Saturday, November 13, 2010

Mumbai realty gives affordability the go-by

Article Link

Mr Pankaj Kapoor, Managing Director of property consultant firm Liases Foras, said the prices are so high that “no one can buy”. Of course, if one limits his options, he can move that much further into the suburbs looking for properties that match his budget, he added.

Mr Kapoor said that while the average cost of an apartment in Greater Mumbai (municipal limits) was Rs 27 lakh in January 2004, it skyrocketed to Rs 1.47 crore in November 2008, slipped marginally to Rs 1.28 crore in June 2009 (when a correction set in) only to spiral to Rs 2.03 crore in September 2010.

Now, the preferred route for PE is akin to that of home buyers.

They move in at the project conceptualisation stage and book a definite number of flats or units for about 25 per cent down-payment at a pre-agreed price.

Property registration data for Mumbai indicate that after hitting a peak in property sales in December 2009, the subsequent monthly sales continued to decline till June 2010. While about 9,000 registrations were recorded in December 2009, only about 6,000 were recorded in February 2010. Preliminary field data show that there were only 4,500 registrations in May 2010, he said.

58 comments:

shailesh said...

Chavan lands in trouble on 1st day as CM

MUMBAI: In less than 24 hours of becoming Maharashtra’s chief minister, Prithviraj Chavan has landed in trouble with information accusing him of obtaining a flat from the chief ministers’ five percent quota reserved for weaker section of society.

This information was obtained through Right to Information (RTI) and was given to the Mid-Day newspaper by a Mumbai-based RTI activist Anil Galgali.

While Chavan, who was an member of Parliament based in Delhi, had quoted his monthly income as Rs.76,000 in the application, the ration card copy issued in his late mother Pramilabai Dajisaheb Chavan’s name showed the annual family income as just one hundred thousand rupees.

However, for a family to fall under the weaker section the annual income should have been under one hundred and fifty thousand rupees in 2003. And Chavan’s income clearly was far more than that.

The criteria to get benefit under the CM quota is that a person having an annual income under one hundred and fifty thousand rupees can apply for a house under the weaker section of society chief minister’s quota (2, 5 and 10 percent) schemes.

shailesh said...

Mumbai office space, fourth costliest to rent in the world

A 100-sq. ft cubicle or workstation for a middle-level corporate executive at Nariman Point or Backbay Reclamation in Mumbai costs as much as Rs 47,675 a month for a corporate housed on the seafront. The rental component can also near total half an individual's take-home pay too.

Anonymous said...

Untill and unless old mad man Ban Bernake (Next Greenspan)stop printing more $ and start withdrawing stimulus, prices in any part of emerging market will not fall whether being oil, gold, silver, real estate, equity or any other. Even the situation had version even after printing more then 2 trillon $ there unemployment is at 9.6%. Genuine buyers stay away from real estate purchase for more then 1- 2 year. You will see some really bad bubbles about to burst in 1-2 years time.

Anonymous said...

Realty has become best bet for money multiplication next to gambling . It is best source of black money generation.That is why all politicians, bureaucrats, business houses , young investors are turning to realty.It gives better return than any industry. Govt. should work out some strategy so that house can be procured at affordable rate.In India where housing is essential asset for every body it should not be made source of speculation.

Anonymous said...

MUMBAI: We are a cash-rich company run by professionals,” says a smarmy 30-something Mumbai-based head of a leading real estate company. His company’s exponential growth in the span of just five years has raised eyebrows in industry and banking circles. The reasons are clear.

The company is known to have tremendous clout in the corridors of power and with the builders’ lobby. It is backed by several important politicians in Mumbai and Delhi.

The sons of “two senior ministers” have a stake in it. The sons of at least three IAS officers are gainfully employed by this company. An insider admits with rare candour: “There is an infusion of unlimited funds in this firm and the money belongs to these politicians . No doubt, it is growing rapidly''.

The nexus between politicians and builders in Mumbai's lucrative property market has been known about for decades. But more recently, politicians themselves have become builders and now operate through real estate companies. Their modus operandi is not particularly complex.

“Politicians send their ill-gotten wealth abroad through the hawala route. It then comes back again from front companies floated in Dubai and Mauritius , which then is pumped into such real estate firms in the form of foreign direct investment,” says a knowledgeable source within the property market.

Early this year, the income tax department raided the offices of a real estate company and, it is alleged, found unaccounted income of Rs 350 crore. It’s learnt that the money was paid to a Union minister and a bureaucrat who was once posted at the Mumbai municipal corporation. “Bureaucrats and politicians complement each other. The former clears project files while the latter brings in the business through developers,” says housing activist Chandrashekhar Prabhu.

