Builders & RE Bulls Theory Proved Wrong. - Page 99 - Indian Real Estate Forum

Space · 09-02-10

Quote:

Originally Posted by frugality

So builders are not targeting IT people now .... rather wealthy individuals who have money to invest and forget for long term.

Very true. I know owner of a well know township called up some rich people all over Maharashtra requesting them to book a flat in thier project. The number of booking was hugh.

Instead of they should have lowered the rates a little bit and called up common man to book flats there. The number of booking would have been 'hugher'

Anyways, by the next election, everything will be all over. I am hoping !!

frugality · 09-02-10

Quote:

Originally Posted by frugality

the reason why the builder use this term is that wherever IT parks have been made owners have got very good rental in last 5 years.....

while 2003 the rentals were in range of 2-3 k now they are in 10-12k/
So they are alluring the future owners that if you buy here owing to the IT park and from IT employees you can charge handsome rent.

Now 30 - 40 percent of today's rentals are with Defense personnel whose "pensioners heaven" had been made hell or side income whatever.....
why IT/service sector employee pay high rental because they stay on sharing basis and so 500 or 1000 here and there does not make a difference ....

So when there was scope of high rentals .... RE seemed to be a very good investments .... at the price during 2004 - 2005 .. then it became fashion ... oah you haven't bought a flat ??
BOSS grow up .... go now and order a flat ...
....
Hey I am going for booking will you join me ..
aah yes ... let me fetch my cheque book ....
can we book on ??
of course. ....

every one who has money became suddenly hellish interested in Major cities RE.
a 15 - 20 L flat giving you rent of 6 - 8 thousand in year 2006 what else you can dream for ???

that lead to mad race ... and in India the scales are higher and knowledge/common sense is ignored for Greed.

but consider now the case for a IT/service industry person having family and how tough for him to pay such high rental of 10k.....
and we talk about him owning one ...

IMPOSSIBLE for him .... how do you expect him to pay 35K EMI when take home is maybe in range of 30 - 50 K
majority of Service industry falls in this.

And its their DUTY to create the "feel good factor" even though their pockets may be empty.

So builders are not targeting IT people now .... rather wealthy individuals who have money to invest and forget for long term.

maybe the decline is closer then 2 -3 quarters ... Rentals have started going down in spite of best efforts of brokers / builders.....
so soon the knee jerk will be over ...
maybe in a quarter ...

Technocrat · 09-02-10

Quote:

Originally Posted by realacres

Well, simple exercise:- The T-shirt which is available at camp/laxmi road for INR 550/- is available for INR 460/- in Pimpri market. Once when I told a shopkeeper about this, he said:- "Tumhare umar ke log nap tol karte nahin, paisa rehta hain, kharch kar dete hai, computer se kafi paisa kama liya"

.

Hmm in a way yes, but then again in most of cities you always have places which are expensive & places which are cheap. Blaming the IT is the new Buzz, not that its entirely untrue but in most cases IT has been a catalyst if not the real cause.

Another reason for rickshaw menace & some other areas of price hike is due to a large influx on people from outside Pune(this includes people from other cities of Maharashtra too & not just out of state guys) who didnt know what was the right price for labor & other commodities.

And this is not just in IT but also people who came for other industries like Auto, Telecom etc etc

realacres · 09-02-10

Quote:

Originally Posted by razer

I think since ITGs have spent the majority of their careers in somewhat professional environments, they tend to view others who work for a living similarly.

They will tend to pay and treat their maid, driver, and rickshawallah a little better. Whereas, those who are moneyed, and have 3-4 times the incomes of regular ITGs, will continue to treat the rest of the junta in the same way, and will pay them half or even lower.

Well, I differ on this. My maternal uncle has built houses for all his maids & 2 drivers & this will be wrong to say that IT people treat others well. I know some ITGs in our locality who take cigarrettes on credit from panwala, payment to kiranawala is done after 1.5 months

.

Fact remains that in most cases as both are working (hub & wife), it is peanuts for them to pay few hundred more the maid. Ofcourse, in last 5-6 months I have seen the demand from maid dropping as ITGs are doing things like folding the clothes etc. on their own.

razer · 09-02-10

Quote:

Originally Posted by realacres

Well, I differ on this. My maternal uncle has built houses for all his maids & 2 drivers & this will be wrong to say that IT people treat others well. I know some ITGs in our locality who take cigarrettes on credit from panwala, payment to kiranawala is done after 1.5 months

.

Fact remains that in most cases as both are working (hub & wife), it is peanuts for them to pay few hundred more the maid. Ofcourse, in last 5-6 months I have seen the demand from maid dropping as ITGs are doing things like folding the clothes etc. on their own.

Thanks for this example. I have seen such people, too. But I've seen fewer of these people. I know a few more ITGs who are generally of that easy-going disposition.

But yes, to generalise on the basis of that would be wrong, hence I said "almost to a fault".

realacres · 09-02-10

Quote:

Originally Posted by Technocrat

Another reason for rickshaw menace & some other areas of price hike is due to a large influx on people from outside Pune(this includes people from other cities of Maharashtra too & not just out of state guys) who didnt know what was the right price for labor & other commodities.

