whether Your Unit is Rented Out or Not
Irrespective of whether your particular unit is rented out or not, you will still earn as much as every other unit owner in the building as the entire building’s revenue is pooled into one single bucket and then divided equally among all unit owners. Hence, you need not worry about whether or not your individual unit gets rented out or not.
4. Audited Statements Issued to You every 3 Months
Once every 3 months, you are given a statement of income of the entire Starlit Suites hotel apartment which is audited and certified by a chartered accountant. An account of the rooms occupied per night, average room rental charged and overall occupancy is shared with all investors. This along with above aspect of sharing of gross income will ensure the highest level of transparency as this leaves no scope for operator to manipulate accounts in any manner.
5. No Cash Transactions
Since the accounts are always settled directly by the companies in most occasions or through the occupant’s credit card, there is hardly any scope for manipulating the occupancy and thereby hiding the tower’s income. Even incase of private bookings by let’s say marriage parties, tourists, a very clear operating procedure at the front desk has been established by the operator to eliminate any unaccounted occupancy.
How much demand do such serviced / hotel apartments have?
There is a growing trend of business travellers & corporates choosing Serviced Hotel Apartments over traditional star hotels due to the following main reasons :
FOR THE TRAVELLER
- The operator’s main target audience is the corporate traveler (usually travelling for training, conferences, exhibitions, short term projects, etc.) where the typical stay lasts for around 10 – 14 days and can even extend up to 6 months to 1 year.
- Such long term travellers would always prefer a serviced hotel apartment over a traditional hotel when staying for extended periods of time because they can cook their own meals, order room delivery of food from their favorite restaurant and entertain guests in their rooms.
- And they can enjoy all of this with an ambiance similar to a 3 star hotel, but in much bigger rooms with more space, giving them a more comfortable “home-away-from-home feel”.
FOR THE COMPANY
- The companies paying for the travel would also prefer serviced hotel apartments as the same are much more reasonably priced when compared to a traditional hotel (sometimes costing as less as half the cost of a normal hotel), especially when staying for extended periods.
- The operator also complies with their requirements for fire and safety measures, ensuring highest safety for their employees in line with corporate insurance policies.
- This coupled with the close proximity of these hotel apartments to major IT/ITES, finance & other business hubs, is greatly contributing to the increasing demand for such corporate serviced residences.
Operator Profile and Experience
To understand their leading position in India in this segment and their unique strengths to ensure good monthly income in the long run, you must read their profile : Click Here to View Starlit Suites’ Operator Profile
Who is the Competition?
- As on date, there are no established serviced hotel apartment chains of this magnitude and in this category, with either dedicated or multiple properties across the country. Most of the existing serviced apartments have mostly been boutique businesses with no large organized chains or brands. Starlit Suites is the first such national chain and is leading the market as a domestic brand.
- The bigger hotel / hospitality brands in India are focused entirely on the hotel side of the industry which is completely different from serviced apartments in terms of target travellers, room rates, length of stay, amenities and facilities.
- The only other comparable hotel apartment operators like Oakwood and Frasers are focused on the high end serviced apartments category which are almost as expensive as 4 or 5 star hotels and cater to the niche luxury segment, whereas Starlit Suites focuses purely on value segment from corporate world (equivalent of a 3 star hotel) which has a much larger audience and consistent (rather, growing) volumes year after year.
There are no similar and reliable models for income generation in India.
Moreover, Starlit Suites is exclusive to G&C’s patrons, thereby making it impossible to get similar opportunities elsewhere.
What are my exit options from this investment and how easy is it to exit?
You can sell your unit to any 3rd party at any point of time and exit with substantial capital gains, in addition to the monthly income that you would have earned until then. The 3rd party must continue with Starlit Suites for the remaining period of the contract. The same is explained below in greater detail :
Greater Appreciation of Capital Value than Normal Residential Assets:
As these apartments are fully furnished, fully air-conditioned and fully serviced and come with a long lease of high monthly income, these apartments will appreciate a lot more in capital values when compared to normal residential apartments or villas.
