wiseman

Folks

Imagine!

1. One of the largest sectors in India.

2. Affects crores of people as it forms the largest single investment that most of us will make in our lifetime

And to think that there is no transparent and quick way for me to

a. Find out the market price for my RE property
b. Quickly buy or sell RE property at the market quoted rate
c. Ensure that my money comes in within a reasonable time and without extortionist charges of the brokers, middlemen and touts
d. Protect the investor from collapse of the builder, broker and others

Do you think that its now high time we did something to end this highly unregulated market where everything depends on what a broker quotes, where reliable information is practically non-existent and where most of what we know about a property is hearsay and rumor?

What would be my confidence level if I could anyday go to an online exchange and find out the realistic value of my property?

Imagine what it would be like if we had a well-traded, liquid RE Exchange which included all relevant participants like Banks (for loans, etc), Appraisers (to vouch for authenticity of information), Regulator and participants. What would it be like if I could buy / sell property and have the transfers done to/from my name and get the money in/out within, say even 1 week.

Your comments!!!

cheers

unlikely

hello guys,

A well-regulated real estate market will make a huge difference to the
way we transact business.However, it must be borne in mind that
a sizeable portion of real estate deals are in black.The rich and powerful in
our country will not allow business to be transparent as it will become all the
more difficult to hide their wealth.

It may be possible to ensure that persons purchasing real estate
provide their PAN numbers so that such transactions can be accounted for.That will put an end to benami deals.
Lets hope if there is an RE crash such regulations will be brought into force.
cheers,
unlikely

paul1970

Well regulated real estate market will drive out the speculators and investors . It is very good for the end users. Hence much apperication or gains cant be expected. The RE investment will be more or less equivalent to Banks savings depoistn with a decent returns. My simple thoughts!.

wiseman

If you remember, the Stock Market in the 80s and 90s had a system called the Badla System which was used to speculate (actually carry forward trades across settlements. It was not a good system, but, in the absence of any other option it worked. Then came our current Futures and Options system. And remember, the old Stock Markets had rampant black money in operation. Though there still is quite a bit in the system today, much of the system works on white.

So, nothing in this world is irreversible or unchangeable.

A well-regulated system can co-exist with a good speculative environment. In fact to have healthy speculation (an oxymoron since speculation itself is considered unhealthy ), good regulation is required so that people can confidentally transact trades.

So, back to my question. Why not a properly regulated system in RE. After all, there are millions of people, especially youngsters who are least interested in Black Money operations - In my opinion, its only the oldies who operated in the 70s to 90s who are continuing the "tradition" of black money. In fact, though I want to buy a house completely in white, who is able to oblige me? Where can I do such a deal in India today? I believe that, if the various hassles in owning a home is removed by proper regulation which protects the rights of the buyer, then it would be a small price to pay to do all the transactions in white and millions would be happy to do so.

cheers

unlikely

hi folks,

There is no doubt that all law-abiding citizens would welcome
regulation in the real estate sector.the question is not whether
it should be done but how it can be done.
it is not an easy task to determine the market value of a given
property as is seen by the difficulty experienced by the govt
while acquiring land for public purposes.
In addition to transactions largely taking place in black,an additional
problem is the misuse of Power of Attorney,which does not
even come under the radar of govt records.In recent times,
obtaining Power of Attorney has become the preferred instrument of
speculators in real estate.
Inspite of the above restrictions,regulation in RE is the only forward
if we are to improve the present state of affairs.
Would welcome inputs on this topic.
cheers
unlikely

Natarajg007

Wiseman I am willing to sell you land in prime localities in Chennai, 100% White. However if I go with you to the Registrar office he wont let you register it at that price. For example a land of mine in Saligramam might fetch me atleast Rs 6000psft, but the registrar will atbest allow me to take Rs 2000psft in white. The remaing Rs 4K is not black for you but for me the seller. Infact that is one main reason I am not able to get off my properties. After all if I could I will rather go and buy a house in USA!

unlikely

hello friends,

There is a proposal from the Kerala Govt to make it mandatory
for the sale agreement to be made a redistered document.
What this means is that the Govt records will start reflecting
the actual sale price of the land.what do u guys think about this move ?
regards
unlikely

ajithpkl

In my experience none of the reputed builders in Kerala take black money for their upcoming projets. Most of them quote the prices and all the details in their website including the landing cost. Chennai RE market is in the control of black marketers and brokers.

varunet

that would be a brilliant move... we should have petition filed to have this done all over India.. it is in the common mans and governments interest.

Speculated market just ruin the economy....

wiseman

Natraj,

This is a a disingenuous argument at best. Exactly who is the Registrar to deny you registration for whatever price you are looking to exchange property at? He does not have a legal standing to do that. Make life miserable for him/her and they will see the light of day.

Quite an easy excuse to bring in black money into the transaction. You need to take a stand and take the Registrar thru the wringer and there are many tools in the statutes to bring them to heel. This needs to be done by enough people so they come in line. And that is exactly where the problem lies.

Let us not create lame excuses to further our own needs to continue propogating this black money. It starts with us and our need to evade taxes - this thing called greed - that propogates black money. If the penalty was more severe that the benefit, will we continue it?

cheers