tag:blogger.com,1999:blog-19740856.post1402604334658658021..comments2024-03-28T00:59:01.483-07:00Comments on India's housing bubble: Realtors grapple with huge unsold stock; rising prices & costlier loans hit buying plansUnknownnoreply@blogger.comBlogger148125tag:blogger.com,1999:blog-19740856.post-67659642232834393472011-06-10T19:22:09.965-07:002011-06-10T19:22:09.965-07:00@Pawan,
What you are describing is a sort of a r...@Pawan, <br /> What you are describing is a sort of a reverse Ponzi scheme. Investors buying assets (house) simply in the hope of selling it to someone else for a higher price. They dont even rent it out for a cash flow, because a used house might sell for less. <br /><br />Supply and demand cannot stay out of line forever. One thing we can all be sure of is that fundamentals will always assert themselves. All Ponzi schemes come to an end. If the houses are overvalued, then the last ones in the chain will be screwed. <br /><br />Of course it could be simply the case that a small correction 10-15% could bring back genuine buyers.poltnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-69171132316332205382011-05-31T17:16:12.235-07:002011-05-31T17:16:12.235-07:00If RE was so overpriced, can anyone tell me if the...If RE was so overpriced, can anyone tell me if the Stocks that make up the Realty Index are being shorted. If so, has anyone seen the short interest increasing during the last 6-months. Any input is appreciated.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-79354710145420652502011-05-31T16:45:43.796-07:002011-05-31T16:45:43.796-07:00@=>
your logic defies gravity the way current ...@=><br /> your logic defies gravity the way current prices of RE. If end user has that much money then he is no more end user he is investor. Just go and check with u r friends how many of them have 25 to 50 lakhs to pay on top of existing prices and buy bigger RE. <br /><br />At current rate if I have 50 lakhs I will rather put my money in FD and earn interest. ROI is not even 2-3 % if I rent apartment worth 1 crore and pay hefty maintaince tag.<br /><br />Even big bankers need retail investor in stock market to offload equities at higher prices, bankers won't make money by selling equities to each other. Similarly investor on RE need retail buyer to offload their holdings. So wait and enjoy firework. Delhi ab dure nahi hai!<br /><br /><br />Only way to get higher ROI by appreciating prices, which is not going to happen any more.Mumbaikarnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-77174893285974213442011-05-31T07:22:56.278-07:002011-05-31T07:22:56.278-07:00It is very very important for the builder lobby to...<i>It is very very important for the builder lobby to not let the prices dip because if that happens, all these investors will run away. As long as these speculators (calling themselves investors) can keep trading the units amongst themselves at ever increasing prices, they don't need the end users.</i><br /><br />==> Also end users are buying high priced RE, How? They are selling current RE they own, add 25 to 50L and then buy bigger tag RE. This is also driving RE prices up. This way only affordable option is lower end units like chawls, and slums. Once these lower ends appreciates in price, which it does, move to next level.<br /><br />Question to ask is - who and how does one afford lower end shithole.==>noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-86668074320928802742011-05-31T06:36:46.425-07:002011-05-31T06:36:46.425-07:00Pavan,
Very well said. Agree 100%Pavan,<br /><br />Very well said. Agree 100%Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-43067941139623835992011-05-30T21:51:00.466-07:002011-05-30T21:51:00.466-07:00There is a reason why prices are going up/holding ...There is a reason why prices are going up/holding steady even though there is no sales.<br />A recent survey said that 70-75% buying in new projects is being done by investors as opposed to end users. It is very very important for the builder lobby to not let the prices dip because if that happens, all these investors will run away. As long as these speculators (calling themselves investors) can keep trading the units amongst themselves at ever increasing prices, they don't need the end users. The end users will do really well to keep away from this nonsense.Pawanhttps://www.blogger.com/profile/03969690253002313371noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-16661993366576501332011-05-30T19:36:02.734-07:002011-05-30T19:36:02.734-07:00Vik:
New article please.Vik:<br /><br />New article please.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-29736034038499618532011-05-30T17:36:30.235-07:002011-05-30T17:36:30.235-07:00Real Estate India said...
