Though in reality this shall boost the confidence of NRIs who want to exponentially "multiply" their assets their confidence level in RE seems to be going down:

My take on the current RE situation only suitable for end-use type (i.e pristine genuine buyers)

QUOTE

“The investment cycle is over. It is an end-users market now. Sales will now only take place if there is a correction, either in the form of discount schemes or actual correction in prices. The real estate boom was only until 2008. From there on, Indian real estate has been on a declining curve,” says Pankaj Kapoor, MD at real estate firm Liasas Foras.

UNQUOTE

NRI enquiries may be rising but in realty, their faith is falling - Firstpost
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  • Who told you economy has to "get in to trouble" if currency went thru a downwards correction.

    Devalution of currency is a tool to generate growth or Kick start growth.

    1. Increase the cost of import will lead to increased usage of local alternate.

    2. Exporters are encouraged to export.

    3. Overseas Investment will be encourged to invest while INR is low. I am not talking about NRI fellows buying flat. I am talking about Japanese Investmenk Bank type investors.

    You cant ask for 20% pay rise ever year & expect your RE to grow at 20% every year and not expect your currency to fall.

    Some one has to pay - As usual it is INR which pays for everyones indulgence.

    You do not want INR to fall? Then maintain your wage inflation at 4%, Long term RE growth Average at 8%, CPI inflation at 3%.

    Can the above happen in India - No, Greed takes over as usual.

    Then INR will keep paying up for the over indulgence once in 5-6 year.

    To make it even worse - Bunch of Idiots in Delhi revise the wages of millions of employes by 100% - 200% once in 12 years called pay commission.

    Even bofoons know if you jack up 12 years worth of pay rise in 1 year what it will do to Inflation.

    Let us complain about Maladministration in India before complaing about poor hard working NRIs.

    Iyarkai in neiyathi.

    Koolukum asai, Messaikum Asai.

    Make up your mind? Do you want Kool or Messai.
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  • Sorry, I want to be cool!

    For me NRIs are not high priority, only RIs interests who are actually undergoing all the trouble both from irresponsible government, useless officials, corrupt builder and greedy investors...after paying hefty tax to the government and yet undergoing all the trouble.

    If Rupee strengthens and that creates problems for NRIs so be it, so long it helps resident Indians.
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  • I was just getting frustrated with the general psychology of people in India.

    They do not understand the real reason.

    They want wage to rise and assets to rise by many folds but complain when INR is hit.

    If only INR is kept still for 10 years:

    Indian wages will be expensive than Swiss wages.

    They who will buy products made in India or Send IT projects to India.

    The only reason IT Projects, Call centers, Car factories etc are sent to India, because labour is cheap (Currency Advantage)

    If that goes then we will have billon unemployed people.

    Transform from developing country to a developer country we need another 30 - 50 years.

    Untill that transformation happens then we need INR to remain lower.

    Do you know the whole world is pressuring China (realy hardly) to increase the value of Yuan and china refuses.

    China has artificialy kept their Yuan lower for many many years (even with all pressure by the world leaders)

    Why?
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  • Originally Posted by Economist
    I was just getting frustrated with the general psychology of people in India.

    They do not understand the real reason.

    They want wage to rise and assets to rise by many folds but complain when INR is hit.

    If only INR is kept still for 10 years:

    Indian wages will be expensive than Swiss wages.

    They who will buy products made in India or Send IT projects to India.

    The only reason IT Projects, Call centers, Car factories etc are sent to India, because labour is cheap (Currency Advantage)

    If that goes then we will have billon unemployed people.

    Transform from developing country to a developer country we need another 30 - 50 years.

    Untill that transformation happens then we need INR to remain lower.

    Do you know the whole world is pressuring China (realy hardly) to increase the value of Yuan and china refuses.

    China has artificialy kept their Yuan low (even with all pressure by the world leaders)

    Why?


    Eco, IT is not the only thing for India.

    We import 80% of our Oil requirement and if OIL goes up everything is impacted. All small scale industries to even big companies. We import Coal for our power requirement which is always benchmarked in USD. Power cost will go up. Trade deficit is already bad and it will widen further. Infact you can see lot of job losses in other industries. We import lot of other essentials as well.

    If this is carried forward for another 5 years leave 30-35 years most of the people in india will be jobless. USD at 60 is not at all good for India.
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  • Nothing is cheap in this world. We are seeing most of the items sold in India is far more expensive than in developed countries (including Oil).....though Indians are getting salary only in fraction that of NRIs....

    Be it cloth, oil, car, house - I mean everything is priced at far more higher than anywhere in the world, yet salary levels are still not on par with international standards.

