Monday, July 05, 2010

Bharat Bandh, super high inflation and housing prices

It must have become apparent to everyone by now including the Congress government that the Bharat Bandh, called by the opposition has been a stupendous success. The majority of the common people who have meagre earnings have seen essential commodities skyrocket beyond their own mean. Citizens employed by certain private sectors and government sectors which were affected by the sixth pay commission could still manage to buy dal at 120 rs a kg. However the vast majority of the country have rebelled against the policies of the government.

Sonia Gandhi and Mehangai Manmohan Singh have completely lost track of the common man and see the country thru eyes of the G-20 and the IMF , courtesy Montek and Mani Iyer. However off late I see that Mani Shankar Iyer has been distancing himself from the view of the congress government.

If an election were to be held today, there is no doubt that Congress would've been voted out of power just one year after their second term.

Corruption levels are highest in this regime and personally I have been asked to pay exorbiant amounts for measly government procedures regarding my own parent's property.

Over 2004-2010 India has definitely witnessed growth however the price rise and inflation has eaten into the purchasing power of everyone. When I made my first post on this blog I had warned of this where rapid growth will lead to uncontrolled inflation thereby making majority of the people more poor then they were before the growth commenced.

The only people to benefit from this high GDP growth of 2004-2010 is the rich upper class, bureaucrats and politicians all enjoying gains thru corrupt means. Everyone else is just a loser.


64 comments:

Anonymous said...

We are pretty much going the Argentinian way.

Allowing unchecked foreign investment, privatizing the profit making corporations and nationalizing loss making organizations.

Taking on record loans from IMF/Worldbank

Evey thing that happened in Argentina is happening here.

Is it any surprise why the petrol prices are being set free, ha ha no doubt, I can bet my last penny that this is the effect of letting players like Reliance enter the energy business...

Anonymous said...

watch this video about the Argentinean collapse that took place in 2000-2001.

http://video.google.com/videoplay?docid=4353655982817317115#

You will see stark parallels with our country.

I hate to say but if we the peopel allow this to go unchecked then we are not very far from food riots, massive unemployment and a lot of distress for our kids and ourselves...

Anonymous said...

Congress has made this country a Banana republic and any opposition like lalu and Mulayam and Mayawati is quashed with help of CBI cases..Wewish BJP comes to powerbut tis tough for NDA to pull it off unless people really understand the problems cause by Congress..High prices in real estate, food, essential items, coorruption at all levels..is what we get when we vote for Congress..

Desi Batman said...

Suprising (is it?)!! People in India boast of RE worths of lacs and crores. Even slum dewellers in India brag worth of RE they have.

Time to sell RE and buy food.

Anonymous said...

yes, don't vote for congress. We was better in BJP rule, there was no inflation.

Anonymous said...

There is no doubt that Congress is highly corrupt, but BJP is not less.
When you can't beat the enemy, join him. This should be everybody's motto.Make graft as a way of life. This way, you won't be frustrated. If someone troubles you, approach the police or gangsters and settle the score. Join parties like shivsena, nariman sena, rama sena, vanara sena or form a new sena


No use of crying foul of others. Take the law into your own hand.

Jai Hind

DhImAn said...

Time to sell RE and buy food.

I agree with Batman.

Why are people whining about inflation? They are rich - worth crores in real estate after all... just sell a little real estate and buy food or petrol. What is the problem?

Don't people want their real estate prices to grow at 100% each year?

Don't they want their stock market to grow at 20% each year?

Don't they want their GDP to grow at 10% each year?

What happened to India Shining?

Well, it appears that people want the absurd or the impossible - they want inflation in real estate and stocks but not in food or transportation.

That, my friends, is in the realm of the absurd and the impossible.

Jayant said...

The links for how the money is being managed (gambled) in US universities...

