well the reality prices were going up mainly in IT cities due to high saalries.the builder/landmafias/politiciencs made sure they cost 30-40 lacs.. people like me could not even dream of buying a small flat..hope the real estate market falls drastically my best wishes...
RE:well thats a great news....hope it happens
by Ram Krish on Aug 01, 2008 12:00 AM Permalink
Pointing finger at IT is a favorite passtime. But it is fraught with danger.
I have been in the IT industry for last 23 years! When I came into it, Infosys had a turnover of Rs 30 lakhs per annum (yes!!!) and their corporate office was a 20' by 20' house in Jaynagar 4th T block (and - keep this a secret - some of their directors used to ride scooters to work, just like all of us :). They worked hard, took risks, made wise decisions and see where they have reached. But they have cashed out and not many at their level in this business sees the same future from here onwards.
Not only IT, but its been exports that have led to this (seemingly) HUGE buildup of wealth. But people are making a BIG MISTAKE when they assume that this same kind of prosperity will last for next 20 - 30 years. The IBMs and Oracles are taking over the business and from now on the pressure will be on - to squeeze more and more and pay less and less. If you complain, your job will be outsourced to Vietnam or somewhere.
Anyone who is foolish enough to take on unbearable DEBT at high interest rates for long periods on the belief that he/she will have ever-increasing pay packets and ever-decreasing expenses is heading for sure disaster.
Wait for 50% fall in RE prices (from their 2007 peak). Wait for builders to do closing-down, clearance sale. Meanwhile save as much as you can and increase down payment to maximum. ONLY then can you feel safe and not like a Debt-slave.
RE:well thats a great news....hope it happens
by anil raut on Aug 16, 2008 08:20 AM Permalink
Completely agree with Ram who has seen rise and bom period! Young IT guys should take this as lesson learned...US and UK companies are not outsourcing because of India great culture but for cost factor ..and the moment they see better cost factor in any other countries (which is happening)..they will start outsourcing to new places...keep in mind we ave very few work which independant....we in fact support other economies in return get paid in dollars which due to its conversion factor get benifited quite marginally......this is not long lasting...
In the mean time...adjust in small rented apts , sae as much as possible (minimise multiplex and mall culture) by the time even builders will realise thier true value...and then you can buy with less loan liability.
RE:well thats a great news....hope it happens
by Allen on Jul 29, 2008 04:27 PM Permalink
ajay.... i'm IT guy...but let me assure you that even though we are earning high salaries, we are not causing this surge for demand. How can salaried person spend 50-60% of his earning on EMI ???
RE:well thats a great news....hope it happens
by johnson dsouza on Jul 29, 2008 05:20 PM Permalink
Agreed with u...This is just a propaganda against those who earn higher salaries….there might be some cases where due to huge expansion of IT companies At a particular place property prices gone up in the expectation that the IT people will now jump in and start buying properties at any rate….but my dear friends that is not the case and can’t be sustained….real estate also need consistent buyer from all the sections and not one time buyer from IT sector….
RE:well thats a great news....hope it happens
by ajay on Jul 29, 2008 04:35 PM Permalink
its sad but true why do you think reality prices in places like Hyd Blre ,Pune have gone sky high..I am an IT guy myself but cant imagine paying rs 4500/- psf for a palce which is 20 kms away from main city..buildesr themselves have said that they are targeting IT people..Builders have stopped making 1bhk flats you will find all flats are 30 lac onwards..in place like pune 3k-4k was the highest rate one could hear but places which are close to IT parks (outside city limits) builders are quoting 4k -5k only because of IT industry..i am not trying to blame IT people here
RE:well thats a great news....hope it happens
by Vijay K on Jul 29, 2008 05:08 PM Permalink
I know for sure.. One Raheja Tower in Andheri which is made some 8-10 years back still has a few flats to be sold.... But the rates are very high.. (Proves that Real estste prices are not calculated using Demand and Supply). Raheja does not care a damn about anyone he wants to make huge n more huge and still majestic bunglows for himself.. but will not come down even a single rupee on the PSF rates.
RE:well thats a great news....hope it happens
by Lavin Mansukhani on Jul 29, 2008 04:57 PM Permalink
The real estate prices in places like Pune have been propelled mainly by the IT industry. However, the prices have now spiralled out of control and even the IT people are finding the rates unaffordable.
RE:RE:well thats a great news....hope it happens
by Vijay K on Jul 29, 2008 05:14 PM Permalink
Yes..!!! Builders just want to create a environment where is looks like.. wjhat ever they build even before they build it.. is all sold out.. at huge rates... so that ppl buy in Panic.
RE:well thats a great news....hope it happens
by johnson dsouza on Jul 29, 2008 03:57 PM Permalink
Even IT people can't afford to buy an house in Metros like Mumbai at today’s rate...I just can’t imagine to go for 50 Lacs bank loan to buy an house where I can live with my wife and parents….some days back I read one property on sale advertisement in news paper….It was a 850 sq ft flat at Borivali and the owner was expecting 70 Lakhs….I could not just digest it…..
