tag:blogger.com,1999:blog-197408562024-03-19T01:47:08.887-07:00India's housing bubbleTracking the housing bubble all over IndiaUnknownnoreply@blogger.comBlogger710125tag:blogger.com,1999:blog-19740856.post-20201020855892518682016-11-11T14:23:00.001-08:002016-11-11T14:23:10.961-08:00Modi pops the housing bubble<div dir="ltr" style="text-align: left;" trbidi="on">
Amen, Finally the end is here. This is the black swan event which no one could foresee. The black money based developers are going out of business. More than one lakh crore is going out of the system. It is hard to imagine how much deflationary impact this is going to have on the system. Let's wait and watch. The time to buy is about six months away when we see blood on the streets.</div>
Unknownnoreply@blogger.com702tag:blogger.com,1999:blog-19740856.post-1889514438457793752014-03-24T09:59:00.003-07:002014-03-24T09:59:40.286-07:00Chinese Bubble Pops (At last)<a href="http://www.theguardian.com/world/2014/mar/13/china-li-keqiang-wans-investors-bankruptcies" rel="nofollow" target="_blank">http://www.theguardian.com/world/2014/mar/13/china-li-keqiang-wans-investors-bankruptcies </a><br />
Last week Chinese premiere Li Keqiang warned that there may mass defaults by builders of ghost towns in China who had borrowed from both traditional lenders and shadow lending (gray market). He also told investors to prepare for a wave of bankruptcies.<br />
<br />
Given the Election time in India I am almost certain the bubble will pop after a new government is sworn in and then the blame/burden will be shifted to the new govt.<br />
<br />
<br />
<br />
Here's the Article from good old Zerohedge<br />
<h1 class="title">
Furious Chinese Demand Money Back As Housing Bubble Pops</h1>
<div class="picture">
<a href="http://www.zerohedge.com/users/tyler-durden" title="View user profile."><img alt="Tyler Durden's picture" src="http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg" title="Tyler Durden's picture" /></a></div>
<span class="submitted">Submitted by <a href="http://www.zerohedge.com/users/tyler-durden">Tyler Durden</a> on 03/24/2014 11:44 -0400</span><br /><br /><span class="taxonomy"><ul class="links inline">
<li class="taxonomy_term_10769 last"><a href="http://www.zerohedge.com/taxonomy_vtn/term/10769" rel="tag" title="">China Housing Bubble Housing Prices Real estate Transparency Yuan</a></li>
</ul>
</span>Hell hath no fury like a woman scorned or, it
seems, like a Chinese real estate speculator who is losing money. After
four years of talking (and not doing much) about cooling the hot-money
speculation that is the Chinese real-estate bubble (mirroring the US
equity market bubble since stock-ownership is low in China), the <a href="http://online.wsj.com/news/articles/SB10001424052702303802104579455000745605352?mg=reno64-wsj&cb=logged0.8696218673941988">WSJ reports tha</a>t the people are restless as the PBOC actually takes actions - and prices are falling. With <strong>new project prices down over 20%, 'homeowners' exclaim "return our hard-earned money" and "this is very unfair"</strong> - who could have seen this coming?<br />
<a href="http://online.wsj.com/news/articles/SB10001424052702303802104579455000745605352?mg=reno64-wsj"><em>Via WSJ,</em></a><br />
<blockquote>
After
a four-year campaign by the government to cool spiraling property
prices, rises in home prices are starting to slow and in some smaller
cities they are weakening.<br />
<br />
Growth in average housing prices in 70 Chinese cities moderated in
February for the second-straight month though they were still nearly 9%
higher compared with a year ago.<br />
<br />
But weaker economic growth, slower home sales and rising volumes of unsold houses have <strong>convinced developers in a number of cities to cut prices to raise cash quickly.</strong><br />
</blockquote>
And new home prices are down...in smaller cities...<br />
<blockquote>
Property developers say privately <u><strong>there isn't enough transparency in land sales and land use, which sometimes give rise to overbuilding in many smaller cities.</strong></u><br />
<br />
Phoenix Lake Garden, <strong>prices were cut by as much as 16%</strong><br />
<br />
According to property agency Soufun Holdings, Wharf<strong> cut
prices of 20 apartments in the project to 8,200 yuan ($1,317) per square
meter, down from the average 11,000 yuan per square meter </strong>it recorded in recent months.<br />
<br />
Mr. Wu said he bought a 120-square-meter <strong>apartment in December, for 730,000 yuan. Prices are now 610,000 yuan </strong>for a similar apartment in the same tower<br />
</blockquote>
The drop in newer home prices hasn't gone down well.<br />
<blockquote>
<strong>Groups
of angry homeowners put up banners and demanded their money back after
Hong Kong-listed property developer Wharf Ltd. cut prices</strong><br />
<br />
Around 20 homeowners picketed outside a property showroom in
Changzhou Saturday, demanding to meet executives of the developer. They
said they wanted their money back after prices at the project dropped<br />
<br />
Meanwhile, there was also a<strong> small disturbance at a second project called Ambassador House in the same city </strong>after the same developer cut prices there.<br />
<br />
<strong>Furniture at the showroom of Wharf's Ambassador House was knocked over </strong>and the wooden stands for advertisements for the homes were flung on top of a model of the project.<br />
<br />
Others said that <strong>as many as 100 people who had bought homes at the project had vented their frustrations </strong>outside the showroom over the past week.<br />
</blockquote>
The complaints...<br />
<blockquote>
<strong>"Wharf, give us justice. Return us our hard earned money,"</strong>
read one of the banners, held up on bamboo poles outside the Phoenix
Lake Garden showroom of a project for mid- to high-end apartments and
villas.<br />
<br />
<strong>"We aren't speculators. We just want an explanation from the developer,"</strong> said one 35-year-old home buyer, who said he had bought an apartment and gave his surname as Wu.<strong> "This is very unfair."</strong><br />
</blockquote>
Unfair indeed. How long before we hear they are "entitled" to a fair
return on their housing (non) speculation investment? Alas for China's
"non-speculators", as we reported last week in "<a href="http://www.zerohedge.com/news/2014-03-19/music-just-ended-wealthy-chinese-are-liquidating-offshore-luxury-homes-scramble-cash">The Music Just Ended: "Wealthy" Chinese Are Liquidating Offshore Luxury Homes In Scramble For Cash</a>" the real anger is only just beginning.Unknownnoreply@blogger.com808tag:blogger.com,1999:blog-19740856.post-75601587466551659372013-09-30T11:28:00.000-07:002013-09-30T11:28:50.606-07:00NRIs, Foreign Investors dumping Indian RE, but Relators won't cut ratesDisclaimer: This Series of articles from FirstPost , remaining resources are copyrighted by their respective owner = posted here only for information to collate it in one place.<br />
<br />
<br />
<div style="left: -99999px; position: absolute;">
The global real estate
fund of Morgan Stanley, which was in talks with the Wadhwa Group to
invest about Rs 900-1,000 crore ($186 Million) in an office development
project in Mumbai, has now shelved its investment plans as the rupee’s
plunge has made the hedging cost for the entire deal too huge, The
Economic Times reported today.
The investment by Morgan Stanley Real Estate Investing (MSREI) was
proposed to be deployed in jointly developing 1.6 million square feet
office space in Mumbai’s financial hub Bandra Kurla Complex.
Mumbai-based Wadhwa Group had already begun construction of the project,
ONE BKC, which would consist of two office towers and is due to be
completed by 2014.
Are foreign investors shying from Indian realty?
Are foreign investors shying from Indian realty?
MSREI has invested about $850 million in Indian real estate, mainly in
residential projects, including $100 million to $125 million in a
housing project by Mumbai-based Sheth Developers, Reuters reported in
December 2011, and the ONE BKC project would have been its first
investment in commercial real estate.
“Returns that were arrived at in earlier negotiations between Morgan
Stanley and Wadhwa were shrinking even before concluding the deal,” one
of the people familiar with the deal told ET as the rupee has slipped 46
percent in the last two years, wiping out returns of several PE funds.
The pull out comes even as Wadhwa has been marketing ONE BKC as offering
office spaces designed to suit occupiers of all sizes. The company has
been using this as its USP by offering office spaces of as small as
1,000 square feet as it targets professionals like chartered
accountants and law firms.
“This deal is already very costly and there is high vacancy in BKC. Not
just the Wadhwa Group but even Godrej Properties has a huge office
complex there where absorption rates are very low. Add to the economic
gloom and a horrible hiring outlook… Post Lehman Brothers, commercial
real estate has been going South and BKC is largely a finance and
banking sector, which is under maximum pressure right now,” said Pankaj
Kapoor, MD at real estate research firm Liases Foras.
Data from property consultant CBRE shows Mumbai’s BKC is the eleventh
most expensive office market in the world. Clearly when there is a
slowdown and corporates are looking to cut costs, MNCs wouldn’t want to
shell out more as rent, which is why several corporates move out of
expensive offices in BKC to relocate at low-cost locations such as
Andheri East, Goregaon and even Parel.
In Mumbai, Johnson & Johnson took up 150,000 sq ft in Andheri East
moving from more expensive Worli while Franklin Templeton India moved
out of Wockhardt Towers in BKC and shifted to Indiabulls in Lower Parel,
where rentals are as low as Rs 125 a sq foot, and Volkswagen moved out
from Maker Maxcity where it was paying Rs 500 a square foot to
Andheri-Kurla road where rental is Rs 130 a square foot a month.
Knight Frank data also showed that bulk of office space transactions
during the fourth quarter of financial year 2013, took place in the
suburban business districts of Andheri and Goregaon.
“Andheri East and Goregaon East accounted for a massive 92% of the
transactions in Mumbai,” the report said.
A report by a Cushman & Wakefield says office relocations and
consolidation of space have more than doubled in the first half of 2013
against last year and companies have managed to reduce their rents by
25-30 percent.
In fact, property consulting firm Knight Frank points out that while the
rental value ranges between Rs 200 and Rs 350 in BKC, it is any where
between Rs 125 and Rs 190 a square feet in Central Mumbai (Lower Parel,
Dadar, Prabhadevi) and between Rs 50-Rs 100 in Andheri, Josgehwari,
Gorgaon and Malad.