How Larry Summers lost Harvard $1.8 billion

No one had the stones to stand up to Summers when it came to this high-risk strategy of essentially borrowing at Treasury rates and investing the proceeds in an illiquid long-term endowment — certainly not James Rothenberg, Harvard’s part-time, unpaid, California-based treasurer.

After Summers left, sheer inertia took over, and nothing happened — maybe because El-Erian was soon on his way out as well. The result was that the university ended up losing 27% of its $6 billion in “cash”: a whopping $1.8 billion. There’s no indication, of course, of any kind of apology from Summers.


* By the way who is Larry Summers?
--> Director of the White House's National Economic Council for President Barack Obama and was Secretary of the Treasury of the Clinton Administration.

How America’s Universities Became Hedge Funds


Welcome to the university as hedge fund world. In this strange new world, institutions of higher learning care more about interest rates than educational quality. In fact, Harvard cared so much about reducing the cost of borrowing money that it made several expensive credit default swaps, which resulted in a loss of hundreds of millions of dollars and the halting of an ambitious expansion plan. Not only did Harvard gamble on interest rates to support future construction plans, but it moved much of its endowment into high risk investments, and the result is that the world’s wealthiest education institution is now claiming poverty.

Risky Businesses

Like Harvard, the University of California was seduced by the Yale endowment manager, David Swenson, , who inspired universities throughout the country to shift their investments from secure bonds and treasury notes to volatile equities and commodities. At first, schools were showing high rates of return in their investment and pension portfolios, but when these investments turned south, the universities lost billions of dollars of savings. In fact, the UC lost over $23 billion dollars in its combined pension and endowment funds, and this loss will take years to recover.

Anonymous said...

DhImAn are you a employee in directi by any chance ?

Anonymous said...

4.5 acres of land in Mumbai's Mulund suburb sold for Rs 200 cr
5 Jul 2010, 0057 hrs IST,PTI

http://economictimes.indiatimes.com/markets/real-estate/news-/45-acres-of-land-in-Mumbais-Mulund-suburb-sold-for-Rs-200-cr/articleshow/6128007.cms

Anonymous said...

You are right Vik. It is high time Govt starts to put together proper solutions for issues.

# Increase interest rates to curtail inflation.
# Replace ministers who are inefficient OR cannot spend time on official work due to health/family issues.
# If things do not change within the next 2 years then Congress would lose next election unless miracle happens.

Anonymous said...

# Increase interest rates to curtail inflation.

If they do this they risk their projected 9% annual growth.

Their projected 9% ripoff of common man I mean!

# Replace ministers who are inefficient OR cannot spend time on official work due to health/family issues.

ha ha are you kidding ? who today becomes a minister to work ?

# If things do not change within the next 2 years then Congress would lose next election unless miracle happens.

Nothing much would happen even if congress lost, the opposition is angry today not because they hate the inflation and price rise, they hate it because they are not in power to accept graft that the congress and it's allies are receiving from corporations and banks that have an interest in all this.

Even if the congress lost and NDA came to power it's gonna be the same old story...

Anonymous said...

I think people forget very fast! This is the same congress which had driven inflation to more than 30% (in CPI terms)...then they came out with the fancy idea to use WPI...which is why they have been able to show that inflation does not rise more than 10% now..although for the consumer, the inflation might result in price increases of 50%!!

Manmohan has claimed that stimulus must continue or else we will face deflation!!

Stimulus means more money for the rich...at the expense of the middle class and poor.

After inflation, deflation is good! It means affordability for middle class!

So, I don't know about BJP and its policies..but the congress is anti-poor and pro-rich for sure..they will increase the divide.

Anonymous said...

China on the cusp of real estate slump: Standard Chartered
By Chris Oliver, MarketWatch

HONG KONG (MarketWatch) — Real estate prices in major Chinese cities are set to decline significantly in the coming months as developers grapple with bloated inventories and skittish buyers, according to recent research.

