realacres

Sun Aug 29, 2010
Source:- 3dsyndication

A buyer is entitled to opt out of a housing project if there is delay in delivery of possession of the house by the real estate developers, the National Consumer Commission has held.

The commission said that the buyer is also entitled to refund of entire money with reasonable interest and any deduction on the said amount is unjustified.

"The petitioner was fully justified in opting out of the (hire-purchase) scheme and demanding refund of the money that she had paid along with interest," it said.

The commission passed the order on a petition of Agra resident Indira Gupta seeking quashing of Uttar Pradesh state commission direction to deduct 20% from the amount to be refunded to the complainant by the Agra Development Authority.

"We direct that Rs66,000 along with 15% interest be paid to Gupta by the authority, as ordered by the District Forum, within six weeks along with Rs2,000 as cost of litigation," the commission bench headed by president justice Ashok Bhan said.

"The fact that the authority had erred in not giving the possession of the house to Gupta as envisaged under the scheme and in the absence of any rules and regulations by which 20% could be deducted from the refunded amount, we are unable to uphold the order of the state commission and therefore set it aside," the commission said.

It noted the authority admitted that there has been long delay in completing the development work and construction of the houses. "Even after several years, the project could not be fully completed," the commission said.
It rejected the contention of the authority that the state commission had rightly ordered deduction of 20% from the amount since Gupta had opted out of the scheme without any justification.

Earlier, the petitioner contended that she never defaulted in the payment schedule as is evident from the fact that these were deposited with the Oriental Bank of Commerce, extension counter, for the Agra Development Authority.

Gupta had in 1989 applied for a Mini Middle Income Group House and in 1990 she was allotted one.

When Gupta was not given possession even after many years, she sought refund of money with interest along with compensation of Rs1.73 lakh from the authority.

She subsequently filed a complaint with the District Forum alleging deficiency in service and got relief.

But the UP state commission modified the forum's order directing deduction of 20% from the refund money, which Gupta challenged in the apex consumer body.

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It takes Hands to build a House but only Hearts can build a Home!

realacres

Aug 13,2010
Source:- IRN

Money raised by realty focused private equity funds tanked to a six year low of USD 7.3 billion across the globe in April-June period of this year as institutional investors remained hesitant about committing capital. According to a report by global research firm Preqin, “this was the lowest quarterly fundraising total since Q3 2004, when 30 funds raised an aggregate USD 6.1 billion,” The report noted that private equity real estate funds are still struggling to raise capital in the current economic environment.

In the April-June quarter, 20 real estate funds made aggregate commitments of USD 7.3 billion, down 29.12 per cent from USD 10.3 billion in the year-ago period. Besides, the aggregate set target of raising funds has also steadily fallen in recent quarters, as fund managers have started setting more modest targets. “The number of funds currently in market has fallen in Q2 2010; this is due to a number of fund managers abandoning their fundraising efforts because of difficulty in garnering investor commitments,” the report added. It is clear that the fundraising environment remains extremely competitive and that the recovery, which many predicted, is yet to occur.

“There has been a severe decline in the performance of real estate funds, and consequently the performance of many institutions’ real estate portfolios, since the onset of the economic downturn. This has led to a large number of investors re-evaluating their real estate strategy, with a number increasingly looking towards core investments,” Preqin said. During 2009, 93 funds committed USD 40.50 billion, while in 2008, 228 funds raised an aggregate USD 134.30 billion.

North America focused funds raised USD 5.4 billion, accounting 74 per cent of capital during the quarter under review, four Asian and rest of the global funds stood at USD 1.2 billion while five European funds garnered USD 70 million, it said. Nevertheless, there have been some encouraging signs for firms raising private equity real estate funds. Of all the funds that have closed during 2010, around 20 per cent have exceeded their fundraising targets. While in the corresponding period in 2009, the figure was six per cent.

Btw, in other classic eg. of over-leverage, realty major DLF may withdraw from the much-hyped affordable houses, stating low margins under the scheme are unattractive as the firm grs with 25 per cent rise in net debt to Rs 18,463 crore. Other realtor, Ackruti City profits have dipped by 38% as well.

wiseman

Guys,

I wil show you very decent independent houses with quarter acre plots going for $100 only!!!

But there will be substantal hidden costs. Unpaid taxes, repairs, etc running into 10s of thousands of $$$. Besides, once upmarket areas have gone down steeply and are now dangerous areas with drugs and serious crimes soaring.

Then there is the ultimate cost of not being able to get a job.

If you can overcome all these, you can get some very beautiful homes in very scenic areas for less than the price of a second hand car!

I prefer Indian homes with all the polution and dust and dirt. At least, there are enough greater-fools behind me to keep the prices rising well above current sky-high levels.

cheers

puser

Excellent. All the while keep telling people that how conditions are bad to buy a house and how world is at the brink of total collapse at the same time indicate that "there are enough greater-fools behind me to keep the prices rising well above current sky-high levels".

