http://timesofindia.indiatimes.com/Mumbai/New_Mhada_scheme_puts_leading_bldrs_on_backfoot/articleshow/4049264.cms#write

Excellent article .. a ray of hope for those longing to put a roof over their head

Btw .. a small correction regarding the rates mentioned in the print article .. the Mhada rates quoted are for carpet area but builders' rates given are for super built up area .. hence a ~1000 sq ft mhada flat goes for 57 Lakhs and an equivalent area flat from a private builder goes for more than 2 Cr.

I think this is just the beginning .. once the MHADA flats start getting alloted .. most people are likely to flip them in the open market .. even at twice the rate i.e. doubling your money literally overnight the resold Mhada flats would be cheaper .. once that happens .. there is going to be a bloodbath .. whoever has money and wants to buy a flat would go and buy a Mhada flat sucking out demand from other properties ... the transactions will cause a sudden vaccum in demand which should result in an immense downward spiral of the rates .. more importantly because the elections are coming and builders will have to cash out to pay their political bosses ..

Builders have oppressed the common man for far too long now .. Roti, Kapda aur Makaan are the basic of life .. they have denied this to the common man by their own and investors' greed for way too long now

Are we seeing the making of a perfect storm?? Kindly share your opinions
1. Recession / Job loss = lesser chances of people taking risk with high EMIs .. the mood has definitely turned sombre from being extactic just a few months back
2. Liquidity issues = Banks unwilling to lend / pass on benefits of low interest rates
3. Elections = Builders need to cash out to pay their political masters to fund elections
4. Mhada allocations = properties available at a fraction of the market rate

= ??? .. will the rates finally come down?

And I feel once Mumbai rates come crashing .. the rest of the country would just follow .. Mumbai led the rise and will lead the crash we well.
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