Moreover, sluggish leasing in business districts and new supply led to
vacancy levels rising in office spaces. Mumbai saw a 10 percent decline
in office demand in the first half of the year due to subdued economic
conditions at domestic as well as international levels, the Cushman
report said.<br /><br /> Read more at: <a href="http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article">http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article</a></div>
<a href="http://www.firstpost.com/business/realtors-bank-on-freebies-festival-sales-but-rule-out-price-cuts-1141771.html">http://www.firstpost.com/business/realtors-bank-on-freebies-festival-sales-but-rule-out-price-cuts-1141771.html</a> <br />
<br />
via <br />
<br />
<section id="content">
<article id="single">
<img src="http://s4.firstpost.in/wp-content/themes/firstpost/images/Logo-FP-Small.png" style="margin-bottom: 20px;" />
<h2>
Foreigners dumping realty? Morgan Stanley pulls out of major Mumbai project</h2>
<b> <a alt="" href="http://www.firstpost.com/author/" style="color: #1a1a1a;" title="">
</a></b><span class="date_ago ">Sep 27, 2013</span><br />
<br /><div class="post-entry blog_post" id="poll_in">
The global real estate fund of Morgan Stanley, which was
in talks with the Wadhwa Group to invest about Rs 900-1,000 crore ($186
Million) in an office development project in Mumbai, has now shelved its
investment plans as the rupee's plunge has made the hedging cost for
the entire deal too huge, <a href="http://economictimes.indiatimes.com/markets/real-estate/news/morgan-stanley-arm-shelves-project-with-wadhwa-group/articleshow/23142705.cms">The Economic Times reported today</a>.<br />
<br />
The investment by Morgan Stanley Real Estate Investing (MSREI) was
proposed to be deployed in jointly developing 1.6 million square feet
office space in Mumbai's financial hub Bandra Kurla Complex.<br />
<br />
Mumbai-based Wadhwa Group had already begun construction of the project,
ONE BKC, which would consist of two office towers and is due to be
completed by 2014.<br />
<br />
<br />
<div class="wp-caption alignleft" id="attachment_1137245" width="380px">
]<a href="http://s4.firstpost.in/wp-content/uploads/2013/09/onebkc.jpg"><img alt="Are foreign investors shying from Indian realty?" class="size-full wp-image-1137245" height="285" src="http://s4.firstpost.in/wp-content/uploads/2013/09/onebkc.jpg" width="380px" /></a> </div>
<div class="wp-caption alignleft" id="attachment_1137245" width="380px">
Are foreign investors shying from Indian realty?</div>
MSREI has invested about $850 million in Indian real estate, mainly in
residential projects, including $100 million to $125 million in a
housing project by Mumbai-based Sheth Developers, Reuters reported in
December 2011, and the ONE BKC project would have been its first
investment in commercial real estate.<br />
<br />
"Returns that were arrived at in earlier negotiations between Morgan
Stanley and Wadhwa were shrinking even before concluding the deal," one
of the people familiar with the deal told ET as the rupee has slipped 46
percent in the last two years, wiping out returns of several PE funds.</div>
<div class="post-entry blog_post" id="poll_in">
</div>
<div class="post-entry blog_post" id="poll_in">
<a name='more'></a></div>
<div class="post-entry blog_post" id="poll_in">
<div class="post-entry blog_post" id="poll_in">
<strong>via </strong></div>
<div class="post-entry blog_post" id="poll_in">
<strong> </strong></div>
<strong>
</strong><section id="content">
<article id="single">
<img src="http://s4.firstpost.in/wp-content/themes/firstpost/images/Logo-FP-Small.png" style="margin-bottom: 20px;" />
<h2>
Why real estate is a landmine of troubles for NRI investors</h2>
<b> <a alt="" href="http://www.firstpost.com/author/" style="color: #1a1a1a;" title="">
</a></b><span class="date_ago ">Sep 30, 2013</span><br />
<br /><div class="post-entry blog_post" id="poll_in">
<strong>By Om Ahuja </strong><br />
<br />
The global capital and currency markets have been volatile for last the
few months, also triggering serious turbulence in the rupee. Current
account deficit and the fact that foreign institutional investors are
selling heavily in the Indian bond market have been the key triggers for
the rupee's repeated depreciation. Factors such as negative export and
industrial growth have triggered even more uncertainty, specifically in
the currency trend pattern.<br />
<br />
<strong>Will The Rupee Depreciate Further?</strong><br />
<br />
The Central Government has passed the Food Security Bill, which
effectively increases subsidy for the nation. The fact that the Lok
Shabha elections will be held in in 2014 may be cause for more of such
populist measures - nevertheless, the country's overall financial status
does not look very exciting right now. We may continue to see
volatility over the mid term. Moves such as importing of fuel would
further hurt the economy.<br />
<br />
<strong>NRIs And Real Estate</strong><br />
<br />
When it comes to Indian real estate, NRIs take centre-stage when the
rupee depreciates. The foreign exchange that they tend to funnel into
the sector increases significantly when the rupee slides. In times of
rupee volatility, banks institutions and developers tend to announce
various schemes aimed at attracting NRIs. At the same time, NRIs are
also attracted to the higher interest rates on NRE (Non-Resident
External) and FCNR (Foreign Currency Non-Resident) deposits, as the
standalone rupee returns look quite lucrative to them.<br />
<br />
<br />
<div class="wp-caption alignleft" id="attachment_969349" width="380px">
]<a href="http://s3.firstpost.in/wp-content/uploads/2013/07/Dubai-Property-Reuters.jpg"><img alt="Representational image: Reuters" class="size-full wp-image-969349 " height="285" src="http://s3.firstpost.in/wp-content/uploads/2013/07/Dubai-Property-Reuters.jpg" width="380px" /></a> </div>
<div class="wp-caption alignleft" id="attachment_969349" width="380px">
<br /></div>
<div class="wp-caption alignleft" id="attachment_969349" width="380px">
Continue here - </div>
<div class="wp-caption alignleft" id="attachment_969349" width="380px">
<a href="http://www.firstpost.com/economy/why-real-estate-is-a-landmine-of-troubles-for-nri-investors-1141617.html">http://www.firstpost.com/economy/why-real-estate-is-a-landmine-of-troubles-for-nri-investors-1141617.html</a></div>
</div>
<div class="post-entry blog_post" id="poll_in">
<br />
<strong>Om Ahuja is CEO - Residential Services, Jones Lang LaSalle India</strong>
</div>
</article>
</section> </div>
<div class="post-entry blog_post" id="poll_in">
</div>
<div class="post-entry blog_post" id="poll_in">
via </div>
<div class="post-entry blog_post" id="poll_in">
</div>
<div class="post-entry blog_post" id="poll_in">
</div>
<div class="post-entry blog_post" id="poll_in">
</div>
<div class="post-entry blog_post" id="poll_in">
</div>
<div class="post-entry blog_post" id="poll_in">
<section id="content">
<article id="single">
<img src="http://s4.firstpost.in/wp-content/themes/firstpost/images/Logo-FP-Small.png" style="margin-bottom: 20px;" />
<h2>
Realtors bank on freebies, festival sales but rule out price cuts</h2>
<b> <a alt="" href="http://www.firstpost.com/author/" style="color: #1a1a1a;" title="">
</a></b><span class="date_ago ">Sep 30, 2013</span><br />
<br /><div class="post-entry blog_post" id="poll_in">
Realty developers are hopeful of clearing a large portion
of their inventory pile-up during this festive season by luring in
buyers with freebies and<br />
discounts, even as they sit tight on declared prices, said industry experts.<br />
<br />
"Higher interests and the overall slowdown has led to a significant
build-up of unsold units with developers in most of the major realty
markets over the past few quarters, adversely affecting cash flow and
impacting new project launches," said KPMG India partner Neeraj Bansal.<br />
<br />
Further, RBI's stringent directives like banning the 80:20 scheme is
expected to make things more difficult for developers, he said.<br />
<br />
<br />
<div class="wp-caption alignleft" id="attachment_1119153" width="380px">
]<a href="http://s3.firstpost.in/wp-content/uploads/2013/09/REALESTATEMUMBAI.jpg"><img alt="Reuters" class="size-full wp-image-1119153" height="285" src="http://s3.firstpost.in/wp-content/uploads/2013/09/REALESTATEMUMBAI.jpg" width="380px" /></a> </div>
<div class="wp-caption alignleft" id="attachment_1119153" width="380px">
Reuters</div>
The September-December period witnesses maximum launches and publicity of real estate projects.<br />
<br />
However, industry watchers are not expecting any price correction during the period.<br />
<br />
"We don't expect any price correction now. Most projects have maintained
the price levels or in some cases gone up marginally. But since they
have already been factored in the slowdown, they will cautiously plan
their sales," PwC India associate director Bhairav Dalal said.<br />
<br />
Developers are likely to attract buyers through several discount
schemes/gifts with most common being gold coins, cash-back on monthly
rentals, customisation, free parking and club facility, zero brokerage,
upfront cash discounts among others.<br />
<br />
According to realty portal Magicbricks, developers in metros like
Mumbai, Delhi-NCR, Bangalore, Kolkata, Pune, Chennai and Hyderabad have
already announced various freebies.<br />
<br />
"Offering such innovative schemes is most likely to result in higher
enquiries and footfalls, which coupled with festive offerings, may help
generate decent sales," Bansal said.<br />
<br />
<strong>courtesy - PTI</strong></div>
<div class="post-entry blog_post" id="poll_in">
<strong> </strong></div>
<br /><strong> </strong>
</article>
</section>
</div>
<div class="post-entry blog_post" id="poll_in">
<br />
<br />
</div>
</article>
</section>
<div style="left: -99999px; position: absolute;">
Foreigners dumping realty? Morgan Stanley pulls out of major Mumbai project<br /><br /> Read more at: <a href="http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article">http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article</a></div>
<div style="left: -99999px; position: absolute;">
The global real estate
fund of Morgan Stanley, which was in talks with the Wadhwa Group to
invest about Rs 900-1,000 crore ($186 Million) in an office development
project in Mumbai, has now shelved its investment plans as the rupee’s
plunge has made the hedging cost for the entire deal too huge, The
Economic Times reported today.
The investment by Morgan Stanley Real Estate Investing (MSREI) was
proposed to be deployed in jointly developing 1.6 million square feet
office space in Mumbai’s financial hub Bandra Kurla Complex.
Mumbai-based Wadhwa Group had already begun construction of the project,
ONE BKC, which would consist of two office towers and is due to be
completed by 2014.
Are foreign investors shying from Indian realty?
Are foreign investors shying from Indian realty?
MSREI has invested about $850 million in Indian real estate, mainly in
residential projects, including $100 million to $125 million in a
housing project by Mumbai-based Sheth Developers, Reuters reported in
December 2011, and the ONE BKC project would have been its first
investment in commercial real estate.