China’s leading cities could see prices plummet 20% to 30% by year’s end, while lesser-known cities could see declines of 10% to 20%, Standard Chartered Bank Ltd. said in a research note Tuesday.

“With new supply meeting a still-reticent buying public, we believe developers will be forced to cut prices,” said the bank’s analysts headed by Steven Green in Shanghai.

Desi Batman said...

By bharat bandh nothing is achieved, just productivity losses which doesn't benefit anyone except for politicians to gain their popularity.

Governments are always inefficient, lesser evil needs to be voted in to cause less damage. There will always be opposition parties in disagreement and calling for strikes and as such.

Why can't real estate (makaan) be treated as any other commodities like roti and kapda. If people are ready to sell/buy real estate property 3 times their real value, why can't people be ready to sell/buy 3 times for cost of milk/food or clothes?

Bandh can be success only if it can turn inflation to deflation. People want inflation for real estate, but deflation for everything else... WOW!! Everybody wants to double their money in lesser time, but doesn't want any severe side effects. You cannot have it both ways.

Anonymous said...

Desi above:
RE prices should be included in the CPI index for inflation. Purposely they areleft out. If included, inflation would be 200% or more.

Anonymous said...

Arey baba,
why are you people bickering. The real estate prices have gone up only in cities due to high demand and concentration moneyed people. congress , bjp or ny other party, there wont be a change in situation. All are corrupt, and the ruling machinery like judiciary, police, revenue , agriculture, industry are totally corrupt. Nothing will change unless these people feel the heat.

Only way this can happen is when naxalites sneak into cities and start their monkey business like Taliban.

Anonymous said...

One sector, RE is driving the whole economy to nuts...incomprehensible..

Desi Batman said...

True, writing comments on this blog will not change anything. But may be this will help to put some sense into senseless people to take informed decisions.

Corruption in India is normal way of life, if one is not participating you are/will be ALWAYS at losing end. Civilisation rules doesn't apply in jungle.

Every government employee thinks they own whatever is out there is their property. They have no one to answer too except for the more corrupts in their line of hierarchy.

http://www.time.com/time/world/article/0,8599,1983259,00.html

Basically system is now in such as a state that it has to produce more corrupts to survive.

Take your stand - "Eat or Be Eaten"

DhImAn said...

Hey, what happened to the earlier comments on this thread?

Vik, are you moderating or censoring stuff?

Thambi said...

@Desi Batman anne,
Following is a link to India's growth story

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aErNiP_V4RLc&refer=news

Thambi said...

Desi Batman anne,

Following link reflects India's growth story


http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aErNiP_V4RLc&refer=news

Anonymous said...

I have two acres in the village, will anyone give me atleast 50 crores for it? Comes with free dog house and bird cage...

Anonymous said...

I have couple of acres in the village. Will sell it cheap for only 50 crores. Comes with free dog house and free bird cage. Any takers?

Anonymous said...

Remain out of debt and secure the future of your children, family and yourself. Please check how the phony economy propelled on the delusional rising prosperity aka "Rising Home Prices" is unraveling.

Bankruptcy filings on the rise

By Aaron Smith, CNNMoney.com staff writerJuly 2, 2010: 11:02 AM ET


NEW YORK (CNNMoney.com) -- It's tough out there -- no jobs, home values plummeting -- and Americans are reacting by heading to bankruptcy court.

Bankruptcy filings surged 14% during the first half of 2010 , according to the American Bankruptcy Institute. Filings totaled 770,117 through June, compared to 675,351 during the same period last year.

" Years of rising consumer debt and low savings rates, combined with the housing and unemployment crisis, are causing bankruptcy levels not seen since the 2005," said Samuel Gerdano, executive director of the institute, in a press release.

Desi Batman said...

@ Thambi 5:18 PM

In India many are born in poverty and they have little or no chance to overcome misery.

Indian culture doesn't reward based on productivity, rather rewards are based on where you are in food pyramid and hierarchy in soceity.

