Question 1

High home prices make more than a billion of Indian population live in homes that dont provide even basic human dignity.

Why are home prices in India higher than any other country in the world on PPP (Purchasing Power Parity) basis?

Answer 1

ARTIFICIAL DEMAND

Question 2

What is the source of this ARTIFICIAL DEMAND?

Answer 2

Black money of politicians/bureaucrats and other corrupt species

Question 3

How to Stop this?

Answer 3

BAN property ownership of more than one residential plot/house by one person

Question 4

How many NOIDA IREF members agree?

Answer 4

Please see the poll result


Prediction on POLL

1. Brokers will vote NO, as this will hit their business in the short term. Most brokers i have met dont think more than the very short term.

2. People with invested money in RE will vote NO. It will be extremely difficult for them to vote against their short term vested interest.

3. Hard working people unable to buy decent homes will vote YES, as they deserve good homes.
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  • Jalne ki Bu aa rahee hai bhayanak roop se iss thread mein ;) Apna bhala nahi ho raha toe kya gam hai doosro ki killowatt lagana toe fitrat hai.
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  • Originally Posted by spdershi

    Boyy...they will never buy. This is a typical investor mentality in Stock Markets also..


    Yes, people should wait for correction in stock market and buy on every dip. The whole SIP market is based on this concept. Until/unless someone is not an intra-day trader, s/he should invest like that only. There is no comparison in RE and stock market in this sense.

    Originally Posted by spdershi

    Chahe jis rate par bhi khareedoge...Rate badhne hi waale hai..and you will make money...

    And yes, this is big myth people have, you can check hundreds of posts in this forum only where people have discussed about myths of "Chahe jis rate par bhi khareedoge...Rate badhne hi waale hai." and "good location always yeilds good profits".
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  • Juts make 50% to be the maximum bank loan.
    And the maximum loan tenure to be 10 years.

    The prices would correct automatically as investors would find no buyers at the present price.

    The party is going on the steroids of debt.
    If the lifeline of debt is cut off; there would be immediate cooling of prices.
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  • Originally Posted by raj0112
    Jalne ki Bu aa rahee hai bhayanak roop se iss thread mein ;) Apna bhala nahi ho raha toe kya gam hai doosro ki killowatt lagana toe fitrat hai.


    Achchi bat hai sir, aap internet par posts se bu soongh lete hai. ;) behtareen naak hai aapki.
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  • loans

    ABC,

    Your suggested strategy may or may not cool off RE prices, but will kill banks for sure.

    Originally Posted by abc111
    Juts make 50% to be the maximum bank loan.
    And the maximum loan tenure to be 10 years.

    The prices would correct automatically as investors would find no buyers at the present price.

    The party is going on the steroids of debt.
    If the lifeline of debt is cut off; there would be immediate cooling of prices.
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  • Vo din bhi door nahi. 3D Printing toe aa hee gayee.

    Vaise seriously guys, Do you really feel putting restrictions, bans etc is sustainable. Learning from US or other developed economy - RE sector should be more transparent and structured. Over leveraging should be minimized. Whats the point of putting 1 home per person, does 1 home worth 20 crore is not somewhat similar to 10 homes worth 2 crore as far as investment in RE is concerned. We should lift all the restrictions and minimize tax implication on property resales and you will see how there would be increased transparency in real estate?

    Black money is probably the biggest nuisance and inflationary element in RE market.

    Originally Posted by Aabodana
    Achchi bat hai sir, aap internet par posts se bu soongh lete hai. ;) behtareen naak hai aapki.
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  • Originally Posted by raj0112
    Vo din bhi door nahi. 3D Printing toe aa hee gayee.

    Vaise seriously guys, Do you really feel putting restrictions, bans etc is sustainable. Learning from US or other developed economy - RE sector should be more transparent and structured. Over leveraging should be minimized. Whats the point of putting 1 home per person, does 1 home worth 20 crore is not somewhat similar to 10 homes worth 2 crore as far as investment in RE is concerned. We should lift all the restrictions and minimize tax implication on property resales and you will see how there would be increased transparency in real estate?

    Black money is probably the biggest nuisance and inflationary element in RE market.


    Hope banks are not reading abc advice of 50% max loan amount. It will give more scope of black money being traded in market. At-least people who take 80% loan, have everything opened in-front of bank (and hence IT scrutiny).

    Yea, total ban is not possible. As usual there cannot be one best solution of any problem; there are always a series of reforms (solutions to tackle that). May be : making necessary involvement of regulatory body for builder and for buyer too, to ensure buyer has all white money. No resale until 50% payment is done, an affidavit from buyer & seller to regulatory body that no black money transaction is involved. High registration cost for second onwards property. More important more scrutiny of builders accounts/books

    Sir tax kaha se minimize karenge. Tax par to poora GDP tika hai, government will get noting (for doing scams) if govt stops putting all these heavy tax burdens on public.
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  • Originally Posted by Aabodana
    Hope banks are not reading abc advice of 50% max loan amount. It will give more scope of black money being traded in market. At-least people who take 80% loan, have everything opened in-front of bank (and hence IT scrutiny).

    Yea, total ban is not possible. As usual there cannot be one best solution of any problem; there are always a series of reforms (solutions to tackle that). May be : making necessary involvement of regulatory body for builder and for buyer too, to ensure buyer has all white money. No resale until 50% payment is done, an affidavit from buyer & seller to regulatory body that no black money transaction is involved. High registration cost for second onwards property. More important more scrutiny of builders accounts/books

    Sir tax kaha se minimize karenge. Tax par to poora GDP tika hai, government will get noting (for doing scams) if govt stops putting all these heavy tax burdens on public.



    Black money guy would also not touch a depreciating asset.