“Returns that were arrived at in earlier negotiations between Morgan
Stanley and Wadhwa were shrinking even before concluding the deal,” one
of the people familiar with the deal told ET as the rupee has slipped 46
percent in the last two years, wiping out returns of several PE funds.
The pull out comes even as Wadhwa has been marketing ONE BKC as offering
office spaces designed to suit occupiers of all sizes. The company has
been using this as its USP by offering office spaces of as small as
1,000 square feet as it targets professionals like chartered
accountants and law firms.
“This deal is already very costly and there is high vacancy in BKC. Not
just the Wadhwa Group but even Godrej Properties has a huge office
complex there where absorption rates are very low. Add to the economic
gloom and a horrible hiring outlook… Post Lehman Brothers, commercial
real estate has been going South and BKC is largely a finance and
banking sector, which is under maximum pressure right now,” said Pankaj
Kapoor, MD at real estate research firm Liases Foras.
Data from property consultant CBRE shows Mumbai’s BKC is the eleventh
most expensive office market in the world. Clearly when there is a
slowdown and corporates are looking to cut costs, MNCs wouldn’t want to
shell out more as rent, which is why several corporates move out of
expensive offices in BKC to relocate at low-cost locations such as
Andheri East, Goregaon and even Parel.
In Mumbai, Johnson & Johnson took up 150,000 sq ft in Andheri East
moving from more expensive Worli while Franklin Templeton India moved
out of Wockhardt Towers in BKC and shifted to Indiabulls in Lower Parel,
where rentals are as low as Rs 125 a sq foot, and Volkswagen moved out
from Maker Maxcity where it was paying Rs 500 a square foot to
Andheri-Kurla road where rental is Rs 130 a square foot a month.
Knight Frank data also showed that bulk of office space transactions
during the fourth quarter of financial year 2013, took place in the
suburban business districts of Andheri and Goregaon.
“Andheri East and Goregaon East accounted for a massive 92% of the
transactions in Mumbai,” the report said.
A report by a Cushman & Wakefield says office relocations and
consolidation of space have more than doubled in the first half of 2013
against last year and companies have managed to reduce their rents by
25-30 percent.
In fact, property consulting firm Knight Frank points out that while the
rental value ranges between Rs 200 and Rs 350 in BKC, it is any where
between Rs 125 and Rs 190 a square feet in Central Mumbai (Lower Parel,
Dadar, Prabhadevi) and between Rs 50-Rs 100 in Andheri, Josgehwari,
Gorgaon and Malad.
Moreover, sluggish leasing in business districts and new supply led to
vacancy levels rising in office spaces. Mumbai saw a 10 percent decline
in office demand in the first half of the year due to subdued economic
conditions at domestic as well as international levels, the Cushman
report said.<br /><br /> Read more at: <a href="http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article">http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article</a></div>
Unknownnoreply@blogger.com923tag:blogger.com,1999:blog-19740856.post-76741327226382588432013-09-12T09:11:00.000-07:002013-09-12T09:12:46.165-07:00RBI move for construction progress based loans | Mainstream media hoping for correction?<div class="separator" style="clear: both; text-align: left;">
Reserve Bank of India Letter </div>
<div class="separator" style="clear: both; text-align: left;">
<a href="http://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=8366">http://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=8366 </a></div>
<div class="separator" style="clear: both; text-align: left;">
<br /></div>
<div class="separator" style="clear: both; text-align: left;">
<span style="font-family: "Courier New",Courier,monospace;"><span style="font-size: x-small;"></span></span></div>
<span style="font-size: x-small;"><b>RBI/2013-14/217<br />
DBOD.BP.BC.No. 51/08.12.015/2013-14</b></span><br />
<span style="font-size: x-small;"><b>
</b></span><br />
<div align="right">
<span style="font-size: x-small;"><b>September 3, 2013</b></span></div>
<span style="font-size: x-small;">
<b>
</b><b>All Scheduled Commercial Banks</b><br /><b>
(excluding RRBs)</b><br />
Dear Sir,<br />
<div class="head">
<u>Housing Sector: Innovative Housing Loan Products – Upfront disbursal of housing loans</u></div>
It has been observed that some banks have introduced
certain innovative Housing Loan Schemes in association with
developers/builders, e.g. upfront disbursal of sanctioned individual
housing loans to the builders without linking the disbursals to various
stages of construction of housing project, interest/EMI on the housing
loan availed of by the individual borrower being serviced by the
builders during the construction period/specified period, etc. This
might include signing of tripartite agreements between the bank, the
builder and the buyer of the housing unit. These loan products are
popularly known by various names like 80:20, 75:25 Schemes.<br />
2. Such housing loan products are likely to expose the
banks as well as their home loan borrowers to additional risks e.g. in
case of disputes between individual borrowers and developers/builders,
default/delayed payment of interest/EMI by the developer/builder during
the agreed period on behalf of the borrower, non-completion of the
project on time, etc. Further, any delayed payments by
developers/builders on behalf of individual borrowers to banks may lead
to lower credit rating/scoring of such borrowers by credit information
companies (CICs) as information about servicing of loans gets passed on
to the CICs on a regular basis. In cases where bank loans are also
disbursed upfront on behalf of their individual borrowers in a lump-sum
to builders/developers without any linkage to stages of construction,
banks run disproportionately higher exposures with concomitant risks of
diversion of funds.<br />
3. In view of the higher risks associated with such
lump-sum disbursal of sanctioned housing loans and customer suitability
issues, banks are advised that disbursal of housing loans sanctioned to
individuals should be closely linked to the stages of construction of
the housing project/houses and upfront disbursal should not be made in
cases of incomplete/under-construction/green field housing projects.<br />
4. It is emphasized that banks while introducing any kind
of product should take into account the customer suitability and
appropriateness issues and also ensure that the borrowers/customers are
made fully aware of the risks and liabilities under such products.<br />
<br />
<br />
Yours faithfully<br />
(Rajesh Verma)<br />
Chief General Manager</span> <br />
<br />
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<a href="http://www.thehindubusinessline.com/industry-and-economy/banking/stakeholders-divided-over-rbi-curbs-on-innovative-home-loan-schemes/article5097436.ece">http://www.thehindubusinessline.com/industry-and-economy/banking/stakeholders-divided-over-rbi-curbs-on-innovative-home-loan-schemes/article5097436.ece</a></div>
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<span style="color: #990000;"><span style="font-size: small;"><u><b>Banks have been advised not to give loans upfront for financing under-construction projects</b></u></span></span><br />
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Copyright @ The Hindu (business line)<br />
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<a href="http://timesofindia.indiatimes.com/business/india-business/Realty-feels-slowdown-pinch/articleshow/22500365.cms">http://timesofindia.indiatimes.com/business/india-business/Realty-feels-slowdown-pinch/articleshow/22500365.cms</a> </div>
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<a href="http://economictimes.indiatimes.com/markets/real-estate/realty-trends/economic-slowdown-inflation-and-steep-interest-rates-pinches-realty/articleshow/22508453.cms">http://economictimes.indiatimes.com/markets/real-estate/realty-trends/economic-slowdown-inflation-and-steep-interest-rates-pinches-realty/articleshow/22508453.cms
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<span id="advenueINTEXT" name="advenueINTEXT">image copyrights with Bennett & Coleman + <b>times of india group internet limited</b> + economic times etc</span></div>
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<br />Unknownnoreply@blogger.com326Chandler, AZ 85226, USA33.2872209 -111.940325433.0747949 -112.2630489 33.4996469 -111.61760190000001tag:blogger.com,1999:blog-19740856.post-75299620542127686592013-08-19T10:08:00.001-07:002013-08-28T10:10:54.203-07:00Rupee in Doldrums USDINR -> Updates 62 then 64 then 66 then 68<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrJYrsLoDKOYpQTHl2YsmhyIvonhTmB7zEWjXpoMFUfCTFOnwzeDLYvbs7o3hX-FsPfYCPLhxqSmq-Eot2rg7yXe6wh7olYjiDCPsPH4cgVDeRGYbV4Pok20kT49vzaMB1Ns8/s1600/USDINR.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrJYrsLoDKOYpQTHl2YsmhyIvonhTmB7zEWjXpoMFUfCTFOnwzeDLYvbs7o3hX-FsPfYCPLhxqSmq-Eot2rg7yXe6wh7olYjiDCPsPH4cgVDeRGYbV4Pok20kT49vzaMB1Ns8/s640/USDINR.png" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">USD INR in the last year v/s USDCNY (Chinese Renmimbi Yuan)</td></tr>
</tbody></table>
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<br />
From the International press<br />
<br />
<a href="http://money.cnn.com/2013/08/19/news/economy/india-rupee/">http://money.cnn.com/2013/08/19/news/economy/india-rupee/ </a><br />
<br />
<blockquote class="tr_bq">
<div class="cnnStorySource">
"HONG KONG (CNNMoney)</div>
<h2>
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;">The rupee is
trading at record lows and stocks have lost 10% in a month, even as the
Indian government insists the country's faltering economy is not in
crisis.</span></span></h2>
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> </span></span><span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> The slide that has rocked Indian markets accelerated Monday, with the rupee hitting a new record low against the dollar. The <a href="http://money.cnn.com/data/world_markets/sensex/?iid=EL">Mumbai Sensex</a>, the country's benchmark index, dropped 1.6% on Monday and has now lost 10% of its value in the past month. </span></span><br />
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> </span></span><span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;">
Investors are worried about India's large current account deficit,
which reflects the nation's tendency to import many more goods than it
exports and leaves it heavily reliant on foreign capital. </span></span><br />
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> </span></span><span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> </span></span></blockquote>
<br />
<blockquote class="tr_bq">
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;">Talk of tighter U.S. monetary policy has seen some investors pull out of emerging markets in recent months. </span></span><br />
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> </span></span><span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;">
Prime Minister Manmohan Singh has tried to calm nerves, saying the
government has enough foreign reserves to defend the rupee for months. </span></span><br />
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> </span></span><span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;">
</span></span></blockquote>
<br />
<blockquote class="tr_bq">
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;">"There is no question of going back to the 1991 [balance of payment
crisis]," Singh told the Press Times of India, referring to an episode
that nearly resulted in India defaulting on its debt payments. </span></span><br />
<span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> </span></span><span style="font-family: Times,"Times New Roman",serif;"><span style="font-size: small;"> But with elevated inflation, a sky-high government deficit and the <a href="http://money.cnn.com/2013/03/19/news/economy/india-rate-cut/index.html?iid=EL">economy slowing</a>, some are worried that recent government attempts to shore up confidence may have had the opposite effect."</span></span></blockquote>
<br />
- Source: CNN Money <br />
<br />
<a href="http://www.businessweek.com/news/2013-08-18/india-markets-plunge-pressures-singh-as-economic-crisis-deepens"><br /></a>
<a href="http://www.businessweek.com/news/2013-08-18/india-markets-plunge-pressures-singh-as-economic-crisis-deepens">http://www.businessweek.com/news/2013-08-18/india-markets-plunge-pressures-singh-as-economic-crisis-deepens </a><br />
<br />
<blockquote class="tr_bq">
<div class="">
"India’s biggest two-day stock market slide since 2009,
surging bond yields and a plunge in the rupee to a record low are
pressuring officials for fresh steps to stem capital outflows and
support the economy. </div>
</blockquote>
<blockquote class="tr_bq">
The S&P BSE Sensex (SENSEX) Index sank
1.6 percent at the close in Mumbai, extending the 4 percent loss on Aug.