Hence many of these people adapt corruption, voilence, riots to climb up the food chain. They are in survival race and not growth race.

Anonymous said...

Interesting story (slightly dated) on the digitization of land records in India. Things are not that bad, some people in the government are trying to help. We should encourage such people.

http://www.washingtonpost.com/wp-dyn/content/article/2009/07/16/AR2009071604175.html

sarkari_babu

shayna said...

http://www.telegraph.co.uk/finance/china-business/7875713/Chinas-property-market-braced-for-30pc-drop.html

Sounds like the story at home in India.

Vik said...

I've not deleted any comments. It is only rarely that I delete comments specially if they contain cuss words or against any specific community or hate directed towards any individuals (bull or bear doesn't matter)

DhImAn said...

Then something is wrong with blogger - since the number of comments it says on the main page doesn't agree with the number of comments on the comments page.

I knew you wouldn't be deleting comments, which is why I was surprised to see them go missing. Had to ask.

Anonymous said...

In India, esp in mumbai it is rare that prices will fall. During the recession of 2008-09 the prices were down by only 15-20% and now just in a year they are up by almost 35%. It took 15 months to bring down the prices (Feb 08 to Apr -09) by 15 % (a 1% a month if I avg out) and only 12 months to increase by 36% ( 3% a month). So there are absolutely no sign of dip

Anonymous said...

Excessive Debt May Sink Global Stocks to Crisis Lows, Says First State.
July 7 (Bloomberg)

The stimulus-driven global economic recovery is threatened by excessive corporate and government debt that may push global stocks to below their post-credit- crisis lows, said Alistair Thompson of First State Investments.

That suggests a drop of more than 34 percent for the MSCI World Index from yesterday’s 1,051.60 closing level. This could occur within the next 18 months, according to Thompson, who co- manages First State’s Asia Pacific (ex-Japan)/Global Emerging Markets fund. First State managed about $126 billion as of December 31, according to its website. The fund is skewed toward “defensive” stocks, he said.

“We’re anticipating much slower economic growth in the coming period,” said Thompson, who is based in Singapore. “There’s a distinct possibility global markets could return to, or fall below, their bear-market lows. The big problem at the moment is government leverage, bank leverage, and in some places, consumer leverage.”

Desi Batman said...

@ Anon 4:53 AM

That's good isn't it. RE prices are increasing 35% y-o-y, time to rejoice!

Now (if you care) can you try to explain why food and other commodities prices are rising? and what needs to be done to bring these prices down?

Anonymous said...

The day the dollar falls, and the American economy comes to a grinding halt, everything is going to change.

The entire Developing world is massively dependent upon the US for its well being.

Does anyone think that the world will be same when this happens ?

Imagine all BPO's IT companies and a lot of manufacturing taking a hit, a very hard hit...

Then let us see where RE goes...

for those who think that the fall of the American dollar is a far off event, then they are in for a surprise....

I am pretty sure we are going to see a life altering, perception changing event in our lifetimes. once we go through it, the world will be a lot different than we know it now....

Nothing is stronger than an idea whose time has come...

Anonymous said...

Actually, dollar is strengthening against the Rupee. I expect 53Rs to the dollar before Rupee strengthens again, probably along with rising local (Indian) interest rates

Anonymous said...

Bandh was successful(?). What changed? did prices of commodities fall? did RE prices fall?

There is nothing called free lunch. Somewhere someone is paying the price.
http://timesofindia.indiatimes.com/City/Mumbai/Soon-you-may-have-to-shell-out-more-to-see-a-movie-or-play-/articleshow/6136770.cms

Stamp duty calculator for RE in India:
http://www.indiahousing.com/stamp-duty-india.html

People in India just want govt off their back and will either pay up in taxes/fees or pay up in bribes. That shows people in India have money and I have NO clue where that kind of money is generated/earned.

Welcome to rich India.

Anonymous said...

