Saturday, December 15, 2012

AL Jazeera's news segment on India's housing bubble

Investors lose thousands of rupees per day as construction workers cannot make ends meet for daily needs. A tale of two India's.


66 comments:

Anonymous said...

This is 3 years old...

http://www.youtube.com/watch?v=LAFD-buj68A

Anonymous said...

posting old will erode the reliability of the forum..pls delete

Anonymous said...

Things are still not looking up for Parsvnath http://www.moneycontrol.com/news/crisil-research/parsvnath-developers-execution-yet-to-pick-up-says-crisil_795225.html

Anonymous said...

The post maybe old, but the story is the same. I'm posting something from the previous article in case people wonder how India has so much money now:

India and Indian companies have been borrowing heavily with the next generation to pay it off. I think 2013 is going to b ereally bad for India. In fact UPA scams will come out to truth this year that will cost them 2014 election.

How much money can you really print and how much can you borrow to put up the face? All nonsense created by these so called educated MBAs and ministers who are screwing the country more than the Britishers and Muslim invaders did. Forfiet their MBA degrees and put them in Jail. Just creating money scams to loot masses and profit the banks and builders.

HOW IS INDIA AND INDIAN COMPANIES PAYING INTEREST ON THEIR BORROWED MONEY?

Answer: By borrowing more.

This is all going to end very badly. I'm out of India and investments in India.

Anonymous said...

I'm wishing all these mother fucker thieves who stole money in creating the RE boom including bankers, builders and politicians suffer. Lets hope they never use this ill gotten wealth to any good use other than paying huge medical bills.

Looser thieves.

GSM said...

I don't think the article is relevant today. From what I know in Bangalore, there is a huge shortage of construction laborers. Most of construction activity is mechanized because of that.

Anonymous said...

^ Won't that be other way around? The mechanization of construction sector will create higher unemployment.

http://www.popsci.com/technology/article/2012-12/watch-10-story-building-go-two-days
(^ That's happening right here in India)

http://www.dailymail.co.uk/sciencetech/article-2187623/Contour-Crafting-builds-house-24-hours.html

Anonymous said...

I think 2013 is going to b ereally bad for India. In fact UPA scams will come out to truth this year that will cost them 2014 election.

What a surprise, the crooks are taking turns raping the country.

Ever wonder why parties go out of power because of scams but none of the big fish are caught, put behind bars and their assets confiscated?

We should institute a lifetime ban on politicians (and political families) who amass disproportionate wealth.

Government is about SERVING the people. A class 5 civics lesson that everyone seems to forget once they come into power...

GSM said...

Won't that be other way around? The mechanization of construction sector will create higher unemployment.

Well, it is my first hand experience in Bangalore. I am constructing my home, and many days the work is stalled because of non availability of workers and small works like cutting of steel or mixing concrete, machines are bought for a couple of hours to finish the job.

Anonymous said...

Don't worry guys. The experiment of making apes smarter is about to reach a dead end.

Mother nature will soon wind it down and end everyones misery. Thanks for participating!

Anonymous said...

I wonder what influence the new PF bill will have on ability of debt slaves to make EMI payments once the take home salary is reduced.

Anonymous said...

@GSM - But in the end, what would be cheaper? machines or labourers?

Something tells me either they went off to their villages or states because they can't afford to live in metro cities, or they've all become engineers and IT professionals.

GSM said...

Something tells me either they went off to their villages or states because they can't afford to live in metro cities, or they've all become engineers and IT professionals.

It is some where in between. I also hear about labor problems in villages. In metro's the daily wage for a unskilled male and female worker is Rs.350 and Rs.250 respectively. Well, a family of work only for 22 days a month, their earning is 13k which is way more than Montek's Rs.35/day poverty line. Not to mention they don't have to pay rent or electricity or water (however bad the temporary accommodation is). The biggest down side is their children cannot get educated because of their nomadic nature. And then if they know the law correctly, they will be entitled to Govt's free plots for the poor and subsidized ration.

Anonymous said...

Houses starting at half a million dollars, in a city inhabited by f#%king animals.

Anonymous said...

^^
sad but true.

aam aadmi said...

It is some where in between. I also hear about labor problems in villages. In metro's the daily wage for a unskilled male and female worker is Rs.350 and Rs.250 respectively.

NREGA has had a huge impact on rural as well as urban economies, wherever I go I hear tales of NREGA taking away the chunk of labor force. I am not saying it's a bad thing, those poor folks deserved a wage hike which the scheme has provided even though it wasn't it's original intention.

aam aadmi said...

