Here we go again. Its start of the hype season for the builders and they are sparing no effort. Here is an article on rediff.com on such outlandish super luxury apts. There is no mention on who the buyers are, what is their profession, are they using banks to finance loans or how much black money is used to finance these homes. All the hype is meant to persuade the middle class buyer so they can jump back into the market and take loans to buy apts in far flung suburbs. Who the hell cares if there are 1000 people in Mumbai who buy apts priced over 10 crores. Most readers of rediff hardly make a fraction of that. What are these moronic idiots trying to present to the reader ? There could be 10,000 people in a city of 20 million who can afford these apts, what about the 19.999 million people who living in Slumbai ? If you agree with me just post a comment in this section. I will then point this to rediff and let them know that we are not stupid.
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47 comments:
Vik,
Maybe the builders are trying to tap the market for expensive buyers like Bollywood guys and a lot of Dalal Street Financial heroes.
I think most people in that 10,000 live for show off and would buy into it to boast that they bought a 10 cr flat.
The builders are not answerable to the public but to the stock market. They have to make profits and they will.
As regards to masses, it is the job of the Govt. to make sure that Govt. is for the people, of the people and by the people and not to cater to interests of the builders and bankers.
I think enough is enough for the current Govt. and they should stop the massive stimulus for builders and banks. And they should start caring for the masses. Or the Govts go down. People of India should unite.
Let us see when the bubble bursts or else it will be time to move to slums
Vishal
There is another huge cultural issue in Asian cultures. Something about pride of ownership and keeping up with the "Jones"es . No attention is paid to the leverage aspect or the negative equity aspect that can arise. Unfortunately a sucker is born every minute to get ensnared in the vicious cycle of debt.
I dont think pointing out to rediff is going to make a difference.
There is a competition among the journalists who are considered posh if they cover something on luxury and the others ordinary if they cover everyday news. There certainly is professional insecurity among the journalists who would like to hold up their pretentious self and pretend to be something they are not. After all for whatever they seem to profess, they are still masses.
Housing is doomed.
Now IT should face more difficult times since RBI has decided to let rupee appreciate to control the coming inflation.
It will be fun to watch the plight of IT companies and the young generation it help fostered.
K.Gokul
@ Gokul 5:14 AM..
thank you for posting your thoughts..this helped finding one more reason for such trash articles..!!! ( most of the times they are in TOI - Toilet Paper of India)..
This blog is full of wishers and speak things which are far away from truth. We all know that property will fall, but when will it, appreciate 100% from here and then fall 20, 30 or 40%?
We dont know and i am sure no one knows about this so lets keep wishing!!
Following is the most shocking statement from Deepak Parekhs' interview...!!!
Developers have also resorted to a new format of sales—they take 100% upfront from the customer on booking. The customer is offered some discounts, but no commitment is provided on delivery timelines. Builders take money from customers to fund the approval process and construction without any work being commenced at the project site. In many cases, their development plans are not approved. Customers buy such projects and get finance from banks and HFCs.
So there is no commitment on the delivery of the project, no work at the site, no approval for the development plan and the customer pay 100% upfront and it is financed from HFCs.. Who are these customers who pay 100% price ? It is not surely hard earned money..
Anon @ 7:38 AM
AKA Sandaas Bhai!!
I suppose the only purpose of your post is to create doubt in the mind of genuine buyers.
But what if the market goes up by only 10, 20% enough to entice people who succumb to your stupid snake oil talk and then falls 70%?
Market is already at Peak..so much that people cannot think of buying any more..if it goes up 100% from here it does not make any difference does it? It might as well go up 1000%...No one is buying. So what's the use the builders might as well hype the price as much as they can. It will make the buyer more revolted and therefore people will stop entertaining the thought of buying at all...At which time the builders will have to exit at whatever price they can find :))
You might tell me to keep dreaming..but this is not a dream this is reality. Prices have peaked.
The Housing Tsunami’s Second Wave
Richard Benson ,Benson's Economic & Market Trends
September 16, 2009
Seems people here are jealous of a few people who can afford multi-crore apartments. Get over it. There are plenty of rich people in mumbai and getting richer. Even as a NRI, I know more than hundre people in mumbai worth 100 crores or more.
Either figure our a way to make more money or just move on, what is this old socialist mindset. No one owes you anything, not the goverment, not the media, not the stock market, nobody.
