stinaikar

My friend who lives in a 3000 sq. ft home in Pali Hills, Juhu was thinking of buying it last year when the price was 12CR. Today, he says the owner is asking 15CR.

ashishi

You are right. Though by and large NRI's are selling RE and exiting and booking profit - but think about those NRI who transfered USD to India to get rate of 54. When their checks will get encashed they will get 48.50 rupees - the current rate

alok80

Even I never understood what caculation these highly educated reports do.

ashishi

RBI has again cautioned banks not to give more than 80% loan because RBI is increasingly viewing housing loans becoming riskier due to dicey real estate prices

RBI gives caution to banks on LTV ratio norms - Moneycontrol.com -

ashishi

RBI is worried about home loan default in case of massive price fall in the slowdown phase. This is the RBI way of cautioning banks not to take too much risk in housing loan exposure

amit001

Do you have any proof when you say- "by and large NRI are selling"? How and why are you making this statement.

Clearly you have no idea as how NRI remit money or pay for properties

TO book a property NRI either has to make online transfer or give a cheque in INR by NRE/NRO account and in both the cases if any NRI has bought property at the rate of 54, their Dollar would have got converted into INR at that very moment at the rate of 54.

So people who booked at 54 are already sitting on 7% profit on the currency.

Please understand the mechanism of how NRI purchase properties. This will help you in making better analysis.

Best Regards
Amit

ashishi

When a USD check ( I was talking about check - or cheque - which ever way you understand best) is sent to India to be deposited in Indian bank, it takes times because the check travels back to US for clearance and when it finally arrives the amount is credited in INR on the EXCHANGE RATE OF THAT DAY.

amitgupta00

And the NRI who has bought at 49 is already at loss and with INR expected to weaken further ,will the NRI sell.
Everybody pls stop predicting the behaviour of NRI buying property.
What i have seen in IREF.

INR goes UP , NRI buys because india is growing.
INR goes down, NRI is buying because exchange rate is so attractive.

And nobody talks about NRI selling, why ?????

Since RE prices have risen 4-5 times in last 5-6 years ,does not mean we have to look only on the rosy things, but we should be able to look things in totality.

ashishi

Thanks Amit for agreeing with me. Ironically there is another amit -who wants a proof of NRI selling.
In short NRI are smart people and have seen property meltdown and are clever in booking profit. Since the middle of 2011 NRI's are selling and their selling will continue throughout 2012. The NRI may enter again when prices have significantly softened

amit001

Dear Ashishi,

Pls check

NRI can never book a property by paying a USD cheque.

Kabhi kisi project ka application form/BBA ko padh ke dekho

AN NRI can only book a property by paying a cheque in INR from NRE/NRO account or by making online payment/transfer. A developer can not accept payment in USD, it always receive payment in INR

Ab vo chahe NRE/NRO account ka cheque ho which is in INR

Ya online transfer - here also one remits USD and the funds received in India are in INR

You clearly has abolutely no idea of how NRI are allowed to buy property in India and you are still making statments?

Sir please get the basics right