Saturday, March 21, 2009

Tarot card readers and Fortune tellers make hay

It is boom time for clarivoyants as Indian's turn to fortune tellers to know their future.


Anonymous said...

India is a country that has 90% Mungerilals and the rest 10% feeding the dreams of these Mungerilals. If you fall into the later category, you are either a politician or a successful businessman, be a tarrot reader, godman or a conman. This is the reality of life in India.

I can not figure out how a apartment surrounded by filth, open serwes and slums costs 2 to 5 crores. Do the people living in these apartments find the smell of shit appealing and enjoy the sight of homeless, beggars living around them and enjoy the superiority complex knowing they are better off than the rest.

Jai Hind

shailesh said...

Mumbai property watches 'sop opera'

Premium residential property prices built by major developers in Mumbai, till now relatively shielded from the recession, have fallen by 25-40%.

Large builders and developers including HDIL, Mahindra Lifespaces and Runwal Group are now ready to renegotiate prices, and throw in a few goodies in the bargain.

Mahindra Lifespaces, the real estate and development arm of the Mahindra Group, is offering 10% flat discounts on its property in Bhandup, an upmarket Mumbai suburb.

The company, which has close to 500 apartments in the housing complex, has also tied up with celebrity interior designers, at a fee that is ‘negotiable’, the company’s president, Pavan Malhotra, told Hindustan Times.

shailesh said...

Hours after seal on property, developers pay up Rs 47 lakh

The sealing of commercial spaces at Hiranandani Complex by the Thane Municipal Corporation (TMC) for recovering property tax arrears had the desired effect, as in a matter of hours, the builders paid part of the payment overdue to the municipal commissioner on Thursday evening.

According to ward officer Ashok Burpalle, a payment of Rs 47 lakh was made by Hiranandani developers at 7:30 pm on Thursday to municipal commissioner Nandkumar Jantre. “The builders have promised to pay the remaining amount by March 25,” said Burpalle.

Sealing of property by TMC is usually done as a last resort for recovery of property tax and is followed by the auction of property. TMC would be relentlessly pursuing recovery of taxes from defaulters before March end.

So if Hiranandani couldn't even pay property taxes, I can't even imagine them paying interest back to all investors. Also, what about lot of small builders. It would be really interesting if some of these things are auctioned off. I don't recall Actions in past at all.

shailesh said...

Prolonged slump may make loans irrecoverable

Bankers feel if the slump in the property market continues for a few more months, some of their builder exposure could turn into irrecoverable loans or NPAs.

According to a senior official of a PSU bank, even some of the builders who are solvent enough to service the loans are pushing for rollovers to buy time and defer interest payments.

It’s widely perceived that property prices in sticky markets like Mumbai would have fallen to more realistic levels, if RBI had not allowed banks to restructure these loans.

shailesh said...

Banks tighten loan terms for builders

A large number of builders have requested banks for rollovers to beat March-end blues and avert defaults. And banks, who have shut their doors on builders for months, are slowly releasing funds with strict loan covenants.
Some lenders have obtained development rights, under which they can hire contractors to complete construction if builders leave their projects mid-way. In some cases of loan default, they even have the right to trade the floor space index available with borrowers.

The conditions are partly an outcome of the crash in real estate valuations. Wherever possible, lenders have hiked the asset cover — the security required for the loan. But in many cases, builders may not be in a position to pledge additional property for new loans or restructure existing ones. In such loan exposures, banks derive some comfort from special rights.

“They (banks) are extra cautious,” says Amber Maheshwari, director (investments) at real estate advisor DTZ. “Though they have been following stringent norms while lending to developers by asking for collateral securities and personal guarantees, their focus now is to avoid litigations and the involvement of agencies like BIFR or DRT in case developers default,” he said. Bankers feel if the property market slump continues for a few more months, some of their builder exposures could turn into irrecoverable loans or NPAs.

shailesh said...

Indian Builders Lower Sights

The switch means they are offering less-fancy residential properties and at sharply lower prices. Average sale prices are down 35% to 45% for recent launches, according to analysts at Motilal Oswal Securities Ltd., a Mumbai-based brokerage.

