Thursday, January 01, 2009

Happy new year and hurrah for 2008

Tis the time of the year to reflect on the year gone by and to plan ahead. As most people will agree 2008 was the year to bury leverage for good. Borrowers with good credit saw rates go up regardless and there were no prizes to be won for being a good kid and being frugual in your livestyle. Everyone got hit pretty bad. The difference being that the prudent investor still can rebound whenever the market turns, however the speculator is bankrupt and will have to restart his life from scratch to recoup the money back lost in the de-leveraging process.

2008 also put an end to the lot of myths about real estate
1. Real estate never goes down. Oops it just did.

2. Black money will support the market. Oops Black money speculators lost heavily in the market.

3. NRI's will come in droves. Oops NRI's lost jobs and returned back with empty pockets thanks to the decline in their 401k's and stock investments

4. Outsourcing will increase inspite of US downturn. Another big OOPS. With the collapse of Wall St. institutions, the need for systems engineering has collapsed as well. Add to that except for the top 4 outsourcing vendors, none can differentiate themsevles in any way and are competing by lowering prices. We all know what happens when prices go down!!

5. Sensex was supposed to hit 25000. Oops it closed at 9600 for 2008. If one takes the closing Sensex of Dec 31st 2005 of 9300, we had a massive gain of 3% over 3 years, annualized at 1% per year. Fantastic achivement by any standards, Dalal Street Einstiens.

As we move into 2009 I'm expecting the following for Indian real estate.

1. RBI will cut PLR to get loan rates to 2004 levels.

2. It is best to buy property nearing completion from investors. There is no point in buying directly from the builder when there are thousands of flats which are held by bleeding speculators.

3. We will see investors dumping flats as their jobs situation worsens. US is going thru major layoffs and that will have an effect on the Indian market was well. Some work will get outsourced but that gain will be compensated by the loss of Wall St business, some of which have closed for good. We will see layoffs and paycuts in the Indian industry in general, IT or otherwise.

4. NRI's who plan to live abroad will dump their holdings in India. It is cheaper to buy primary or investment property in the US with a better rental yield and lower mortgage then to keep their holdings in India. 2009 will bring out all these rats out of their holes.

5. Media will keep proping prices by issuing advertorials. The more research the buyer does the better. If it sounds too good, stay away. If they promise you the moon, you will get to live on it.

6. All the Abdullah's and Bindas Bhai's of India, cannot prevent humpty dumpty from having a big fall yet again in 2009. 2008 was the year of denial. 2009 is the year of acceptance.

To all the readers, commentators, bulls, bears or otherwise Have a Happy, Safe and Prudent 2009. We all learn from the collective knowledge, information and opinions we share. Happy posting.

53 comments:

Anonymous said...

Thank you Vik for your efforts and time for making this platform available and keeping it humming.

Wish you and your family a very Happy and Prosperous New Year..!!!

"We all learn from the collective knowledge, information and opinions we share"...100% true.

Anonymous said...

Thanks Vik for keeping up the blog. Wish you a happy new year.

You could also add to the predictions:

--Senses goes down by another 3000 points to 6500.
--Massive layoffs in India also.
--Salaries to be cut by 50% for high paid idiots (20 lacs to 60 lacs range).
--Consumer will reign in spending and it would affect overall economy i.e. cars sales will slow, 50% Malls will close etc.
--All the easy money would be gone and people will come to reality.
--Once again 10 lac rupees would have some value.
--Hotel industry in India is also in a big bubble charging outrageous nightly rates, that will also correct.
--Maybe a lot of divorces as spouses will not be able to keep up with the expenses.
--Higher crime rate.

Anonymous said...

Senses = SENSEX in the post above.

Vik said...

Sensex will come to its Senses :)

Shriniwas Kulkarni said...

Excellent Blog Mr Vik ... The Bindaas Bhai and other realtors have already shut shop and whomsoever have made profits should get out ASAP alse you will bleed to death like Bindaas bhai ... I see 4 years of consolidation in US markets - there wont be any boom this time as the US has burnt its fingers in the Dot Com boom of 1998-2000 and the following Housing Boom 2001-2004 followed by bigger busts than ever.
India will have to follow suit as its economy (you like it or not) depends on well being of America.