“Earlier, politicians used to get money from developers during elections. Later, they started investing with the developers, who became their bankers. Today, we find that several of these big real estate companies are just a front for politicians ,” he says. Prabhu alleges that every politician has a favourite set of developers to whom he turns to launder his money.

Historically, black money became a reality when unrealistically high income tax rates were slapped on people. Those trying to save some of what the taxman would take, invested instruments like real estate. In the 1970s, builders used to take 80% in cash and 20% as a cheque from property buyers. A decade later, it was 60% cash and 40% as a cheque payment. That was after tax rates were lowered.

Today, the amount of black money that changes hands has reduced still further but many builders continue to demand a substantial part of transaction costs in cash. This could be anything between 15% and 40% of the value of the property. The good thing though is that most big developers and reputable real estate firms are willing to process a transaction with cheque payments.

Even so, say sources, cash payments are the norm when it comes to all large land transactions in the city. “When a developer claims he has bought land for Rs 500 crore, there is a strong possibility that he has undervalued it by at least Rs 100 crore,'' says a source.

Anonymous said...

MUMBAI: We are a cash-rich company run by professionals,” says a smarmy 30-something Mumbai-based head of a leading real estate company. His company’s exponential growth in the span of just five years has raised eyebrows in industry and banking circles. The reasons are clear.

The company is known to have tremendous clout in the corridors of power and with the builders’ lobby. It is backed by several important politicians in Mumbai and Delhi.

The sons of “two senior ministers” have a stake in it. The sons of at least three IAS officers are gainfully employed by this company. An insider admits with rare candour: “There is an infusion of unlimited funds in this firm and the money belongs to these politicians . No doubt, it is growing rapidly''.

The nexus between politicians and builders in Mumbai's lucrative property market has been known about for decades. But more recently, politicians themselves have become builders and now operate through real estate companies. Their modus operandi is not particularly complex.

“Politicians send their ill-gotten wealth abroad through the hawala route. It then comes back again from front companies floated in Dubai and Mauritius , which then is pumped into such real estate firms in the form of foreign direct investment,” says a knowledgeable source within the property market.

Early this year, the income tax department raided the offices of a real estate company and, it is alleged, found unaccounted income of Rs 350 crore. It’s learnt that the money was paid to a Union minister and a bureaucrat who was once posted at the Mumbai municipal corporation. “Bureaucrats and politicians complement each other. The former clears project files while the latter brings in the business through developers,” says housing activist Chandrashekhar Prabhu.

“Earlier, politicians used to get money from developers during elections. Later, they started investing with the developers, who became their bankers. Today, we find that several of these big real estate companies are just a front for politicians ,” he says. Prabhu alleges that every politician has a favourite set of developers to whom he turns to launder his money.

Historically, black money became a reality when unrealistically high income tax rates were slapped on people. Those trying to save some of what the taxman would take, invested instruments like real estate. In the 1970s, builders used to take 80% in cash and 20% as a cheque from property buyers. A decade later, it was 60% cash and 40% as a cheque payment. That was after tax rates were lowered.

Today, the amount of black money that changes hands has reduced still further but many builders continue to demand a substantial part of transaction costs in cash. This could be anything between 15% and 40% of the value of the property. The good thing though is that most big developers and reputable real estate firms are willing to process a transaction with cheque payments.

Even so, say sources, cash payments are the norm when it comes to all large land transactions in the city. “When a developer claims he has bought land for Rs 500 crore, there is a strong possibility that he has undervalued it by at least Rs 100 crore,'' says a source.

Nirkit Rai said...

Why these leaders and neta's are so greedy that they wants to build their houses on the blood of the poor.
I want to know about the circle rates drama prevailing in Delhi-NCR and its affect on foreign investors.

Vigneshwara Developers said...

The company is known to have tremendous clout in the corridors of power and with the builders’ lobby. It is backed by several important politicians in Mumbai and Delhi.

Kasbekar said...

@Anonymous 1:28,
The info. that you provided is nothing new. Only new factor is the level of money laundering sophistication. Most big time builders don't accept money in cash. It is all cheque payment that includes the black portion. They have found that it is easier to cook the books, than hoarding cash money. Only the money to be paid as cash to gangsters and police officials is kept in their treasury and the rest in banks. Hawala operators are normally used for cash transactions.