@Anon 5:36 PM
Even as a NRI, I know more than hundred people in mumbai worth 100 crores or more.
I assume that you are an USA NRI then you must be begging to the US government to bail out with the crutches of Medicare, Medicaid, reducing the tuition fee, health care cost and monthly payments of alphabet soup of insurances i.e. Auto, Student Loan, and Medical...we hope you are not "Underwater" house owner.. If yes then please go to Mumbai and earn crores of rupees
No one is jealous of anybody. If someone can afford it, more power to them. However what purpose is served by posting articles on rediff when 99.99% of readers cannot afford to buy at these obnoxious prices. It serves no purpose
Anon at 5:36:
Be realistic you idiot. You won't be able to earn the money you are saying even if you sell your dirty soul in Mumbai. This is not about capitalism or socialism. This is about sanity and democracy.
Some of these pictures are not the mumbai flats. Look at the window in 4th picture.
Morons of the world unite...we have nothing to lose but our stupidity (?) and our savings...
Sensex is going back to 8000. Looks like the stimulus party is over. And the Govt. of India will have to raise rates due to massive inflation in India. RE will go back to 1999 prices. A lost decade.
Anon :10:40
Aka Chawl Kumar
You are stuck with sandas,beyond this you cannot think, i guess past and the present is always haunting you. :-)
Grow up Guys!!
Deepak parekh: In my 32 years of career I have seen only two crash in Inida for RE.
Source: DNA dt 28th Sep 09.
Either listen to Chawl guys/failures or poor guys or leverage your future potential and buy a house.
HA HA HA
I am loving it.
Jai Ho!!
Bindas Bhai
Lets see who has the last laugh...........
Government should collect proper income taxes from these builders.
Since they are making 100-300% profit, and getting so many deals, the developers should pay income taxes properly to the Government and also not try restructure their loans any more.
Another crap from Toilet group on ET - probably no need to read even article but worth reading the comments by users. Anyone one agreeing with this fake write? Guys this seems too much but builders are trying to use their last chance in midst of festive season and they don't want to take chance. They are also eager to bank on over stretched Stock. Enjoy the joke of the day :)
Residential property prices rise 15%
How about rediff write an article about low and middle income housing. Well they cannot..because those homes are priced way above those peoples incomes. No wonder they resort to this sort of publicity for unscrupulous builders and realtors whose sole aim is to tie up the middle class with loans to be repaid for decades to come....
Right time to buy your house
Journalistic ethics my foot. Where is analysis? Only quotes from builders.
So now Rediff gets different opinion,
Housing prices may go down
Global property consultancy firm, Knight Frank India, has said that prices in the residential property segment are likely to decline in a short time.
"We feel prices of residential segment may go down over a period of time," Knight Frank India's chairman, Pranay Vakil, said.
The residential segment may see a robust demand in certain markets, he said, adding that it was also a good time for property developers to invest in land.
Demand for real estate at this stage is a combination of investor-led demand and end-user demand. While investor demand is due to shift in money from equity markets, end-user demand is due to increased consumer confidence and pent-up unmet demand from the recession period. This leads to a rapid increase in demand for real estate and a corresponding increase in property prices, he said.
Today, property buyers are worried that prices may go down further after they purchase the property and projects may not be completed on time, Vakil said.
Knight Frank launched a book titled Real Investment -- a real estate investment guide for India. The book seeks to lend a helping hand by covering all the information that one may require while investing in real estate.
The book compiles the perspectives of real estate industry experts to help deepen knowledge about real estate and consider it as an asset class.
Commenting on the book launch, Vakil said, as property advisors, we continuously work with some of the best minds in the sector. We felt the need for a single credible source of information for which we brought together the best minds in the business.
This book makes the seemingly daunting task of delving into the real estate market simpler by offering tips on how to make real estate a lucrative investment option."
If you have not figured it out yet, USA plans to devalue the dollar thus making it's asset prices go up. The Chinese will have no choice but to buy tangible assets in USA. Cash will be trash.
Just check the amount of money sitting on the sidelines.
otho, people in mumbai are hoping the market will crash so they can swoop in and buy up flats and stock at cheap prices. Maybe it will happen, maybe not. If India follows a similar model, rupee will be trash too.
Calling names makes no sense.