    What is going on is debt binge.
    It would be the implosion of debt as had happened in West that would cause the bubble to burst.

    In West; it happened at the retail level.
    In India; it would start with debt implosion at corporate level.
    NPAs in Banks are rising at an alarming rate.
    Don't be surprised if a lot of Builders go bankrupt.

    If HDIL,Deccan Chronicle can go bankrupt; what stops SADAK CHAP Builders of Noida to go Bankrupt.


    20 year loan of 80% amount is an agreement of life long slavery to the Bank and people are so happy to sign it.
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  • Originally Posted by teen_patti
    surprise to read comments on this thread. it was a disappointing to see people suggesting that no such ban should be there.

    To share with the group, China this year implemented the policy. they restricted 3 homes per family. ie 1 home per member. since this month prices in major bubble markets (shanghai, wenzhou, shenzhen, beijing etc) have come down to 50% compared to last month. there is huge number of second hand home on sale. 20% haves are not happy , but 80% not haves are celebrating and buying these houses for their 1st home need.

    Its a good social policy, but not a good capitalist policy. as we know india is a over grown , inefficient , poor compliant re market, such social policies will help keep RE out of investment portfolio.

    My suggestion, tax heavily on RE, TDS, high registration, very high capital gain, etc etc , so that people buy home just to use or park unused fund , not for trading. let the money be diverted into more compliant sectors like bonds, equity , industries, manufacturing etc etc that will help create jobs for million , who then can buy affordable property for their family to live. and if home prices will be low, economy will have low inflation and need for corruption and fast money, high greed etc will be less as society will be more satisfied.

    my thought is such ban is workable if government wants.


    Taxing heavily RE is a much better idea than your ban Idea. But, In India the problem is of compliance and not of the ideas. If all this pre-launch investors start paying their short term capital gains taxes, this problem would not be that acute.
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  • Originally Posted by abc111
    Black money guy would also not touch a depreciating asset.

    What is going on is debt binge.
    It would be the implosion of debt as had happened in West that would cause the bubble to burst.

    In West; it happened at the retail level.
    In India; it would start with debt implosion at corporate level.
    NPAs in Banks are rising at an alarming rate.
    Don't be surprised if a lot of Builders go bankrupt.

    If HDIL,Deccan Chronicle can go bankrupt; what stops SADAK CHAP Builders of Noida to go Bankrupt.


    20 year loan of 80% amount is an agreement of life long slavery to the Bank and people are so happy to sign it.


    You meant to say that black money holder hadn't lost a single penny in market till now. How can black money holder predict the future?
    Yes, NPAs are raising like anything so do debts restructuring by govt and converting debt-to-equity as well.
    And nobody is saying that people have to do 'slavery' for all 20 years. People get better income in future, they grow in their field, they get support of spouse and repay the loan (“in white" money) and come out of this so-called ‘slavery’. Black money wouldn't solve the problem of debt, only Voluntary Disclosure of Income Scheme kinds of scheme will allow builders (too) get the black out in market…apart from involving more and more banks and other regulatory bodies to have vigil on buy/sell.
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  • Originally Posted by Aabodana
    You meant to say that black money holder hadn't lost a single penny in market till now. How can black money holder predict the future?
    Yes, NPAs are raising like anything so do debts restructuring by govt and converting debt-to-equity as well.
    And nobody is saying that people have to do 'slavery' for all 20 years. People get better income in future, they grow in their field, they get support of spouse and repay the loan (“in white" money) and come out of this so-called ‘slavery’. Black money wouldn't solve the problem of debt, only Voluntary Disclosure of Income Scheme kinds of scheme will allow builders (too) get the black out in market…apart from involving more and more banks and other regulatory bodies to have vigil on buy/sell.


    What if there is Job Loss even for few months?

    The condition would be worse if all the savings have already been used up to pay for the down payment.
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  • Originally Posted by abc111
    What if there is Job Loss even for few months?

    The condition would be worse if all the savings have already been used up to pay for the down payment.


    abc sir there are always uncertainties in future. we can't predict future in such extreme situation where job is gone or life is gone. Even for these uncertainties there are riders in home loan (for both job gone and life gone). My only point-of-view was if bank (or other body) is involved there would be a control on black money flowing; Why to fear of anyone (bank/IT scrutiny) if one is not having/doing any black money transactions.
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  • I have nothing against bank Loan.

    What I am objecting to is the tenure and the amount of loan.

    Like West; we may have a generation of Debt slaves in India as well.

    It is just not practical to impose bans.
    China could not do it; In India implementation is almost impossible.

    But Debt can be controlled.
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  • Originally Posted by raj0112
    Extrapolating from the same, lets restrict to have just 1 car per person, 1 gold jewellery set per women, < 1L in FD, no more than 1 vacation to Europe in a decade, 1 LCD TV per family, < 1L/month income etc etc.

    Why would you want to put barriers, I understand transparency should be created to minimize black money, but what’s wrong in people having more than 1 home. If they can afford it, let them buy it. I would rather incentivize people to declare their properties and the worth of the same. Let there be no tax on capital gain from resale of property for 5 years and black money would go away.


    Because housing is a basic necessity and in limited supply (land is limited and so are flats effectively) while other are not! you can create millions/billions of LCDs while homes/plots can't be created ! Just like hoarding of food (again a basic necessity) is a crime, why can't hoarding houses be declared criminal?
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  • I can clearly see a looser creating this type of thread and losers in favor of this promoting this. BTW simply by creating these kind of threads nothing would happen. Do you think MMS and SG are reading these threads, and forget about that even if they are they have the intent and will power to do so.
    Come on guys, give me a break, we are not in a communist country and don't have any social security, pension, medical support, unemployment allowance or whatsoever by the govt even after paying more than 30% tax.
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