Income based Premium Selling Price
There are literally 1000s of investors who will happily invest in any asset that gives them more than 9% to 10% regular monthly income – which this hotel apartment exceeds by a large margin. Therefore, a few years down the line when your asset is earning over 14% to 15% ROI per annum, you will be able to sell your unit for 50% premium over your initial purchase price as even at after paying this 50% premium, the new buyer will still earn ROI of 10% to 12% on his invested capital.
What more, in those first 5 to 6 years of operation by which time ROI per annum would have reached 15%, you will also have earned a total rental income equivalent to 50% of the total unit cost, thus giving you 100% returns in 5 to 6 years.
Example : Assume you purchased a hotel apartment in Starlit Suites for Rs.30 lakhs. 5 years after income begins, you would be earning atleast 14% to 15% p.a. which means an income of Rs.45,000 per month. If you were to sell your unit at Rs.45 lakhs, the new buyer would still earn Rs.45,000/Rs.45 lakhs = 12% ROI per annum. Hence, you can easily sell your unit at 50% premium. In addition to this 50% capital gains, you would also have accumulated monthly income of over Rs.15 lakhs after 5 to 6 years of operation, making total gains of Rs.30 lakhs plus, thus recovering 100% of unit cost in 5 to 6 years of operation.
Additional Premium while Selling as Buyer Gets Income from Day 1 of Investment
When you decide to exit in the future, the apartment would already be earning steady and high monthly income and you would have a bank statement to prove the same. The person who is buying this asset from you would start earning rental income immediately (i.e. from Day 1 of his investment) and thus would be willing to pay you a premium to acquire such a proven asset from you.
Massive Demand for High Monthly Income Generating Investments in India
The maximum you can earn from a fixed deposit or any other traditional monthly income investment such as mutual funds, post office schemes, provident fund or even normal residential properties is 8% to 10%.
These hotel apartments on the other hand will give you 10% to 12% on an average in the beginning itself and a few years down the line when you plan to exit, they could be generating as much as 14% to 16% ROI in say 5 to 6 years.
Hence investors would queue-up outside your door to acquire such a high income generating asset from you as there are no other safer, stable and predictable income alternatives in India.
We at G&C have consistently received enquiries from many conservative / elderly investors who are happy and enthused about acquiring assets that give them as less as just 6% to 7% ROI p.a. as they are more bothered about safety of their capital and steady income and hence are ok with lower returns as well.
Home Loans make these Hotel Apartments Highly Affordable
Since these hotel apartments can be funded via home loans which are easy to procure nowadays (upto 60% of unit value can be funded via loan), they become highly affordable to many investors as they need to pay just 40% from their pockets as down payment.
And since the income from these apartments is higher than the EMI you pay on the above loan, it becomes a very self sustaining asset which pays for itself – where you don’t have to pay too much from your pocket beyond the initial downpayment and infact, you can even recover your entire initial investment in 7 to 8 years time.
Due to this ease of investing and low ticket sizes, there is a huge market for these hotel apartments which give high returns on a low investment.
Complimentary Stay across India
Bonus Feature for NRIs Visiting India
- As an investor in this project, you get 7 nights of complimentary stay with breakfast per unit per year.
- Out of these 7 nights, you can spend 4 nights at any of Starlit Suites locations (the operator aims to have a total of 32 locations covered in the 7 to 8 years).
- That is, if you invest in Starlit Suites Pune, you can use all the 7 free nights at this location or you can also use upto 4 nights at any other location such as Bangalore, Mumbai, Delhi, Cochin, Hyderabad, Shirdi, Trivandrum, Tirupati and many more in pipeline.