    I strongly feel that cheap Indian Rupee will kill the Indian economy on the very long run but it might titillate NRIs who are single minded in trying to get best of both (nothing wrong but their mind set is different that of RI).

    In this regards, Rupee Appreciation, RE collapse for a significant time will ensure that Resident Indians from suffering further. India has a domestic market to sustain on its own with proper governance and we do not need external injection of money. Having said that, it would be good to see FDIs in manufacturing but I am not sure Indians would tolerate the abuse of environment when you have so many manufacturing units being setup here - which will again take the RE market sky rocket. This will essentially make NRIs as bosses and all RIs will be their slaves - Sorry, I do not subscribe to this model.
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  • Originally Posted by Economist
    I was just getting frustrated with the general psychology of people in India.

    They do not understand the real reason.

    They want wage to rise and assets to rise by many folds but complain when INR is hit.

    If only INR is kept still for 10 years:

    Indian wages will be expensive than Swiss wages.

    They who will buy products made in India or Send IT projects to India.

    The only reason IT Projects, Call centers, Car factories etc are sent to India, because labour is cheap (Currency Advantage)

    If that goes then we will have billon unemployed people.

    Transform from developing country to a developer country we need another 30 - 50 years.

    Untill that transformation happens then we need INR to remain lower.

    Do you know the whole world is pressuring China (realy hardly) to increase the value of Yuan and china refuses.

    China has artificialy kept their Yuan lower for many many years (even with all pressure by the world leaders)

    Why?


    I am not sure China can be compared here. China is a export economy and hence keeping the currency value lower is advantages to them. For India it makes a big hole in the wallet because of Oil import
    CommentQuote
  • Originally Posted by srivat
    Eco, IT is not the only thing for India.

    We import 80% of our Oil requirement and if OIL goes up everything is impacted. All small scale industries to even big companies. We import Coal for our power requirement which is always benchmarked in USD. Power cost will go up. Trade deficit is already bad and it will widen further. Infact you can see lot of job losses in other industries. We import lot of other essentials as well.

    If this is carried forward for another 5 years leave 30-35 years most of the people in india will be jobless. USD at 60 is not at all good for India.


    So does most countries, That is - import most of its required oil.

    Encourage other exports to balance.

    Why are you wasting your Iron ore to Reddy Brothers family pocket?

    Why best coal resources of India is burned off under ground in Jarkand since 1960, Balance of resources are controlled by political Mafia.

    Why export granite goes to PRP pocket insteaf of state coffers?

    Why Thorium resourses are siponed off to private players liked to politicians?

    Export the resouces stuff that are wasted in India you will offset oil imports.

    I am sitting and posting from an economy that was built with Iron ore & Coal.

    Stop squandering your resources, you will be an export economy aswell.

    Go to Ranchi & Dhanbadh for 10 days, You will know what I am taking about.

    $300 Billon worth of coal burning since 1960.

    http://.bloomberg.com/news/2013-01-09/india-said-to-speed-plan-to-save-300-billion-burning-coal-mine.html

    The remaining non buring is controlled by Maffia.

    Now BJP's Reddy Bros partly exit Iron ore, Congress MP Anil Lad swaps place with Reddy to control Iron ore.

    http://m.indianexpress.com/news/exit-bjps-reddy-brothers-enter-congs-own-miner/1108911/
    CommentQuote
  • Originally Posted by Economist
    So does most countries, That is import most of its required oil.

    Encourage other exports to balance.

    Why are you wasting your Iron ore to Reddy Brothers family pocket?

    Why best coal resources of India is burned off under ground in Jarkand, Balance of resources are controlled by political Mafia.

    Why export granite goes to PRP pocket insteaf of state coffers?

    Why Thorium resourses are siponed off to private players liked to politicians?

    Export the resouces stuff that are wasted in India you will offset oil imports.


    Eco, Politics, corruption cannot be changed in a day. It will takes it own recourse.

    We have coal but still it is not sufficient as we highly rely on it for power generation. We are short of water and most of our dams run dry, so hydro power is not for huge power generation. We have resistance for nuclear power due to safety standards.

    Why do you think Tata and Ambani are acquiring coal an iron ore assets abroad. Our domestic consumption is very high and resources are less.

    Have you read the financials of Textile industry who are the biggest exporter after china. Even during lower rupee the margins are not raised to that extent. Reason is they buy premium cotton which again is benchmarked in USD. Indian cotton are mostly used for non premium build. It is only egyptian or supima cotton which rules and buyers insist on that. Also the buyers re-negotiate contract whenever the rupee is low.