I see bright future of India in rural growth, agro based and sustainable energy based industries - though non high yield these will support larger masses and provide employment that has been lost in the 2008 crisis ... The morons of Dalal Street and Real Estate street will end up sweeping the Streets they used to own :)

Anonymous said...

I was very surprised to find a lot of my classmates in India are getting salaries in the range 36lacs to 74 lacs per year. And this is with 10 years of experience i.e. people who graduated from a premier institution. I don't understand this package thing.

I do understand one thing that these people are being paid very high. I don't recall any of my classmate to be that smart. Just ordinary students who happened to get through the entrance exam and got the degrees. They do deserve a good salary but not these kind of pay packets.

I think there is a major bubble in Indian salaries also. I work in US and have been able to get to $120K in 10 years. And here the cost of living is very high like MONTHLY rent of $2200 per month, $4,000 per month in taxes, $300 in car insurance per month, $500 for Gas per month, $500 for groceries monthly, $400 for my part of health insurance per month, $400 for car payment monthly and $200worth of monthly miscell. expenses. I can also add $400 per month for eating out expenses, $250 for utilities like eelectricity/water. Also, $110 for cable TV/DSL and $79 per month for Cell phone plan.

I see in the US the salary is all spent in basic needs. I wonder what do these people do with 50lac rupees or after tax roughly 3lac a month?

Foreign companies have to wake up and close this bubble by slashing the hourly rate they pay to Indian coolies.

Observer said...

To Anon above:

Let the market decide what the salaries should be. Even at high salaries would you be willing to come back to India? Probably not. Because the standard of living is much higher, less noise, pollution, garbage etc in USA. The infrastructure is far superior in USA compared to India. Therefore, Indians working in India have to be compensated more than people working in USA because they put up with such horrible conditions in India.

I actually think you high-tech braceros in USA should be glad salaries in India are high, because if they became very low, then most likely your job would be outsourced to India and you may also have to come back to India. Be careful what you wish for!

Anonymous said...

Anon @ 5:59 PM "classmates in India are getting salaries in the range 36lacs to 74 lacs per year."

Did you ever try to verify the authenticity of these claims?

Please request your classmates showing the monthly salary slip and not the numbers in the OFFER LETTER? Please try to find the variable component of the salary. Then only will you be able to find the real figures.

HR department and corporate policies can easily put the Wall Street charlatans who invented the toxic instruments to the shame when it comes to awarding the people.

Just scratch the surface and you will find that 36lac to 74 lacs salary is simply a hoax.

Anonymous said...

Vik,
Wish you and your family a very happy and prosperous new year 2009!

Thanks for making this platform available to real buyers

- Anil

Anonymous said...

Banks won't slash loan rates this New Year
New Delhi: Those waiting for cheaper home and car loans will be a disappointed lot. Network18 has learned that banks have told the Reserve Bank of India (RBI) that it is just not viable to cut rates further.......

This is THE NEWS for the builders who thought they would arm-twist the banks through their friends (corrupt politicians) to lower the home loan rates but not the home prices.

The banks have gone panicky from the early indicators (e.g. Corporate advance tax collections in Mumbai falls first time in 5 years) for the surge in NPAs. e.g

Observer said...

Let us analyze 120K/yr Anon's posting above:

>> MONTHLY rent of $2200 per month,

Yes the above is believable in major metros on the coasts.

>> $4,000 per month in taxes

Net taxes on a 120K salary including federal+state+local taxes will not cross $3500/month. This is if you do not contribute to your 401K and are single. If you are married, with 2 children, and claim deductions, the tax will be less.

>> $300 in car insurance per month

What do you drive? A Ferrari? What car costs $300/month to insure? Unless you have a wife who also has her own car. But then if she is not working, your taxes are going be less.


