Fools rush in where angels fear to tread. If I had bought in Mumbai in before 2006, I would just sell it and sit on the money. The profits are just too good to be true.
Beneteau yacht for a crore, but not a flat
Anil Singh | TNN
Mumbai: A brand new fourseater Cessna 172 aircraft,a new Beneteau 35-footer coastal cruiser yacht that can comfortably carry a family of six to Goa, three Mercedes ‘C’ class saloons; each of these can be had for one crore rupees. But raised eyebrows and blank stares is all you will get at the ongoing property expo at Bandra-Kurla Complex if you ask what you can get for this sum. “Please pick up the rate charts from that corner,’’ sales executives at several counters told this correspondent disinterestedly on learning that the budget was a mere Rs 1 crore. It was as if a slum dweller had strayed into a mall.
Nonetheless, if one is willing to visit every stall in the 14,000 sq ft air-conditioned hall put up by the Maharashtra Chamber of Housing Industry (MCHI), one can find apartments costing less than one crore in the municipal limits of Mumbai. Only that they may be in under-construction,standalone buildings on the outskirts of the city or in rundown localities. For instance, a 2BHK flat at Bhandup by Neptune builders measuring 1,000 sq ft (carpet area 700 sq ft) comes for Rs 67 lakhs. The 30-storey building, Flying Kite towers, behind Metro mall, is still under construction.
The more affordable options include a 2BHK flat at Mantri Park, Goregaon (E), off Film City road for Rs 70 lakh. A 1,160 sq ft 2BHK flat at Gundecha Altura, Kanjurmarg (W), LBS Marg, is going for Rs 76.5 lakhs. HDIL is selling 1BHK and 2 BHK flats at Galaxy Apts at Kurla East at 5,251 per sq ft. A 1,035 sq ft, 2BHK flat at ‘US Open’ by Nirmal Lifestyle at Mulund (W) will cost you Rs 85 lakh at Rs 6,552 per sq ft if you are willing to wait four years for possession.
According to builders specialising in SRA projects, it is possible to get an 800-sq ft carpet area flat for Rs 80 lakhs in Andheri. MHADA recently sold 2BHK flats with a carpet area of 700 sq ft at Versova for Rs 42.5 lakhs. However, at the MCHI expo, most of the 2BHK flats are tantalising out of reach if your budget is Rs 1 crore. For instance, a 2BHK at Ackruti Shikhar at Parsi Panchayat Road, Andheri (E), will cost you Rs 1.3 cr at Rs 12,500 per sq ft. A 2BHK flat with a carpet area of 775 sq ft at Kohinoor City, which has replaced the Premier auto works at Kurla, comes at Rs 1.18 cr. A 2BHK at Kalpataru Aura at LBS Marg, Ghatkopar, comes for 1.1 cr. Flats at HDIL’s Metropolitan at Andheri are being sold at Rs 11,500 per sq ft and a 2BHK with a carpet area of 765 sq ft costs Rs 1.31 cr. At Ajmera Pristine, Yogi Nagar, Eksar Road, Borivli (W), a 3BHK with an area of 1,595 sq ft can be had for Rs 1.43 cr.
Of course, all these flats come with amenities such as a swimming pool, a gym, a clubhouse, multi-level car parking and the like. But then, it would be much cheaper to live in a trailer, or for that matter in a Beneteau cruiser yacht bobbing on the waves.
23 comments:
I've heard about the expo, but not been there as I know that everything there is beyond my reach. Few people who visited told me that there are people who are buying for the price quoted by the builders. No one knows whether these buyers are genuine or builders agents putting up some show. Whatever the case may be, this is nothing but lavish/vulgar display of wealth. At this rate, persons like me can not even posses a home even in my dreams.
My frustration is so much that I haven even sympathizing with the naxals who massacred few dozen government forces. They deserved to be killed for working for such a corrupt government whose only function is to serve the corporate world and the rich.
I just now called up a renowned builder in Pune. They have scheme at Kothrud (actually Karve nagar but as Kothrud is better locality, to get better rate they say it is in Kothrud) They are quoting rs 6000 psf and have 3 bhk apts, with salable area arond 1450, 1500 the overall cost goes to 94-96L. Almost 1 crore isn't it?
Wow I never though 1 crore is so cheap.