16. The rupee tumbled 2.3 percent against the dollar, touching an
all-time low of 63.23. The yield on the government bond due May 2023
rose 34 basis points to 9.24 percent, the highest on a 10-year note
since 2008. </blockquote>
<blockquote class="tr_bq">
The market rout underscores the failure of months of
measures to contain outflows, from higher interest rates to gold import
curbs. Foreigners sold a net $3 billion of Indian stocks and bonds in
July as the slowest growth in a decade made Asia’s third-largest economy
vulnerable to a pullout of funds from emerging markets, spurred by
speculation the U.S. Federal Reserve will cool stimulus"</blockquote>
- Bloomberg BusinessWeek <br />
<br />
<br />
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Now in $ terms any crore rupee property is back to being 80 lakh property and so on.<br />
continue discussion below<br />
<br />
<br />
<br />Unknownnoreply@blogger.com306tag:blogger.com,1999:blog-19740856.post-69209751148681527162013-06-27T09:07:00.000-07:002013-06-27T09:07:06.293-07:00One More tax on Properties > 50 lakh? <a href="http://economictimes.indiatimes.com/markets/real-estate/realty-trends/buying-a-property-just-got-a-bit-more-cumbersome/articleshow/20756700.cms">http://economictimes.indiatimes.com/markets/real-estate/realty-trends/buying-a-property-just-got-a-bit-more-cumbersome/articleshow/20756700.cms </a><br />
<br />
Verbatim from Economic Times.<br />
Copyrights with ET (Bennett Coleman) & TOI<br />
<br />
This might help reduce the speculative 10% investor purchases if implemented correctly? <br />
Alternately all properties below 50 lakh will heat up and prices will rise even in low end of market.<br />
Thoughts ?<br />
<br />
---------------------------------------------------START----------------------------------------------------------<br />
<br />
<h1 class="title">
<span style="font-size: large;">Buying a property just got a bit more cumbersome</span></h1>
<div class="byline">
25 Jun, 2013, 11.30AM IST</div>
<h1 class="title">
<span style="font-size: large;"><span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-weight: normal;"><span style="font-size: small;"><span>By Aditya Bajoria</span> <br /><br /> A common saying
goes, to know "stress", organize a person's marriage or endeavor to
build a house. Consider the various factors which affect the decision on
the purchase or building of a house, they range from vastu, legal
documentation, anticipated appreciation in value and maybe even the
whims and fancies of the relatives. Clearly, factors which may cost a
common man, seeking to obtain a roof over his head, many a nights sleep.
Well, thanks to the Finance Act, 2013, the <a href="http://economictimes.indiatimes.com/topic/stress">stress</a> has been compounded. <br /><br />
Effective from 1 June 2013, taxes are to be deducted at source ('TDS')
on payments for the purchase of immovable property (including any land
other than agricultural land, or any building or part of a building) @ 1
per cent. Taxes would be required to be deducted @ 20 per cent should
the seller not hold a <a href="http://economictimes.indiatimes.com/topic/PAN">PAN</a>. Such requirement to deduct taxes is triggered should the purchased property's cost exceed Rs. 5,000,000. <br /><br /> Many hoped that the representations of the <a href="http://economictimes.indiatimes.com/topic/Confederations-of-Real-Estate-Developers-of-India">Confederations of Real Estate Developers of India</a>,
requesting for a rollback of the section would be accepted. Non
notification of rules to govern such new amendments, hinted at a
possible rollback similar to the one performed last year, when similar <a href="http://economictimes.indiatimes.com/topic/TDS">TDS</a> requirements were proposed in the <a href="http://economictimes.indiatimes.com/topic/Finance-Bill-2012">Finance Bill 2012</a>, but not enacted into the Finance Act 2012. <br /><br />
However, the Government, vide a notification released on 31 May-2013,
has notified the relevant rules for deducting such taxes at source. As
per the rules, the purchaser is to deposit TDS, vide Form 26QB, which is
a challan cum statement, within 7 days from the end of the month in
which tax is to be deducted (tax to be deducted at the time of payment
or credit whichever is earlier). Further the purchaser is also required
to download a TDS certificate, Form 16B, from a yet to be specified web
portal and issue the same to the seller within 22 days from the end of
the month in which tax is to be deducted.</span></span></span><br /> </span></h1>
<table align="center" border="0" cellpadding="0" cellspacing="0"> <tbody>
<tr> <td> <img alt="Buying a property just got a bit more cumbersome. Here's how
" class="gwt-Image" src="http://economictimes.indiatimes.com/photo/20756721/buying-a-property-just-got-a-bit-more-cumbersome-heres-how.jpg" title="Buying a property just got a bit more cumbersome. Here's how
" /></td> </tr>
</tbody> </table>
<h1 class="title">
<span style="font-size: large;"> ---------------------------------------<span style="font-size: x-small;"><span style="font-weight: normal;">END</span></span>------------------------------------</span></h1>
This might help reduce the speculative 10% investor purchases if implemented correctly? <br />
Alternately all properties below 50 lakh will heat up and prices will rise even in low end of market.<br />
Thoughts ?<h4 class="title">
<span style="font-size: large;"><span style="font-weight: normal;"><span style="font-size: small;"> </span></span></span></h4>
<h4 class="title">
<span style="font-size: large;"><span style="font-weight: normal;"><span style="font-size: small;">Continue discussion here</span></span> </span></h4>
Unknownnoreply@blogger.com497tag:blogger.com,1999:blog-19740856.post-58640272836003340942013-06-07T11:53:00.003-07:002013-06-07T11:55:39.140-07:00Real Estate Regulator - Friend or Enemy Sugata Ghosh from Economic Times Writes -<br />
<br />
Verbatim copy from ET <br />
<a href="http://economictimes.indiatimes.com/opinion/comments-analysis/real-estate-regulator-harsh-rules-soft-banks-will-keep-realty-unclean/articleshow/20468159.cms">http://economictimes.indiatimes.com/opinion/comments-analysis/real-estate-regulator-harsh-rules-soft-banks-will-keep-realty-unclean/articleshow/20468159.cms </a><br />
<h1 class="title">
<span style="font-family: Arial,Helvetica,sans-serif;"><u><span style="font-size: large;">Real estate regulator: Harsh rules & soft banks will keep realty unclean</span></u></span></h1>
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">After politicians, builders are the most despised lot. Everyone has a
story of someone who got a raw deal. The keys were handed over three
years after the promised date; buyers had to cough up more midway,
thanks to a clause that initially appeared insignificant; the
redeveloped apartment had two-and-a-half bedrooms instead of three; and a
year later, another 20-storied tower sprung up on the "open space",
blocking the view of the racecourse or the sea — for which the owner,
taken in by pictures on glossy brochures, had paid a premium. The list
is endless. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">Some angry buyers move the consumer court while
others grudgingly accept what they get. A few years down the line, they
stop cribbing as properties in the neighbourhood change hands for double
the price they had paid. By then, they could be browsing another
brochure that has found its way into the inbox, planning a second home
that comes across as the only sensible, even if a little sticky,
investment. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">The <a href="http://economictimes.indiatimes.com/topic/housing-market">housing market</a> is about spiralling rates that have priced out most buyers, ambitious <a href="http://economictimes.indiatimes.com/topic/developers">developers</a>
who are answerable to no one, emergence of property as an asset class
and mortgage instalments becoming the dominant outgo in household
budgets. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">Like politicians, developers require no qualification:
anyone with a claim on a slice of land can put out an advertisement to
attract buyers. It's a business that employs millions and flourishes
without a watchdog. Thus, any hint of a new law that assures fair deals
and exemplary punishments that would be handed out by a new <a href="http://economictimes.indiatimes.com/topic/regulator">regulator</a> is irresistible. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">But it won't be a cakewalk. Advocates of such legislation should be
prepared for the tortuous road towards a well-regulated and cleaner
property market. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">First, home prices could go up in the medium term. Once the new <a href="http://economictimes.indiatimes.com/topic/Real-Estate">Real Estate</a>
(Regulation and Development) Bill, 2013, becomes law, builders would be
barred from selling a project till all approvals — as many as 70 of
them — are in place. This would delay launch of new projects and push up
prices of those that are cleared. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">Second, corruption may rise
as multiple agencies drag their feet on clearances. Developers may
strike convoluted deals giving buyers the option to purchase later.
Third, disqualifying a shoddy builder could stall construction in all
half-done projects and hurt genuine buyers. And, lastly, the validity of
many regulatory actions could be challenged in higher courts. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">There would be hurdles on the way and unless there is a quick and
effective mechanism to throw out unscrupulous developers and hand over
unfinished projects to others for completion, harsh measures would
backfire on home buyers. This could defeat the purpose behind an
otherwise strong law.</span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">The proposed <a href="http://economictimes.indiatimes.com/topic/regulator">regulator</a>
must play a meaningful role so that approvals are not held back without
a valid reason. Besides listing out approved projects, its website
should also spell out reasons why clearances are yet to come for
pre-launch projects. This would make agencies responsible for vetting
projects little more accountable. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">It will be a tedious job but a <a href="http://economictimes.indiatimes.com/topic/real-estate-regulator">real estate regulator</a>,
unlike most regulators, will have to play a far more proactive role
that goes beyond giving the final green signal to a project when all
approvals have been obtained by a builder. This will ensure that supply
doesn't dry up in the short run. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">But throwing the rule book would be ahalfway measure if men who bankroll <a href="http://economictimes.indiatimes.com/topic/developers">developers</a>
are unwilling to pull the plug. More than any rule, this alone can make
the biggest difference to the Indian property mart. So far, it hasn't
happened. Banks could have brought about the change in 2008-09 when one
of India's largest builders was on the brink of collapse. </span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><br /></span>
<span style="font-family: Arial,Helvetica,sans-serif;">Instead, lenders threw a lifeline to keep it afloat. While <a href="http://economictimes.indiatimes.com/topic/realty">realty</a>
stocks plunged 90%, generous bankers thwarted a natural correction in
property prices. India was among the few countries where real estate
prices did not fall — in fact, even rose in cities like Mumbai — post
Lehman. It was a reminder of the clout the trade wields. Having survived
the worst crunch, its influence could have only grown since then.