- You can also gift these free nights to your family, friends, colleagues and business associates – which is one reason why many industrialists / BPO / IT companies are showing keen interest to acquire multiple units across India as they can always take pride of offering all their employees / vendors / associates / visiting dignitaries a complimentary stay whereby they enjoy dual advantage of cutting costs and earning very high income year after year.
- Any unused free nights can be rolled over to the next year (for a maximum of 2 years).
- Imagine an NRI buying this asset in his name & assigning income to his parents in India. What else can be better than having a 3 star accommodation on his visit to India with facility to even cook / warm light meals / snacks right in the heart of the business districts and having 24 hours room service with a coffee shop & restaurant in the same tower – the most ideal and blissful way to enjoy their visit to India!
- Further, the ultimate luxury could be getting your favourite food/savouries from the most popular food joint of the town delivered straight to your room – which is never allowed by star hotels – making this truly a home away from home for all those NRIs visiting their home towns and reliving the old memories.
Asset Becomes Free in 8 Years if You Invest using a Home Loan
If you invest in this hotel apartment using a home loan, the income from these hotel apartments will be greater than the EMI you pay on your loan – as the EMI you pay is calculated as 10.5% on 60% of the unit value, whereas you are earning income of 8% to 9% on the total value (i.e.100% of unit value) which will keep increasing every year.
Due to the excess income that is left remaining in your hands after you have paid the EMI, you will accumulate enough funds to recover your entire own investment of 40% in 8 years time.
Therefore, from the 8th year onwards, you will continue to earn monthly income FOR FREE as technically, you will continue earning high monthly income on ZERO investment – as you have already recovered the entire investment made from your own funds.
Therefore, investing in this hotel apartment using a home loan is the smartest way to create wealth and earn higher ROI in the long run. Even if you can afford to pay the entire cost of unit from your own funds, it is financially more lucrative to invest using a home loan.
Who Can Benefit from Investing in these hotel apartments?
- Any salaried professional or business owner who wants to develop a portfolio of strong assets that can help generate an increasing stream of high passive income to supplement their primary source of income and elevate their lifestyle.
- All those NRIs who dream of returning to India but are hesitant as they are unsure of or have no safe avenue to maintain the same lifestyle that they currently enjoy abroad, once they are back home in India.
- All those veteran NRIs who have settled abroad (and have decided not to return to India as they are totally established in their country of residence abroad and even their children are never going to return to India) BUT at the same time, their heart is in India where given an opportunity, they would like to keep visiting by creating a hassle free high income generating asset to psychologically take care of their visits to India.
- All those who dream of owning a chain of hotels or assets across India by investing in multiple micro assets across various top locations rather than sinking all their funds into a single asset and where entire property management is taking care off by the country’s leading professionals rather than having to manage these assets by themselves.
- All those wanting to retire early or those who are about to retire and want to create a steady stream of stable, predictable and high monthly income.
- All those who have recently retired and are unsure of investment opportunities that can generate safe and secure monthly income without having to lock-in their capital for a long time, which is the case with most of the options available today for those who want to earn monthly income – such as fixed deposits, PF, finance or chit fund companies which provide low monthly returns, no capital appreciation and also block your funds for a very long time.
- All those who have daughters who may be getting married in next 3 to 5 years as parents can empower their daughters and make them financially independent of the husband by gifting this high monthly income generating asset which acts as a safety net and compliments the daughter’s regular income. In comparison, the other traditional assets such as land/apartments/gold that parents generally tend to gift is of no real benefit to their daughter’s as such traditional assets provide no regular income and lie idle for long periods of time.
Location Potential & Advantage
Where in Pune is this serviced hotel apartment situated and what is the potential of this location?
Starlit Suites Pune is situated in a 12 storied iconic tower adjoining the World Trade Center and 45 Acre EON SEZ IT Park.
Kharadi, one of the fastest growing localities in the vicinity of Pune, is in the process of transformation. Professionals are keen to live here as Big IT companies like Zensar, Tata Communication, Honeywell, Eclypsis, Synechron, Eaton, Mphasis (EDS), Wipro, Reliance etc. are based there. Kharadi is popular for its unrestricted panoramic view from all sides and offers a nice blend of modernization and a charming ambience.