I just read in TOI that there are 9 million slum dwellers in mumbai and also a statement from UPA govt that the slums development has brought down slum dwellers. But the fact is 4 million slum dwellers have increased since they took power and there are signs that this figure will keep on increasing.

I dont see an end to this housing problem. The bubble theory may be valid in a honest economy but not ours. The government fleeces the poor and invests it for the benifit of the rich. This is the situation in India.

Desi Batman said...

Cut it, Slice it, Dice it, anyways we look at it, as long as people can AFFORD to pay crores black or white, this RE prices are to remain.

With tons of jobs and job security in India, with lots of disposable income, no job loses, ever growing population, more earners in same household, will KEEP RE prices up.

But all these already has triggered the increase in RE, question now is what needs to happen to raise further RE prices? My guess it to get more and more people in debt as Indians have long way to go into deep debt. Therefore there is more room for RE increases.

Desi Batman said...

Prices keep rising, what will have after few years - ultra tiny homes. Ofcourse it will be affordable! Watch this, in Tokyo, JP.

http://www.cnn.com/video/#/video/world/2010/11/14/lah.japan.small.house.cnn?hpt=C2

DhImAn said...

If you are going to do a limiting case argument, then the limit would be an infinite amount of money for zero area. Hopefully it is easy to see that this is absurd, so there must be a finite upper bound to the price/sqft number.

So, what happens when this number is reached? Some would argue that this is a moving number, and I agree, it is. So as the price/sqft number approaches the bound, the bound itself changes.

Most people argue that the upper bound can keep on increasing without limit, without actually becoming infinity rupees/0 sq ft.

And how right they are! As long as the supply of rupees can tend to infinity, so can the rupees/sqft number.

The questions are:

1. Will the supply of rupees grow without bound forever?

2. Regardless of money supply, will the rupees/sqft number grow without bound forever?

My answer to the first question is yes - you can continue to halve a number forever without ever reaching zero.

My answer to the second question is also yes - as you measure in progressively weakening currency, sure, the price/sqft number can grow without bound as well.

The important question, however that eludes seemingly everyone is - as the rupees/sqft number grows without bound, is everyone getting that much richer?

Keynesian clowns always say yes, but they are wrong. Witness Argentina. Witness Zimbabwe. Nobody, no government, absolutely no one has ever become rich by simply printing money. That is the sad truth, otherwise everyone would be rich.

Therefore, one should be asking, "How do I get rich in real terms?"

Of course, if you find the answer be sure to keep it secret, because if everyone is rich, then nobody is as you, Batman pointed out earlier.

So what is the conclusion? Simply this - we're so f***ed.

samix said...

Batman, we have waited for a long time for the bubble to burst, Let if inflate further with a lot of debt, that is when the bursting will be really really bad... without a lot of debt, bubble bursts are not that spectacular.

Anonymous said...

In the old days, corrupt politicians would stash their money in offshore accounts and the banks would decide where the money was invested. In most cases, it would not be invested in India.

Today, the same money is channeled back to India through Mauritius and other FDI havens. Then, the money is mainly invested in real estate. Hence, it is money stolen from Indians, invested back in India that is making housing unaffordable to Indians.

But, the crash is imminent, as all bubbles burst sooner or later. This money is not going to disappear. The people who sold land at inflated prices, made a lot of money, hopefully, they will spend most of it in India. Construction companies have bought steel, cement and bricks. That will mostly benefit Indians. Finally, a lot of people have been employed in RE projects, this has also benefited Indians.

The wealth that will disappear after the collapse belongs mainly to speculators who bought inflated assets and shareholders in construction companies who bought inflated RE stocks.

In the end, there is a silver lining to the cloud: Desi ka Paisa, Desi ke paas rahega.

Rustomjee

Anonymous said...

@Rustomjee Bawa,

Desi ka Paisa, Desi ke paas rahega.

I don't agree with your statement. Moneyed Indian don't have faith in Indian system. Therefore they always try to keep their money in safe heavens. Indians are finding new avenues to hide their ill gotten wealth. The latest places are being the Caribbean islands off the east coast of US. The money that is coming into India is mainly the income of computer coolies and USA outsourcing. No Indian is bringing back their accumulated wealth stashed abroad currently.

The world is changing fast, so is the sophistication is wealth management. The days are not far off when Indians will have an option of bringing back their money or loose it. Political uncertainties are the greatest concerns and no bank grantees the safe keeping of foreign assets.

Anonymous said...

From Goldman Sachs:
Goldman is saying party in India is getting OVER.