>> $500 for Gas per month

Do you live more than 60 miles away from your workplace? If so, why are you paying $2200/month in rent? It should be sustantially cheaper. Even assuming $3/gallon, you must be driving at least 4000 miles per month, or a 125 miles per day.

>> $500 for groceries monthly

Believable.

>> $400 for my part of health insurance per month

How so? It cannot be more than $250/month even for a PPO type of plan, let alone an HMO plan. Unless you have a wife and children also, in which case your taxes would be less.


>> $400 for car payment monthly

Believable.

>> $200worth of monthly miscell. expenses.

Believable.

>> I can also add $400 per month for eating out expenses

Your grocery bill seems very high if you are spending $400/month on eating out. Unless you are eating out in some fancy places.

>> $250 for utilities like eelectricity/water.

You must have a very big house for utilities to be that high, or live in a very cold place.

>> Also, $110 for cable TV/DSL and $79 per month for Cell phone plan.

Believable.

But overall, your expenses do not make sense.

Anonymous said...

To Anon above:
Why would someone lie about expenses:
Check in Maryland the tax rates-there are additional county and city tax.
And I was including Social Security and Medicare in 40%.


I've 2 cars, one is old from my college days as a backup, and a new E320.

I use premium Gas, and I'm also averaging oil change costs in Gas per month.

I've some health issues and with my PPO plan I've a $400 per month payment,
including presciption. It is like $179 per paycheck for 26 paychecks.

I eat lunch out everyday. That is $10 per day. Plus in groceries I've added
my cost for liquor and smokes.

I'm not sure what makes you think these expenses are not real. I don't live in a stingy way. I dine at good places, live in a 5000 sq. feet house, drive a good car and live comfortably with my girlfriend.

Observer said...

Ok, sounds fine then. So, do you have a gori girlfriend? With gori girlfriends you have to be careful, otherwise you may also end up with more health issues and have to take anti-AIDS medicine for life. Then your expenses will really go up.

And by the way, all those nice things are not available in India, like 5000 sq ft houses, E320, those beautiful clean roads to drive on, those fancy restaurants where you do not have to worry about getting jaundice or typhoid from etc in India. So, people in India need a higher salary than what you are paid to compensate for the horrible conditions here.

It really is quite simple. Even if the pay here was 200K/year, would you come back to India? I would bet the answer is no, after having lived in the US for 10 years. So do not begrudge the Indians with high salaries here.

Anonymous said...

Stimulus package declared by Govt of India January 02, 2009

Boost for realty sector:
~~~~~~~~~~~~~~~~~~~~~~~

- The government relaxed norms on external commercial borrowing (ECB) for dealing with the problem of liquidity crunch faced by the developer community. The government said "all-in-cost" ceilings on ECB would be removed by RBI.

- To facilitate access to funds for the housing sector, The 'development of integrated township' would be permitted as an eligible end-use of ECB, under the approval route of RBI.

Result:
~~~~~~~~
TOI Article - India's revenue loss due to stimulus at Rs 40,000 cr
NEW DELHI: The revenue loss for the government due to stimulus measures announced so far is estimated at Rs 40,000, finance secretary Arun Ramanathan said on Friday. The government announced measures to boost faltering economic growth on Friday and the central bank slashed its main policy rates to promote expansion.

Real Estate Builder's Response:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Ravi Ramu, CFO, Puravankara Projects Ltd

"You need to add this one to last time's package. Added together I think now interest rates will fall enough to cause a positive effect. Otherwise, it was just a ripple."

Sunil Malhotra, Vice President-Finance, OMAXE

"The only fact that needs to be seen is whether funds are available for this sector globally."

Anil Kumar, CEO, Ansal API (Building lifestyles since 1967)

"It is definitely a positive development. It will help us a lot. If we can raise (ECBs), we will definitely raise it. Funds are still there."

What is the External Commercial Borrowings? - Shadow Banking System which was the one of the conduits for channeling the easy money to the India shores

Nouriel Roubini - Worst of crisis is still ahead of

"We now are seeing the demise of the shadow banking system, the complex of non-bank financial institutions that looked like banks as they borrowed short term and in liquid ways, leveraged a lot, and invested in longer term and illiquid ways. As a result, the biggest asset and credit bubble in financial history is going bust, with overall credit losses likely to be more than $2 trillion."