Manhattan price $1100 per sq ft. South Mumbai double that. Will end badly. 2 years from now, it will be clear to all that we were in a crazy bubble.

Anonymous said...

the 300 million or so Indians living in acute poverty are being crushed by inflation. If they thought washing the floors, driving the cars and cleaning the windows of the middle class would open the doors to a better life, they know now that they were wrong. With prices rising, their savings are being eaten away. Higher food and fuel prices are being driven by big changes in the global economy that look set to continue. Even the most cheerful optimist in the past decade has seen the huge divide between the haves and have-nots, but the hope has persisted that it would somehow go away. Inflation has set like cement into that divide, solidifying the gap between the two Indias. The future for the country is two futures: rosy and grim. Indian companies will buy more foreign businesses and more Indian children will starve. In economic terms, India has become neither the U.S. nor Sudan, but something in between — a Latin American republic with an entrenched class chasm. Higher levels of crime and social unrest are almost certain to follow. For years or decades to come, we will not be able to talk of one destiny for all the people of the country.


http://www.time.com/time/world/article/0,8599,1827371,00.html?imw=Y&loomia_si=t0:a16:g2:r1:c0.0568441:b35181564&xid=Loomia

Anonymous said...

Just look how the banksters fuck the people and the country...

This is a quote by no other than Alan Greenspan


When business in the United States underwent a mild contraction in 1927, the Federal Reserve created more paper reserves in the hope of forestalling any possible bank reserve shortage. More disastrous, however, was the Federal Reserve's attempt to assist Great Britain who had been losing gold to us because the Bank of England refused to allow interest rates to rise when market forces dictated (it was politically unpalatable). The reasoning of the authorities was as follows: if the Federal Reserve pumped excessive paper reserves [emphasis mine] into American banks, interest rates in the United States would fall to a level comparable to those in Great Britain; this would act to stop Britain's gold loss and avoid the political embarrassment of having to raise interest rates. The "Fed" succeeded; it stopped the gold loss, but it nearly destroyed the economies of the world, in the process. The excess credit which the Fed pumped into the economy spilled over into the stock market - triggering a fantastic speculative boom. Belatedly, the Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed. Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of bank failures. The world economy plunged into the Great Depression of the 1930's.

Jayant said...

Deflation: Making Sure "It" Doesn't Happen Here

Remarks by Governor Ben S. Bernanke
Before the National Economists Club, Washington, D.C.
November 21, 2002

But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost . By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.

Where does that cheap money land...in US Banks to stimulate US economy? You must be kidding.

shayna said...

http://www.moneycontrol.com/news/stocks-views/stay-investedrcf-sp-tulsian_468174.html

"The second point, they are holding about 1,150 acres of land at Chembur. Management has given that they will be developing 300 acres of land of which 50 acres will be given to the staff to not to have any opposition or anything like that and if you take a value of 250 acres of land, I think the net present value - I am not going by the selling price at Rs 7,000 per sq ft and taking their total value of the project cost - works out to about Rs 2,500 crore. If that amount gets realized by the company, maybe in next couple of years either by JV because it may not be possible for the company to develop this whole land of its own, so there could be some JV arrangements, there could be some leasing."
"If they can raise a sizeable amount out of that, that can get utilized for the expansion of capacity also because they have excellent infrastructure in place at Thal near Alibag where the whole expansions can get carried out and otherwise also we have been seeing the policy of the moving away of all these companies from Bombay maybe because of the pollution problems like RCF, BPCL, they all gradually will start moving out. So there could be good value unlocking happening from the real estate. In the near-term, I may see price going to Rs 100-105 not beyond that but on the longer horizon if somebody has a couple of years' view, this is a very good stock to remain invested. For next couple of years one should hold this stock."



The govt needs to raise $56b to reduce the budget defecit. BPCL, HPCL & RCF have huge land banks in Chembur. you can expect more RE coming into the market. Next they will release the 1000s of acres of BPT land along Mazagaon area. And say in the next 10yrs once the BOM airport moves to Panvel or wherever

Desi Batman said...