Properties detail y...<i>Real Estate India said...<br /><br /> Properties detail you provide is very important. Real estate sector in India is really attractive investment ground.</i><br /><br />==> You bitch. At least have decency to tune your sales pitch for RE as house/home/shelter instead of investment. All you think is money and screw everyone.==>noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-81166373738515477932011-05-30T17:23:11.212-07:002011-05-30T17:23:11.212-07:00Properties detail you provide is very important. R...Properties detail you provide is very important. Real estate sector in India is really attractive investment ground.Real Estate Indiahttp://www.acmehousing.comnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-70146513437128101652011-05-30T13:39:29.750-07:002011-05-30T13:39:29.750-07:00Now, I am left to wonder where all this money has ...<i>Now, I am left to wonder where all this money has suddenly appeared.</i><br /><br />==> India has seen solid job and business growth. Salaries have increased 10 folds in 10 years. Economy growth is increase in trade in goods and services. Not only this growth has increase locally but has increased globally.<br /><br /><br /><i>What will happen to us who don't own a home yet.</i><br /><br />==> Nothing will happen, you will live the way and survive you do today. May be you should ask for increase in your earnings for goods/services you provide to be in sync with all the growth.<br /><br /><br /><i>The future looks very bleak in Mumbai. I've given up the bubble concept and just planning to move from this god forsaken slum Mumbai</i><br /><br />==> Where you will move to? This RE shit is happening all over world. You can run but can't hide.==>noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-42081062566737186812011-05-30T10:15:37.710-07:002011-05-30T10:15:37.710-07:00The bubble predicted by some bloggers has becoming...The bubble predicted by some bloggers has becoming elusive. The prices in Mumbai are increasing unabated. In Mumbai western suburbs, no real estate agent entertains you ubless you start talking in crores. 'lakh' seems to have disappeared from their vocabulary just like 25 paisa from market<br />Interestingly, people are buying. There isn't much inventory in the market so this is a sellers market. Prices quoted and negotiated yesterday are no more valid today. <br /> Now, I am left to wonder where all this money has suddenly appeared. What will happen to us who don't own a home yet. <br /><br />The future looks very bleak in Mumbai. I've given up the bubble concept and just planning to move from this god forsaken slum MumbaiAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-88770230729934052472011-05-30T06:17:37.616-07:002011-05-30T06:17:37.616-07:00http://www.thehindubusinessline.com/industry-and-e...http://www.thehindubusinessline.com/industry-and-economy/banking/article2026797.ece<br /><br />May 17, 2011<br /><br />HIGHER NPA PROVISIONING<br /><br />~ The sharp increase in SBI's non-performing asset (NPA) provisioning to Rs 3,263 crore this quarter, from Rs 2,186 crore was the result of the bank trying to improve its provision coverage ratio, in line with RBI norms. Additionally, <b> asset quality also slipped as is evident from the gross NPA ratio going up from 3.05 per cent in March 2010 to 3.31 per cent in the March 2011 quarter </b>. To provide for additional slippages, coupled with improvement in provision coverage, led to higher loan-loss provisioning this quarter and for the year.<br /><br />~ SBI was also hit by one time provisions (Rs 500 crore) recently mandated by RBI <b> for teaser rate loans </b> also taken this March quarter. To comply with 70 per cent provision coverage as of September 2010, SBI had to create a Rs 3,430 crore of counter cyclical buffer. Of this, it has set aside Rs 2,330 crore this year. Provisions for incremental NPAs would be on prudential norms given by the RBI in the recent monetary policy. Other banks did not see a similar rise in provisionsJayantnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-89213702431939011302011-05-30T03:50:36.565-07:002011-05-30T03:50:36.565-07:00The biggest issue with Indian (especially Mumbai) ...The biggest issue with Indian (especially Mumbai) real-estate, I have is money made by all people except folks involved getting a house to you. This are folks like Politicians, Babus, Mafia/Gangs & Builders.<br /><br />The worst off are Land owners and Construction workers. Most land construction workers are paid pittance. The cost of construction (including labor and material) is at most Rs 1000 per sq ft. The asking rate for such a flat can be Rs 10,000 per sq ft. Assuming even if the land costs Rs 3000 (I believe that is TDR price), that's over Rs 6,000 per sq ft given to all middle men. This is ridiculous. I can understand some overhead for things like permission and builder's project management skills, but it seems most of the money is pretty much going to politicians, babus and mafia, which really does not add much value to housing process.shaileshhttps://www.blogger.com/profile/14407031960831830463noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-2660023654851071512011-05-30T03:23:44.253-07:002011-05-30T03:23:44.253-07:00Guys, here's a good one
