People would have heard about the bankruptcy rumors of HDIL doing rounds - 2 days back which was a 6000 crore company has suddenly become a 3100 crore company. And the reason, company or promoters didn't have a cash of 50 crore to make some payments for government charges related to land they had bought. This is the version put out by the company. But it also reflects the status of liquidity crunch in the market.
These developments has shocked many guys. No one knows the truth yet, As of now it looks like an overreaction. Are you aware that if the company goes bankrupt, Probability of recovering all the money you have given for buying your flat is very low.
This also reminds upon everyone to be careful in investing in any under construction property. People might have earned money in last 5 years in pre-launch buy and sells, but the past is not indicator of the future. There is already a thread in Noida forum which advocates buying RTM and avoid unnecessary risks, It makes more sense to me now. Don't bet on the party to go unabated on factors like RBI is going to decrease rates etc. etc. RBI may decrease rates, but in recent times RBI has been aggressive in reprimanding banks about RE loans.
Its time to be careful in handing out your money to the builder for under-constructed property. Evaluate with the worst possible scenario that you might lose the money forever.
Or better still, wait for the RE Regulator bill which is going to come in 2-3 months. Which has provisions to make sure that money given by you is used in your project only. That bill is already giving jitters to most of the builders and they are in hurry to get their all pre-launch etc crap done as
it would not be possible then.
I hope the HDIL doesn't go bankrupt. I know someone has already paid 35 lacs for a 1 crore property which in case of bankruptcy could be valued anything (even zilch).
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  • Originally Posted by gharondabhai
    Lets take one step further ..

    We may DIE the next hour, still we are discussing so many things, planning so many things ..

    Have you ever thought what happened if your so called SAFE RTM collapse? fire? What happen if your FD bank collapsed like Lehman? What happened if Indian Gov defaults like Iceland?

    Risk is in every sphere of life and you have all the option to go to Himalay!!

    How many are going to Himalay?


    But every possible effort has to be made to minimize risk.

    How many are going to be like Ostrich?
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  • Originally Posted by realacres
    HDIL news, Lodha, RNA all show to crumbling logic of builders & RE bulls. You can hype things, but to sustain it requires fundamentals which are not there in RE as of now.

    Apart from HDIL, JP Asso have sold 8% shares in JP Infra/Realty. JP Realty too has issues despite owning cement cos. Their share value would have sank further, had they not been in infra space.

    :D


    These comments were given by realacres in pune forum in context of what happened to HDIL .
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  • Originally Posted by abc111
    But every possible effort has to be made to minimize risk.

    How many are going to be like Ostrich?


    Hope you heard of Lehman brother, one of the top recruiter from the best business schools in the world. I said world, not India.

    Minimising risk, managing risk, mitigating risk, contain risk are mouthful words. How many lost money in Satyam? Who are they?

    Being careful is fine but being paranoid is not good
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  • Originally Posted by asingla
    :) Seems like supertech and amarpali are only safe ones :) :)


    Good joke :)
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  • Originally Posted by gharondabhai
    Lets take one step further ..

    We may DIE the next hour, still we are discussing so many things, planning so many things ..

    Have you ever thought what happened if your so called SAFE RTM collapse? fire? What happen if your FD bank collapsed like Lehman? What happened if Indian Gov defaults like Iceland?

    Risk is in every sphere of life and you have all the option to go to Himalay!!

    How many are going to Himalay?


    Yes Gharondabhai, since risk is there in every sphere in life, Why don't put all the money into forex trading without a trading plan, and become a zero/millionaire in 10 days. Better still, why evaluate any pro/cons before any investment, Why not sell the house and go to a , one can become a billionaire and live rest of the life rich, Otherwise, you can always become poor and die the next day.
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  • Originally Posted by gharondabhai
    Hope you heard of Lehman brother, one of the top recruiter from the best business schools in the world. I said world, not India.

    Minimising risk, managing risk, mitigating risk, contain risk are mouthful words. How many lost money in Satyam? Who are they?

    Being careful is fine but being paranoid is not good


    Gharondabhai, I lost 4 lacs+ in Satyam, and that was purely because i jumped in leveraged and didn't give proper attention to risk management. And yes, I am a small time retail investor.

    About risk management - Some people have automatic risk management in any investment they pick, while some are very poor (like me). A grave risk in some project according to you might hardly look a risk for a bad investor like me.
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  • We all know JAYPEE has the capability of being big brother regarding such kind of mess.
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  • Originally Posted by Digvijay
    We all know JAYPEE has the capability of being big brother regarding such kind of mess.


    I think JP, DLF etc. are names too big to fail. They can draw in PE Funds, REIT's or can go for GDR's. But, comparatively smaller builders who sometime s pick money from market at 20-25% p.a. would always be safe ?
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  • Originally Posted by ashish18
    I think JP, DLF etc. are names too big to fail. They can draw in PE Funds, REIT's or can go for GDR's. But, comparatively smaller builders who sometime s pick money from market at 20-25% p.a. would always be safe ?


    I guess you mean to say small builders are "risky" ..

    But I don't think bigger builders like DLF, JP, Logix have any options to fail given they have such big incomes coming from other ventures , they can ride out the tuff phase .. Jaypee have so many other groups making profits, DLF and Logix have a lot of leasing income coming ... The problem with HDIL could be the greed of promoters who made windfall profits by taking the stock price higher than what the stock deserved and now exiting by looting the money of retail investors...

    On a separate note, Do we know any legitimate project failing yet in Noida be it from a small or big builder ?
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