Bankers Response:
~~~~~~~~~~~~~~~~
RANA KAPOOR, MANAGING DIRECTOR, YES BANK
"There is a question mark on the ECB front as there are not many lenders in the market. Most of the lenders have either burnt themselves or are in a stage of introspection. In the foreign credit market, there is not much demand for Indian paper."


Possible Outcomes:
~~~~~~~~~~~~~~~~~
- Get ready for more taxes

- Banks will not further reduce the interest rates on home loan

- Crash (more than expected) in real estate prices

Shailesh said...

On Salary topic, those High Salaries are due to sudden demand supply mismatch. Wait 5 years and you will have Indian home grown IT folks wanting to be managers for much less salaries. Corporate ladder is pyramid, lot more people want to move up than number of slots available.

I just came back to US after 4 weeks of vacation in India. On Real Estate front, my cousin is RE lawyer for many builders in and around Mumbai. One of his builder client with project in Pune, he is getting no buyers even at 50% discount from peak prices. Another cousin of mine with construction industry contacts, offered me ready flat in Navi Mumbai at 2005 prices. I said I will pass, as I don't want headache of renting etc...

Granted people who consider their location to be superior (like Juhu, Dadar, Ghatkopar, Powaii etc..) hang on to their dream prices. Some of my relatives have properties at good location. I advised them sell it before prices fall more. But alas they don't want to listen. They are still living in fantasy world.

dexter007 said...

Hi,

great blog and i enjoy reading the articles posted here. jst wanted to know how i could email the author incase i had any queries?

Vik said...

@Observer and Anon:
It doesn't make sense to judge somebody's personal preferences under any circumstances and at the same time calling Indian IT folks as Coolies is also appaling. Markets will correct based on demand and supply. If US companies want to pay 30-50L to Indian workers more power to them. From my personal experience expect for Sr Managers and above nobody gets that much money and that too in MNC companies. Indian IT companies are conservative in parting with cash.

regarding Anon's expenses, he presents valid numbers. With 120k salary in the SF bay area and most of metro LA, one can hardly save 20k if you don't want to scrimp and cut corners. Unfortunately in today's economy one has to cut corners in as many ways as possible to prepare for the eventual layoff.

California has 8.5% state tax, US federal taxes are 25%. Add social security, medicare, medicaid, unemployment ta and high housing cost, 8.25% sales tax on everything you buy and you are left with zilch.

Vik said...

Dexter, you can post queries on the comments section itself. I don't give out my address to prevent the massive spam bots from deluging me with useless mail.

If you still think it warrants privacy let me know

Anonymous said...

Guys,

One thing that i find interesting among the readers here they want every body else to be affected and they will not be having even a scratch... This is a probability not sure whether its a possibility..

You guys are envious of others because they have easy money...

If RE has to fall 50 % then the following also need to fall...
Prices of Tiffins in small hotels in cities (They have gone up by 100 % in 2 years) Will the prices crash by 40 - 50 % ?? Taxes which has gone up by 100 - 200 %. No service tax on our phone bill 8 years back... Will it crash by 40 - 50 %?? Dont know how much stamp duty and property tax in creased in Bangalore from your base year calculation... Should be atleast 200 %....

There will be foreclosures... But i believe will not come to an end for all others so that you can buy houses :-)

Also builders are doing philanthraphy... They will change prices based on demand and supply... If you are envious then become a builder... I guess no one will stop you...

If i go with your logic and if it crashes by 50 % then every year it will crash by 50 % till it reaches 1950 levels... Even 10 paise had great value then... Yes you are very worried about no value for even 10 lakhs... My dad is worried no value for Rs 500... He has Rs 120 as his salary in 1960...

Dont live under this illusion prices for you...

Anonymous said...

Correction

There will be foreclosures... But i believe World will not come to an end for all others so that you can buy houses :-)

Anonymous said...

