Sadly due to a builder cancelling my booking for some crap reason, now I am back to house hunting. All this time I am hearing "price fall is coming, price fall is coming" from all these so-called experts. Everyday I am up till 4-5am trying to read the same websites to find any new information.

Now I can't afford a flat in any good area anymore. My options are Borivali or mira road for what you can call a 'home'. I am getting increasingly suicidal and/or murderous. I will honestly kill a builder (or two) and then shoot myself happily for what I have been made to go through the past year.

I hate this country! I hate the people implicit in this 'system', I honestly wish death on Mumbai!
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  • Originally Posted by KiranS
    Sadly due to a builder cancelling my booking for some crap reason, now I am back to house hunting. All this time I am hearing "price fall is coming, price fall is coming" from all these so-called experts. Everyday I am up till 4-5am trying to read the same websites to find any new information.

    Now I can't afford a flat in any good area anymore. My options are Borivali or mira road for what you can call a 'home'. I am getting increasingly suicidal and/or murderous. I will honestly kill a builder (or two) and then shoot myself happily for what I have been made to go through the past year.

    I hate this country! I hate the people implicit in this 'system', I honestly wish death on Mumbai!



    Wait.....wait...... Don't be so desperate.

    I am telling you the formulae which no one talks or know in this forum.

    Wait for 5 - 7 years at most, don't buy anything till then. Just FD your money.

    Research in google: "Greece Property Taxes". Such a condition is inevitable for India also in near future.

    Government will have to tax the residential properties at least 2 - 2.5% on market value annually, and revising annually.

    Once this rule starts, or even signal are given for such a rule, you will see the current pricing correcting to the levels of 50 - 70% down. Yes, this is not a typing mistake. 50 - 70% down ! Just research as I said, and let me know if you are not able to understand implications.

    I personally own properties worth 35+ crore rupees, and on the first signal of such a move by government will bring that down to less than 10 crores, and will be hard to find a buyer. I am keeping a vigil on the system, and plan to sell all before it happens, and put my money into the market. Will rebuy the same or similar properties when the things will settle down with the new system - at much cheaper rates.

    Please don't suicide. God bless you.
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  • Originally Posted by vkumar1
    Wait.....wait...... Don't be so desperate.

    I am telling you the formulae which no one talks or know in this forum.

    Wait for 5 - 7 years at most, don't buy anything till then. Just FD your money.

    Research in google: "Greece Property Taxes". Such a condition is inevitable for India also in near future.

    Government will have to tax the residential properties at least 2 - 2.5% on market value annually, and revising annually.

    Once this rule starts, or even signal are given for such a rule, you will see the current pricing correcting to the levels of 50 - 70% down. Yes, this is not a typing mistake. 50 - 70% down ! Just research as I said, and let me know if you are not able to understand implications.

    I personally own properties worth 35+ crore rupees, and on the first signal of such a move by government will bring that down to less than 10 crores, and will be hard to find a buyer. I am keeping a vigil on the system, and plan to sell all before it happens, and put my money into the market. Will rebuy the same or similar properties when the things will settle down with the new system - at much cheaper rates.

    Please don't suicide. God bless you.



    Inko Seriously mat lo...warna haste haste gir padoge....:D:D:D
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  • Originally Posted by amitgupta00
    Inko Seriously mat lo...warna haste haste gir padoge....:D:D:D


    Gupta ji,

    Ek banda suicide ki baat kar raha hai, katal -e- aam ki baat kar raha hai, desperate hai. I will not joke with him!

    You came to this forum last month only (if not duplicate ID), I don't know how seriously you take the inputs from this forum.

    I would suggest you to go through my these old posts, which are relevant to this thread as I claim, and give your opinion about this property tax issue which I raised.

    https://www.indianrealestateforum.com/forum/other-forums/general-real-estate-discussion/203-retail-real-estate-mutual-survivor?p=166#post203

    https://www.indianrealestateforum.com/forum/city-forums/chennai-real-estate/208-ambattur-the-emerging-it-ites-destination?p=175#post208

    Give a fair descriptive opinion, which should reveal your understanding of the subject matter also. Or, if you are unable to understand the matter, kindly get lost.
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  • Thank you vkumar ji. I am better now but the corrupt, horrible tactics used by builders in my experience so far has left me depressed and suicidal.