Pune Railway Station : 9 Km
Pune Airport : 4 km
Phoenix Mall : 4 Km
Columbia Asia Hospital : 2 km
IT company’s like Zensar technologies has already taken their first step into looking at Kharadi as the next potential IT hub, by building their 60 crore campus in Pune’s new Silicon Valley.
Kharadi is carrying planned construction activities and ultra modern amenities. Several MNCs are re-locating to Kharadi, as accessibility to airport, railway station and areas like Kalyani Nagar, Mundhwa, Hadapsar makes Kharadi a convenient destination. Kharadi has a well-connected road network with existing roads and the recently developed MSRDC Kharadi – Mundhawa road. Kharadi being close to Ranjangoan, an MIDC area with companies like LG, Apollo tyres, Whirlpool etc, people from Pune working in Ranjangoan have keen interest to be based in Kharadi to cut their commute time from their workplace.
Kharadi is now seen as the most promising destination in Pune.
Eon Free Zone, sprawling over 45 acres of land, this IT & ITES ‘Special Economic Zone’ (SEZ) project stands magnanimous in the strategic locale of Pune, at the prestigious eastern IT corridor the MIDC Knowledge Park, Kharadi. 4 million square feet of IT & ITES specific ‘Special Economic Zone’ Project comprising of clusters A, B, C & D.
Companies such as Citi, Barclays etc have expanded their presence in Kharadi substantially and are creating their back end process support for the Asia Pacific in Kharadi employing a large number of personnel. The news is that these two companies alone plan to hire more than 60,000 employees to be based at their Kharadi office setup.
Adjoining World Trade Center and EON IT Park, Kharadi
Size of Total Project
142 Units in a Mixed Use Tower
Retail in Ground + 1 | Starlit Suites from 4th to 12th floor
Type of Units
Studio – 428 Sft
1 BHK – 593 Sft
Expected Commencement & Completion Date
Works about to commence in the next 2 weeks and completion expected by March 2018.
All Approvals & Sanctions received.
Studio – Rs.40 lakhs
1 BHK – Rs. 57 lakhs
Builder Profile and Track Record
To be updated soon.
Returns Matrix, Payment Schedule, Booking Amounts & Home Loans
Affordable Ticket Sizes
You can invest in a :
- Studio apartment of 428 Sft for Rs.40 lakhs
- 1 BHK apartment of 593 Sft for Rs. 57 lakhs
These figures are inclusive of :
- All furniture and fitouts as per list of furniture and fitouts available in the annexure section at the bottom of this article
- Registration and Stamp Duty as applicable on date of registration (subject to changes by govt from time to time).
Unlike other apartment projects where you are charged an additional premium for floor rise or premium location etc, there are no such additional charges in this hotel apartment and everyone pays the exact same cost irrespective of position of your unit in the tower. This ensures that everyone in the apartment earns equal returns irrespective of unit position.
Easy Payment Schedule
- Booking Amount :
10% on booking.
- On Execution of Agreements :
10% on execution of agreement in 2 – 3 weeks from booking + Registration & Stamp Duty also payable at the time of execution of sale agreements as per Maharashtra Law.
- Balance 80% :
Payable in 16 equal instalments over 2 years as per construction progress, incase of self funding. Incase of home loan funding, 20% more is payable over 2 years as per construction progress and balance 60% will be funded by the bank.
Home Loan Available for upto 60% of Unit Cost
If you invest using a home loan, upto 60% of unit cost can be funded via the loan which means you pay only 40% out of your pocket. Out of the same, you pay only 20% now and rest 20% in installments over construction period. As interest on this home loan during the construction period, you will end up paying approximately Rs.3 lakhs for a studio and Rs.5 lakhs for a 1 BHK approximately, over 2 years.