Anon at 10:27
Never understood why Delhi and the NCR is such a big deal and I am not getting influenced by the recent incident, these things happen elsewhere as well.

The sheer aggressiveness and uncouth nature of people from that area is a major turnoff, I wouldn't go to NCR even if they doubled my pay. I know of many natives who have left that place and never vowed to go back there.

aam aadmi said...

*vowed to never go back there

Anonymous said...

^^ why run away from the problem? one day there will be no place to run!

for decades indians dismissed the practice of female foeticide as something that only happens in villages and amongst illiterate or uncultured families.

Inspite of horror stories like these there were no public protests or demonstrations:
http://in.reuters.com/article/2011/10/27/idINIndia-60154420111027

Now that the problem is hitting home, the so called cultured elite are raising a hue and cry and marching on the streets.

Well, it is too little, too late. An entire generation of men have been raised up who only see women as an object for satisfying their sexual urges.

Anonymous said...

http://www.thehindu.com/news/cities/Kochi/builders-leave-apartment-owners-in-city-high-and-dry/article4228561.ece?homepage=true

Anonymous said...

Below is the same story as India. Read it and enjoy, it is soon coming to India:

Now is the time to prepare for a massive housing crisis in Asia
http://renohomeblog.com/2012/12/an-open-letter-to-philippine-p.php

Anonymous said...

Question for anyone in NCR area. Is the ruling class even mildly perturbed by what is transpiring on the streets of Delhi? Or is this business as usual?

Anonymous said...

It is business as usual. In fact ruling class is happy as no one is bothering them about the scams and stolen money they have.

In fact this is a boon for them as it distracts masses from going after the white collar thugs.

Anonymous said...

The ruling class has rapists and molesters amongst it's own ranks.

Almost every Indian politician has committed rape, either physically or metaphorically.

http://www.telegraph.co.uk/news/worldnews/asia/india/9760171/Indian-gang-rape-case-20-accused-politicians-allowed-to-run-for-office.html

Signs of a decaying and dying society?

Ramakrishna said...

It's good to know that metros like Hyderabad still offering affordable option.

Vipin Kumar said...
This comment has been removed by the author.
Vipin Kumar said...
This comment has been removed by the author.
aam aadmi said...

Signs of a decaying and dying society?

I don't think it's such a big deal, if anything it's much better than what existed 100 years ago when women had to fight just to go to school and there were plenty of molesters and rapists among the maharajas. IMO the media loves to play the "we are going downhill" card all the time.
However one thing one can all agree with is that there is a significant chasm now between the ruling class and common people(compared to what existed in the history of post independence India). Regionalism is on the rise and there are almost no leaders with a pan Indian appeal. I have no idea how this will play out in the future.

Anonymous said...

>there are almost no leaders with a pan Indian appeal.

Maybe Narendra Modi (even with the 2002 riots blot on his record) might turn out to be the person.

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Anonymous said...

The fact that someone like Narendra Modi can be considered a prime minister candidate is a sign that the political system is rotten to the core.

No matter whom you select the puppet masters remain the same. Which is why inspite of widespread corruption that puts even 3rd world dictatorships to shame, NO political leader has had to face any scrutiny, let alone punishment.

Here's another reason why Indian RE is the mother of all bubbles (mania?) and when it bursts there will be plenty of tears:

http://india.blogs.nytimes.com/2012/12/17/bangalores-fast-growing-home-values-spawn-a-new-generation-of-highly-competitive-real-estate-agents/

"In Bangalore, Mr. Jain said he knows many doctors, accountants and software engineers who have quit their profession to turn real estate consultants. He said he recently encountered a real estate consultant in Gurgaon who arrived in a Mercedes but spoke in broken English."

Anonymous said...

property prices in all metros+bangalore is going to go the mumbai way. double triple, quadruple. no way it is going to come down, forget correct.

Anonymous said...

Why only double tripple it will double every year.
As in india we all people earn so much money that all international company want to setup shop here and earn money from us.

I am planing to start SIP in property purchase. Purchase 1 flat every month.

What say guys what do u think?

Anonymous said...

yes, buy one flat not every month but one every week. Why wait. Get rich fast. Loans are easy. Buy more and everyone should et rich. After all it is the only investment that you sleep on and in 304 weeks, it goes up by a 4-5 lakhs.

My advice, buy more flats. Get the ones under construction. Buy, buy buy. Only buying can resolve your issues.

A flat that used to cost 20 lacs in 2006, was worth 1 crore in 2009 and 1.8 corore in 2012. I think it will go to 4 crores by 2015. Leave your jobs and just ivesnt in RE. That is the way to go. There is no need to go to college for education. Just buy RE.