Pushing a righteous Bill a year before the polls may be a brilliant idea
by the government. But make no mistake. It's aimed to restrain a
formidable lobby. </span><br />
<br />
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<br />
The question now becomes - will this regulator be actually beneficial to end users - Will India make a law like China - where they are discouraging or banning buying properties for investment -<br />
Will our builders which are in full nexus with the politicos comply ? Will the corrupt bureaucracy of India actually change and not let this regulator be yet another bribe to pay to get a home?Unknownnoreply@blogger.com545tag:blogger.com,1999:blog-19740856.post-21531823997146705622013-04-15T09:13:00.004-07:002013-04-15T09:19:54.642-07:00Top 10 countries slammed by the crash of gold<div dir="ltr" style="text-align: left;" trbidi="on">
1. USA Holding > 8500 tons of gold<br />
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10. India 550 tons of gold held by the government</div>
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The appetite of individual investors in India is negligible compared to the holdings in the soverign countries. Per capita a US citizen holds Gold more then any India citizen.</div>
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<br /></div>
<div>
The crash is gold is a reminder to everyone that the middle class gets crushed whenever bubbles are created and gold is no exception. Full article <a href="http://www.businessinsider.com/countries-with-largest-gold-reserves-2013-4#1-united-states-10">here</a></div>
<div>
<br />
<br />
The US government controls everything, Gold, the fiat currency, crude oil prices, interest rates, nuclear arms, defence technology, everything in short which is of any significant importance. Everythign else they are happy to outsource to countries down the totem-pole</div>
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Unknownnoreply@blogger.com555tag:blogger.com,1999:blog-19740856.post-33536038410271700932013-04-06T09:19:00.002-07:002013-04-06T09:19:41.256-07:00Around 1.20 lakh flats lying locked in Goa: Manohar Parrikar<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div class="bylineFull" style="background-color: white; background-image: url(http://economictimes.indiatimes.com/photo/17954381.cms); border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 11.818181991577148px; margin: 10px 0px; outline: 0px; padding: 5px 12px; vertical-align: baseline;">
<span style="font-size: 16.363636016845703px; line-height: 23.99147605895996px;">PANAJI: Almost 23 per cent of houses in</span><a href="http://economictimes.indiatimes.com/topic/Goa" pg="asTopicL1" style="border: 0px; color: #024d99; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Goa</a><span style="font-size: 16.363636016845703px; line-height: 23.99147605895996px;"> are lying locked as buyers are not staying there, Chief Minister </span><a href="http://economictimes.indiatimes.com/topic/Manohar-Parrikar" pg="asTopicL1" style="border: 0px; color: #024d99; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Manohar Parrikar</a><span style="font-size: 16.363636016845703px; line-height: 23.99147605895996px;"> told the </span><a href="http://economictimes.indiatimes.com/topic/Legislative-Assembly" pg="asTopicL1" style="border: 0px; color: #024d99; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Legislative Assembly</a><span style="font-size: 16.363636016845703px; line-height: 23.99147605895996px;">today. </span><br style="border: 0px; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br style="border: 0px; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><span style="font-size: 16.363636016845703px; line-height: 23.99147605895996px;">"Out of the five lakh flats constructed in the state, around 1.20 lakh are locked; either it is a second home or buyer is not living there," Parrikar said. </span><br style="border: 0px; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br style="border: 0px; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><span style="font-size: 16.363636016845703px; line-height: 23.99147605895996px;">The chief minister said this trend is putting a strain on infrastructure as "only 8 per cent of the total land amounting to 30,000-40,000 hectares is available for development. We need to ensure that some land should be preserved for posterity". </span><br style="border: 0px; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br style="border: 0px; font-size: 16.363636016845703px; line-height: 23.99147605895996px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><span style="font-size: 16.363636016845703px; line-height: 23.99147605895996px;">Parrikar said Goa can not be a destination for alternate houses. </span></div>
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<span style="line-height: 23.984375px;">Expect the BJP govt to take away the houses from the Russian mafia sooner or later. </span></div>
<div class="bylineFull" style="background-color: white; background-image: url(http://economictimes.indiatimes.com/photo/17954381.cms); border: 0px; font-family: Arial, Helvetica, sans-serif; margin: 10px 0px; outline: 0px; padding: 5px 12px; vertical-align: baseline;">
<span style="line-height: 23.984375px;">Everyone is waiting for a change in the central government before implementing their own personal agenda. Economic Times article <a href="http://economictimes.indiatimes.com/news/politics-and-nation/Around-120-lakh-flats-lying-locked-in-Goa-Manohar-Parrikar/articleshow/19328294.cms">here</a></span></div>
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Unknownnoreply@blogger.com94tag:blogger.com,1999:blog-19740856.post-38012562194461642922013-03-04T09:15:00.000-08:002013-03-04T09:16:27.033-08:00China's housing bubble<div dir="ltr" style="text-align: left;" trbidi="on">
Truth is stranger then fiction. India's housing bubble pales in contrast to the bubble in China. China cannot afford to slow down as it has a massive population to feed. If the bubble burst's the investors go down with the working class.<br />
<br />
Just absurd. <br />
<br />
What a China slowdown means to the world economy is something nobody wants to talk about. Ask any analyst on CNBC and they would just brush it aside.<br />
<br />
The latest CBS 60 minutes video is <a href="http://www.businessinsider.com/60-minutes-chinas-ghost-cities-2013-3">here</a>. </div>
Unknownnoreply@blogger.com275tag:blogger.com,1999:blog-19740856.post-1016960957067935782013-02-24T18:09:00.002-08:002013-02-24T18:14:56.283-08:00Italy's votes Monday to oust sleazy politics and cronyistic society <div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Arial, Helvetica, sans-serif;">The guardian has a interesting article on the surging sentiment for the <span style="background-color: white; color: #333333; font-size: 14px; line-height: 18px;">Five Star Movement (M5S). The voters are sick and tired of the current parties and are rallying behind </span><span style="background-color: white; color: #666666; line-height: 16px;">Beppe Grillo, the leader of the M5S. The sentiment here in the Italy is no different then the one in India with the AAP, the party of the Mango people lead by Arvind Kejriwal. When the BJP protests the origin's of the Sonia Gandhi, they were protesting against themselves. The Italian voters are no different then the voters in India and so are the Italian politcians who are no different then Indian sleazy politcians. Berlosconi is a example high handed leadership which has cost the country dear which parallels the Gandhi family and Mr Vadra who appear to have suberverted the system to their advantage to no end.</span></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="background-color: white; color: #666666; line-height: 16px;">Will this change in leadership in Italy go after the AgustaWestland bribery scandal and bring down all the middlemen in Italy, UK and India to justice ? If Italians want it, they could do it. After all Rome was never built in a day. For bloggers Beppe Grillo will be liked instantly as he is on of them. </span></span><br />
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<span style="color: #666666; font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 15.989583969116211px;">>>>></span></span></div>
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All the evidence suggests that, when the result of <a href="http://www.guardian.co.uk/world/italy" style="background-repeat: no-repeat no-repeat; border-collapse: collapse; color: #005689; margin: 0px; padding: 0px; text-decoration: none;" title="More from guardian.co.uk on Italy">Italy</a>'s general election is known later on Monday, it will be a deafening – and sensational –<em style="background-repeat: no-repeat no-repeat; border-collapse: collapse; margin: 0px; padding: 0px;">Basta!</em> (That's enough!). The publication of polls in the last two weeks of the campaign is banned in Italy. But results circulating on the internet showed an abrupt surge in support for the Five Star Movement (M5S), which wants to force a reboot, not just of Italy's sleazy politics but of its cronyistic society too.</div>
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For the first time in 20 years, we have seen an election that has not been hijacked by the sayings and doings of Silvio Berlusconi. Instead, it has been seized by another, equally controversial figure – the M5S's barnstorming frontman, Beppe Grillo. <a href="http://www.guardian.co.uk/world/2013/feb/24/italy-elections-end-to-sleaze-cronyism">http://www.guardian.co.uk/world/2013/feb/24/italy-elections-end-to-sleaze-cronyism</a></div>
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Unknownnoreply@blogger.com60tag:blogger.com,1999:blog-19740856.post-51931715867248442892013-01-16T09:22:00.001-08:002013-01-16T09:22:21.620-08:00 Builders blink, first price cuts are here<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://www.mumbaimirror.com/article/15/2013011620130116092730566a2c8a18b/Builders-blink-first-price-cuts-are-here.html" target="_blank">Article Link</a><br />
<br />
<span style="font-size: x-small;">After stubbornly holding on to high
prices for four years in the face of sluggish sales, a crippling
liquidity crunch and rising cost of capital, Mumbai’s real estate
industry has just blinked.<br />
<br />
At least three of Mumbai top builders have either cut prices by as much
as Rs 2250 to Rs 5,000 or introduced flexible pricing within a single
project, or launched innovative schemes where buyers stump up large sums
to book properties even before the project enters construction stage.<br />
<br />
All this means only one thing - the longdue correction in real estate
prices is here. And while many builders may not be announcing price cuts
up front yet, it is no secret that they all are now willing to
negotiate with buyers.</span><br />
<span style="font-size: x-small;"><br />
</span><br />
<span style="font-size: x-small;">--</span><br />
<span style="font-size: x-small;">A survey conducted by Knight Frank, areal
estate consultancy firm, in June last year had revealed that Mumbai
real estate market had an unsold inventory of 80,000 units worth
approximately Rs 1,050 billion.<br />
<br />
The report had also stated that the global economic crisis of 2008
affected the market adversely as prices dipped in some micro-markets at
the premium end of the market and rebounded, scaling to their 2007 highs
in the subsequent two years.<br />
<br />
But in 2012, the Mumbai market stagnated as buyers largely kept away
expecting a drop in prices in the near future. The buyers’ patience has
paid. The Mumbai market is now opening for good bargains.<br />
<br />
Lalit Kumar Jain, president of Confederation of Real Estate Developers Association of <a class="tt" href="http://cms.mumbaimirror.com/ads.aspx?adid=4" target="_blank">India</a>,
said the liquidity crunch is forcing builders to reduce prices and
clear inventory. He expects more builders to follow Naman, RNA and
Lodha’s example.<br />
</span></div>
shaileshhttp://www.blogger.com/profile/14407031960831830463noreply@blogger.com185tag:blogger.com,1999:blog-19740856.post-88622023759536897962013-01-03T06:43:00.001-08:002013-01-03T06:43:07.584-08:00Watch Out Asia, Inflation Is on Its Way<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://finance.yahoo.com/news/watch-asia-inflation-way-081457262.html" target="_blank">Article Link</a><br /><br />
Inflation in Asia may be under control now, but prices across the
region could soon start to creep higher, with India and Southeast Asia
the most vulnerable, warns independent economist Andy Xie.<br />
<br />
"At the end of the day, you have all this money out there. It's
rational to expect inflation," Xie, a former chief Asia-Pacific
economist with Morgan Stanley, said. "India is the most vulnerable. It
cannot solve supply bottlenecks. Southeast Asian economies like
Indonesia and Thailand too."<br />
<br />
Inflation in India could rise to 10 percent and above 5 percent in
Southeast Asia, according to Xie. He expects inflation in China to rise
to 4 percent - doubling from where it is now.<br />
<br />
High inflation in India meanwhile dogged the country's central bank