But the interesting thing is this builder used to boast all the flats sold on the day of the launch for almost all his previous schemes. But this and some other schemes which are currently going on have flats available.
Anon 6:53 AM
I share your frustration. Don't worry you are not alone, I am also with you. I too cannot afford to buy at these rates.
But rather than getting frustrated, which may lead you to take a wrong decision, I urge you to be patient. The world is not going to end if you don't have a flat for next 4-5 years. Instead think you have bought a flat and save all the money (EMI-current Rent) in an instrument based on your risk profile. Even if the flat rates don't go down atleast you have large money for downpayment.
What you think?
Frustrated Sir,
Who elected this government. It is you , me and others like us. Didn't we celebrate the opening up of the economy. Aren't we proud that Mercedez, BMW, Rolce Royce are running on our roads. Indians have bought more IPhones than the entire eu countries.
Now, how can some of us afford these things. Simple answer. They are more clever and they can convince us to be conned. You and me may shout at the top of our voices but no one is going to listen to us. So, stop complaining and start supporting the leftist groups. At least they fight for a common cause.
When everybody was poor, we were all happy. Now, you dont have a roof on your head whereas your colleagues may be driving BMWs. They have bigger brains than the chutiya like you. Don't blame them. blame yourself
This bubble theory is also floated by the builders to keep you subdued. Corrupt economies dont have bubbles.It is a way of life in such society s. The strong and most corrupt rule the roost. They want you to wait for the bubble to burst
Try finding some place in the suburbs that are still affordable. The more you wait, the sorrier you will be
1 Cr= $225000 at official exchange rate. Cost of average flat in Mumbai
India's GDP per capita $3000
Cost of similar flat in NewYork =$150,000 (of similar quality as that of Mumbai.
US GDP per capita is $47000
A flat in Mumbai costs almost one and half times than that in NewYork.
Those of you who talk about global village and economies are interlinked, please try to find a answer to this phenomenon
Kalpataru Aura Ghatkopar - Possession to be given June 2009 delayed for a year. Now, they want a BIG AMT to provide Water (of course tanker) with the possession of the flat Later seeing the consumption... Water charges increases further - IS THIS FAIR ???
Kalpataru Aura Ghatkopar flats are priced from 9500-11000 sq ft. Average price of a flat is more than 1 cr. Is it worth living in a place like this without proper water supply ?
Consumerism in India will rise but RE will fall.
I am with the other comment on "not complaining about the situation".
I dont understand this need to own a house. If you invest in stocks/mfs, your returns are much better. Rent the same place for much lesser. Also keeping prices very high helps the same crooks to find renters. Because when we "smart" people look at the price ( and compare it with per capita income in the US :) ), we decide to rent at 1/3rd the mortgage amount. But the guy collecting the rent is thrilled to have a steady cash flow. And they know that you will not default. So they win whichever way in India. Either you buy at a ridiculous price or you pay rent. The buyer has managed to convert his black to white money. India is always short on supply and high on demand when it comes to real estate. So cant do much about this price increase unless infra catches up. BTW, if you can, think about investing in a property in the US ( an apartment or a condo ). Anything that is down has to come up sometime. The US is still the top dog in the world and will be for a long time.
Countries with higher debt-to-GDP than Portugal (84%):
Belgium 101%
France 84.5%
Hungary 85%
Italy 123%
(aside from the obvious Japan, Iceland, USA)
Anonymous 8:58
Can you make connection between your data and our real estate scenario
Please don't cut and paste from economic times
Anon above:
The connection is that India is also sitting on massive debt and even the Govt. salaries are being paid out of borrowed money. The Indian Govt. needs money so bad that ownership of PSUs are also being sold.
So, India could be next Greece or Italy if the spending is not curtailed and borrowings are not reduced.
India's Dept to GDP Ratio currently stands at slightly more than 80%.
WHereas all the countries failing in EU also has it around 80-90%.
That is the connection. And India has to keep borrowing to feed. So the debt keeps growing up and a Greece/Dubai like situation could be possible.
@Anonymous 5:14
Point taken.
There is massive amount of black money floating around. Govt/Police/Judiciary/Corporate managers are loaded with cash. If you happen to visit one of the girly bars in western suburbs, you will witness these people showering the dancing prostitutes with wads of 500 rs notes like dirt. These customers happen to be gangsters, police, and sundry government/corporate officials.
