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impact on RE pricing in current scenario

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impact on RE pricing in current scenario

Last updated: December 31 2010
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  • impact on RE pricing in current scenario

    Dear all,
    I would like opinion and trend in RE under following consideration in coming days:-
    1)In noida &/adjoining particular , large number of under construction projects in pipeline.
    2)Increase in bank interest rate , margin amt. home loan bribary case etc.
    3) Sharp increase in cost of essential primary goods/ and overall inflation , petroleum goods and all round commodaties.

    What i understand-
    1) Irrespective of large supply , downtreand in pricing is unrealistic , as construction and associate cost would rise
    2) Many project will delay substantially , even the best project would not get delievered on time
    3) poor qulaity construction.
  • #2

    #2

    Re : impact on RE pricing in current scenario

    Originally posted by 83rakeshk View Post
    Dear all,
    I would like opinion and trend in RE under following consideration in coming days:-
    1)In noida &/adjoining particular , large number of under construction projects in pipeline.
    2)Increase in bank interest rate , margin amt. home loan bribary case etc.
    3) Sharp increase in cost of essential primary goods/ and overall inflation , petroleum goods and all round commodaties.

    What i understand-
    1) Irrespective of large supply , downtreand in pricing is unrealistic , as construction and associate cost would rise
    2) Many project will delay substantially , even the best project would not get delievered on time
    3) poor qulaity construction.

    Even I am also feel that in noida, max builder will not be able to deliver project on time which we can see by current status of construction.

    What plan customer should choose????

    I m thinking that all project payment plan should be no EMI till possession so that no risk at all.

    Down payment is extremely risky as per the current situation of noida.

    Comment

    • #3

      #3

      Re : impact on RE pricing in current scenario

      Yes i also think so that, all project payment plan should be no EMI till possession OR CLP

      Comment

      • #4

        #4

        Re : impact on RE pricing in current scenario

        No EMI till possession IS A DOWNPAYMENT PLAN!!!!!

        You are taking a bank loan, bank gives downpayment to builder and builder pays interest to the bank.

        If builder defaults on construction and you default on the loan, bank will foreclose on the property and your 15 or 20% contribution to the booking will be gone for ever.

        A dead loss of 15%.
        Venky (Please read watch a or before posting)

        Comment

        • #5

          #5

          Re : impact on RE pricing in current scenario

          Originally posted by Venkytalks View Post
          No EMI till possession IS A DOWNPAYMENT PLAN!!!!!

          You are taking a bank loan, bank gives downpayment to builder and builder pays interest to the bank.

          If builder defaults on construction and you default on the loan, bank will foreclose on the property and your 15 or 20% contribution to the booking will be gone for ever.

          A dead loss of 15%.
          Venky, even in a CLP plan one needs to pay a minimum of 30% before construction activity actually starts. So even if a builder defaults in this case, you end up loosing a lot.

          So I guess some maths needs to be applied to find out if NO EMI plan works a little cheaper.

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