last year and prevented it from cutting interest rates aggressively to
boost a flagging economy. India's wholesale price index, the main
measure of inflation, rose 7.24 percent in November from a year earlier.<br />
<br />
--<br />
"In Hong Kong and Singapore, the issue is very much about interest
rates. So it's going to be similar to 1998," he added, referring to the
property bubble that burst at the peak of the Asian financial crisis.<br />
House prices in the two cities could plunge by half if interest rates go up, he added.<br />
<br />
--<br />
What will this do to Home Prices in India ???? <br />
<br />
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shaileshhttp://www.blogger.com/profile/14407031960831830463noreply@blogger.com79tag:blogger.com,1999:blog-19740856.post-52612058725026513092012-12-15T16:37:00.003-08:002012-12-15T16:40:58.598-08:00AL Jazeera's news segment on India's housing bubble<div dir="ltr" style="text-align: left;" trbidi="on">
Investors lose thousands of rupees per day as construction workers cannot make ends meet for daily needs. A tale of two India's.<br />
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<br /></div>
<iframe allowfullscreen="allowfullscreen" frameborder="0" height="315" src="http://www.youtube.com/embed/Hn0zw1AnAAk" width="420"></iframe>
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Unknownnoreply@blogger.com64tag:blogger.com,1999:blog-19740856.post-80314640135737983352012-11-29T13:31:00.006-08:002012-11-29T13:31:45.831-08:00 RBI says no to restructuring of real estate loans (to builders)Copy paste from ET website<br />
<br />
<br />
MUMBAI: The Reserve Bank has turned down banks' demand for restructuring stressed <a href="http://economictimes.indiatimes.com/topic/real-estate">real estate</a>
loans without providing for potential losses, a move that could mount
pressure on builders to lower prices as banks push to recover loans.<br /> <br /> The <a href="http://economictimes.indiatimes.com/central-bank-of-india/stocks/companyid-11944.cms" style="margin-right: 5px;">central bank</a><a class="hover_11944 pos" href="http://economictimes.indiatimes.com/central-bank-of-india/stocks/companyid-11944.cms" style="opacity: 1;" target="_blank">BSE 1.01 %</a>
believes that if banks are permitted to restructure the loans without
providing for losses, they will lose the urge to insist on prompt
payments from builders, who in turn would continue to hold onto prices
even if sales are slack, two bankers familiar with the discussions said.<br /> <br />
Builders will get the benefit of paying the same loan over a longer
period without feeling the pinch to repay, RBI Deputy Governor <a href="http://economictimes.indiatimes.com/topic/KC-Chakrabarty">KC Chakrabarty</a> is supposed to have told bankers in a recent meeting, said the two bankers who did not want to be identified.<br /> <br /> Banks will be at ease once the loan is prevented from becoming a sub-standard asset, Chakrabarty said.<br /> <br />
<table align="left" border="0" cellpadding="4" cellspacing="4"> <tbody>
<tr> <td> <img alt="Buying a home to get cheaper as RBI says no to restructuring of real estate loans" class="gwt-Image" src="http://economictimes.indiatimes.com/photo/17406927/buying-home-to-get-cheaper-as-rbi-says-not-to-restructuring-of-real-estate-loans.jpg" title="Buying a home to get cheaper as RBI says no to restructuring of real estate loans" /></td> </tr>
</tbody> </table>
Real estate prices have been rising steadily since the government
prodded the central bank to give a one-time benefit for restructuring of
real estate loans during the credit crisis in 2008.<br /> <br /> But in
most parts of the country, prices have soared through the roof, bringing
down home sales. If banks pressure developers, it could lead to a fall
in prices.<br /> <br /> Home prices at an all-India level rose 6.7 per cent in the first quarter of this fiscal, data from the <a href="http://economictimes.indiatimes.com/topic/Reserve-Bank-of-India">Reserve Bank of India</a> shows. Transaction volumes rose 9.3 per cent.<br /> <br /> While <a href="http://economictimes.indiatimes.com/topic/property-prices">property prices</a> have been rising across the board, transaction volumes have been falling in cities such as New Delhi, Bangalore, <a href="http://economictimes.indiatimes.com/topic/Kolkata">Kolkata</a> and Chennai.<br /> <br /> Bankers had sought a special dispensation due to rising bad loans that are eroding their profitability.<br /> <br />
Total real estate bad loans, net of provisions of all commercial banks,
rose 55 per cent to Rs 64,900 crore on March 31, 2012, from Rs 41,700
crore on March 31, 2011. State-run banks' share in this was Rs 59,100
crore, up 64 per cent from Rs 36,000 crore.<br /> <br /> Currently, banks have to classify restructured loan of a real estate company as bad loan the moment it is reworked.<br />
<br />
-----------------------------------------------------------------------------------------------------------------------<br />
<br />
<br />
<br />
Attribution - <br />
<a href="http://economictimes.indiatimes.com/markets/real-estate/realty-trends/buying-a-home-to-get-cheaper-as-rbi-says-no-to-restructuring-of-real-estate-loans/articleshow/17406901.cms">http://economictimes.indiatimes.com/markets/real-estate/realty-trends/buying-a-home-to-get-cheaper-as-rbi-says-no-to-restructuring-of-real-estate-loans/articleshow/17406901.cms </a><br />
<br />
Reporter: <span class="byline"> <span class="imghov" style="top: 4px;"><span id="auim"></span></span> Sangita Mehta,ET Bureau </span><br />
Copyrights: Economic Times (TOI - Bennett Coleman)<br />
<br />
<br />
Disclaimer: copied for information purposes only <br />
<br />
It will be fun to see how builders (and their politician masters) will now force the Government owned banks to backdoor restructure the RE loans dished out to builders<br />
<br />
Correct me if I am wrong but - <br />
SBI, HDFC, LIC and ICICI are the top mortgage lenders in the country. <br />
<br />
Ironically the same bankers (and their politician masters ) are making it worse to get home loans by charging ridiculous pay off fees, unnecessarily high interest rates, horrible customer service, unrealistic stamp duty and VAT. Unknownnoreply@blogger.com187tag:blogger.com,1999:blog-19740856.post-39345810478848477152012-11-04T19:57:00.001-08:002012-11-04T20:33:36.310-08:00Loan growth stonewalled by surge in house prices, crashes to 5-month low as buyers fail to turn up<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://www.blogger.com/"></a><span id="goog_2053852679"></span><span id="goog_2053852680"></span><br />
<div style="text-align: justify;">
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">Its Diwali and all as per the norm, this is the season for making big purchases like houses and cars. Unfortunately this year is turning out to be damp squb. Very high inflation has pushed daily budgets of most middle-class citizens to the brink. Nobody in the right mind is making any big purchases. Anybody with an account with a bank is hounded by retail bankers pushing loans and investment. Most are not buying the bait. Existing loan owners have seen their EMI tenure extended by 10 years to a maximum of 30. One friend of mine complained he has been servicing the interest for the past 2 years and has added almost nothing to the principal. The flat now has cost him more then what he has paid even after regularly paying the EMI. </span></div>
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;"></span><br />
<div style="text-align: justify;">
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;"><span style="font-size: 13px; line-height: 18px;">The black magic of compounding of loan interest is only experienced by the borrower. </span></span></div>
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">
</span>
<br />
<div style="text-align: justify;">
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;"><span style="font-size: 13px; line-height: 18px;"><br /></span></span></div>
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">
</span>
<div style="text-align: justify;">
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">Brokers tell me that the market has a gone silent for loan properties over 1 Cr in Mumbai. The only buyers in the market are those who trade up/down their existing properties depending on their need. No Gujarathi NRI's are interested in the market. Hurricane Sandy has hit a huge number of Gujarathi's business owners in NY and NJ. I just heard from one who wants to dispose of his Mumbai property.. Here are pictures from Hurricane Sandy. The devastation to property is just mind <a href="http://www.huffingtonpost.com/2012/11/02/hurricane-sandy-anger-gas-shortages-power-outages_n_2063815.html#slide=1717606">numbing</a>. With so much damage to houses it seems that housing rental market is going to give the newly displaced a new shock. </span></div>
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: 13px; line-height: 18px;">Economic Times article is <a href="http://economictimes.indiatimes.com/personal-finance/loan-centre/home-loans/home-loans-news/loan-growth-stonewalled-by-surge-in-house-prices-crashes-to-5-month-low-as-buyers-fail-to-turn-up/articleshow/17092588.cms?google_editors_picks=true&google_editors_picks=true">here</a></span></div>
</span><br />
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;"><br /></span>
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;"><br /></span>
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">MUMBAI: Growth in home loans has slumped to a five-month low despite banks showering potential buyers with attractive schemes and lower rates due to soaring</span><a href="http://economictimes.indiatimes.com/topic/real-estate" pg="asTopicL1" style="background-color: white; color: #024e97; font-family: arial; font-size: 13px; line-height: 18px; text-decoration: none;">real estate</a><span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;"> prices. </span><br />
<br style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;" />
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">Buyers are holding back since an over-24% increase in prices in the past one year is putting homes beyond their reach despite banks lowering </span><a href="http://economictimes.indiatimes.com/topic/interest-rates" pg="asTopicL1" style="background-color: white; color: #024e97; font-family: arial; font-size: 13px; line-height: 18px; text-decoration: none;">interest rates</a><span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;"> by 100-150 basis points in the past four months. A basis point is 0.01 percentage point. </span><br />
<br style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;" />
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">Home loans have grown by 11.2% year-on-year in September, compared with 15.6% in the same month a year ago. The latest growth rate for home loans is the lowest since April. </span><br />
<br style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;" />
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">"Interest rates have a limited role to play in house sales," said VK Sharma, CEO at </span><a href="http://economictimes.indiatimes.com/lic-housing-finance-ltd/stocks/companyid-10823.cms" pg="asTopicL1" style="background-color: white; color: #024e97; font-family: arial; font-size: 13px; line-height: 18px; margin-right: 5px; text-decoration: none;">LIC Housing Finance</a><a class="hover_10823 pos" href="http://economictimes.indiatimes.com/lic-housing-finance-ltd/stocks/companyid-10823.cms" style="background-color: #eafaea; border-bottom-left-radius: 2px; border-bottom-right-radius: 2px; border-top-left-radius: 2px; border-top-right-radius: 2px; border: 1px solid rgb(12, 143, 43); color: #024e97; display: inline-block; font-family: arial; font-size: 11px; height: 16px; line-height: 18px; margin-left: 3px; opacity: 1; padding: 0px 3px; text-decoration: none !important;" target="_blank">BSE 0.54 %</a><span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">, India's second-biggest mortgage lender. "Home prices affect sales more than interest rates. If the house price range is within the capacity of the middle class, then sales pick up." </span><br />
<br style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;" />
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px;">Facing slowing demand for loans from corporates, banks have been pushing retail loans, especially mortgages, since it is one of the safest forms of lending. But steep prices are stalling sales. More than 80,000 flats remain unsold in Mumbai and the financial capital has lost its crown as the fastest-growing market. </span></div>
Unknownnoreply@blogger.com213tag:blogger.com,1999:blog-19740856.post-14288712255263884952012-10-18T23:10:00.001-07:002012-10-18T23:10:42.793-07:00Vadra bubble in Bikaner too. land prices jump 40 times<div dir="ltr" style="text-align: left;" trbidi="on">
No one can make up these stories. Truth is stranger then fiction. Here is another article on how land prices in Bikaner a medium sized town in Rajasthan jumped 40 times after Robert Vadra started his investments. It looks like Robert is responsible for the misery of Indian's when it comes to housing.<br />
<br />
