tag:blogger.com,1999:blog-19740856.post7055051526190070519..comments2024-03-28T23:30:16.420-07:00Comments on India's housing bubble: Palace property sold for 6,000crUnknownnoreply@blogger.comBlogger45125tag:blogger.com,1999:blog-19740856.post-87452047864308491752009-08-19T15:03:03.377-07:002009-08-19T15:03:03.377-07:00I am planning to buy a flat in the Wanwadi/NIM Roa...I am planning to buy a flat in the Wanwadi/NIM Road area.. recommendations welcome. Also, what are the rates I should expect?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-26675186296788280282008-12-09T19:35:00.000-08:002008-12-09T19:35:00.000-08:00I think there is a high probability of depression ...I think there is a high probability of depression in 2010 or 2011. If that happens the whole world will be affected and it would be worthwhile to hang to every paise you have. Because, you may lose jobs, the credit cards may not work, there might be runaway inflation and then deflation and finally the economy in India too might head to 2-3% growth or even 1%. At that time all this debate would be meaningless, houses will be worth practically nothing. Home prices might crash 99%..Think about it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-42109945072732285912008-12-08T01:34:00.000-08:002008-12-08T01:34:00.000-08:00Let us wait and watch what happens to Indian econo...Let us wait and watch what happens to Indian economy and how much we are affected.<BR/><BR/>Bindas BhaiAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-11651210281713925092008-12-07T21:32:00.000-08:002008-12-07T21:32:00.000-08:00More layoffs are coming in the US. AFter around 20...More layoffs are coming in the US. AFter around 20 lac people losing jobs in the last few months, which is the official figure. Unofficially the losses are like 50lac people jobless. <BR/><BR/>What I'm trying to say is US consumers drive the world economy and with that going away, the world would suffer. I'm not worried about house prices falling anymore as they would by 70-80% over a few years, but sustainability of life. What would happen to my job in India and what would happen when I'll so many jobless smart people sitting at home. The Indian economy may tank at that point. Houses would be available and there would be no buyers at any price as no one would have the money.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-31176292513521097242008-12-07T20:57:00.000-08:002008-12-07T20:57:00.000-08:00It is just matter of time we will all come to know...It is just matter of time we will all come to know. You and me cannot predict the market it is pure economics between supply and demand and offcourse the price.<BR/><BR/>We will have to wait and watch but it looks like people sitting on the fence will start buying no sooner the banks lower the interest rates.<BR/><BR/>June 09 will tell us where the market is heading for, meanwhile we all can only speculate.<BR/><BR/>I still feel that there wont be crash as we all expect.<BR/><BR/>Bindas BhaiAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-9652801138929087232008-12-07T18:56:00.000-08:002008-12-07T18:56:00.000-08:00Vulture,This time there is going to be no recovery...Vulture,<BR/>This time there is going to be no recovery. It is not a "v" or "U" shaped graph in the next 7-8 years but an "L" shaped graph. Hence, just a downfall upto 80% of peak prices in high bubble area like Bangalore, Mumbai, Pune, Delhi and Gurgaon/Noida, Chandigarh etc.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-56900840396976726472008-12-07T18:48:00.000-08:002008-12-07T18:48:00.000-08:00After reading the bailout news in US & Europe,...After reading the bailout news in US & Europe, Indian real estate companies also begged to govt. for bailout package. But in US & Europe govt. has not bailout any real estate company. When the builders failed to swindle the buyers now they playing another game to loot taxpayers money. Previously they used to swindle only home buyers when home buyers are not there; they are planning to swindle every tax payer. Each tax payer should raise voice against such unscrupulous plan of builders+govt.<BR/><BR/>Is this govt. is going to bailout to default home owners? who has lost job or got salary cut. If people are loosing job in construction industry, govt. should start some more infrastructure projects so the laid off workforce will get absorbed in new projects & will act as stimulus to economy. Instead of doing this they are only helping their friends & relatives who want to make exorbitant profit. <BR/><BR/>Guys, as promised earlier, don’t be impatient, let it fall then only pick up, minimum 50% price cut is guaranty. The 50% is the Jan-2008 price which was peak price.<BR/><BR/>Today’s strategy :<BR/>In the current bearish market you can make money by short selling realty & banking stocks. Real estate companies has publicly accepted about the weakness in sector & based on govt. direction banks are extending the lending to this weak sector.<BR/><BR/>Bhai, you are right current is only a slid, it has to go further into deep, then come out of deep to start rise. Currently it is not even at bottom so stop the non- sense of rise.<BR/><BR/>Bajrangi are a genius from Alibaugh? What kind of analysis you did?<BR/><BR/>Vulture.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-86672836071047156602008-12-07T12:38:00.000-08:002008-12-07T12:38:00.000-08:00Reaction to India Stimulus plan by RE ShillsPradee...<A HREF="http://www.moneycontrol.com/india/news/economy/government-announces-rs-20000cr-fiscal-stimulus-package-/369739" REL="nofollow">Reaction to India Stimulus plan by RE Shills</A><BR/><BR/>Pradeep Jain of Parswanath Developers said, “I am completely disappointed, we were expecting much more.” “This package, he said, “gives only eyewash to the real estate sector.”<BR/><BR/> <BR/><BR/>Jain feels the package is talking about PSU banks announcing upto Rs 5-20 lakh, which can be done by dropping the rate of interest in the tune of about 7-8%. He said, ”We were expecting higher because at this point of time the sector under fire. The real estate is the growth engine of the country and they are talking only upto 5–20 lakh. The input costs and taxes are too much in this point of time, what ever property we sell, out of Re 1, 0.34 paisa goes in the government’s pocket on account of direct or indirect taxes. So, I am completely disappointed.<BR/><BR/> <BR/><BR/>Jain added, “Nothing is available in Rs 20 lakh in tier I or tier II cities, and what the government wants to tell to the public to create demand in the housing sector we are developing the economical weaker section. There is no support to the real estate developer as well as to the home buyer.”<BR/><BR/><I>That basically says, RE builders are not interested in building for masses who can only afford upto 20 lakh for houses.</I>shaileshhttps://www.blogger.com/profile/14407031960831830463noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-9172472144245772552008-12-07T07:50:00.000-08:002008-12-07T07:50:00.000-08:00After variable, fixed pay being cut“Surabhi Mathur...<A HREF="http://www.dnaindia.com/report.asp?newsid=1211733" REL="nofollow">After variable, fixed pay being cut</A><BR/><BR/>“Surabhi Mathur Gandhi, general manager (permanent staffing) at staffing company TeamLease Services, says some players are slicing fixed pay to the tune of 7-20% so the take-homes are going down....Lakshmikanth says even the innovative strategies employed by companies such as IT majors Infosys and Satyam of giving employees the choice of going on sabbatical have the same motive - reducing the fixed pay burden. He says that is one option others could also explore.”<BR/><BR/><A HREF="http://www.business-standard.com/india/news/govt-announces-stimulus-package-to-boost-economy/20/48/50740/on" REL="nofollow"> Govt announces stimulus package to boost economy</A><BR/><BR/>“As part of efforts to boost the housing sector, the public sector banks would shortly announce a package for home loan borrowers in two categories -- up to Rs 5 lakh and between Rs 5-20 lakh, the statement said, adding that additional measures would be taken, as necessary, to promote an accelerated growth trajectory.”<BR/><BR/>We hope the builders who were pinning their hopes on their friends to suck more money from the gullible buyers are reading the above news. The recent measures by the RBI, Government will not help easing the burden of the existing home owners who are paying hefty EMIs. So in the face of monthly reduction is fixed & variable salary components, shadowy tweaking in the home <B>( HOME LOAN BETWEEN RS 5-20 LAKH)</B> loan rate, there is only way in the future for the real estate prices and it is towards south.<BR/><BR/>There is race between the industries and government for applying every trick in the book for reducing urchasing/consumption capacity of the consumer.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-38199689517478875112008-12-06T18:54:00.000-08:002008-12-06T18:54:00.000-08:00Dear Anon above:ICICI bank is in the business of m...Dear Anon above:<BR/>ICICI bank is in the business of making money and not doing charity. It is doing what all US and EU banks did i.e.: do the maximum to increase profitability in way that they can get away with it legally. For them humans are just business focals with no emotions or logic attached.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-17938383635728310342008-12-06T18:43:00.000-08:002008-12-06T18:43:00.000-08:00Shenanigan of a greedy bank is being exposed.ICICI...Shenanigan of a greedy bank is being exposed.<BR/><BR/><A HREF="http://www.rediff.com/money/2008/dec/06icici-home-loans-of-rs-20-lakh-and-below-cheaper.htm" REL="nofollow">ICICI home loans of 20 and below cheaper</A><BR/><BR/>Re: ICICI is going to be bankrupt<BR/>by Vinod Somani on Dec 07, 2008 02:01 AM Permalink<BR/>Dear Mr. Kamath, Just read this news....."ICICI has revised interest rate by 1.5 per cent from 13 per cent to 11.5 percent for new home loans". <BR/>-------------<BR/>You have to tell me what more you know about the new customers than the old (loyal) customers that the new customers are eligible for a rate of 150 bps less. This is the HIGHEST level of DISHONESTY that ICICI has been displaying. This is not for the first time that you have shown this behaviour. Your bank has earned a bad name for this continued dishonesty in the name of RBI guidelines and market conditions. There are thousands of vulnerable customers like me who have taken home loan from your treacherous bank and now find themselves deceived because of your looting attitude. You say that you will wait until Jan'09 for any rate cut. Did you ever wait to increase the rate for even 2 weeks whenever RBI increased the CRR? If RBI increased the CRR by 0.25%, you increased your rate by 1.00%. You never missed a single opportunity to loot the customers. Now, it has been 2-3 months that RBI has reduced CRR by 3.50%. People, who are giving their hard-earned money towards your soaring EMIs, have already realized your FRR concepts. Your bank will sink sooner than later.<BR/>--------------------------<BR/>I would advise all the ICICI home loan customers to transfer their loan to Bank of Baroda which has a rate of 9.75% only (w.e.f. Nov'08). And file a PIL against ICICI in the court to waive off the foreclosure charges for deceiving us.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-21300204822676132632008-12-06T05:10:00.000-08:002008-12-06T05:10:00.000-08:00Goldman Sachs is a corrupt organization and this r...Goldman Sachs is a corrupt organization and this report does not have any logical explanation. Banks must have paid a fee to publish this report. Most people in India believe in reports published by companies with foreign names, the reason being foreigners are above corruption.<BR/><BR/>The clear picture of real estate will only emerge after the elections.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-48300017577795813692008-12-06T03:46:00.000-08:002008-12-06T03:46:00.000-08:00From suchetadalal.com:Realty, Get Real A Goldman S...From suchetadalal.com:<BR/><BR/>Realty, Get Real<BR/> <BR/>A Goldman Sachs’s report predicting that India’s property market is “poised for a deep correction” has finally shaken up realty czars. Goldman says that it expects a drop of 30% from current levels, while many banks and lending institutions believe that prices need to drop a minimum of 50% or more. In fact, some numbers quoted by bankers suggest that Goldman is being optimistic. The developers, who had watched with glee as property prices soared over 200% in the past five years, have mixed views. Several companies such as DLF, Purvankara, Sobha and Hiranandani still refuse to recognise that the market for super-expensive properties has vanished. On the other hand, those under pressure to meet payment obligations, such as Unitech and Orbit, are acting quickly and slashing prices to negotiate deals before things worsen. Unitech is selling assets to reduce outstanding debt estimated at Rs8,200 crore. Orbit, which made news with its plan to price its flats at a tony Malabar Hill project at a phenomenal Rs100,000 per sq ft, has dropped its prices to Rs35,000, but buyers are still haggling for a further cut and are willing to pay only on project completion, says a top banker. He also says that newly constructed malls in Mumbai’s suburbs are finding no takers even after a 30% price cut. The worst hit, apparently, are those who borrowed heavily to create fresh land banks at peak prices. These properties will neither find buyers nor see any development when on-going construction even on mega projects has come to a dead halt.<BR/>Goldman’s research makes two significant points in connection with the previous realty slump that began in 1996 after yet another bubble. It points out that prices dropped 40% over three years – developers who believe that bad times will end in 12 to 15 months need to take note. It also points out that prices did not recover to their previous peaks for the next decade. This time, however, Goldman believes that the ongoing infrastructure demand and favourable demographics may lead to a faster turnaround. That remains to be seen.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-19608874837135115132008-12-05T21:38:00.000-08:002008-12-05T21:38:00.000-08:00BINDAS BAHI,My HSBC banker just called and informe...BINDAS BAHI,<BR/><BR/>My HSBC banker just called and informed me that they are no longer ready to land me 1 cr loan as previously promised, instead they will only land 50 lakhs (50% down in just 6 months). Just 6 months back he approved loan for 1 caror but now only 50-60 lakhs maximum. He said bank has now tightened credit policy and there will be very less number of loans issued in 2009 due to huge increase in defaulting loans expected in 2009 and increase in non performing assist of bank.<BR/><BR/>There is no credit in the market, how the hell people can buy flats?<BR/><BR/>btw, your comments about carorpati people not posting on forums and blogs, you are simply stupid and hold no water in other people's mind when you type such stupid messages. I can show you many many BMW and MERC owner in mumbai, posting every day in forums and discussing things to get more accurate picture of what is going on.<BR/><BR/>Its because of some bastard and selfish people like YOU, our country is not progressing. People like you are big stain on our nation, who keep consumer and average user disguise and in the dark and want to keep them away from real picture, so that some selfish rich ass builders can loot money from consumer pocket, no matter why there is so disparency in India between rich and poor people, rich people are getting richer and poor people are getting poorer (btw, I am from cream population of India). <BR/><BR/>Get mature and stop typing rubbish to keep prices high for your real state employers. <BR/><BR/>Bindas Bahi. <BR/>BAG JA, BAG JA.<BR/>Jay.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-2728019607900851492008-12-05T09:28:00.000-08:002008-12-05T09:28:00.000-08:00Anonymous 9.04Same person advertising over and ove...Anonymous 9.04<BR/><BR/>Same person advertising over and over again. Fantastic deal. Is there any reason why flats in this project are not selling? Looks something is missing or someone is playing mischiefAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-23127343607813926742008-12-05T09:04:00.000-08:002008-12-05T09:04:00.000-08:00Here is an intersting link on price trend guys.htt...Here is an intersting link on price trend guys.<BR/><BR/>http://bangalore.craigslist.co.in/search/rea?query=Amethyst&minAsk=min&maxAsk=max&bedrooms=Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-1779254962634244262008-12-04T23:09:00.000-08:002008-12-04T23:09:00.000-08:00Jay,Good prediction about 2020. Please grow up we ...Jay,<BR/><BR/>Good prediction about 2020. Please grow up we expect some maturity from this forum.<BR/><BR/>Maharashtra Govt is likely to announce removal of stamp duty for low cost housing. Centre is likely to announce subsidy for loan below 30L.<BR/><BR/>Pal this move will give some breathing to the builder lobby, time alone will tell when the markets will crash.<BR/><BR/>Where ever there are mountain, valley will obvisiouly be there. We have yet to know the hight of the mountain. It could a temporary slid or have we reached the peak of this cycle only time can tell.