    I am doing my best to fight it out and stick to my budget (2.6 cr), but for e.g. one builder had first quoted me 12,500 for a 3bhk in Santacruz east. When I went to book it( 2weeks later) he goes "now the price is 14,500 psqf. Again after family discussion, we went to book he then asked for 15,000 psqf. Now I heard he wants 16,000 psqf and a black/white ratio of 50:50!

    The builder I had earlier booked the flat with is now asking me 3.25 cr for the same flat. I can't find a decent flat in Vile parle either for less than 3cr. Every other place I had looked at before booking my flat (in June 11) has gone up by 40 -50 lakhs.

    Places in Santacruz (w) or Khar are asking for 2.8 cr for a 2bhk with a built up area of 750 sqft! So they expect people to stay in a 'garage' and pay 2.8 cr for it.

    And noone seems to care about the rampant loot going on. At least aapke shabd ne thoda hosla diya. Uske liya Shukriya.
    CommentQuote
  • Originally Posted by vkumar1
    Wait.....wait...... Don't be so desperate.

    I am telling you the formulae which no one talks or know in this forum.

    Wait for 5 - 7 years at most, don't buy anything till then. Just FD your money.

    Research in google: "Greece Property Taxes". Such a condition is inevitable for India also in near future.

    Government will have to tax the residential properties at least 2 - 2.5% on market value annually, and revising annually.

    Once this rule starts, or even signal are given for such a rule, you will see the current pricing correcting to the levels of 50 - 70% down. Yes, this is not a typing mistake. 50 - 70% down ! Just research as I said, and let me know if you are not able to understand implications.

    I personally own properties worth 35+ crore rupees, and on the first signal of such a move by government will bring that down to less than 10 crores, and will be hard to find a buyer. I am keeping a vigil on the system, and plan to sell all before it happens, and put my money into the market. Will rebuy the same or similar properties when the things will settle down with the new system - at much cheaper rates.

    Please don't suicide. God bless you.


    50-70% is too much vkumar ji. In India Black money is involved heavily. Even if your bungloew is of 25 cr rupees, what's the value in while..probably you must be having registery of 10 cr only..So, if property tax thing comes in India then prices will fall but only for while money...black money % will be more then...

    However, Kiran ji..You shouldn't be so frustrated like this...have faith and b +ve... 2.5 cr is not less...you will get something good..
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  • I agree with Kiran (though I am not so depressed yet)

    But, I too have been researching this sector for over last year and everybody has advised me that prices will drop. All analysts bet that there will be a correction in the sector, latest being Merrill Lynch claiming that Mumbai RE will correct by 25%

    yet, I helplessly watch the builders increase the prices. Many have reported in this forum too that the prices have increased every six months.

    what leads to this price rise? why are the prices going up?


    Originally Posted by KiranS
    Thank you vkumar ji. I am better now but the corrupt, horrible tactics used by builders in my experience so far has left me depressed and suicidal.

    I am doing my best to fight it out and stick to my budget (2.6 cr), but for e.g. one builder had first quoted me 12,500 for a 3bhk in Santacruz east. When I went to book it( 2weeks later) he goes "now the price is 14,500 psqf. Again after family discussion, we went to book he then asked for 15,000 psqf. Now I heard he wants 16,000 psqf and a black/white ratio of 50:50!

    The builder I had earlier booked the flat with is now asking me 3.25 cr for the same flat. I can't find a decent flat in Vile parle either for less than 3cr. Every other place I had looked at before booking my flat (in June 11) has gone up by 40 -50 lakhs.

    Places in Santacruz (w) or Khar are asking for 2.8 cr for a 2bhk with a built up area of 750 sqft! So they expect people to stay in a 'garage' and pay 2.8 cr for it.

    And noone seems to care about the rampant loot going on. At least aapke shabd ne thoda hosla diya. Uske liya Shukriya.
    CommentQuote
  • I agree with all, please take care and remember what you will leave behind if you do it.
    Be positive and fight the battle. Double the research and frankly focus and do more research meet more people and your budget is not too bad at all.
    CommentQuote
  • Originally Posted by vkumar1
    Wait.....wait...... Don't be so desperate.

    I am telling you the formulae which no one talks or know in this forum.

    Wait for 5 - 7 years at most, don't buy anything till then. Just FD your money.