Easy Redemption / Collection of your Monthly Income
Each month’s income is credited to your bank account on the 25th of the following month and hence there is no hassle in even collecting your income unlike other forms of investment where you have to physically deposit cheques, etc to redeem your income.
Extra ROI as a Benefit of Investing Using a Home Loan
As explained previously, if you invest using a home loan, the income will be greater than the EMI you pay on the loan and in 8 to 9 years time, you can recover your entire initial investment of 40% due to the excess income left over after having paid off EMIs.
Tax Benefits : The EMI paid on the loan can also be written off against the income earned from this asset, which effectively reduces your taxable income. This is big advantage of investing using a loan (Tax benefits may vary from person to person based on their individual financial planning and hence the above may not apply to everyone in the exact same sense).
Appreciation: Also in these 8 to 9 years in which you recover your entire investment, your unit would have also appreciated by atleast 100% in capital values & hence your returns against own funds deployed will technically be almost 500% in 9 years.
Example: If you invested in a 1 BHK unit of Rs.40 lakhs for which you pay only Rs.16 lakhs (40%) as rest is payed through the loan. This studio which is currently worth Rs.40 lakhs will be worth atleast Rs.80 lakhs by 9th year. By this time, you would have already recovered your initial investment of Rs.16 lakhs.
- Hence your ROI is 500% (Rs.80 lakhs on investment of Rs.16 lakhs).
- Above is ignoring the rental income that you will continue earning for the rest of the lease period.
Sale and Construction Agreement (SCA)
This is the agreement between you and the builder and is an industry standard format that covers the terms and conditions of sale and construction of the hotel apartment and the timelines involved. This agreement will also have clauses to compensate you incase of delays in construction.
Furniture & Fitouts Agreement (FFA)
This agreement is between you and Starlit Suites (the operator) and it covers the cost and schedule of items that will be used to furnish and fitout your room as per 3 star hotel apartment standards.The furniture and fitouts are purchased and fixed by Starlit to ensure best quality and the operator also takes responsibility to replace any defective or broken furniture and fitouts at his expense throughout the lease period as part of the regular maintenance and upkeep of the hotel apartment. This takes away the need for you to personally monitor the quality and maintenance of your unit.
Rental Management Agreement (RMA)
This is the crux of the business and captures the terms and conditions of the revenue sharing lease agreement between you and Starlit Suites as an operator. It contains clauses related to revenue sharing, operator’s responsibilities, complimentary stay, period of contract and other important clauses.
Power of Attorney (POA)
This is a legal document giving Starlit Suites the power to operate the unit on your behalf and is a matter of legal formality.
Next Steps and Booking Process
The booking process is fairly simple as explained below :
Once you decide to invest and inform one of our team members / your relationship manager, the booking form will be sent to you. You can then fill and send us a soft copy of the same along with details of payment of booking amount as explained in the “Financials” section above.
You can pay the booking amount either by wire/online transfer / net banking or by issuing a cheque from your savings / NRO / NRE account in India.
Based on your preference if any, a short list of available units will be sent to you and you can chose from the same to proceed further. Since all units are priced the same and the returns are distributed equally, it is ok to chose any unit out of whatever is available without bothering too much about floor or facing.
When the agreements are ready to be issued, you will have to pay 20% of unit cost MINUS booking amount already paid and builder will then execute those agreements with you.
You can keep paying the balance 80% in instalments as per construction progress and you can also apply for a home loan at this stage where upto 60% of unit cost can be funded via loan.
You can contact our in-house Home Loan expert Sridhar Kumar on +91 9686627071 / email@example.com for further info or assistance on home loan application process and to estimate your home loan eligibility.
We strongly suggest that you contact our above Loan Expert as soon as you submit your booking form so that you do not end up paying any penal interest to the builder, once he raises demand note after execution of sale agreement.
For bookings or queries please call any of our team members as below: