It's all a game of earning more interest on loans sanctioned by creating inflationary situation, why are we always reactive in our approach, does the government sleep, no it does not, it's smart enough to be pretending to be asleep, whereas it's we who are sleeping,consider this, stock markets do not crash, they are brought down,first u get lured by high profits from the market,things look rosy, 9-10% growth story running in front of our eyes, then at the right moment when its observed that the market is overheated, all money starts pulling out, markets crash,in today's scenario of rising salaries of BABU's and pvt sector employee how far are you going to curb inflation by just raising interest rates,nothing significant is done to prevent hoarding of goods, which is manipulated and control of prices of essential commodities, its a magic trick, Waive off loans from farmers and reduce tax slab, People get happy, but no accountability of who's pocket the money is going to come, it's our money people, now pay it through rising interest on home loans, car loans, personal loans, we still don't understand the real game, loans are made available easily to trap u in the rising interest on loans and reduction in liquidity situation in banks, doesn't matter if u use credit responsibly or not..because neither u or me can fight with a bank if it refuses to give our own money,why COZ THE GOVERNMENT SAYS SO !
WHENEVER CONGRESS COMES, THE PROPERTY PRICES GO UP. WHENEVER CONGRESS GOES OUT OF POWER, PRICES FALL TO ABOUT ALMOST 50%.
THIS HAPPENED WHEN CONGRESS WAS IN POWER IN 1993 PERIOD, AND PRICES CRASHED BY 1999.
POST ELECTIONS, YOU CAN EXPECT PRICES TO COME DOWN DRASTICALLY OVER A PERIOD OF TIME.
INFACT I AM A BJP SUPPORTER AND WHEN I WAS DISCUSING WITH ANOTHER PASSING DRUNKARD, WHO WAS A PROPTERY DEALER, HE SAID THAT BJP SHOULD BE VOTED OUT BECAUSE IT IS DETRIMENTAL TO THEIR BUSINESS
RE:IF YOU HAVE NOTED
by ABC on Apr 07, 2008 06:33 PM Permalink
seems we are heading for big discount sale in property. most of the recent reports from reputed reseach houses and foreign banks revolve around real estate story. developers are facing high liquidity crunch which seems to be irreparable atleast for now.
i am not going to predict, price will happen by x% in x months. all i want to highlight over here is BE PREPARED for DOOM in Real Estate. Going by famous saying - All that goes up has to come down - and realty is no exception!!!
There are various instances sited wherein investors who suffered heavy losses in the recent market fall have either postponed their investment in realty or sold their investment in the same. Do you know! Share Market is always smart and discounts news in advance. Brush through the recent pages of stock mkt fall; which sector was worst affted ?- u gussed right - REALTY SECTOR. more 40% market capitalisation WASHED OUT from 31st dec 2007. Though it is difficult to conclude the property prices also follow similar pattern, one thing is certain, WE ARE HEADING FOR CORRECTIVE PHASE IN REALTY AHEAD.
Also in a resale flat bettre check wht the Transfer chrgs are? u get huge disc in per square feet but end paying same rate after adding trf chrgs. comments invited.
RE:RE:IF YOU HAVE NOTED
by ABC on Apr 07, 2008 06:34 PM Permalink
The inflation and the increasing credit crunch in the market has left the banks worried over the prospective rise in the number of loan defaulters. Industry experts feel that as the inflation is here to stay, the spending capacity of an individual will be affected to a large extent and this will force the borrowers to default on loan installments.
The apex bank (RBI) is likely to raise the repo rates and hike the CRR which, like last time, may result into more defaults.
RE:IF YOU HAVE NOTED
by ABC on Apr 07, 2008 06:36 PM Permalink
Do not enquire about prices now. Per square feet rates will go down by upto 35 percent in 6 months.
Fair value per square feet rates. Mira road 1600, Dahisar 2600, Borivali 3400, Kandivali 3700, Malad 4000, Goregaon 4400, Andheri 5500.
Logic is simple as has happened in USA. No one can afford paying up housing loans only for entire lives. If people earn Rs 5 lakhs per year at Andheri in Mumbai, the cost of 600 square feet house should not be more than 30 lakhs in Andheri. Right now, it will cost 50 lakhs with 30 lakhs white and 20 lakhs black money. till today builders are not reducing the rates
RE:IF YOU HAVE NOTED
by saif islam on Apr 07, 2008 10:56 PM Permalink
i dont think the logic of US sub-prime loan mess can be applied directly on the indian scenario. i agree that metro prices are way off their justified prices - but ppl with homeloans in india are not as likely to default as they never had the popular option of 'Refinance when the interest rates go up' as in the US. So we know that we have to hang on somehow. Also stated income loans are not that prevalent in india - you need solid documentation of income.