    The reason I am telling is net net lower rupee is not advantage but a real trouble for India. Oil has a spiraling effect on inflation, cost of food, vegetables etc.
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  • India's biggest import are only oil and arms..a devalued rupee can make companies like ONGC/IOC attractive to foreign investors..I believe Indian government has vested interest to allow weakening of currency..with high CAD monetization is not possible anymore which leaves only this option..It will surely increase inflation..but along with it the wages for all export/service linked industries..it will bring the much needed liquidity infusion to kick start the slowing economy..high inflation can be easily masked as growth..dont we all believe RE appreciated 30% in the last couple of years because of growth? For RI, Our governments as such adopts freebies and waivers to appease them..as long as one is able to still keep up with the increasing cost of living and stay on the side which can take advantage of the situation..I think its a outcome that is unavoidable..I would say, lets be prepared for it by hedging our investments.Lets talk about strategies to do that..I would suggest keep savings in RE, Bullion and Stronger foreign currency.
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  • Originally Posted by ChennaiInv
    I am not sure China can be compared here. China is a export economy and hence keeping the currency value lower is advantages to them. For India it makes a big hole in the wallet because of Oil import


    So Is China exporting Oil after producing enough for own use?

    China imports over 200 million tons of Oil per year.

    India imports only 60% of oil compared to what china Imports.
    CommentQuote
  • Originally Posted by Economist
    So Is China exporting Oil after producing enough for own use?

    China imports over 200 million tons of Oil per year.

    India imports only 60% of oil compared to what china Imports.


    China imports 40% and we import 85% of our oil improvement.

    China is a trade surplus country because their exports are way higher than imports. We have a huge trade deficit.

    China has GDP of 13 trillion dollars compared to 5 trillion dollars. Oil import of china is well justified.
    CommentQuote
  • Originally Posted by Economist


    I am sitting and posting from an economy that was built with Iron ore & Coal.

    Stop squandering your resources, you will be an export economy aswell.

    Go to Ranchi & Dhanbadh for 10 days, You will know what I am taking about.

    $300 Billon worth of coal burning since 1960.

    http://.bloomberg.com/news/2013-01-09/india-said-to-speed-plan-to-save-300-billion-burning-coal-mine.html

    The remaining non buring is controlled by Maffia.

    Now BJP's Reddy Bros partly exit Iron ore, Congress MP Anil Lad swaps place with Reddy to control Iron ore.

    Exit BJP's Reddy brothers, enter Cong's own miner - Indian Express


    @Srivat,

    You can call/name Malladministration what ever you like (Ie: Corruption,Politics,Culture etc)

    End of the day it does'nt wash with global economy- It refuses to buy it.

    The Maladministration will reflect in the economy & INR in the long term.

    Everything is interlinked.

    Every action has equal & opposite reaction.
    CommentQuote
  • Originally Posted by Economist
    I was just getting frustrated with the general psychology of people in India.

    They do not understand the real reason.

    They want wage to rise and assets to rise by many folds but complain when INR is hit.

    If only INR is kept still for 10 years:

    Indian wages will be expensive than Swiss wages.

    They who will buy products made in India or Send IT projects to India.

    The only reason IT Projects, Call centers, Car factories etc are sent to India, because labour is cheap (Currency Advantage)

    If that goes then we will have billon unemployed people.

    Transform from developing country to a developer country we need another 30 - 50 years.

    Untill that transformation happens then we need INR to remain lower.

    Do you know the whole world is pressuring China (realy hardly) to increase the value of Yuan and china refuses.

    China has artificialy kept their Yuan lower for many many years (even with all pressure by the world leaders)

    Why?


    Yuan story - 1 year old and irrelevant today .:(

    Sent from my Titanium S5 using Tapatalk 4 Beta
    CommentQuote
  • Originally Posted by Economist
    @Srivat,

    You can call/name Malladministration what ever you like (Ie: Corruption,Politics,Culture etc)

    End of the day it does'nt wash with global economy- It refuses to buy it.

    The Maladministration will reflect in the economy & INR in the long term.

    Everything is interlinked.

    Every action has equal & opposite reaction.


    I agree we have corruption, politics, freebies etc. But that cannot be changed in a year or two. If we hope currency to stay above 50 for that time then our economy is in serious trouble.
    CommentQuote
  • Originally Posted by ashish18
    Yuan story - 1 year old and irrelevant today .:(

    Sent from my Titanium S5 using Tapatalk 4 Beta


    So Yuan is free floted in market is it?

    At least partially floated like India?

    Since when?

    Sollavei Illa.

    Yuan is still pegged narrowly to a basket.

    Do you know INR more free maket floated (market controled) then Chinese Yuan.

    Do you know Chinese Goverment set the value of their currency each day.
    CommentQuote