Actually nothing will change in India unless actual pains are felt across the country. "Sab chalta hai" attitude covers minor pains.

As long as job/work market is strong especially with BPO and IT, things will go on as they are. Fun starts when USA/UK starts austerity measures and little protectionism.

Anonymous said...

First thing in morning, I read this blog. Instead of encouragement news, I find sad news about home price. Mira road, three month back price 2800 and yesterday i enquire it become 3500. Black become from 40% of total, to 60% total.

What is happening ? where people bring money like this. My salary is about 12 thousand and i get about 20-25 under table. still i can not buy

Anybody really can tell when price come down.

Please post only truth here

Desi Batman said...

@ Anon 5:33 pm

What is happening ?
Inflation - value of Rs is decreasing.

where people bring money like this. My salary is about 12 thousand and i get about 20-25 under table. still i can not buy
To keep your purchasing power intact, your earnings should be on par with inflation. May be you need to ask more upper and under table.

Well, also for same reasons you see prices of lots of commodities have increased.

Anybody really can tell when price come down.
No one can predict exact date and time. If your income ain't increasing, and see similar problem with other people. Demand for real estate will decrease and prices HAVE to come down soon.

Anonymous said...

20-25 under the table?

What the hell is that - black money? Corruption money? Extortion? Broker's commision

Anonymous said...

'20-25 under the table'

Term used by the Maharashtra govt employees for graft.

samix said...

LOL! he has the guts to come and state on the forum how much money takes as graft!

On a forum where we are so abusing such useless babus

Trust me guys India IS different!

shailesh said...

Anon 5:33

Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac's talents didn't extend to investing: He lost a bundle in the South Sea Bubble, explaining later, 'I can calculate the movement of the stars, but not the madness of men.' If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.

wikiquote

Desi Batman said...

@ Samix
he has the guts to come and state on the forum how much money takes as graft!

It doesn't require guts to say that, that too under Anonymous name.
- People in India defecate in public without any shame, they have guts.
- People who travel in buses and trains just clinging by a fingernail, they have guts.
- People who ask for bribes openly in public, they have guts.


For Indians under the table money is part of their salary. Believe it or not, many are forced to take bribes as cut HAS to reach every level in hierarchy till the top.

I remember about 20 years ago, just to get post of traffic pandu at masjid bunder (need V.T. now CST Mumbai) for 3 months, pandu had to pay 1.5 lacs. Imgaine where this person has to recover that from!

You like or not corruption is part of culture and norm in India. Participate or suffer, choose one.


Trust me guys India IS different!
Nope it is not, other countries have same or more corruption. It is just that we are in India and get first hand experience only in this country.

http://www.diggersrealm.com/mt/archives/001668.html

Thambi said...

Desi Batman anne,

I totally agree with you. The link you posted is very informative.

Black money is a byproduct of corruption. When top to bottom are corrupt, how can we expect living conditions to improve. I remember the quote from a taxi driver in Delhi who was demanding double fare for transporting me from the airport to my hotel.

' Saab, idhar ka pradhan mantri bi bakshish ke alava kaam nahi karta, hamara tho bath kya hai'

Anonymous said...

Yoo-hoo! Food inflation to come down... says who? your dearly elected official Sharad Pawar.

http://timesofindia.indiatimes.com/Biz/India-Business/Food-inflation-to-come-down-in-coming-weeks-Sharad-Pawar/articleshow/6146510.cms

Anonymous said...

Enjoy (in hindi from movie: guru)

http://hindimoviedialogues.blogspot.com/search/label/Guru%20Dialogues

"Yahan pahuncha to dekha ki dhande karne ke saare darwaze band the. Who khulte the to sirf ameeron ke liye. Sarkari darwaze the yeh aap ke banaye hue ya to laat mar kar khulte the ya ji hazoori de ke. Maine dono kiya jahan laat mar sakta tha laat maari, jahan bola salaam do maine bola salaam lo. Aaj mujhe yahan khada kar ke aap log yeh kah rahe ki yeh aadmi itni laat kyon marta hai, sala salam bahut karta hai."