Other countries may be facing debt problems but the debt is due to their overspending on development projects. In India, the case is different. Therefore, I feel that putting India in like the EU, American countries isn't right.
India can surpass US economy in three decades: Economist
http://www.dnaindia.com/money/report_india-can-surpass-us-economy-in-three-decades-economist_1370781
Good news. Do not worry. Soon our woes will go away. It is high time to book your BMWs/Merc/Jaguars to get priority . We may have to put up with huts for the time being, but soon we will be enjoying our mansions
Jai Hind
Anon @5:34
If EU countries are not doing well, it doesn't mean people their don't have money. These countries also have rich people who are paying $10K for a trip to a club.
There are thieves all over, unethical and immoral people all over.
But what I'm talking about is the Govt. debt. It has nothing to do with what you are saying. Even today US is very wealthy. RE in US must have gone down by 50% in past 2-3 years but there are many many rich people here.
If you have heard about John Maynard Keynes, his theory was to decrease interest rates and spend in infrastructure to boost up economy. This is what the whole world is doing. India is not alone spending in infrastructure. On top of all this stimulus, all the world countries are printing massive amount of money which is giving rise to massive inflation coupled with very low interest rates.
But in one thing you are definitely right that India could be the most corrupt country in the world only next to Pakistan.
Land of thieves at all levels with very less moral ethics and greed to get money at whatever cost.
Property Prices are over inflated in mumbai south and western suburbs like bandra khar etc., Can you imagine you only get 600 sq.ft. flat for 2.5 caror and they shamelessly sell you as 1200 sq.ft. (thats $0.6 million as per today's exchange rate of rupee 43 against $1) thats $1000 for 1 sq.ft. its the twice the amount what you pay to live in new york.
And what you get after paying so much high price?, traffic jams, no water and pollution + dust.
I had no Idea mumbai people have suddenly became so rich.
on the other side I see prices are reasonable in Thane where you get 600 sq.ft. flat for 50-60 lakhs.
Jay
Times News Network
Suicide due to Home Loan
Pune: A 31-year-old man allegedly committed suicide by hanging himself from a ceiling fan at his residence in Indrayaninagar in Bhosari.
The incident came to light only on Wednesday morning.The Bhosari police have identified the deceased as Piyush,alias Kishore Muralidhar Mahajan,of Indrayaninagar,Bhosari.
The Bhosari police said that Mahajan had been disturbed ever since he had lost his job.
He was finding it difficult to pay the monthly instalments for the flat he had recently bought.
The police have recovered a suicide note which said he was committing suicide because no one was coming forward to help through his bad times, the police said.
- TNN
Lets see, where does one start:
1. INR 50-60k PSF in South Bombay
2. INR 35k PSF in Bandra
I could go on and on. Yes, its a huge bubble and you know what they say, there is always a bigger fool out there. So, let the fools buy their 2-15 crore flats.
Here's a novel solution: (1) buy a place 2 hours from Bombay, say near Pune (same square footage for 1/3 to 1/6 of the cost of Bandra and South Bombay), put the savings in a fixed deposit (2 crores gets you 10 lakhs/year after tax), and buy a car for 10 lakhs (an Innova) and commute (you can even afford a driver so you can relax in the car during the commute). Run the car for 3-5 years and then buy a new one. Sell the used Innova to a private taxi service for 2-3 lakhs.
In 5 years, you've saved 33 lakhs.
Anything can b done against investors buying all the flats in mumbai?
from past six month i have been trying to search 1 bhk with no luck in western suburbs, as prices goin high everyday for god knows what reason. and there is absolutely no availability of new 1bhk flats bcs they are already booked/bought by investors. Salaried people are suffering because there are no 1 bhk availability due to investors, and buying 2 bhk is just out of reach (budget). Even brokers don't entertain for 1 bhk anymore. within last 2 months prices have gone too high even to consider 2bhk. the resale flats owner are charging any rates. i was told 1 bhk flat at kandivali 60-70 lac, malad, 60-70 lac, and andheri too 60-70 lac. so even though one ay think it better to buy new property, but those eaten already by investors.. what should people like us do? I hv decides for now to stick to my rented flat. anyone faced the similar issue?
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