To Anon at 11:09:

The people are not envious. It is just the phenomenon was not real that happened in the past 8 years. There is no asset that pays a 50-70% returns and RE was appreciating with that level.

What is annoying is that most people became greedy and took a swim in this flow. People who stayed on the sidelines are smart as they can get properties at inflation adjusted prices and not speculative prices. The prices will adjust back to 2000 levels and not 1950 levels as you are suggesting. There will be a drop of upto 70-80% from the peak value and not 50% every year. It is a slow process of decline and it will be say 30% in 2009, another 25% in 2010 and another 15% in 2011 based on peak prices.

Anonymous said...

Vik,
Are you based in India or US?
Just curious.

Anonymous said...

When did inflation become the standard for property price increase??

My father in law wanted to sell his old house in 2001 for 4 Lakh and he decided not to sell later as he mobilized money in other ways...This land was bought in 1976 for 4K in KR Puram, Bangalore.

Why the CAGR was not based on inflation? Was our inflation from 76 - 2001 at 20 %?

What was the bubble between 1976 - 2001?

Anonymous said...

anon@above

Please compare the purchasing power of 4K(1976) with 4 lacs(2001) and let us know whether we were poorer or richer in 2001?

Anonymous said...

anon above:

Thanks for introducing the concept of purchasing power when questioned about inflation !!

I never support psf rates in mumbai or any other obscene rates

Anonymous said...

My question is why the RE price increases are not factored by the Govt. when calculation inflation?
They calculate it without energy or RE prices. The CPI numbers are all doctored by the Govt.

Anonymous said...

When RE became 4 times in value over the past 4-5 years, no one said that we are witnessing inflation. And when food prices rose, inflation became a big problem and Govt. started raising rates.

Anonymous said...

I think people would be soon worried about "Deflation" rather than inflation.

There would be very less buyers for anything starting from clothes to cars, electronics and houses.

Anonymous said...

BEIJING (Reuters) – Factories in China and India joined much of Europe in slashing output and jobs at a record pace in December, another sign the biggest emerging markets were wilting under the recession gripping industrialized nations.

Factory activity surveys in the United States were also expected to show a steeper contraction in December, as demand collapses in the Western countries that developing nations rely on as export markets.

Economists and policymakers had seen China, Russia, India and Brazil, with their vast markets and rising wealth, as the engines of growth that could save the world from recession. Those hopes are fading fast and forecasts are getting gloomier.

From job losses at Chinese factories to the biggest drop in South Korean house prices in five years, there were signs the export slowdown was rippling through domestic economies in emerging markets.

“What is worrying is that the weakness has spread rapidly from the externally-oriented sectors to domestically oriented sectors too,” analysts at OCBC Bank in Singapore said in a note after the country announced gross domestic product data.

In contrast to the rapidly darkening economic outlook, the mood in markets

Anonymous said...

Happy New Year to All !

Looks like lot of builders are trying to convince for New Year, without giving any rational that, prices has reached to its bottom, hurry up.
Where as the economy is only getting bad every day.

Why the prices should go down further?
 Peoples have lost the jobs, there is no income OR the income level has gone down.
 Businesses are not making profits to the same tune as 2007.[Corporate tax collection has dropped .]
 When every one is making less money, all goods & assets prices will become cheaper. If a some one can buy with 100Rs “X”, now the “X” will available for 50Rs because of demand supply equilibrium.
 Global economies have not yet reached to its bottom, to discuss about the re-bounce.
 Yes, this is not the end of world, every one is making less.
NOTE: It’s not only RE is suffering, every person & business is not doing well.

If peoples salaries are not the consideration for RE prices, please go ahead & sale all your assets to your isolated economy.

The Tiffins prices will also go down to the tune of drop in inflation(CPI). Check air fair prices has dropped by 25-75%.
If Govt. would have included the RE in CPI basket, there would be a 300% inflation.

So guys let it fall then only pick up, minimum 50% price cut is guaranty.

Vulture.

Vik said...