Desi Batman said...

@ Anna 9:53 AM

You mean Tamils and other non-hindi/gujrati are pure and free of all immoral activities? WRONG!

Corruption, shity and filthy tricks knows no religion, race or culture. It is in human blood and cultivated by economies and country policies.

During every downturn no matter which country/location, corruption, violence have increased.

Keep your post clean of hatred and racism.

Anonymous said...

Ban narrow minded LTTE tamed people like Anna who can't look at issues from an economic angle and start the blame game! Grow up Anna and act literate!

Anonymous said...

Best example of Investors not able to find a buyer / tenent and yest paying high rentals is Prestige kensington / wellington project in Bangalore.. worse these guys have paid money to the builder but registration is not happening... there is some problem out here. Reseller price Rs 2600 / sft and builder quotes 3500.. and no one is guarantees registration.

Anonymous said...

Want a 1-BHK in Navi Mumbai? Shell out 63 lakhs

http://www.mid-day.com/news/2010/jul/110710-kopar-khairane-navi-mumbai-1-bhk-flat-soaring-prices-rti-mumbai-news.htm

How can we, middle income people ever buy a home ?

Desi Batman said...

Anon @ 6:33 AM

You have three choices:
1. Your income should be increase. Increase your earning by asking for more salary or asking price for your service.

2. Move to location where you can afford to buy.

3. Get into large debt so that you can buy whatever you need.

I believe these prices will continue to increase until most of the liquidity in market is utilized... then we will have deflation. that may take sometime.. may be 2 years, 5 years ... no one knows for sure.

Desi Batman said...

@ anon 2:53 AM

Don't worry, everything will be resolved. Corruption and under table culture will take care of these issues.

As of now "Sab Chalta Hai".

Anonymous said...

only prices are increasing but there is NO SALE. property registration has declined 50% in may 2010 and soon you will see pressure developing.

Prices are expected to fall in dec 2010. Builders are not developing new projects because there existing inventory is 1/2 unsold.

20% price correction is coming this December. Only areas like bandra and khar where there is no development may not see fall more then 20% on other places fall can be as deep as 30%.

Anonymous said...

@ 1:03PM

Seriously? do you think people will flock together to buy properties after 30% fall?

What is your source of information?

do you think 30% decrease will make it property afforadable?

Price for currently priced property:
* 1 crore after 30% reduction: 70 lacs.
* 70 lacs after 30% reduction: 49 lacs.
* 50 lacs after 30% reduction: 35 lacs.

30% reduction pushes price just back one year ago! In any case investors who bought above this price WILL BE crying foul.

Anonymous said...

Anon @1:03

Prices may correct as you said by 20% in Decemer, but that would not be the end. The correction would keep happening till they go back to 2005 levels. Like in US the RE prices are back to 2000 levels.

I'm just waiting and would keep waiting for 2-3 years more. Who wants to catch a falling knife.
I think prices will fall upto 60% in many areas and minimum 50% in majority of the cities.

Anonymous said...

@ 9:47 PM

60% drop. I wish I wish and hopefully looks like I can and will only wish.

There are so many buyers out there, they would jump right in at that price and that will bring up prices again.

If builders/investors are building and hiking prices there should be some calc they have in mind... I don't think they are idiots. Black marketers and corrupt officials know where, when to press buttons.

India doesn't operate on logic, rather on emotions, fear and greed.

samix said...

anon at 8:15 above, the funny thing about RE is that once the prices starts to fall no one wants to buy!

rajni sharma said...

Hey this is really very nice post...
Nd one of your best post...Thanks
Flats in kolkata