Anonymous said...

304=3to4

Anonymous said...

Thanks for your great advice. I resigned from my job yesterday night. And today i booked 3 flat.

Waiting for my money to grow now :)




Anonymous said...

Thanks for the great advice.
I have sold my business (was't able to give returns anywhere close to RE), my family and MY SOUL and planning to buy flats all over Gurgaon.
Why work when you can sleep over an investment and wake up rich.
Who knows with all the money I make from RE, tomorrow some politician may want to align with me and in a few years time I will be the next KP Singh.
The future, my friends, is suddenly looking bright.

Anonymous said...

^^
Why do you need to sell your family and soul to buy RE?

Anonymous said...

Good, keep buying guys as RE never goes down. Why work when easy money is available. I also quit my job and am buying 4 flats for this month. I would be putting down very less and banks are giving money easy as loans.

And then, I'll be relaxing and waiting my pot to grow every month. I've also told everyone in my family and friends to quit working and just buy RE. Why work?

I'll be joining some non profit for no salary and just enjoy my savings grow. All the 4 flats are going to be around 3 crores together. I'm hoping to make 30-40 lacs just in one year like 3 lacs per month. It is a lot more than my salary I was making.

Buy, buy, buy. Don't wait and be left out. After all RE prices have Sky to touch and India is growing so fast. I'm hoping my 3 crores would be 6 crores in the next few years and then to 12 crores and then 24 crores.

I have found the way to riches.

Anonymous said...

:) :) :)
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I am anon at 8:06 AM.

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Anonymous said...

^^^ You sir will be crediting with starting an economic revolution, totally unique in the world, where in the only productive (???) work done by the entire population of a country will be to buy and sell RE.
Not sure it is much different right now though!!!

Anonymous said...

It's worthwhile for the peasants to know whom they are working for.

BTW. why are all these guys afflicted with SPS:

http://www.siliconindia.com/realestate/news/Indias-Most-Expensive-Homes-Of-2012-nid-137449.html

Anonymous said...

http://www.nytimes.com/2012/12/30/world/asia/weak-response-of-india-government-in-rape-case-stokes-rage.html?pagewanted=all&_r=0


The jokers in charge of India can't even figure out the right response to a shameful tragedy. Do we really think they will be able to manage the housing crash when it occurs?

NRIs like me can take out the popcorn and laugh at these clowns but really feel sorry for the man on the Indian street.

Anonymous said...

Commercial realty is also hurting.
52% vacancy sounds almost alarming. Sure banks are rolling over loans here.

http://www.business-standard.com/india/news/over-52-malls-in-mumbaivacant-assocham/200993/on

Anonymous said...

And the slide into deeper doo-doo continues...

http://online.wsj.com/article/SB10001424127887324274404578213450883093748.html

Rate cuts anyone?

skeptic's ghost said...

The most WTF moment -

35 lakhs for 2 BHK in Kolhapur - Sangli-Miraj etc - that too dictated by the state govt.

http://online3.esakal.com/esakal/20130102/5587776677090734081.htm

(marathi)

Im pretty sure the same is being done throughout the country.

How can metro prices come down?

Anonymous said...

New Post please

Play Angry-Bird Game said...

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thanks for info

Cool Head said...

The end game will be the collapse of the currency if they don't bring down prices and liquidate the massive inventory

Anonymous said...

The slow melt continues in Australia

http://www.businessspectator.com.au/bs.nsf/Article/Australian-property-2013-house-prices-mortgage-deb-pd20121217-32QMN

Prices there have fallen 4.1% in nominal terms since 2010 and about 9% in real terms.

It is likely that we will see a similar slow correction in nominal terms. 4% in two years is like 0.15% a month. It wont generate headlines, but eat away slowly and steadily.

Anonymous said...

looks like Real estate will go down.
Goons lost faith in RE and invested in US treasury bond

http://www.indianexpress.com/news/-5bn-us-bonds-seized-from-tn-stock-broker/1053200/

aam aadmi said...

http://www.thehindubusinessline.com/industry-and-economy/economy/to-curb-buying-govt-may-raise-import-duty-on-gold/article4264676.ece

The link is self explanatory. As they say if the govt is banning it, there must be something in it.

Now you know what to do.

Anonymous said...

^^ to curb gold buying the govt. should stop printing and allow RBI to raise borrowing rates to their real level i.e. inflation + 3%

Encouraging real savings is the proven path to true prosperity. No one has prospered by borrowing / printing fake money.

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