Goldman estimates the current account deficit to widen to 4% of GDP in the current fiscal year, from 2.9% in the previous year, and further to 4.3% in 2011/12, its highest-ever level.

"Nearly 80% of the capital inflows are non-FDI related. Given the excess spare capacity globally, FDI may remain weak going forward," the note said.

Rising imports due to strong domestic demand and concerns that exports growth may be slow could add to the widening current account gap problem, it said.

India's current account deficit widened sharply to USD 13.7 billion in the June-quarter, which was around 3.7% of GDP. The deficit was USD 4.5 billion in the same period year ago.

India's Planning Commission deputy chairman Montek Singh Ahluwalia said last month that the government expects the current account deficit for 2010/11 to be above 3% and the economy can manage a deficit of 3.0% - 3.5% of GDP.

Goldman, however, said India's foreign exchange reserves were adequate to counter temporary reversals of capital.

"Yet, the increased reliance on external capital to fund ever-wider current account deficits has increased vulnerability significantly more than before the 2008 crisis," Goldman said.

A reversal of capital inflows, in case of an extended period of risk aversion could lead to a sharp sell-off in currency, bonds, equities and cause a liquidity crunch resulting in a sharp decline in output.

"We flag this more as a risk, than a clear and present danger," the note said.

Desi Batman said...

Here we go again on Rent/Buy ratio:

Flat in Mumbai:
Cost: 65 Lcs
Rent for same flat: Max 10k per month

Go figure!!!

Can we get rent agreement for long term like 5 years or so? If so, will that contract hold in court of law that person cannot sell the flat or remove tenant in agreement terms?

Anonymous said...

http://rupeenews.com/2010/11/18/1-5-trillion-of-indias-stolen-money-swiss-banking-association/

hiranandani said...

http://timesofindia.indiatimes.com/india/Black-money-trail-India-drained-of-Rs-20-lakh-crore-during-1948-2008/articleshow/6946266.cms

Frustrated said...

Resigned to the fate:


I've been a regular reader of this blog Off late, i've been observing that the number of readers letters have declined and those who contribute mostly write on irrelevant topics. Is is an indication that the blog is on its way to natural death and people are resigned to their fate?

Having said this, there is not much we can do. Like all human beings we also look at some silver lining of hope. The way things are going, the optimism is taken over by rational thinking based on daily happening.

Guys, there is no hope for this country. The only hope one can aspire, is get get out of this hellhole called India and settle abroad.

Let MMS and his clique boast how great this country is and will be, but in my honest opinion this country is doomed. Just imagine what will happen when the population reaches 1.5 billion in a decade with 50% islamists prowling in our slums. Karachi will be a picnic spot compared to what mumbai will face in a decade

Jai Hind

Anonymous said...

This is a one sided blog - people writing here feel property is in a bubble and will crash.

Unfortunately time has proved them to be repeatedly wrong for the last 3 years or so. When this blog was most active last year, it was the best time to buy!!!!!

So readership might have reduced, as people got disillusioned.

Strangely, when people stop reading this blog will probably herald the crash!!!! Such is the way of the market - when everybody believes one thing, market does the opposite.

Prick said...

@Frustrated,
You have a very valid point that slums will proliferate in India and economic disparity will go on widening. There can not be 1.5 billion prosperous people in the whole world let alone India. The overall quality of life will go down for sure.
But then all the desis are coming back to India from their cushy foreign jobs. If the cheese is moved, mice will follow it. And where in the world can you get a chauffer for $100 a month and a cleaning maid for $25?

Anonymous said...

Anonymous @4.04

Islamophobes like you are not needed in our country - why dont you leave this "hell hole" and settle abroad - please go.

You wont be missed

Anonymous said...

Islamophobes like you are not needed in our country - why dont you leave this "hell hole" and settle abroad - please go.

There is every reason to be afraid of Islam and no reason for people with that valid concern to leave the country.

Islam is not a religion of peace and the muslim population in India is increasing at an alarming rate.
The demographics in states like West Bengal have heavily shifted due to infiltration engineered by our corrupt politicians. The whole world has come to the realization that where ever Muslims go, they destroy the peaceful nature of society. Look at Europe for example. The muslim dominated areas in India are usually crime infested and extremely backward. I have not met a single Muslim in my life who can be called liberal or forward looking.

Sorry, this post has nothing to do with real estate and Vik might remove it if he feels that it is inappropriate. But, I felt that I needed to give a retort.

Mahesh

Kasbekar said...