U.S. "Shadow Inventory" Crosses 7 million houses. With real estate developers going gung-ho again in India, and rising RE prices, it might be cheaper to invest in the US rather than locally - and there you get much better than the 2-3% rental yields you get here.
But the situation in India is not as good as they make it out to be. It's highly non-transparent, very broker-cartel controlled and there's a looming hungama about Diwali. Prices going up? DLF's latest offering in Capital Greens "Phase 2" Delhi, at 7,500 a square foot was lapped up, they say. And yet, you see online ads of sellers in Phase 1 - to be ready much earlier than phase 2 - at 5,500. Been tracking real estate prices in Gurgaon, Navi Mumbai and Bangalore - rates are NOT going up.
India's Credit Growth, as of Sep 11, is less than 14% - the lowest in the recent three years or so.
http://www.dsnews.com/articles/new-housing-crash-looms-as-shadow-inventory-climbs-past-7-million-analysts-2009-09-25
http://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=21418
Kannan
India may see Zimbabwe style economics if the Govt. is not able to control the inflation that is on their head. Rupee will definitely be trashed.
As far as USD is concerned, it will be okay. It may go down by 15% or so, but so would other world correncies. But Inflation is going to kill a lot of Indians.
Credit growth rate of 14% is quite OK when interest rate is around 8%. Don't count on bubble bursting folks.
Hi New vashi Hunter here...
Ready to buy OUTRIGHT - 47 L - All WHITE
Need - 3 BHK!
Area - Sanpada,Palm Beach, Vashi
Need CLEAN ,CIDKO TITLE CLEAR HOMES!!!
Or pls mail your offers!
mumbai10000@gmail.com
Brokers welcome! Can give 2% Commission if get 3 BHK @ 47 L
It may be for a few and not for the masses, but the fact is there is a non-trivial number of the super rich in India. They don't know what to do with the money they make, it just keeps pouring in. Most of these are sons, nephews, damaads of politicians and highly placed bureaucrats who unfortunately have no choice but to be rich. Every ITO, IT commissioner, excise officer, sales tax officer, service tax officer, IAS officer is a multi-multi-crorepati. The netas and their underlings, the MLAs, the hundreds of ministers of state, make such huge amounts of money that there is clearly a market for this stuff.
This population is actually quite large. Not just a handful, but tens of thousands. Now put yourself in their shoes. This money just keeps pouring in. The government is getting bigger as the economy grows, there is so much f**ing money that is just coming in the door that these guys are out of their wits on how to use it. You can't even spend it fast enough. No vacation is expensive enough, no number of servants, and no number of expensive cars can consume this money.
So wake up and smell the coffee. You missed the boat. Your dad was the school teacher, the private sector employee, the doctor, the engineer at the steel plant, and you are following the same path of losers. Which is why you are ranting here (me included, so take no offence).
Remember Pramod Mahajan? (may his soul rest in peace). His son, who was a drug addict and got into all sorts of trouble, used to spend over 1 lakh rupees a day. And still it wasn't enough to spend anything that his father brought in.
Look, we can complain, whine, whatever, but there is so much money that these folks have that you and I cannot imagine. So one NRI friend of mine called up one of these new apartment builders to ask about prices for an upcoming project - the guy on the phone asked him - sir, you are in the US? Yes. You work in IT? Yes. Sir yeh aapke liye nahin hain. What? Sir main bol raha hoon yeh aapke liye nahin hain. Bye. Click. This is how the conversation went. Had he said he is the bhatija of the joint secretary to the minister of state in the Jharkhand state government, that would have done it.
Anyway, enough said. I have been hearing of this bubble popping since 2002, but every year is better than the one before. I guess we need to wake up to the reality and try to buy a jhuggi before even that becomes unaffordable.
Anon @ 3:24 Was there a property bubble in 2002?
No one really knows how this will play out. Could be inflation, deflation or hyperinflation. Diversify your allocations, some in RE, some in stocks, some in cash, some overseas. That is the only way to protect yourself. Betting which way any of these markets will go is a fool's game, nobody knows.
Have a dual-income family, minimize your risk and invest with an aggressive restraint.
Anyone who tells you market will crash or go up 50% is just wishful thinking. Did they tell you where the market was going 5 years ago?
Finally, blaming builders, media, politicians, rich people, stocks market etc etc is downright stupid. If you don't have the balls that they do, then get out of the game, you should not be in mumbai.