    Research in google: "Greece Property Taxes". Such a condition is inevitable for India also in near future.

    Government will have to tax the residential properties at least 2 - 2.5% on market value annually, and revising annually.

    Once this rule starts, or even signal are given for such a rule, you will see the current pricing correcting to the levels of 50 - 70% down. Yes, this is not a typing mistake. 50 - 70% down ! Just research as I said, and let me know if you are not able to understand implications.

    I personally own properties worth 35+ crore rupees, and on the first signal of such a move by government will bring that down to less than 10 crores, and will be hard to find a buyer. I am keeping a vigil on the system, and plan to sell all before it happens, and put my money into the market. Will rebuy the same or similar properties when the things will settle down with the new system - at much cheaper rates.

    Please don't suicide. God bless you.



    MR VKumar

    Well Govt taxing 2-3 % is unrealistic scenario and may only happen if the country is on verge of debt default like Greece.
    Well in that case a lot more is at stake including our savings and other investments backed by Govt.

    Current situation is like this.
    Landlords are happy to get annual rent of 2-3 % of their property market value. I am myself too renting a flat with rent = 2.5% of market value
    I cant afford to purchase the flat in which i am put up on rent but certainly enjoying my stay here.

    Govt is not bothered about the market prices of property currently being sold. If Govt were really that serious the problem of black money into real estate would not be a issue and a lot of sanity would have prevailed and in turn govt would have made a lot of money in taxes and stamp duty.

    I have two questions to you.
    How do you define affordability of a house in current scenario.
    How can the problem of black money in real estate transactions be tackled, i hope Jan lok Pal bill could be used though the chances may be slim.
    CommentQuote
  • Originally Posted by AJAY_GGN
    MR VKumar

    Well Govt taxing 2-3 % is unrealistic scenario and may only happen if the country is on verge of debt default like Greece.
    Well in that case a lot more is at stake including our savings and other investments backed by Govt.

    Current situation is like this.
    Landlords are happy to get annual rent of 2-3 % of their property market value. I am myself too renting a flat with rent = 2.5% of market value
    I cant afford to purchase the flat in which i am put up on rent but certainly enjoying my stay here.

    Govt is not bothered about the market prices of property currently being sold. If Govt were really that serious the problem of black money into real estate would not be a issue and a lot of sanity would have prevailed and in turn govt would have made a lot of money in taxes and stamp duty.

    I have two questions to you.
    How do you define affordability of a house in current scenario.
    How can the problem of black money in real estate transactions be tackled, i hope Jan lok Pal bill could be used though the chances may be slim.

    Thats really true that Govt doesnt care Real estate unaffordable prices or making any efforts to regulate the Real Estate industry as a huge amount of black money investments is done by politicians and their cronies so they are totally averse to pass any laws etc to regulate this industry.
    Hence I really really doubt a Greece like tax happening in India (which I read that its in the range of Euro 1000-1500/year on an average).
    CommentQuote
  • Recently I had a trip to Dubai. Found that prices in Burj Khalifa and Palm Islands are less even than that in mumbai & its worth getting a home there instead in mumbai. On palm Island & in Burj Khalifa a 3 bhk would cost around rs. 3 cr . My relatives in Gujarat got a banglow with a swimming pool , gym, theatre for just rs. 1cr. over there a person earning 10000 leads a better life than a person earning 1cr in mumbai. Mumbai is not worth the money we put in.
    Regarding the correction in prices, I tell u that it is not an overnight process but it surely is going to happen. Keep faith and patience, u surely shall reap benefits
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  • I have noticed that property rate increase is proportional to the bank interest rates prevalent in that country.

    As long as govt keeps the bank interest rates high, the property rates will keep rising as builders/investors have to build it up in the selling price.
    CommentQuote
  • Originally Posted by ankilsanghvi
    Recently I had a trip to Dubai. Found that prices in Burj Khalifa and Palm Islands are less even than that in mumbai & its worth getting a home there instead in mumbai. On palm Island & in Burj Khalifa a 3 bhk would cost around rs. 3 cr . My relatives in Gujarat got a banglow with a swimming pool , gym, theatre for just rs. 1cr. over there a person earning 10000 leads a better life than a person earning 1cr in mumbai. Mumbai is not worth the money we put in.
    Regarding the correction in prices, I tell u that it is not an overnight process but it surely is going to happen. Keep faith and patience, u surely shall reap benefits

    That way brunei, cayman, australia, new zealand would be even better value.
    I wonder why people are returning from America to Mumbai?
    Maybe you have to live in Dubai to understand the value of homeland!
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  • Originally Posted by sh-saxena
    Thats really true that Govt doesnt care Real estate unaffordable prices or making any efforts to regulate the Real Estate industry as a huge amount of black money investments is done by politicians and their cronies so they are totally averse to pass any laws etc to regulate this industry.
    Hence I really really doubt a Greece like tax happening in India (which I read that its in the range of Euro 1000-1500/year on an average).


