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RE business in Chennai collapsing

Last updated: August 17 2009
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  • Re : RE business in Chennai collapsing

    Guys,

    It's worth a read and more worthy to wait n watch.

    ]http://business.rediff.com/report/2009/mar/20/nano-inspired-houses-to-cost-rs-5-10-lakh.htm[/URL]

    Comment


    • Re : RE business in Chennai collapsing

      Now that most of those threatening voices have died on their own. I can now pursue my main interest of writing on RE.
      For one I notice that in CHennai many useless pieces of properties are coming out for sale and you know what at discounted prices. There was this Seaward road where prices were quoted at 3crores and upwards. Now this place is well located and the price might be justified but documentation! Well that is missing.
      a. THese are in CRZ (coastal regulation zone)
      b. There are no approved layouts on the seaside of ECR
      c. Most buyers were the operator lot and they were trapped or idiots who bought from them are trapped.
      Now if someone assumes that prices have fallen, that is UNTRUE. THe truth is as volumes have reduced sane buyers are biding their time and sellers of worthwhile property are not ready to sell. However people with such dubious property are selling out.
      INfact the guy has bought the property for 10K in 1991 almost one tenth the price I got an approved land a little further down on ECR. In other words if you are buying land now you are most likely going to buy WORTHLESS land and if you are buying FLAT it is going to be the most useless ones.
      However if you get the right one, the price will not have moved down one bit.
      So based on the above, many bears are going to assume that I have turned bearish. That is the fault. When useless property come in then the market is settling down. When they get sold the market has bottomed out. So if you want some damn flat with or without documentation then now is the best time to buy, but if you own a great property you will be a fool to sell it now unless you have a sane buyer who will give you the price.
      Again good properties are getting sold out but only that it goes by the old age method of physical contact and not by emails and imaginations!

      Comment


      • Re : RE business in Chennai collapsing

        From DnaIndia

        In Mumbai and its suburbs, an estimated 12,000-20,000 flats and homes are in the process of being notified, seized and auctioned off as home loan borrowers stop paying their monthly EMIs in a downturn. Dreams of owning a home have gone sour for thousands of families.

        A senior official from Bank of India says his bank has seen a rise of Rs 70 crore in bad home loans since September, 2008. "Till September, the figure (of bad loans) was merely Rs18 crore, but by February, 2009, it had shot up to around Rs90 crore," said the official, part of the bank's special asset recovery cell.

        Comment


        • Re : RE business in Chennai collapsing

          Dear friend,

          Glad that the subject has come back to where it got started originally after taking a big circle of so many pages/comments.

          ks2071746

          Comment


          • Re : RE business in Chennai collapsing

            Originally posted by G_IVAR View Post
            Guys,

            It's worth a read and more worthy to wait n watch.

            ]http://business.rediff.com/report/2009/mar/20/nano-inspired-houses-to-cost-rs-5-10-lakh.htm[/URL]
            Actually the article is not really talking about NANO induced houses since the size mentioned is 1000sqft plus. Actually in Chennai if the max 6 kitchens per plot and only 2floor max and 1.5FSI are changed to say 12 kitchens, 3 to 4 floors and 2 to 2.5FSI then you can build affordable homes, where the flats will be of size 500 to 600sqft and cost will be 10 to 15L.

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            • Re : RE business in Chennai collapsing

              Dear friend,

              Today there is an article in economic times that there may be a possibility of " Gold Bubble " like oil bubble, mortgage bubble, RE bubble etc. etc.
              the article can be read at ="http://economictimes.indiatimes.com/Word-of-caution-Gold-is-the-next-bubble/articleshow/4304788.cms"]http://economictimes.indiatimes.com/Word-of-caution[/URL]
              ="http://economictimes.indiatimes.com/Word-of-caution-Gold-is-the-next-bubble/articleshow/4304788.cms"]-Gold-is-the-next-bubble/articleshow/4304788.cms[/URL]

              ks2071746
              Last edited March 23 2009, 03:32 PM. Reason: spell

              Comment


              • Re : RE business in Chennai collapsing

                Originally posted by BigBear View Post
                From DnaIndia

                In Mumbai and its suburbs, an estimated 12,000-20,000 flats and homes are in the process of being notified, seized and auctioned off as home loan borrowers stop paying their monthly EMIs in a downturn. Dreams of owning a home have gone sour for thousands of families.

                A senior official from Bank of India says his bank has seen a rise of Rs 70 crore in bad home loans since September, 2008. "Till September, the figure (of bad loans) was merely Rs18 crore, but by February, 2009, it had shot up to around Rs90 crore," said the official, part of the bank's special asset recovery cell.
                Legal the banks may have to wait for 18 - 24 months of default for seizure/auction. If this is the case either these reports has to talk about default that might be normally occur or ???

                Comment


                • Re : RE business in Chennai collapsing

                  Originally posted by BigBear View Post
                  From DnaIndia

                  In Mumbai and its suburbs, an estimated 12,000-20,000 flats and homes are in the process of being notified, seized and auctioned off as home loan borrowers stop paying their monthly EMIs in a downturn. Dreams of owning a home have gone sour for thousands of families.

                  A senior official from Bank of India says his bank has seen a rise of Rs 70 crore in bad home loans since September, 2008. "Till September, the figure (of bad loans) was merely Rs18 crore, but by February, 2009, it had shot up to around Rs90 crore," said the official, part of the bank's special asset recovery cell.
                  I thought Mumbai is not in Chennai!!?

                  Comment


                  • Re : RE business in Chennai collapsing

                    Source: Economic Times

                    Satyam defers joining date of freshers
                    23 Mar 2009, 2037 hrs IST, PTI

                    NEW DELHI: Satyam Computer has deferred the joining dates of freshers, citing the global economic slowdown and the turn of events in the once

                    iconic firm, while stopping short of asking them to look for jobs elsewhere.

                    "Accordingly, it has been decided to defer the joining dates for the campus hires, until further intimation. We expect and recognise that this will cause a disruption in your plans and do sincerely regret the inconvenience caused.

                    "We would like you to know that this decision was made after careful deliberations and only after all other practical options were exhausted. While unfortunate, it has also been unavoidable. Added to this, was an unprecedented set of events in the organisation, over the past few weeks, which has been most unfortunate", said company HR head of S V Krishnan in an email to all the freshers.

                    The company is in the process of restating its accounts, which is crucial to determining the future of its over 50,000 employees.

                    "This scenario combined with the continuing volatility in the business environment, necessitates that we optimise... and critically re-examine additional requirements (for new-hires) on an ongoing, quarterly basis", he said.

                    "The IT services industry in India and around the world has been observing the impact of the unfolding global economic crisis. The rate of growth, is half of what it used to be at around 40 per cent Y-o-Y," he sai

                    =======================================

                    Two years ago such freshers used to take shared rental flats in IT areas which lead to increase in demand of flats. Now this market is gone

                    No wonder RE is falling

                    Comment


                    • Re : RE business in Chennai collapsing

                      Dear friend,

                      This is why the property value in OMR region is falling more than other areas. IT may look up only after another 2 years or so. Till such time it will be difficult period. May be if some one who can manage to pay EMI, if he buys his own flat for even future living, may be in another 6 to 12 months time, he may reap the benefit of fast escalating RE prices after 3 years.

                      ks2071746

                      Comment

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