NRI again.
Dear Sandaas Bhai,
Actually, whenever I read your comments here, which really stink, that's the time I think of Sandaas. Otherwise the world is good...
Tell me one thing - when I say Sandaas Bhai...how do you know I am talking about you? :)
See in this section itself -
1> There's a joker who calls himself Vashi Hunter ...all signs point to the fact that this person is nothing but Sandaas bhai trying to pass a message that someone is desperately trying to buy a house in Vashi for 47 lacs plus and even ready to give brokers 2%..which is a way to indirectly influence fence sitters to also think of buying...pure sandaas behavior by "bhai"...
2> Just below that there is another "anon" sandaas comment who is trying to influence US based NRI's..that they are pathetic and there are just too many super rich in India...guess then all us poor NRI's should not think of buying a house in India but just buy houses here in the US.
3> IN previous posts you have posted as anonymous praising your own (Sandaas)...Oh!! Sandaas Bhai has crores of rupees, but the saint that he is...he comes and posts his observations so that us mortal souls will find moksha...
4> You have posted pure Sandaas comments on some intelligent posters here in an attempt to make them go away...So people like Observer, Vulture, Bharat and then Shailesh..
What do you think everyone is literally a moron? Just because Vik is saying moron's of the world unite, does not mean you should assume that we are from alibaug and you can do all these stunts.
No wonder whenever I see your comments here, I think - here he goes again more smelly sandaas...
You may well laugh...but its a pity we will not get to see you cry...because cry you will and that too not very far in the future...Meanwhile, you can post as much sandaas as you want...after all we are all Indians who are used to stepping over and around sandaas when we walk on the road.
Anon @3:24
You are basically an idiot. Do you think that if people will not be able to afford even a Jhugii, the country would survive and those enjoying all the black money would rest in peace. That is when there would be a massive civil unrest.
Govt. of India is now trying to control inflation and interest rates will go up in a month or so.
RE has to go down by 60% and Govt. is trying a slow fall in prices rather a crash. The party is long OVER in India. It is payback time in the next 3-4 years.
Dear Chawl Kumar,
You have gone Crazy for not having brought a house. I am loving your frustration and the same is visible in your posts.
Keep walking across sandas and thats what guys like you deserve. HA HA HA I am just loving this!!!! :)
We will see you who will have the last laugh. Let me tell you that if you keep saying it is 10:00 Am does not mean it is 10:00 Am yes, but in 24hrs 10:00 Am will come so keep predicting and some day you will be right. Why dont you buy at TATA's affordable project in Boisar maybe you will find some of your existing neighbours.
Mr. Chawl Kumar All the best for your dreams. What a pity, slum guy cannot see the sales happening and the prices going up!!!
HA HA HA . I am just loving it.
Guys this post is purely personal post and directed at Mr. Chawl Kumar and not meant for guys who are wanting to buy homes!!
Bindas Bhai
Bindas - Your example of Pramod and Rahul are nothing but dog shit.
You can all the stories about black money etc. Do you really think RE builder can buy land at this price and keep selling apartments for next 5-6 years.
What RE morons know is just increasing the price every month.It cannot work that way anywhere in the world for any consumer products.
If you strongly believe; the price will go up another 100% in two years.Its a lethal cancer; will kill the industry.No business, enterprises can make money with high RE costs.You will not find a buyer or renter for the super bubble speculations.If you guys like to retain the price; go ahead and do it.
Price quoted by RE shill doesn't matter to anyone in this forum; they can quote any bull shit price; it is no. of trasactions by end consumers matter.
I am loving it too!
Kannan
Kannan
agreed.
If a product is not able to get sold at Rs. X, then all further price hikes X++ are futile. In fact, they will put more losses down the road due to delay in sales and inventory.
http://www.blog.happionaire.com/2009/09/real-estate-prices-to-crash-70-across.html
Price to crash 70% in India. Enjoy!
Shut up. This is wrong news crap article - what the hell does this "Yogesh Chabria" Happionaire Man know about real esate? Who is he to say prices of real esate will crash 70%?
Just bull shit!!! All beggars here.
Binda Bhai rocks...prices to shoot up - buy or suffer loser now.
ha ha. Desperation of boomers is showing off now.
It is true that RE players are running into losses now. They are surviving mostly because they have rolled over their debts for some time. But they can not do this infinitely. At somepoint theyhave to payback.