@Anon:
I'm based in US but travel to India frequently, mostly to Mumbai and Bengaluru.

I think people shouldn't compare the Indian economy of the past few years to the pre-liberalization era. In 1996 I converted some dollars at Rs 35 dollars to a rupee and put it in an NRE account in Times Bank at an interest of 19.5%. That yield is just not available today.

Purchasing power parity in India has to be defined more clearly.

I was just reading an book today called the world is curved. From the first couple of chapters I think the author makes some good points on the transfer of capital across borders which is causing social unrest across countries. More of it when I finish reading it.

Anonymous said...

Vulture,
I think people don't think there would be a 50% price drop right away.

A better way to put it would be 35% in 2009, 20% in 2010 and 15% in 2011. That's when we could see a bottom. Now these declines are with Govt. intervention to keep the prices propped up. if the Govt. doesn't interfere, you could see prices down by 60% in 2009 and another 20-25% in 2010 from the peak prices.

Anonymous said...

Vik,
I think Tom Friedman created this Globalization thing from his book The World is flat. I don't know how well it is working.

Vik said...

Actually the world is curved is a recent book. Mr Friedman was the first one to elucidate to the common man how globalization was worked. In India we were privy to it before the americans, thanks to outsourcing and the BPO industries. http://theworldiscurved.com/

India has benefited by globalization, however we have seen capital flows strip Indians of their savings, either through high interest loans, or via the loss of capital in the stock market.

Anonymous said...

I always used to challenge my Globalization professor Anil Gupta at UMD, College Park during my MBA. I guess everyone was drunk for the last 7-8 years and could not understand basics. What is more troubling is these professors get paid 250K nine months salary to spew nonsense in the classroom.

Anonymous said...

I think that people will stop buying a lot of things as the economy moves towards recession. This will cause more layoffs in sectors other than IT which will see layoffs due to world recession.

The prices of goods will also be discounted upto 50% like clothes and cars with a discount of upto 10-20%. I think there would be massive DEFLATION and even salaries will be cut down for a lot of high paid people.

It is happening in US now and is coming to India soon.

People please start saving and worry about your jobs. This time this issue is a lot more than housing bubble, an overall correction of the economy. People with patience would be able to get houses at half the price in 2 years. People in US never believed that their house could never go down as their house is different or their location is very much in demand. But the prices eventually dropped by close to 50% in the 18months.

The party for India is long over. It is hangover time now.

Anonymous said...

Vulture - Are u supporting inflation theory or Demand Supply theory? I am really interested in seeing reduced tiffin prices as it will help common man..

Vik - Why purchasing power parity has to be define differently for india?

For the folks predicting gloom in developed world... IF we extend the theory developed world will not have any thing other than current printing press and will beg with the develoing countries for food :-)

Observer said...

The reason I responded that way to Anon was:

a. The attack on Indian workers in India as coolies
b. Criticism of Indians working in USA as stinking of Sambar/Curry and living 3-4 in a room.
c. Description and frequency of sexual acts.

I find it strange that some of these NRIs think that by living in USA for 5-10 years they have become Americans. The fact is, the majority of Americans, both white and black will continue to think of them as Indians only. So these folks transfer their insecurity to Indians primarily living in India. This complex will only grow as the American economy sours and unemployment increases significantly. Usually recent immigrants will face increased hostility and scrutiny from long-term natives in bad economic conditions. So my advice would be to take it easy, and stop calling Indians as coolies.

If we are coolies, then you are a bracero in America.

dexter007 said...

Hi

I am a resident of Mumbai and over the last 2-3 years i have seen a great deal of Redevelopment projects in the surrounding areas. Typically building that are 3-4 stories are felled and converted into towers from 8-14 stories.

The builder demolishes the building and also pays rent to the displaced ppl for 18-24 months. Apart from that most 1BHK flat owners get 2BHK flat free of cost. The builder then sells the remaining flats and makes a profit.

Given the fact that home sales are down and rates down between 20-30% i wonder how some of the recent redevelopment projects will fare. I am concerned as the builder has to pay rent, bear the cost of demolition and also construct a new building.