Frustrated has a point. His comments may seem crude but the ground reality forces us to agree with him. If crime statistics is taken as an indicator, then his point is proven without any doubt. Let me ask a simple question - what is the contribution of Islam towards Indian society ? - I am sure that all of you will come up with the answer -viz : crime, illiteracy and breeding like rats with multiple partners. Why aren't housing society's sell/rent flats to this particular community ? The answer is obvious. Unfortunately, no one can or will be able to solve the predicted population explosion and running away from the country wont solve anything. Things will remain same or deterriorate as long as people belive in '72 virgin' theory that itself condones multiple sex partners on earth in line with the heavenly practice.
The rising real estate prices are proportional to population explosion. Earlier someone pointed out that bubble theory is not valid in our corrupt economy and I have started believing that

Desi Batman said...

Is is an indication that the blog is on its way to natural death and people are resigned to their fate?

Having said this, there is not much we can do. Like all human beings we also look at some silver lining of hope. The way things are going, the optimism is taken over by rational thinking based on daily happening.


This is because we have LACK of DATA and INFORMATION. Tell me what is source of data we have except for biased medias? India works in that way, provide no information, spread rumors and false information, make people assume whatsoever they want, make people frustrated till they start making mistakes. I write this knowning lots of business and people ethics in India.

Data and information sharing is key to competition and win win situations. Prime example 'Internet'.

I bet on that 1.2 billion people in India know more about USA than they know more about India.

RE prices are good until there are buyers. Buyers will buy until they can afford. What happens when buying going beyond affordability? how do you buy?

How many can really afford 1.2+ crores house with EMI of 50k per month. If RE prices have to rise higher, please remember to also budget to calc high EMI too.
If RE prices don't rise, that in itself is correction or crash whatever you want to call.

Finally this blog is not indication of market, but rather look it in way of sharing information and knowledge to take informed decisions. Also, many people still reading these blogs (and other forums) is indication that SOMETHING is wrong in RE.

Radhakrishnan said...

http://www.nationmaster.com/graph/peo_pro_pop_gro-people-projected-population-growth

India's projected population in 2050 is expected to be 1.54 billion, a whopping 500 million increase in humans. Statistics also indicate that urban:rural population increase in India is 3:1. At this rate already overcrowded mumbai population is expected to reach 35~40 million in the year 2050. Even if we take 1 dwelling for 10 people, 2 million dwellings will be required to be constructed in 40 years . The constraint is the lack of land. Shrewd people know this and therefore pay astronomical prices to get a foothold in prime areas. Those who dont have the means will be forced to live in slums. The building industry in mumbai that depends on manual laborers wont be able to meet even 10% of the demand for housing plus they will aggravate the city congestion by bringing in laborers from rural areas who normally neve return to their villages.

In these circumstances it is unlikely that the real estate prices are going to change in the near future. This is my opinion. Comments are welcome

Desi Batman said...

@Radhakrishnan

You are mixing up supply demand with affordability. Based on population, I would say there is HUGE demand today, and had HUGE demand past 20 years too. But supply demand is skewed not based on population, but rather on affordability and income. E.g what would happen if RE prices were in 10 to 20 lacs today and what would happen if same RE was 4+ crores. Keeping population and other parameters unchanged, your population based supply demand RE theory fails.

Desi Batman said...

@Prick

If the cheese is moved, mice will follow it. And where in the world can you get a chauffer for $100 a month and a cleaning maid for $25?

No need to move cheese, just need more poor people to work for cheap. Rich can be richer only if there are more poor people. Unfortunately in India we have abundant supply of cheap people.

Cheap people cannot afford crores worth property, or cars, or even decent sanitation, they have slum lords and are ready to live in slums --- that's what they can afford with $100 a month for a chauffer and with $25 for a cleaning maid. So next time don't crib looking from your sky high apt how shabby and shitty is your slumbai.

Anonymous said...

Desi Batman, Rich can get richer without poor getting poorer - it is not a zero sum game.

Islamophiles - India made a humoungous mistake in not driving out all Muslims during partition.

Now it is too late - the Muslims will destroy this country.

Muslims have linked up with Maoist and by conniving with Pakistan, China, Bangladesh, Nepal, Burma and Sri Lanka they will break up India.

Anonymous said...

"
Islamophiles - India made a humoungous mistake in not driving out all Muslims during partition. "

Agreed.

Now it is too late - the Muslims will destroy this country.

Agreed.

So run Hindu run, but where would you run? How long would you keep running?
If muslims can drive Hindus out of India, it would happen in any country. Time has come for Saffron Unity.........Should we let our 10000+ civilization die just like that?

shailesh said...