<BR/><BR/>Fear is keeping away the customer and not demand or money. Offcourse some anount of money is sucked out from the system and is bound to come back in comming times.<BR/><BR/>Let us wait and watch!!!<BR/><BR/><BR/>Bindas BhaiAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-76438772063447263662008-12-04T20:12:00.000-08:002008-12-04T20:12:00.000-08:00DubaiSpeculators Quit as Lending Drought Bursts De...<A HREF="http://bloomberg.com/apps/news?pid=20601109&sid=a2jrSPqYhVzY&refer=home" REL="nofollow">Dubai<BR/>Speculators Quit as Lending Drought Bursts Desert Bubble</A><BR/><BR/>Dec. 4 (Bloomberg) -- The classified ads in Dubai read like an obituary for a real-estate market that until a few months ago seemed immune from the global credit crisis.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-63721610096574841642008-12-04T16:49:00.000-08:002008-12-04T16:49:00.000-08:00Speculators who helped creating this real estate b...Speculators who helped creating this real estate balloon are in a major soup and are going to pay a heavy price for the greed.<BR/><BR/><A HREF="http://moneycontrol.com/india/news/market-outlook/see-20-30-sell-offmktsfew-months-shankar-sharma/369272" REL="nofollow">See<BR/>20-30% sell-off in mkts in few months: Shankar Sharma</A><BR/><BR/><BR/>"From the middle of December the markets will begin to go back into the realization that this quarter will be an absolute washout quarter for any company anywhere in the world. So, whether you take a company in technology or in retail or a company in metals or infrastructure or automobiles or anything almost across the board you will see completely washed out earnings."<BR/><BR/><A HREF="http://www.business-standard.com/india/news/listilliquid-scrips-swells/06/03/342270/" REL="nofollow">List<BR/>of illiquid scrips swells</A><BR/><BR/>"According to the Bombay Stock Exchange (BSE), out of the total 4,700 companies listed on the bourse, 40 per cent, or 1,824 companies, are illiquid counters. On the National Stock Exchange (NSE), 30 per cent, or 395, of over 1,200 companies have been classified as illiquid."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-10874128349337928742008-12-04T10:42:00.000-08:002008-12-04T10:42:00.000-08:00Here is link to bloomberg article. Mumbai Realty ...Here is link to bloomberg article. <BR/><BR/><A HREF="http://www.bloomberg.com/apps/news?pid=20601091&sid=aMBvSVft0eSo&refer=india" REL="nofollow"> Mumbai Realty Market `Completely Quiet' After Attacks (Update1) </A><BR/><BR/>Sorry did not new, how to link before. :)<BR/><BR/>-Jay.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-20214867299180732762008-12-04T10:38:00.000-08:002008-12-04T10:38:00.000-08:00Mumbai Realty Market `Completely Quiet' After ...Mumbai Realty Market `Completely Quiet' After Attacks (Update1) <BR/><BR/>http://www.bloomberg.com/apps/news?pid=20601091&sid=aMBvSVft0eSo&refer=india<BR/><BR/> Dec. 4 (Bloomberg) -- India's worst terrorist attack in 15 years has caused Mumbai's property market, already faltering in a slowing economy, to grind to a halt.<BR/><BR/>``The market's gone completely quiet,'' said Shiv Kumar Dembla, a property broker who owns Shiv Real Estate Consultants in Mumbai. ``The future doesn't look bright either. The last six months were quiet, but now it could get worse.''<BR/><BR/>The city's home sales dropped 21 percent in the seven months to Oct. 31, according to estimates from UBS AG. That was before terrorists held south Mumbai under siege for almost 60 hours, with attacks on luxury hotels, a railway station and a Jewish center leaving more than 195 people dead last week. <BR/><BR/>Terrorists targeted the foreigners who helped make Mumbai the world's second-most expensive city for offices last year, as companies including Macquarie Group Ltd. and Barclays Plc sought space in India's financial capital. Now, apartment buyers are walking away and developers may be forced to shelve projects as companies rethink the risks of doing business in India, brokers and analysts said.<BR/><BR/>----------<BR/><BR/>please read full article at bloomberg.com. <BR/><BR/>Bindas Bhai, search for new job, clearly your speculation job for builders lobby is not working and people are throwing stones at you here. <BR/><BR/>BINDAS BAHI. BAG JA. haha.<BR/>Jay.