Eg: 2 yrs ago a neighbouring building was redeveloped where the builder paid abt 6000 rent p.m. and sold the flats at arnd 6000-7500 psf in 2007.

Can we calculate an approximate breakeven rate at which such transcations become loss making for the builder?

And can we see the redevelopment market being hit badly and some tenants being stranded after their buildings being demolished with no place to go.....

Anonymous said...

Anon @ 629pm.

There is serious disconnect in your reality. Its better that one doesn't comment on either nation. This is a real estate blog focused on Indian Housing bubble. Lets refocus our discussions on this.

Anonymous said...

Repost:

@ Anon at 629am and 632am:

There is serious disconnect in your reality. Its better that one doesn't comment on either nation. This is a real estate blog focused on Indian Housing bubble. Lets refocus our discussions on this.

Anonymous said...

See the bravery of Indian people:
People don't want to except reality, be it economy, RE, life in US or women.
Failing to get job, IIT student commits suicide

Vik said...

No more personal attacks on the lifestyle of Indian H1-b's in the US. We can go on and on about lifestyles of immmigrants including Chinese, Russian and so forth. People can choose what to do with their money. This is a real estate blog and minor diversions discussion economic and social behavior of cultures is acceptable. However some people are on a slandering spree and it does no good to anyone. I will delete comments which I think as inappropriate. I'm restrained myself till date but I think things will go out of hand if people keep commenting on personal life style choices. I dont care if an H-1b chooses to live with 3 guys or 2 girls. At the same time I've seen enough conservative Americans who drive 25 year old cars but splurge $25,000 on kitchens. To each his own. Let people do what gives them happiness or satisfaction. We have seen what housing gamblers have done be it American or Indian. Lifestyles are personal choices and attacks on them are out of scope of this blog. Please understand and post responsibly.

Anonymous said...

Would the emerging economies BRIC countries survive the recession? I read somewhere that India may not hold well out of the recession. China is also seeing a lot of factory closings. Thoughts?

Anonymous said...

Vik,

Please delete those unecessary and irrelevant comments made by those who suffer from "Holier than thou" attitude.

Lets all ignore those comments and focus on RE and its prospects in India.

Anonymous said...

Anon@6:29

I don't want to comment about the women part, but I do feel Indian people lie a lot on resumes and the Indian IT companies cheat a lot on visa issues as we had one comapny rotating people every 3 months on visitor visa and it is illegal to work on visitor visa.

I've interviewed people with sambar smell as soon as they entered my cabin and a lot of made up stuff on resumes.

Prashant said...

Folks,
How about NOT posting as Anonymous? If you are not comfortable using your real name, you can use a psuedo one. At least you will be credited for your views :)
Happy New Year to all!

Anonymous said...

Guys,
Did you by any chance saw resumes of the goras? I have seen many such resumes as i work in a MNC. They lie much more than Desi's... Goras are more polished and they are trained to do that from kindergarden...

When they are cornered in crime investigations with evidence they tell the truth!!!

In business no body behaves like Harichandra?

Question about your ownself... How many times you spoke truth/ half truth and lies on matters important and close to you... Good time to look back....

Vik said...

Just for the record I love Sambhar and Rasam :)

Anonymous said...

Hey Vik,
Did you complete reading that book?
Looking forward to new articles.

Anonymous said...

Rasam is my favourite too and I'm from Delhi. We use tomatoes on vine for that.

Vik said...

ok Guys, I'm deleting some posts which I find offensive. No more h1-b sambhar discussions. You can use other blogs to discuss Desi lifestyle. I'm making a new post soon on some of the news I've heard from the various conversations I've haad with people about the Silicon valley hiring situation and real estate. Just for the record I love Sambhar and Rasam :) but lets refocus on Jobs, Stock Market and Real estate which seem to dominate everyone's mind.

Anonymous said...

There would be major layoffs in Silicon Valley too. And a hiring freeze that would last more than a year.

I spoke to some fresh MBAs and they can't find jobs. They have OPT still no one seems to be hiring.