@Radhakrishnan:

There is no lack of land in India. If you want proof, just do google map. Even Mumbai, just go 20km outside the mumbai border and you see land prices drop by 80%. You see vast mass of vacant land.

The challenge is lack of infrastructure where this land is available. GOI is broke. Politicians don't want to charge user charges. And politicians, builders, babus, and mafia nexus wants to maintain such situation, where by they can make ton of profit.

The only solution I see is PPP where private player get together and build some infrastructure. For this you need companies like Tatas. If few large scale organized companies get together and promise to build infrastructure along with developing land, housing would become cheap. This process will take time, but will happen.

Cool Head said...

Will the 2G spectrum scam be needle that will puncture the bubble? Most beneficiaries are linked to RE companies like Unitech. Also see (hear) the Nira Radia tapes (google it)-this is how the MainStreamMedia fools the masses while doing dalalgiri.I wouldn't be surprised if the MSM is also supporting this RE bubble-question is how long will you fool all the people all the time?

Anonymous said...

@coolhead

mainstream media has totally blocked out the Barkha Dutt story. Thank God for the internet. Ask your friends to stay informed.

Anonymous said...

Listen to the NIIRA RADIA tapes @ http://www.newspostindia.com/2010-11-20-television-news-channels-cover-up-niira-radia-tapes-disclosure

Conversation betweeen Barkha Dutt and Niira Radia - http://www.youtube.com/watch?v=dqnAYhNafOg

DhImAn said...

Before you go off getting your collective panties in a knot, I suggest you read the latest from Giordano Bruno.

He makes a simple point and one that you should spend some time thinking about - and that point as applied to at least the 2G scandal is this: before you can go stealing Rs. 170 lakh crores (about $4 Trillion) or whatever amount, you have to ask - where the heck did all that money come from?

It isn't like the government sent IT Dept. agents to everyone's house to loot.

The RBI, legally and with full authority, created that money out of thin air. Now if that doesn't boil your blood, then I assure you, you are blowing hot air over the symptom of the disease rather than the cause, and that hot air isn't going to solve anything.

Once again, corruption is a symptom, not a cause. The underlying disease is fiat money and the ability to create it.

DhImAn said...

Guys, there is no hope for this country. The only hope one can aspire, is get get out of this hellhole called India and settle abroad.

You wouldn't be saying that if you paid 50% in taxes and had your daughter groped by the thugs at airport checkpoints or her ovaries zapped with ionizing radiation that would leave her unable to have children.

Just because western society appears clean from the outside doesn't mean that it isn't corrupt and dirty to the core.

The truth is, the entire world is made of fecal matter; in the west, perfume is sprayed on it to keep it from stinking, and in India you wake up to the smell of fresh shit every morning.

People everywhere, in the meanwhile, have become desensitized to all issues concerning anyone but themselves and to all issues that might affect them in anything but the immediate term.

A common term for this is "sheep".

Like sheep we are trained to believe that life in the west is better; and of course we see what we believe.

We are indoctrinated to believe that real estate is not in a bubble, never was and never will be, and that prices will rise in real terms forever.

So ask yourself this: Are you believing what you see or are you seeing what you believe?

Anonymous said...

I must say that seeing all these news stories have made me very uncomfortable over the last few weeks. Earlier this year, I joined an IIT after many years in the US. I wanted to do something for my country. In the last few months, I have seen a union minister, a high court judge and an army general, directly involved in corruption. Now, I hear that Barkha Dutt, one of India's respected journalists, was involved in powerbroking and no news channel has the guts to talk about it. Looks like everything is corrupt in India.

This morning, I made a call to my ex-boss in the US. Looks like they have not been able to fill my position after I left, and would be glad to have me back. $150k a year definitely beats $15k a year and this is more true if you see everything you respect crumble under the weight of money. I had never seen corruption so entrenched in the system before and I am glad that I won't be working for thugs any more. Ironically, as an IIT professor, my top boss is Sibal, who is nothing but a scumbag lawyer.

This country is so doomed. It had a chance because of the hard work of ordinary Indians, but the politicians killed the goose that laid the golden eggs. Good luck everyone. I sincerely feel that you are a bunch of honest individuals who care about the country, but I have concluded that most people are really like sheep.

The bubble in the US burst last year, so, I guess I won't be waiting for one any more. I am ready for my 2000 square feet of pleasure now.

Bharat

DhImAn said...