Want a house? Build a...Guys, here's a good one<br /><br />Want a house? Build a shanty!<br /><br />http://www.mid-day.com/news/2011/may/300511-Medha-Patkar-struggle-house.htm<br /><br />Better hurry before the shanties are occupied by our gujju marwari banias<br /><br />Good luck in your ventureAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-64950337132628279272011-05-29T19:35:12.055-07:002011-05-29T19:35:12.055-07:00This story is so predictable that it pains me to r...This story is so predictable that it pains me to read it.<br /><br />Housing inventory in Beijing’s Tongzhou totals 20,000 units<br />11:15, May 26, 2011 <br /><br />Tongzhou District of Beijing, where housing prices were once close to that of Beijing’s CBD area, has come to be an “outcast” of Beijing’s housing market because of the adoption of the housing purchase restriction policies. It will take seven years to consume the 20,000 units of housing inventory in Tongzhou that are worth more than 10 billion yuan. The sharp decline in housing demand has caused real estate developers to adopt new pricing methods to postpone housing sales.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-57619106520274009862011-05-29T13:35:53.334-07:002011-05-29T13:35:53.334-07:00anon in Dubai
I have MSCHE plus MBA but in good o...anon in Dubai<br /><br />I have MSCHE plus MBA but in good old USA having to pay tax, insurance, home mortgage, car, childrens education in private school/college, and for trips to India. End of the day there is no savings...So Dubai may be a better option. Are you all hiring...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-79602954362237995552011-05-29T13:03:18.703-07:002011-05-29T13:03:18.703-07:00In Dubai 5% of the Indian expatriates are doing we...In Dubai 5% of the Indian expatriates are doing well, 45% hand to mouth category, and the rest 50% just survive. There is lot of racism too. For eg, businesses managed by western expatriates like banks, oil companies, trading establishments prefer certain section of Indian expatriates, Govt. Depts prefer to have Indians who have something in common with the management etc etc. Needless to say that religion plays a great role. I hold a masters degree in chemical engineering and report to a Goan guy who has no formal qualifications other than rubbing shoulders with the American/British. He is an international staff whereas I fall in asian expatriate category. Not that i am complaining. This is the order of the day here. I am paid well,at lest 5 times I could earn in india plus all the perks like accommodation etc etc<br />If any of you want to come here, be prepared to compromise your pride, perception . Other than life is good. At the end of the day, that is all it mattersAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-56170023099040453662011-05-29T11:56:54.663-07:002011-05-29T11:56:54.663-07:00NRI forever
Do you all pay any income tax, proper...NRI forever<br /><br />Do you all pay any income tax, property tax or insurance in Dubai? Does your employer give you free housing and car? How much rent do you pay for a 1400 sq ft house/apartment in Dubai.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-3230010621418194022011-05-29T10:51:21.583-07:002011-05-29T10:51:21.583-07:00@NRI forever
Can you tell me which sector you wo...@NRI forever <br /><br />Can you tell me which sector you work in. I am also planning to move to Dubai and any heads up will be welcome.<br /><br />Thanks,<br />KanuAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-51749215452998740162011-05-29T09:35:45.185-07:002011-05-29T09:35:45.185-07:00Can someone tell me where is the money going to co...Can someone tell me where is the money going to come from for all the debt piled up by the builders and the home buyers?<br /><br />Dreams turning into nightmares??Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-23821110478718154712011-05-29T07:55:00.984-07:002011-05-29T07:55:00.984-07:00To Start with I am an NRI based in Dubai (That mak...To Start with I am an NRI based in Dubai (That makes me bit of Expert in Property Bubbles ) <br />My monthly salary is about 10,000 USD ( INR – 4.5 Lac a month ) but still cannot buy a decent house in Delhi for my parents <br />My father made a house some 20 years back in “Rohini “ – a colony at extreme end of Delhi then . With a total cost was only 2 lac <br />Now the apparent property value of that house stands at close to 70 – 75 lacs ( Crazy as it gets ) <br />Total area of the Plot on which that 3 story house stands is ONLY 32 Sq Mtrs ( No Typo error here ) <br />Firstly 32 Sq mtrs is little smaller than my current kitchen area and I wonder who the hell had this great Idea of planning such small plots instead of a large flat <br /><br />Now talking about current prices - It’s all part of ‘A” plan <br />The property in India by and large will never follow Demand Supply Rules specially in cities like Delhi / Mumbai / Bangluru ( and suburbs )<br />On an average close to 5000 migrant workers from lesser develop states ( I am not a racist ) come over to these cities everyday <br />If you do the numbers it’s over 18 lacs people added every year + the population growth from existing population <br />These Migrants push the demand at unauthorized colonies / areas and further pushing demand to new / far away suburbs <br />Do not get me wrong – They are not the problem !<br /><br />Property in Delhi for sure has no value for money right now – You may sell a 1400 Sq Feet ugly , Shithole , flat with “desi Toilet” , no elevator , no gym , no pool , no security ( if you eliminate the “security guard “ at your apartment gate working @ Rs 3000 month ) , With the same money you can get a lavish fully equipped apartment with Pool , Gym , Garden , Fitted Kitchen , Central AC etc in Dubai/Australia/Brasil !