spmohan

Not surprising. considering what OP's agenda was when RBI was ramping up the interest rates and warning all to cool down teaser rates, the most vocal against this was our good OLD sbi!

Well guess slowly but surely chickens are beginning to hatch!

but who cares after all, yeh sab tho apne baap ka paisa hai

realacres

Teaser loans was introduced not for benefit of buyer but to help builder. The buyers who have taken teaser loans in 2008-09 are now finding it very difficult to repay at current interest rates, thanks to their own short term vision.

Besides SBI, the other bank in mess is HDFC. Recently HDFC has hiked deposit rates upto 100 bps or 1% !! This clearly shows how bad liquidity condition of HDFC is in reality, not to forget that HDFC is one of the largest lender to realty sector, be it builders or buyers; not to forget that RE constitutes largest hike in NPAs in various banks, including ICICI.

Builders are asking for roll-over of loans but seeing the recent directive from RBI to keep taxes etc. out from loan amount, this seems remote possibility. It is no surpriise then that builders like DLF, Omaxe, Indiabulls, Oberoi etc. are selling land & non-core assets to repay loan. Even Pune based Kumar Builders is trying to sell 30% stake in each project to repay some debt...they have over INR 430 Cr loan on paper. The real amount will be far more if black money lenders' amount is taken into consideration.

Btw, look where Kolte-patil share is trading on stock market .

All these things will be crystal clear in last week of March 2012.

__________________
IREF Rules - Read Me

Sharpj

Hi Bhuvan..

Do you still question my prediction.. I think however we hate the congress.. I do not think the opposition is a viable united option..
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punerebuyer

Sometimes I wonder why people spend so much money for buying at crap locations?

Instead, USA offers an investor visa and GC if one 'invests' (not pay) $500K in USA. That's around 2.5 CR and best of all is, you are investing it so you get the benefits...

i have seen many Indians opening restaurants or small businesses around and also getting green card.. and from your investment, you can easily earn enough to pay an EMI and buy a night big house with excellent infrastructure ..

just thought i would share this...

amit3011

Nice article by Indian Express,though story is from UK,its pretty much valid in India also.

Life gets 'most expensive' at 50 - Indian Express

dnkumar

guys, was looking for basic building material cost - cement,steel,bricks,sand,aluminium,wood etc. - appreciate if someone can guide me as never thought it would be that difficult to get such basic information in this web-age!!

ashishi

Very well said. The effect of teaser loanss have just started showing - because for the first two years teaser loans are like soft loans. Now many buyers of property who took teaser loans are paying from their nose. Many want to sell property but what they get (even after some appreciation) is still less than outstanding loan. Many have sold at loss - please check the listing of foreclose property in india to understand it.

Many banks actually collaborated with builders and took stake and on the advise (great idea) of builders launched teaser loans. Ironically builders still could not sell their inventory and are holding on in the vague hope of further appreciation. Greed begets greed. Many genuine buyers have postponed their decision to buy, but still there are a few who think that property price can only go up. May god help and save them.

footy1

Hi ashishi,

> please check the listing of foreclose property in india to understand it.

where is this listing available?

stinaikar

[QUOTE=ashishi;337450]Very well said. The effect of teaser loanss have just started showing - because for the first two years teaser loans are like soft loans. /QUOTE]

You are under-estimating the intelligence of the average Indian home loan buyer. Most home buyers understand that interest rates follow a cyclical path. If they're "paying through their nose" now on the teaser loans, they are aware that things will return to normal once the cycle is over. Only the mentally challenged will sell because their EMI went up by a few thousand rupees. Meanwhile, these same buyers have experienced capital appreciation of 50% in the last 4 years. Besides, other options exist - you can renegotiate with the bank for an increase in tenure. You can also pre-pay the principal amounts and keep your EMI's steady. Don't superimpose what you might do in a specific situation, onto others.

realacres

+1. But many people feel that by buying in projects with Western names like California, Miami, Gold Coast, Beverly Hills etc. they will get the PROPOSED INFRA of international standards .

Major problem with buyers, especially Pune buyers is they are not exposed to outside world, let alone abroad but how many Pune buyers have even been to Bangalore, Ahmadabad, Chandigarh etc. to know what LIVABLE INFRA actually means ?? Some of good localities of Ahmadabad have rates less than Wakad !! Not to forget the infra like water & 24*7 electricity + low taxes etc.

Even in Mumbai, the price:rental ratio is far, far better than Pune, not to forget that Mumbai has more superior projects than Pune which current Pune builders can't even dream of.