Giving up already, Bharat? What happened to all that noble sentiment that I once defended?

So you were just bullshitting, right?

shailesh said...

Worldbank paper,

Making housing affordable for all

shailesh said...

Making housing affordable for all

The message, in a nutshell is: “Existing urban land management policies that seek to control the urban land market tightly are no longer suited to an India which is growing at rates exceeding 8% for sustained periods and in which 70% of new employment is generated in its cities. These policies have made formal housing expensive and unattainable to a large share of the population, reinforced both chronic urban infrastructure shortages citywide and squalid, precarious living conditions in urban slums.”

samix said...

Hey Dhiman, unfortunately for our comments, most people do not understand the paper money system, it's ill's and vices how it works and how it steals our freedom and impoverishes the one's on whom the system is forced.

Most people around are so mis-informed that they are only grappling with the symptom(corruption/war/government intervention etc etc) and trying to treat them while completely forgoing the cause.

Most people don't even give a second thought to the illegal process of money creation that central banks indulge in, and how powerful it has made the governments and how insignificant it has made the people.

A government that can print money at will, does not need people but rather people need such a government, how can such a system ever be answerable to the people ?

By the act of allowing colorful shards of paper to circulate as money we have ourselves build massive corruption in the system, but unfortunately no one will understand this neither will there be any debate on this in the media or the Indian internet sphere.

Most people just take for granted the central bank money printing and market interventions, I mean how many people today even know that up until the 70's money was gold ?

Anonymous said...


Giving up already, Bharat? What happened to all that noble sentiment that I once defended?

So you were just bullshitting, right?


DHlman: Thanks for your support in the past. I was not being facetious, my intentions about doing something for my country were honest.

But, I now know better. Let us say we all have to make our mistakes in life before we learn something. Trying to do Desh Sewa was my mistake.

One more thing, if this crazy sadhu called Ramdev is able to engineer a social revolution and hang all these corrupt babus and netas, I will be back. Or, when pigs fly. Take your bets...

Bharat

Anonymous said...

"

Most people just take for granted the central bank money printing and market interventions, I mean how many people today even know that up until the 70's money was gold

"

Now that you have enlightened us, tell us how do we get to go back to gold standard?

Since we are the sheep, we would follow.

Anonymous said...

Breaking news...seriously.

After the Adarsh scam, now CBI has discovered scams at Malad, Juhu and Kandivali. Most of them just overlooking or on defence land. Worst part is all of these buildings are ready and many are occupied by residents. at Kandivli the current sales going on at Kalpataru Tower will be in a soup. The building over looks defense land. I wonder what will be the outcome of the users of such premises.....a friend of mine just bought a flat there and is now worried.

samix said...

Anon above if you are serious in knowing this then go to http://fofoa.blogspot.com

If you are just confrontational, then sorry I am not interested.

shailesh said...

Prithviraj Chavan's Challenge and Opportunities

There are new problems which require new paradigms and new solutions. They are more about planned urbanisation, transport, education, health and implementation of affirmative action. These issues have been neglected for many years. The state has been the most urbanised one in the country. No other state can boast of cities like Pune, Kolhapur, Nashik, Jalgaon, Aurangabad, Nagpur and some others, excluding of course, the great global metropolis, Mumbai. It is estimated that by 2020, about 60 percent of the state’s population will be urban. There is no urban policy worth the name for the whole state and there is no plan for Mumbai. There have been fancy slogans like converting Mumbai into Shanghai or even London, but there is no organised programme, nor vision with a certain timetable. The city of Mumbai still survives because of the suburban railway built during the British rule.

All the other chief ministers pretended that they had the first responsibility towards their rural constituencies. So, Mumbai was used as a money-making machine, by selling real estate at prices higher than Shanghai, London or New York. With liberalisation, Mumbai should have been the focus of the new development paradigm. Instead, Mumbai has nearly 70 percent of the population (of 2 crore) living in slums or in dilapidated chawls/old buildings. No road expansion, no civic facility enlargement, no public transport, no improvisation of railway network and no positive approach towards housing.

shailesh said...

Jairam Ramesh gives clearance to Navi Mumbai airport

DhImAn said...

Samix, don't waste your breath - that pr1ck is confrontational. Don't you see his sarcasm?

Screw him and his ilk. He, who doesn't have the guts to just put in a made up name so we can address him by it - you think he can do anything for changing the status quo? No, he epitomizes the pseudo intelligence that has become the shield cowards hide behind these days in order to sell their mothers to the highest bidder.

Anon, sod off.