"I want to buy a house, but I am waiting for markets to stabilize and prices of houses to go down," said V.K. Shukla, a 54-year-old personal assistant in the Ministry of Coal who earns 600,000 rupees, or about $11,600 a year.

I guess there should be innovation like Tata Nano for mass affordable housing. I am not sure if one can do pre-fab houses in india.

shailesh said...

$2,500 USD Habiterra Affordable House

This could lead to Home priced at same value as Nano. I think all we need is enterpreneur like Ford or Ratan Tata.

Shriniwas K said...

Greedy Corporators and civic bureaucrats have made zoning laws a joke. There is no special allocation for civic amenities, public gardens, separation of commercial, residential, industrial or academic zones anywhere in our country. For pre fab houses you need designated facilities for water, sewage, electricity and roads followed by good access to large roads, hospitals and schools, public and private transport facilities. Even 30 - 40 kms from suburbs, greedy land hoarders have amassed land banks at almost 1000 Rs per sq feet, how can they build cheap prefab houses there? if they do it will resemble a slum.

Kapil said...

Sometime back I mentioned that market will recover by yearend. US market is almost 20% up in last few days. In my opinion bottom has not been placed yet, there will one more attempt to place bottom in May/June and that will be final. Start your negotiation with builders and soon it will be time to buy. I know many people are negative but they them self are buying distressed property.

Always go for good project. Few % up and down does not make much difference. You want your project to be complete.

I have been talking to some builders in New Delhi area and some builders are hardly 10% cheaper. Take Jaypee Greens, Noida, they have not cut any price in last one year. Where is 50% price cut people are talking?

Stay away from clearance item, some of them are money waste. Buy good project and do lot of research...

Kapil said...

Let us compile a list of good project for some big cities like Delhi, Mumbai, Bangalore, Hyderabad, Chennai etx.

Anonymous said...

How to define the good projects?
What is the criteria to apply while selecting good projects?

Anonymous said...

"Today, it’s a fact. Compared to peak prices of 2008, you can expect a correction by 70 per cent in the coming years"

A very good story on the coming real estate crash in India.


Vik said...

Where were all these prognosticators 2 years go. Prices will drop, depending on location. A drop of 50% of 20,000 is different then a drop of 50% of 4,000. Expect higher valued prices to drop more then lower valued. As richer people get poorer, the poorer get pushed even more down. This is an effect of downsizing. Its foolish to make a conclusion that a crash is good for everybody. It is only good for people with money.

the proof is in the pudding. I would like to see something in Worli in Mumbai drop to 5,000. That will be some drop.

sanjeev said...

Can people please post the rates they are getting from Builders at present, and if there has been any drop at all in Mumbai.

I was checking out Chembur area, rate prevailing is 8-9k, builders are ready to negotiate but not much only around 8-10% .

Rates have definitely fallen more in Wadala area as there is a glut of property there (but no good schools around )

I too am waiting for some real correction like more than 20%. Wonder if that time will come for Mumbai :( .. and I will be able to own a home.

Venkateswaran K Iyer said...

Some rates I have been quoted for flats in Gurgaon (only fields are there now):

Vatika Sector 84: 3075 psf

Ramprastha Sector 37D: 2531 psf

BPTP Sector 37D: 2800 psf

Unitech Sohna road: 3288 psf

Indiabulls Sector 103: 2300 psf

All fully priced, no additional costs. My only doubt is - will they deliver at all or go belly up with my booking money - has any one heard anything about these specific builders? Any bad news out there?

All are giving maybe 2% discount on the list price. Thats it.

Any thoughts?

Kapil said...

Jaypee Green, Noida : Pavilion Court 4850. It was 5100 last year. Just 5% down from peak.

Anybody getting 30-40% discount on on good and large project? How about Mumbai? I am not much familiar but interested in Bandra and Worli area.

Anonymous said...

Interesting!Incidentally there is a website called specifically for recession victims.There are a lot of features in this site to help recession victims.Worth a visit!