This means finally banks are forced to give loans on 'real' estate prices and not inflated, builder built prices. This is a good thing - in the short run, they will exert demand on rents and suffocate quite a few of us rent-payers. But over a year or two, prices should come down to realistic levels.
The govt can do better - put money into small towns and areas neighbouring cities - like NCR. That will reduce the pressure (but do it within the same states, not like NCR) and everybody can have decent houses in decent localities. Those going for luxuries can obviously pay for bigger, better houses.
The real estate prices are artificially held up by Builders in Nexus with the PRoperty brokers. I wish the RBI resorts to interest rate increase of atleast 1% to force the banks to hike the loan rates. This will be short term pain. But this will remove the air out of the property market somewhat. What is the basis of property prices at Kharghar crossing 4200 per square ft for a mediocre project. For a prospect of an airport coming up in sometime next decade. Even now the govt. if floundering. And I dont see this moving ahead considering elections are around the corner anyways. Progressive Builders at Belapur announced a project last month at 7500psf...and stated that it was 80% booked. Yet not more than 10 flats were taken! They expect real estate to touch 10000psf in 2009. I say where are the buyers and who are these stupid people who will buy this expensive property for no facilities whatsoever. I am shocked at this crap going on.
RE:Real Estate Prices
by Kaushik Das on Apr 07, 2008 05:26 PM Permalink
common lies by property dealers and builders: 1. they will talk of some amenity that is just rumoured to be announced. If it is announced, prices will increase again. once construction starts... again. Once amenity is built... again. 2. They claim that all flats are booked. basically, they do this to fool you into believing there is demand. If there are 80 flats, they will offer only 2 for a very high price. If you are fooled and 'pay the price', it will be easier to fool the next guy saying - hey, see - this guy bought it for so much. This is the reason that your greed and hurry makes a fool of not only you but the next guy as well.
Blame: 1. govt for not regulating the sector and opening it to black money. Strangely, PC does not have any way to control this black money while he taxed cash withdrawals at ATMs and senior citizens' medical policies. 2. The courts and 'honourable' judges - This industry is running on lies - yet, no cases on the buiilders and agents. Why? Because no one wants to wait 10-20 years to get the flat. Shame on you, judges.
RE:icici bank
by ABC on Apr 07, 2008 05:05 PM Permalink
seems we are heading for big discount sale in property. most of the recent reports from reputed reseach houses and foreign banks revolve around real estate story. developers are facing high liquidity crunch which seems to be irreparable atleast for now.
i am not going to predict, price will happen by x% in x months. all i want to highlight over here is BE PREPARED for DOOM in Real Estate. Going by famous saying - All that goes up has to come down - and realty is no exception!!!
There are various instances sited wherein investors who suffered heavy losses in the recent market fall have either postponed their investment in realty or sold their investment in the same. Do you know! Share Market is always smart and discounts news in advance. Brush through the recent pages of stock mkt fall; which sector was worst affted ?- u gussed right - REALTY SECTOR. more 40% market capitalisation WASHED OUT from 31st dec 2007. Though it is difficult to conclude the property prices also follow similar pattern, one thing is certain, WE ARE HEADING FOR CORRECTIVE PHASE IN REALTY AHEAD.
Also in a resale flat bettre check wht the Transfer chrgs are? u get huge disc in per square feet but end paying same rate after adding trf chrgs. comments invited.
I feel private banks like ICICI or HDFC are much better as compared to Public Sector Banks. I have taken a home loan from PNB. Though their interest rates are much lower, but following are the issues which will discourage me (atleast) for dealing with PNB again :
1. Pathetic paper-work and follow-up system 2. They sanction only 75% of the loan amount 3. Very high processing fees (1%) and documentation charges 4. Managers are poorly informed about the latest policies or circulars 5.Hidden charges are prevelant. 6.Processing or turn-around time is much higher.
I have had a very tough time with PNB. Swear, how can a bank be such a laggard when it comes to technology. Even though they have the interest rates lower still, they torture to such an extent that I feel private banks are much better.
Guys, better stay off from PNB. I think it should be re-named as Pathetic National Bank.
RE:Horrible experience with PNB
by ABC on Apr 07, 2008 04:06 PM Permalink
Do not enquire about prices now. Per square feet rates will go down by upto 35 percent in 6 months.
Fair value per square feet rates. Mira road 1600, Dahisar 2600, Borivali 3400, Kandivali 3700, Malad 4000, Goregaon 4400, Andheri 5500.
Logic is simple as has happened in USA. No one can afford paying up housing loans only for entire lives. If people earn Rs 5 lakhs per year at Andheri in Mumbai, the cost of 600 square feet house should not be more than 30 lakhs in Andheri. Right now, it will cost 50 lakhs with 30 lakhs white and 20 lakhs black money. till today builders are not reducing the rates
If the bank was such strict few months back, that would help keep the housing market at bay. Easy availability of laon is one of the main reasons of price going up.