DNA report is below. Full article is <a href="http://www.dnaindia.com/india/report_dna-investigations-robert-vadra-and-his-many-bikaner-plots_1753833">here</a><br />
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<br />
<div style="font-family: arial, verdana; font-size: 12px; margin-bottom: 1em; padding: 0px;">
In a flurry of deals between June 2009 and August 2011, Robert Vadra purchased at least 20 plots of land collectively measuring more than 770 hectares in Rajasthan’s Bikaner district, in a region that would see prices spiraling soon after.</div>
<div style="font-family: arial, verdana; font-size: 12px; margin-bottom: 1em; padding: 0px;">
A clutch of investors, including Vadra, apparently privy to information on upcoming industrial projects in the vicinity, reaped huge profits with land values appreciating by up to 40 times since 2009.</div>
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Click here to read the list of plots</div>
<div style="font-family: arial, verdana; font-size: 12px; margin-bottom: 1em; padding: 0px;">
Data from the office of the registrar in Bikaner shows 20 properties Vadra purchased through companies, including Real Earth Estates Pvt Ltd, North India IT Park Pvt Ltd, and Skylight Realty Pvt Ltd. All the deals were executed on his behalf by Mahesh Nagar, brother of Haryana Pradesh Congress Committee member Lalit Nagar. These companies together invested Rs2.85 crore in barren land here during this period.</div>
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“Vadra clearly misused his position as the son-in-law of Sonia Gandhi,” said Devi Singh Bhati, six-time MLA of the Kolayat tehsil where most of the Bikaner deals took place. “The land was purchased either in the knowledge that industrial projects would be announced, or circumstances were created to bring projects to the area.”</div>
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Unknownnoreply@blogger.com139tag:blogger.com,1999:blog-19740856.post-26123200223860623352012-10-15T21:57:00.002-07:002012-10-15T22:49:30.812-07:00Vadra and cronies to blame for India's housing bubble.<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
Economic times writes <a href="http://economictimes.indiatimes.com/markets/real-estate/news/robert-vadra-led-companies-bought-41-dlf-flats-and-sold-most-of-them-at-a-profit/articleshow/16817169.cms">here</a> on Robert Vadra's role in inflating India's housing bubble. Looking at the data we can safely conclude that India's housing bubble is been inflated beyond limits by politicians and their black money dealings with builders with tacit support of public sector banks. The property flippers and NRI's are just pawns in this real game where the biggest transfer of wealth and land to politicians has been done in broad daylight with everyone from the law enforcement and the fourth estate turning a blind eye to this mega scam of massive proportions. NREGA and all schemes for the poor of the country are just eyewash to win votes so these greedy politicians can accumulate wealth which can be measured in astronomical units.<br />
<br />
<br />
<br />
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px; text-align: left;">During 2009 and 2010, Vadra bought 25 apartments in DLF Capital Greens, a premium project constructed on a 38-acre land that DLF acquired from DCM Shriram and the </span><a href="http://economictimes.indiatimes.com/topic/Lohia-Group" pg="asTopicL1" style="background-color: white; color: #024e97; font-family: arial; font-size: 13px; line-height: 18px; text-align: left; text-decoration: none;">Lohia Group</a><span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px; text-align: left;"> in 2007 for Rs 1,675 crore. While the builder launched the first phase of the project at around Rs 4,500-5,500 per sq ft, the prices subsequently increased to Rs 10,000 per sq ft. Vadra brought these apartments in the first phase and sold them in 2010-11.</span><br />
<br style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px; text-align: left;" />
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px; text-align: left;">He also booked 15 apartments in DLF Magnolias, a premium project next to a company-owned golf course on the Gurgaon Golf Course road that is nearing completion. Of these, he has already sold 13 apartments and still retains two units.</span><br />
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px; text-align: left;"><br /></span>
<span style="background-color: white; color: #404040; font-family: arial; font-size: 13px; line-height: 18px; text-align: left;"><br /></span>
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<div style="text-align: left;">
<span style="color: #404040; font-family: arial; font-size: x-small;"><span style="line-height: 17.981481552124023px;">>>></span></span></div>
<br />
Here is the summary of Shriram Subramanium on investing in real estate stocks. Full article <a href="http://www.moneycontrol.com/news/real-estate/real-estate-firms-should-not-be-listed-ingovern%60s-shriram_769045.html">here</a>.<br />
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<br /></div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: Arial; line-height: 20px;">The ongoing </span><a href="http://www.moneycontrol.com/india/stockpricequote/constructioncontracting-real-estate/dlf/D04" style="background-color: white; color: #005066; font-family: Arial; line-height: 20px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none;">DLF</a><span class="grpim" style="background-color: white; background-image: url(http://img.moneycontrol.co.in/images/news/news_inter_sprite.gif); background-position: -304px -37px; background-repeat: no-repeat no-repeat; color: #333333; cursor: pointer; display: inline-block; font-family: Arial; height: 17px; line-height: 20px; margin: 0px 0px 0px 3px; padding: 0px; width: 16px;"></span><span style="background-color: white; color: #333333; font-family: Arial; line-height: 20px;"> </span><span style="background-color: white; color: #333333; font-family: Arial; line-height: 20px;"> - Vadra controversy has brought to light the blatant transgressions that real estate companies - listed and un-listed - adopt in India. Real estate companies have never been known to be high on transparency and corporate governance. This is just a reflection of the deeper morass in the real estate sector, which is by far the largest and most valuable asset class in India. It is not the marketplace that decides the fortunes of real estate companies, but the builder-politician nexus that picks out the winners in this sector.</span></div>
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<div style="background-color: white; color: #333333; font-family: Arial; line-height: 20px; padding: 0px; text-align: justify;">
<b>Realty sector shouldn’t be listed as the companies don’t need shareholder funds, nor will they <span style="font-size: x-large;">ever</span> make any money for investors. </b></div>
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<div style="background-color: white; color: #333333; font-family: Arial; line-height: 20px; padding: 0px; text-align: justify;">
This is because:</div>
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<span style="color: #333333; font-family: Arial; line-height: 20px;"><br /></span></div>
<div style="background-color: white; color: #333333; font-family: Arial; line-height: 20px; padding: 0px; text-align: justify;">
(a) The sector depends a lot on black money.</div>
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<span style="color: #333333; font-family: Arial; line-height: 20px;"><br /></span></div>
<div style="background-color: white; color: #333333; font-family: Arial; line-height: 20px; padding: 0px; text-align: justify;">
(b) There is little transparency in land values or construction costs.</div>
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<span style="color: #333333; font-family: Arial; line-height: 20px;"><br /></span></div>
<div style="background-color: white; color: #333333; font-family: Arial; line-height: 20px; padding: 0px; text-align: justify;">
(c) Politicians and bureaucrats have lot of discretionary power in deciding winners and losers.</div>
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<span style="color: #333333; font-family: Arial; line-height: 20px;"><br /></span></div>
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(d) Companies need to pay speed money to get all approvals for all stages of project development.</div>
</div>
Unknownnoreply@blogger.com54tag:blogger.com,1999:blog-19740856.post-43450758171326932282012-10-09T08:36:00.002-07:002012-10-09T19:59:36.313-07:00Robert Vadra mass-booked and traded DLF flats, but all above board, say DLF sources<div dir="ltr" style="text-align: left;" trbidi="on">
Amazing round-trip trades made by Vadra to make record profits. It is an absolute travesty of all laws where public companies give loans to individuals who then use the loans to buy flats from the same company and then after some time sell the flats to same company at records profits. Now we can see how the housing bubble has been inflated on profits which have been generated out of thin air<br />
<br />
Balance Sheet of Vadra<br />
<br />
Paidup capital = Rs 0<br />
<br />
DLF unsecured interest free loan to Vadra, call this X<br />
Vadra buys flats from DLF with the loan X<br />
Vadra sells the flats back to DLF for amount Y<br />
Profit = Y-X<br />
% profit = Y-X/Input cost = Y-X/0 = Infinity.<br />
<br />
A record profit which can only be generated in a banana republic<br />
<br />
NDTV has an explosive article <a href="http://tinyurl.com/8bcuw4k">here</a><br />
<br />
Bloomberg has an <a href="http://www.bloomberg.com/news/2012-10-09/in-indian-real-estate-it-s-location-and-relations.html">article</a> which lists him having acquired 31 flats in DLF. Now the modus operandi of politicians and builders is very clear. Builders use connections to high profile politicians to avoid income tax scrutiny for their dubious deals. Politicians or their family members rake astronomical profits by capital appreciation from acquiring undervalued properties from the builder and disposing them back to the same builder at market rates. In the meantime the mango people have to borrow at record high interest rates thinking they will be priced out if they don't buy their dream home. As influential columnists are calling this a tip of the iceberg, I wonder how many skeletons are stacked in the closets of all the 31 flats of Mr Vadra and thousands of others who are in the process of being exposed.</div>
Unknownnoreply@blogger.com60tag:blogger.com,1999:blog-19740856.post-54579210330764806782012-10-05T05:55:00.002-07:002012-10-05T12:19:42.650-07:00Robert Vadra's alleged flat in DLF Aralias<div dir="ltr" style="text-align: left;" trbidi="on">
<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
I did some googling go locate DLF Aralias where Arvind Kejriwal has alleged that Robert Vadra owns several flats. CommonFloor.com has one 5500 sq ft apartment for sale for 19.5 crores. If he own's 7 flats here, Vadra just has a paltry investment of 140 crores. It is also alleged now that several Congress , BJP and JD(U) MP's own super sized penthouses in this building. It is also no surprise that DLF has given these flats to these individuals at huge discounts to the existing prices. Apart from the middle-class in Delhi who can afford these flats is anybody's guess. Here is the <a href="http://www.commonfloor.com/aralias-gurgaon-for-sale/pfbs-a9i9t0">link</a> to the advertisement, probably owned by some politically connected individual.<br />
<br />
In a very charitable move DLF loans crores of rupees, interest free to Mr Vadra who then buys DLF's properties at throwaway discounted prices. I wish DLF is charitable to every Indian. Every Indian will be indebted to them for the rest of their lives. In fact the Income Tax and company affairs board should make it legal for builders to make unsecured interest free loans to the Indian citizens so they can buy their properties. This will boost their bottomline and they can recognize revenue for the flats which are sold and thereby boost their stock prices. In all seriousness SEBI would need to question the auditor of DLF to explain the fudging of the books. The "Too Big to Fail" individuals are now facing their moment of reckoning.<br />
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<iframe allowfullscreen="allowfullscreen" frameborder="0" height="315" src="http://www.youtube.com/embed/RjopnVvxt7U" width="420"></iframe></div>
Unknownnoreply@blogger.com40tag:blogger.com,1999:blog-19740856.post-9328190047454501222012-09-20T09:02:00.001-07:002012-09-20T09:03:27.905-07:00 Those 80,000 unsold flats<div dir="ltr" style="text-align: left;" trbidi="on">
<h1 class="sectionheading subsecvm">
Those 80,000 unsold flats</h1>
<div>
<div style="background-color: white;">
<div id="bookmarkarea">
<table border="0" cellpadding="2" cellspacing="2" style="width: 610px;"><tbody>
<tr><td rowspan="2" width="50"><br /></td><td><br /></td><td rowspan="2" width="150"><br /></td>
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<td><span style="font-size: x-small;">The onset of
rains, and the end of a hot summer, means no more alphonso mangoes.