Its now hard to trust veracity and genuineness of your comments, opinions, suggestions or advises

No offense intended, if hurt unintentionally sorry for the same.

Saurabh01

http://business.rediff.com/slide-sho...-recession.htm

The chances of the United States economy slipping into another recession are close to 25-30 per cent, a noted American economist said.
"I see a third to fourth of a chance of a double-dip (in the US economy)," noted American economist and former chairman of the Federal Reserve of the United States, Alan Greenspan, said while addressing an audience through video-conferencing during an award function in Mumbai on Wednesday.
The chances that the US might slip into another recession are 25-30 per cent, Greenspan said.
According to him, to reduce the double-dip recession probability, recovery in asset base

Saurabh01

BANGALORE: Two struggling units of Lehman Brothers Holdings Inc, the bankrupt US investment bank, need hundreds of millions of dollars in capital to stave off failure that could cost Lehman billions, court documents show.

Aurora Bank FSB, formerly known as Lehman Brothers Bank, has struggled to meet capital requirements as regulators have limited its ability to offer new certificates of deposit.

The other banking unit, Woodlands Commercial Bank, faces similar restrictions from the regulator due to capital requirements, complicating efforts to sell the units.

In a filing with a US bankruptcy court on Wednesday, Lehman said it was faced with a choice of either allowing the units to fail or injecting capital into their balance sheets to recover significant value for its creditors.

Failure to resolve the capital issues would result in estimated losses of between $1.2 billion and $3.6 billion, Lehman said.

Lehman said based on June 30, 2010 regulatory reports, the values of its equity interest in Aurora and Woodlands were at $677.6 million and $741.6 million, respectively, for a combined value of $1.42 billion.

Lehman said it will transfer $477 million in cash to Aurora.

It noted that since February 2009, Lehman has taken a series of steps to support the banks' capital levels, including making a $200 million cash contribution to Woodlands and an additional $72 million capital commitment that has not been drawn upon.

Lehman hired hundreds of its former bankers and other financial experts to help it unwind the complex contracts that were left in disarray when it filed for bankruptcy protection on September 15, 2008, the largest US bankruptcy filing in history.

The case is In re: Lehman Brothers Holdings Inc, US Bankruptcy Court, Southern District of New York, No. 08-13555.

realacres

http://www.bloomberg.com/news/2010-0...recession.html

“If there was a double-dip recession, increasing risk aversion, some assets are going to be preferred, and will be one of them,” Roubini said today in an interview on Bloomberg Television’s On The Move with Francine Lacqua. “But in that situation, things like the dollar, the yen, the Swiss franc have more upside in a situation of rising risk aversion because they are much more liquid than the market.”

Unable to understand this logic Is it another ploy of US to avoid other countries & individuals not to buy gol_d (man, why has mod banned this word, go_ld?? ). When Fed is in process of printing more & more $$, how will it appreciate further??

“Job creation is going to be very, very mediocre,” he said in an interview in Cernobbio, Italy. “It’s going to feel like a recession even if we’re not in a recession.”

I feel that further Indian growth will be more or less domestic market driven rather than global. Again the exports growth would be limited to Asia-Pacific region, with US & EU stagnated.

realacres

Man, some latest updates about lavasa:-

The state govt has formed a committee to look into the irregularities committed by Lavasa. This includes the verification of clearances from all govt agencies & whether the land was acquired by forceful means from the farmers. This was announced today by Narayan Rane, Revenue Minister (though he is no saint either). The report will be submitted in 15 days. Man, it is good to see this happening, seems Congress wants to leverage itself against NCP using this Lavasa project. Though it may be done out of political compulsion, at the end of the day, it is going to have positive impact on land acquisitions & RE in general. The farmers too would gain.

Venkytalks

Nice link Real, but incomprehensible - did not understand why.

Still I am betting on Rupee depreciation against the dollar in the long term - given the real productivity differences between the 2 countries - and am buying Rupee g-old

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Venky

realacres

A really good article informing how India's GDP growth nos. are far less than reality:-

The highlight in the Indian economic news space this week was the fiasco regarding the GDP numbers. Probably for the first time the government had to announce a revised GDP number because of obvious errors in the first number.

On August 31, at 11 am, the Central Statistical Organization or CSO, which calculates the numbers, announced that GDP for the first quarter of FY11 grew at a decent 8.8%. But curiously other numbers in that release showed a very poorly growing economy. For instance gross capital formation grew by only 3.7% year on year and private consumption by 0.3%.

The most damning was that GDP counted according to market prices grew by only 3.7% though counted according to factor cost GDP had grown by 8.8% So what's the difference between the 2 GDP nos.

After a lot of angst from economists and the press, a red faced government made the changes and said that the GDP at market prices grew by not 10.2% but by 3.7%

Get complete details here:-

http://www.moneycontrol.com/news/eco...p-_482787.html