    Govt (read politicians) have no interest in getting RE affordable, that is because most RE companies are just front companies for these con-party politicians. or else how do you explain companies (like DB realty, Indiabulls, HDIL etc) worth a few crores few years back turning into thousands of crores in value. where did the money come from suddenly?....

    A lot of these companies have come up with ultra expensive projects which will take about 3-5 years to complete and I think that is the timeline till which the politicians will sustain this bubble. Once most of these properties are sold at rocket high prices and politicians have thier bank accounts full with thousands of crores, this bubble will burst (either by taxes, RE regulator or some other means)... till then i do not expect a fall....because builders have infinite holding power due to un-ending flow of black money from our dear politicians......
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  • Originally Posted by guesswho
    50-70% is too much vkumar ji. In India Black money is involved heavily. Even if your bungloew is of 25 cr rupees, what's the value in while..probably you must be having registery of 10 cr only..So, if property tax thing comes in India then prices will fall but only for while money...black money % will be more then...
    However, Kiran ji..You shouldn't be so frustrated like this...have faith and b +ve... 2.5 cr is not less...you will get something good..

    Originally Posted by AJAY_GGN
    MR VKumar

    Well Govt taxing 2-3 % is unrealistic scenario and may only happen if the country is on verge of debt default like Greece.
    Well in that case a lot more is at stake including our savings and other investments backed by Govt.

    Current situation is like this.
    Landlords are happy to get annual rent of 2-3 % of their property market value. I am myself too renting a flat with rent = 2.5% of market value
    I cant afford to purchase the flat in which i am put up on rent but certainly enjoying my stay here.

    Govt is not bothered about the market prices of property currently being sold. If Govt were really that serious the problem of black money into real estate would not be a issue and a lot of sanity would have prevailed and in turn govt would have made a lot of money in taxes and stamp duty.

    I have two questions to you.
    How do you define affordability of a house in current scenario.
    How can the problem of black money in real estate transactions be tackled, i hope Jan lok Pal bill could be used though the chances may be slim.


    Real Estate prices are unrealistic and a major component of black money and politicians' money is involved, and that is why no government till now is interested in bringing the prices down.

    It is also true that people are conscious now, and such an act (India increasing property taxes at par with western countries) is not a remote possibility now.

    Government taxing 2-3% is not at all an unrealistic scenario. With the RE prices reaching to the unaffordable levels to all the classes, it just shows there is something fundamentally wrong with the system, which needs an improvement. People have started talking about it.

    Here is what Azim Premzi says:

    Premji chants 5-pt mantra for India - Economic Times

    "We need to overhaul our land related laws, taxation and information system. It is estimated that 90% of land in India are subject to legal disputes over the ownership. Stamp duty ranges between 8-15% of the property value, encouraging avoidance. On the other hand, property tax rates are low and collection is inefficient. All this has led to Indian lend prices being the highest among the Asian nations related to average incomes and low tax collections is hampering our ability to maintain urban infrastructure. Effective land reforms can really boost housing and retail sectors, two of the largest sectors of the economy outside of agriculture and generate huge employment opportunities', said Premji.

    Once the property is taxed annually at the rate of 2-3% of current market value, many problems, including that of black money will automatically be wiped off from the RE market. Investors and speculators in RE market will just get out from the market. Prices will fall down to the realistic levels - at least 60-75% fall, depending upon the ticket size. Only real end users will remain in market.
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  • People suggesting a drop of 50% is example of pessimism. Would you expect price of dal, chawal and fruit to drop 50%! of course not then how do you expect properly price in this ever growing population which is most important asset in peoples life to drop 50%.

    Yes if US nukes any Metro of India this dream can come true. But than god we don't have land of oil.
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