And this is not just in IT but also people who came for other industries like Auto, Telecom etc etc

Yep, quite true about migration.....but if you check the profile of Mall visitors, most of them are from IT. This survey was done by the malls themselves. Ofcourse this doesn't mean that a chap sitting in Barista has to be from IT only, but these ITGs gave impression to rest how big sums they were earning & created false impression for many as Ashish said.

However, I remain firm on my stand that it were only ITGs who were unable to digest the money properly vis a vis other proffessions.

Eg. Look what a marwari kirana store boy will do if he gets INR 1k, & compare that with an ITG. You will get the difference.

Man, most ITGs saved after spending while in other proffessions, mostly it is spend after savings. Fact remains that even ITGs never expected that IT will be flat in 5 years from the boom period. This I am saying from my personal experience w.r.t. my classmates who became ITGs.

thatsme · 09-02-10

Hi All,

Let me take a minute off from the ongoing discussion arnd ITGs and congratulate all those who have actively contributed to this thread and made it to 99 (+1=100!!) pages of interesting discussion for readers like me. Reiterating once again - its really enjoyable following all the quality exchanges in this thread.

I dont know if theres any other thread which has touched 100 pages in this forum.

Keep it going friends..

Cheers.

ttt43 · 09-02-10

Realacres, you are generalizing the ITGs with a broad stroke. I agree with most of what you have said, but same is true for people in other professions too.

Everyone these days seems to be wearing those badges and working in AC. most probably they are doing some very low level karkoon type job compared to let's say my friend in Tata motors who is designing and testing engines and is black with smoke.

asliarun · 09-02-10

Quote:

Originally Posted by ttt43

Realacres, you are generalizing the ITGs with a broad stroke. I agree with most of what you have said, but same is true for people in other professions too.

Everyone these days seems to be wearing those badges and working in AC. most probably they are doing some very low level karkoon type job compared to let's say my friend in Tata motors who is designing and testing engines and is black with smoke.

By the way, what IS the full form of ITG? IT Guy?? I tried back-tracking this thread to see the first post that introduced this term, but this thread has way too many posts already. Everyone is using this term as if it is common knowledge but I'm hearing this term for the first time.

Since I am already on this, what does DP road mean?? Please confirm if it means Development Plan road. If so, does it mean a road that is going to be constructed or already constructed? Or does it simply mean a road that is part of the municipal plan, constructed or not?

Dipti · 09-02-10

In most of the cities there are both type of places costly and cheaper. For eg. Nagpur, it has Bardi (costlier) and Mahal (cheaper) market places.
About maid the point is very true. I stay in area where less IT janta is present and maid charges are low. again note that even maid charges are shared as rent so people (batchlors) dont bother much.
Pune is costly when it comes to cloths, grain as well. I get all type of dals in half the rates from my hometown. Whereas in Pune the price is double. Same for cloths.
I think IT people are partly responsible for hike not completely responsible. Pune has poloticians (local gundas), mumbai people and dont forget to add people from Police (govt employees who earns lots of B-money). Recently a couple working in police that too not on higher post(our owners relative) purchased a 50 L flat on cash. Have many friends whose dad working in police and I can see the power of b-money.

09-02-10	#987
thatsme New Member Join Date: Dec 2009 Posts: 20 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	its 99th page! Hi All, Let me take a minute off from the ongoing discussion arnd ITGs and congratulate all those who have actively contributed to this thread and made it to 99 (+1=100!!) pages of interesting discussion for readers like me. Reiterating once again - its really enjoyable following all the quality exchanges in this thread. I dont know if theres any other thread which has touched 100 pages in this forum. Keep it going friends.. Cheers.

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09-02-10	#988
ttt43 Member Join Date: May 2009 Posts: 145 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Realacres, you are generalizing the ITGs with a broad stroke. I agree with most of what you have said, but same is true for people in other professions too. Everyone these days seems to be wearing those badges and working in AC. most probably they are doing some very low level karkoon type job compared to let's say my friend in Tata motors who is designing and testing engines and is black with smoke.

09-02-10	#990
Dipti Member Join Date: Mar 2009 Location: Pune Posts: 90 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	In most of the cities there are both type of places costly and cheaper. For eg. Nagpur, it has Bardi (costlier) and Mahal (cheaper) market places. About maid the point is very true. I stay in area where less IT janta is present and maid charges are low. again note that even maid charges are shared as rent so people (batchlors) dont bother much. Pune is costly when it comes to cloths, grain as well. I get all type of dals in half the rates from my hometown. Whereas in Pune the price is double. Same for cloths. I think IT people are partly responsible for hike not completely responsible. Pune has poloticians (local gundas), mumbai people and dont forget to add people from Police (govt employees who earns lots of B-money). Recently a couple working in police that too not on higher post(our owners relative) purchased a 50 L flat on cash. Have many friends whose dad working in police and I can see the power of b-money.