<br />I am not selling it but focusing on Value for Money <br /><br />It’s depressing for NRI’s like me who wish you give a better home to their parents but are unable to do so as<br /><br />Black Money is MUST – Actual Demand (Selling Price) of property Rs 1,00,00,000 – ON PAPER – Rs 30,000,000 <br />Bank will fund only 80 % of 30,000,000<br />Commercialization of residential areas <br />Sell by Floor in Delhi <br />No Control by Govt <br /><br />In a nutshell it’s all governed by a powerful lobby that sits with builders / Politicians / Govt Officers <br />There is and There will never be any respite !<br />The Salaried Class has suffered and will continue to do so for the times to come ( pay TAX for nothing ) <br />For a property which is actually worth 10 Lacs ( compared to anywhere else in world ) you will end up paying 50 lacs and slog yourself for 20 years to repay loan <br />Only way you may make some comfort is to buy under construction projects but hey there is a catch too – How would you pay the installments and the rent together !<br /><br />Good Luck – I am happy to be out of this !NRI forevernoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-92095516619113677792011-05-29T04:35:59.408-07:002011-05-29T04:35:59.408-07:00@Anon above
Accept the fact that India is no diff...@Anon above<br /><br />Accept the fact that India is no different than rest of the world. It was 15 years back not any more. If someone is putting the facts that doesn't make him slave of white skin.<br /><br />Why did GOI had followed footsteps of US in 2008 when Indian economy was so strong? Why did it print money ? Think logically...all this economy ugenda of India shining is bs.<br /><br />Only 10% people are enjoying India Shining mantra and rest is hype in media. People still believes in reservation to get jobs, then reservation is getting promotion that make Indian system week. This needs to stop somewhere. Then reservation in assembly seats, parliment seats etc. This all country is all aboout reservation. But no one wants to follow reservation when it comes to breeding....then it becomes god's gift. <br /><br />India will truly shine when 80% of people will say from heart India is shining. I don't see difference in India 20 years back and now, instead of importing/smuggling stuff from rest of the world, people are buying it on Indian street by paying hefty import duty. I will be happy if 50% of that stuff has label of "Made In India".Mumbaikarnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-52053502563083943682011-05-29T00:50:17.001-07:002011-05-29T00:50:17.001-07:00Anon 7:38 PM
Atleast I dont get to see or smell t...Anon 7:38 PM<br /><i> Atleast I dont get to see or smell the sh*t coming out of people's a*s each day.</i><br /><br />In India people wash their a*s after sh*tting unlike US which should be more smelly. Sucking up to white people is so ingrained in your genes that you no longer find their unwashed a*ses smelly.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-76241325124167782011-05-28T22:23:59.349-07:002011-05-28T22:23:59.349-07:00Anon above:
I think NRIs are not angry or bitter ...Anon above:<br /><br />I think NRIs are not angry or bitter abut India RE prices rising. In fact they have contributed a lot to India's growth and RE success. But many do feel after seeing a first hand bubble burst in the US that it would not fare well even in India. It is the same story that most NRIs have seen in US about convincing people why RE will not fall in US and how the country is growing. Then, in 2008 a steep fall came and even though US Govt. printed a lot of money they coudn't stop the fall. Though they were able to control it to deflate it slowly rather than bursting.<br /><br />It will be the same story all over the world. India is no different. COuntries like Israel, Australia, Canada, China, Singapore, Korea etc. and many others are all in line for a bubble burst. There has been nothing diffferent that happened in India that didn't happen in other countries.<br /><br />RBI is soon going to prick the bubble by raising more interst rates, Pr Muk is thinking of withdrawing all the stimulus. <br /><br />If GOI doesn't do this, India's debt will keep growing and it may default like Greece. To prevent this and to control inflation, GOI has to take action. Moreover, there would be no QE3 from US unless there is a full blown crisis like 2008. So, no more inflows of money to India. The party is getting over.<br /><br />RE prices will correct and the bubble will not burst. It will be a long correction. The next 6-8 months looks like a 30% correction and then around 10-15% for 4-5 years. It could overcorrect and the total correction could easily be 60-70%. <br /><br />Believe it or not. NRIs have seen it happen and worry for India and Indians. People in US are civilized and are not on th estreets whereas in India, there could be a civil war as masses would not be able to handle this downturn.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-40803259120568206072011-05-28T19:38:58.561-07:002011-05-28T19:38:58.561-07:00Anon at 7.28
Your style of writing and spelling t...Anon at 7.28<br /><br />Your style of writing and spelling tells us that you will be dirt poor just as soon as the RE shit hits the fan in India. <br /><br />Proud NRI and happy I moved to California, even though I may not have a lot of money. Atleast I dont get to see or smell the sh*t coming out of people's a*s each day.Anonymousnoreply@blogger.com