This is the point wehere the big crash in india is coming since inventory is huge and supply is multi-fold than actual demand from end user. Everything in between are just investors and agents who have hoarded the flats.
Well, what Yogesh CHabbria is saying is what a lot of people have been saying on this blog for quite sometime.
The crash would have happened by now if the Govt. was not copying US policies or Keynesian economics theory of lowering rates and providing massive stimulus.
Well, the party has to get over and how long can the Govt. keep on supporting these abuses from tax payers money and loans from IMF/World Bank. I wonder the Govt. may not even have enough money to pay the hikes it gave under new pay commission to the Govt. employees and may have to roll back raises when the real recession hits Indians.
And this is going to be so severe, India will take at least 7-8 years to come out of it. All the greed will come home to roost.
This whole country is a sham.The genuine foreign investors have realised this and the shocked ones who were here to to clean business have shut shop and left.The only ones here are branded as FII's whereas in reality they are nothing but bogus companies operating out of tax havens like mauritius and Singapore and cyprus.They are financed by the hawala money of indian businessmen and politicians.To cut the long story short,the common(naieve)people in India are living in a different world.If the truth actually came out..they would be shocked into a never ending coma.Like the judge of the supreme court who remarked recently that "even if god came down to help india,he would leave a failiure".Enough said.Wake up.
Anon above:
You are hilarious..the God comment.
Indians are definitely a denial mode. And it would take a real downturn for them to realize the truth. Anyway, time will take care of it. Moreover, a lot of these Wall Street gamblers have put billions of dollars in Dalal Street and when they withdraw, the Sensex will fall by thousands of points on each transaction due to the volume they deal in.
You guys stop wrangling. People who want to buy to stay in, this is probably good time. The property developers in Pune have been in complete negotiation mode from March 2009. I have seen prices that were quoted 3600-4000 psf come down to 2600-2900. These same areas price was 2200-2300 in 2005-2006 and about 1200-1800 psf in 2003-04.
Anywhere in India, if you see the appreciation. This is a decent buy. There cannot be 70% correction from a rate like 2600 because the builder will then suffer loss. (Land price itself is about 1500 psf even in Rural areas).
To be honest look at a property in some area of your choice. In Suburban Pune-PCMC, Bangalore, Hyderabad, Chennai and NOIDA-Gurgaon, it makes sense to buy
1) if you are going to stay
2) Possession is ready-near Ready
3) Your down payment is good enough to not get you in a hole if you lose job
I honestly suggest to compare the rates in 2003-04 2005-06 and 2009-early 2010 and make your decision.
AFAIK in most of NW Suburbs and SE suburbs of Pune, most of Navi Mumbai rates have eased. People should also look into second sale homes.
After 6th pay commission Govt employees have minimum 4 lakh pa payment. So they will start buying as their jobs are fixed. so people who can afford and are waiting to buy and can stay should go for any good deal now.
-------------WARNING --------
All this doesnot apply to Mumbai though.
Mumbai is more like New York where the financial markets dictate the real estate value. Unless ordained by your job, I dont see any value in purchasing a house in Mumbai. BEnfits of oversupply dont reach the end user until the rentals come down. Rent comes down when there is lack of people coming in. Mumbai has already heavy surplus of Slumbai-ers who will move up the moment rents are negotiated. This discourages owners to sell. Think abt it.
My 2 cents.
Hi
Vashi Hunter Here
Looking at 2 to 3 BHK in sanpada and palm beach
Can arrange 47 lack white in 1 go ( No bank loan) but NO Black
Can pay 2% Commission to agents
Need all title clear flat,cidco tender plao built...already rejected Moraj Residency
No Ground floor NEED 1 parking ( 2 Preferred)
Sellers Dealers welcome..
Mail - mumbai10000@gmal.com
PS - The person who abused me and called Bindaas Bhai -can he please mail his co-ordinates to me? I am a real searcher and want to meet the person
AEveryone is Anonymous but want to meet him in p;erson and settle the score.
Hello,
I wanted to buy a house to stay in in Suburbs beyond Andheri but before Dahisar
I wanted a good hospital nearby
I wanted a good school nearby
I wanted a college hospital nearby
I wanted a medical/Engineering college nearby
But there are none beyond Andheri
And still builders are asking for 1.25 cr for flats
Bull shit
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