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-39008719032008491022008-12-04T10:27:00.000-08:002008-12-04T10:27:00.000-08:00!! WAKE UP !!My friend is real state agent since l...!! WAKE UP !!<BR/><BR/>My friend is real state agent since last 10 years and he says he has never seen a month like december. There are virtually no en quires and lots of sellers are calling for new buyers but there aren't any buyers at these prices. Dude, my broker friend is my childhood friends, why will he lie with me?<BR/><BR/>I can confirm this for COLABA WORLI, BANDRA, ANDHERI.<BR/><BR/>Nobody is saying prices of house in mumbai will not go up but prices are already on top now and they must fall by 40% atleast before going up again. It has always been like that and it will be like that this time as well. Mumbai prices may double then current rate but that will not happen before 2020. <BR/><BR/>Jay.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-40017227102805489792008-12-04T08:31:00.000-08:002008-12-04T08:31:00.000-08:00On one hand you complain about high prices from re...On one hand you complain about high prices from reputed builders and on the other hand poor quality from less reputed builders. Obviously when you are buying from less reputed builder at less price. You are compromising quality by paying less to shady builders. <BR/>General rule of thumb in life is you get what you pay for (generally if comparable things are cheaper, they are cheaper for a reason). I personally think that paying little extra for already constructed flats from reputed builders will be well worth the price. <BR/>As for earthquake, always remember what happened in Ahmedabad, when all the buildings came down like deck of cards and builders left the country in fear of a backlash. Delhi/NCR is Zone 4 (Zone 5 is highest). <BR/><BR/>In the end either buy land little far from city and build on your own. Forget the appreciation, you will hardly sell it if you live in it. If you want to buy flats buy it from reputed builders and pay for it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-65569411608192382612008-12-04T06:25:00.000-08:002008-12-04T06:25:00.000-08:00Bindas Bhai: FSI in pune is only one and hence the...Bindas Bhai: FSI in pune is only one and hence the downfall maybe limited.<BR/><BR/>So, Bindas Bhai finally aggrees that there will be downfall.shaileshhttps://www.blogger.com/profile/14407031960831830463noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-924708819055054032008-12-04T02:46:00.000-08:002008-12-04T02:46:00.000-08:00For literally hundreds of horror stories please vi...For literally hundreds of horror stories please visit the following forum:<BR/><BR/>http://www.r2iclubforums.com/forums/f25/beware-punes-notorious-builders-5759/index1.html<BR/><BR/>Even Brigade Constructions has problems lately as we saw, when their under construction floor slabs collapsed. Every builder is probably cutting costs now by using substandard materials and shoddy construction to deliver the project. They will put a nice coat of paint and add some decorations and some landscaping at the time of handing over the flat. The first heavy rains will expose all the problems. <BR/><BR/>This is the reason that buying apartments at this time just does not make sense. Resale apartments, which are more than 3 years old may be a better option, since at least cracks and seepage and other problems will be known by that time. Given the stressful jobs that most professionals lead nowadays, who has time to keep running after these guys to recover the money or fix the defects? <BR/><BR/>In India quality of everything is suspect, as is to be expected of a third-world country with poor law-and-order. Even if one files a case against the builder, one will die of old age before anything happens. And with some lower-class builders, they may employ goons to shut you up if you complain too much.<BR/><BR/>Maybe the best option is to buy some land somewhere, and rent for the working life. At least if there are problems with the apartment, one can move somewhere else instead of being stuck dealing with all the problems. And when one retires, one can construct something simple on the land purchased, that will be within the technological capabilities of the average mason, a single story traditional house for example. Unless the skillset of Indian labor improves, making something fancy may only invite more problems.Anonymousnoreply@blogger.com