Desi Batman said...

Samix and DhImAn. I agree with you guys on gold debate.

As long as money is backed by printed currency, elite class can get away with printing way to prosperity. Gold standard restricted this.

If something is used for benchmarking and that benchmark is variable we have serious problem. How do you tag / rely on non-constant variable that is changed at will for bench marking.

We can keep arguing about Gold and paper currency, that won't help as long as paper currency is pushed down the throat.

Has anyone here tried and feedback on:
gold storage:
goldmoney.com
bullionvault.com
bulliondirect.com

Desi Batman said...

Bharat, welcome to awakening to today's 'real' India.

Sorry to hear you couldn't beat them, glad to see you didn't join them. Them = corrupts. But not everyone is lucky to have option to get away abroad, they HAVE to join them or perish.

Best of luck!

Desi Batman said...

@ Anon 2:25 AM

After the Adarsh scam, now CBI has discovered scams at Malad, Juhu and Kandivali. Most of them just overlooking or on defence land. Worst part is all of these buildings are ready and many are occupied by residents. at Kandivli the current sales going on at Kalpataru Tower will be in a soup. The building over looks defense land. I wonder what will be the outcome of the users of such premises.....a friend of mine just bought a flat there and is now worried.


No need to worry. In India one can get away with most horrifying crimes. Where was BMC or legal people when land was developed, building was build, water, sewer and electic connections were sanctioned, flats were registered, and may be bought and sold, advt in market.... I don't think all this happened suddenly and on one day.

So your friend need not worry. All the hoopla is to create attention for some politics.

samix said...

Thanks for the support batman... we are still a minority...

By the way there seems to be some nervousness in the real estate market, people are not buying, One of my friends has put up his flat for sale and he is not getting any buyers.

The real estate agent told him that even a dog is not visiting them nowadays for buying a flat...

Desi Batman said...

Samix:

Thanks for the support batman... we are still a minority...

We are not minority, look at gold rally recently.


By the way there seems to be some nervousness in the real estate market, people are not buying, One of my friends has put up his flat for sale and he is not getting any buyers.

When and where and for how much? Just like to know if your friend is asking for fair price or is market sluggish. Someone here in blog mentioned that demand is very high and supply is limited.


The real estate agent told him that even a dog is not visiting them nowadays for buying a flat...

May be your friend needs to change realtor.

shailesh said...

New Mumbai airport: Housing prices to rise sharply

Sitting in his three-bedroom flat in Kharghar, Rahul Patel is a delighted man now. The green signal for the airport means his property will appreciate much further. Two years back, he purchased this flat at a modest Rs. 2500/square feet, but on Monday the rate has gone up to Rs. 5500 per sq/ft.

"I have a project of 500 apartments and a four star hotel in Navi Mumbai. As we came to know about the clearance of the airport, we increased the prices by 20 per cent and as soon as the construction of the airport begins the prices will go up by 75- 100 per cent," said Rishab Wadhwa, Concrete Builders.

Prick said...

@DhimAn
Is that you real name? Is there a guy called DesiBatman or Samix or whoever you support in this blog?
You are saying everyone else is a pseudo intellectual but what are you? What is your claim to fame? What have you done for your 'beloved' country? And most of your ilk, would they be back on this blog once they have got their dream home?
And then you criticize me? For sarcasm? But blinded by your ego, you fail the see the logic in my argument.
More and more economic activity will move to India, China and other poor Asian countries since we do offer $100 a month chauffeur and $25 a month maid. That is our strength and we are playing to it. Why is it unfortunate to have cheap labour? You guys give gyan on economics and don't understand that cheap labour is our strength. I am sure these slumlords are better off working in these jobs and living in slums than living in villages and facing atrocities for reasons other than being poor.
And I am not living in Mumbai so I don't care about your slums.
And finally DhimAn, I come from a Jat family in Haryana. My family and my village has sent its sons to fight on the border and die for this country. May be at that time you were busy with the auctions where people were selling their mothers. Let me guess such auctions are organized in Mumbai.

DhImAn said...

To Prick - my response wasn't directed at you, my dear Jat friend. What some anon said was this: "Now that you have enlightened us, tell us how do we get to go back to gold standard?

Since we are the sheep, we would follow."

Then Samix responded: "Anon above if you are serious in knowing this then go to http://fofoa.blogspot.com

If you are just confrontational, then sorry I am not interested."

To which, in my response I called the original poster a "prick".

I had forgotten that you are the original prick :-)

Sorry I really didn't mean you.

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