During peak season those mangoes fetch Rs 1,000 for a dozen. But at
first sign of rain, their market value drops to less than Rs 200.<br />
<br />
The same is true of onions. When there is onion shortage, prices shoot
up to maybe Rs 100 a kilo, and post harvest, typically in January when
there’s a glut, prices crash to less than 5 rupees.<br />
<br />
In the wholesale market yard of Lasalgaon, Asia’s biggest onion market, there have been farmers’ riots due to onion glut.<br />
<br />
Onions and mangoes signify the extremes of price variations, but those
price movements also illustrate the law of supply and demand. When there
is excess supply prices have to drop.<br />
<br />
Sounds almost like a tautology. Why does this law not apply to housing? A
simple answer is that fruits and vegetables are perishables, hence
their value declines rapidly.<br />
<br />
Even a toothpaste or a mobile phone has finite shelf life. If there is a
glut, prices will fall sooner or later. A glut in houses however seems
to defy the law of demand.<br />
<br />
A report by real estate consultant Knight Frank revealed this week that
Mumbai has more than 80,000 flats lying unsold. This is in addition to
maybe another 50 to 100 thousand flats which are vacant, but not
available for sale.<br />
<br />
The value of the unsold inventory is a staggering 1 trillion rupees.
(This figure is also roughly equal to the entire annual income of all
Mumbaikars).<br />
<br />
The average price of those 80,000 flats is Rs 1.2 crore. That’s hundred
times the income of an average Mumbaikar. A flat is affordable to those,
whose annual income is at least 20 to 25% of its price.<br />
<br />
How many Mumbaikars earn more than Rs 30 lakh annually? This is a tiny
number, and most of them already own flats. So then who will buy those
80,000 unsold flats? Speculators from Hong Kong, Dubai or Singapore? If
speculators bought, would they rent those flats? Not really, because
there is already a glut of flats available for rents of about Rs 40,000
to Rs 50,000 a month.<br />
<br />
Rentals are falling. So speculators prefer to simply buy and wait, till
prices zoom up again, so that they can sell and encash a profit.</span></td></tr>
</tbody></table>
<br />
<a href="http://www.mumbaimirror.com/article/44/20120707201207070100431597a0f3243/Those-80000-unsold-flats.html" target="_blank">Article Link</a></div>
shaileshhttp://www.blogger.com/profile/14407031960831830463noreply@blogger.com146tag:blogger.com,1999:blog-19740856.post-20483206018328722992012-08-22T17:30:00.000-07:002012-08-22T17:30:27.631-07:00Chidambaram wants builders to lower prices<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
With the Finance minister officially calling the top in housing prices is there any investor willing to stick in their neck out and buy at the peak</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Economic times reports </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
FM wants builders to lower prices of unsold houses </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
MUMBAI: P Chidambaram, the newly-appointed finance minister, has asked chiefs of government-owned banks to put pressure on real estate developers to lower property prices in order to get the economy moving.
In a meeting held last Saturday with bank chiefs, the finance minister told bankers to impress upon builders the need to complete projects according to schedule and lower the prices of apartments that are ready for possession but not getting sold. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"Builders are sitting on huge inventories (unsold apartments) which they are neither able to sell at the prevailing prices nor are they allowing others to buy by lowering the prices," a banker present at the meeting quoted Chidambaram as saying.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Full article <a href="http://economictimes.indiatimes.com/markets/real-estate/news/P-Chidambaram-asks-banks-to-put-pressure-on-real-estate-developers-to-lower-property-prices/articleshow/15592351.cms">here</a></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
</div>
Unknownnoreply@blogger.com204tag:blogger.com,1999:blog-19740856.post-61775175475248447722012-07-29T18:48:00.000-07:002012-07-29T18:48:35.123-07:00More evidence of a bubble - Navi Mumbai has 23% flats vacant<div dir="ltr" style="text-align: left;" trbidi="on">
23% of flats in Navi Mumbai lying vacant
The newest destination for property investors in the Mumbai Metropolitan Region is the Navi Mumbai-Panvel-Raigad zone. Experts have concluded this based on Census 2011 findings , according to which 23% of houses here are lying vacant. They say that while investors are buying most vacant homes expecting rate appreciations ; genuine buyers are deferring purchase in the hope of a correction in prices. But some experts feel that low occupancy of houses does not necessarily imply a flourishing investor presence.
Now a days <a href="http://timesofindia.indiatimes.com/city/mumbai/23-of-flats-in-Navi-Mumbai-lying-vacant/articleshow/15266505.cms">Times of India </a>too has been reporting on the sorry state of Mumbai real estate. The ads by the builders are down significantly from the huge booklets to just a few pages.
<br /></div>Unknownnoreply@blogger.com241tag:blogger.com,1999:blog-19740856.post-2371249991482052562012-07-05T10:30:00.001-07:002012-07-05T10:30:04.304-07:00Mumbai home sales growth stagnates in June<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://www.thehindubusinessline.com/news/real-estate/article3605671.ece">Article Link</a><br />
<br />
<span class="upper">
</span>
<br />
<div class="body">
A situation of plenty continues to plague the Mumbai real estate market
with unsold inventory amounting to 80,000 units which forms 37 per cent
of the total residential supply under construction. </div>
<div class="body">
The market stagnated in June due to high prices and most buyers having
stayed away expecting an imminent drop in prices in the near future. </div>
<div class="body">
<br /></div>
<div class="body">
The report indicates prices have been moving in a narrow range in the
past four quarters as a virtual stoppage of new launches over the past
year has constrained supply and cushioned prices from dropping in spite
of absorption levels steadily trending downward.<br />
</div>
<div class="body">
Absorption numbers in FY2012 are estimated to have dropped more than 60
per cent from its 2007 heydays and 35 per cent from FY2011, to an
estimated 45,000 units. This steep drop in absorption levels should have
resulted in a similar correction in prices. </div>
<div class="body">
<br /></div>
</div>shaileshhttp://www.blogger.com/profile/14407031960831830463noreply@blogger.com294tag:blogger.com,1999:blog-19740856.post-85967865784940117592012-07-01T19:45:00.000-07:002012-07-01T19:45:25.699-07:00FSI for slum schemes hiked to 4 from 2.5<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
Times of India has the scoop on all this. More good news for builders as they get to build more floors. Bad news for prices as supply increases. Anybody care to comment on the fact that increasing FSI will cause prices to increase ?<br />
<br />
MUMBAI: The state government has formally increased the floor space index (FSI) for slum rehabilitation projects from 2.5 to a maximum of 4.<br />
<br />
The state urban development department issued a notification on Friday after it got an approval from chief minister Prithviraj Chavan, who also heads the department.<br />
<br />
As per the notification, projects involving all high-density slums-those having over 650 tenements per hectare-are entitled to an FSI of 4, whereas those with lower tenement density are entitled to 3.<br />
<br />
Senior officials from the urban development department said that the notification highlights that all procedural formalities concerning the higher FSI move are now complete.<br />
<br />
After the move to increase size of each rehabilitation tenement for slum dwellers from 225 sq ft to 269 sq ft in 2009, slum redevelopment projects were allowed higher FSI.<br />
<br />
A notification under section 154 of the Maharashtra Regional and Town Planning Act ( MRTP), 1966, was issued at that time to allow it to implement the provision pending completion of procedural formalities, including invitation of suggestions and objections from citizens.<br />
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These procedural formalities have now been completed and a formal notification issued, a senior state official said.<br />
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FSI is a development tool that determines the extent of construction permitted on a plot. It is a ratio of permissible built-up to the total area of the plot. A higher FSI would allow developers additional construction on slum land.<br />
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