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HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

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HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

Last updated: April 23 2012
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  • HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

    Now most awaited nexus between builder, bankers are OUT to public.

    now what should common man do, should they wait for similar fate of hosuing prices like shares prices down by 50% in a month.

    I think this scam is going to un earth many more nexus in next 1-2 months which will really would give answer: How come flat work 1 cr sold out like HOT CAKE.

    if this scam go beyoud 1000 CR then hosuig prices will crash everywhere becuase bullders need to save positions.

    why you guys says???
  • #2

    #2

    Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

    jha saab. ye kya. ek aur Diwali thread.

    Comment

    • #3

      #3

      Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

      One more thread speculating a crash/fall in prices
      Get real guys.

      It's just 4-5 builders whose link is exposed. And for the banks, the arrested people will be replaced by new ones.

      And the party will continue

      Comment

      • #4

        #4

        Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

        Fail to see the connection. Scams are digested in India, without any problem.

        I believe only some few % of scams are exposed, because opposition and media is not paid their portion of commission. Once this gets paid, everything cools off.

        Comment

        • #5

          #5

          Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

          Originally posted by compuwalah View Post
          jha saab. ye kya. ek aur Diwali thread.

          We all know that you got Diwali Phobia..

          Comment

          • #6

            #6

            Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

            I'm sorry to continue this thread further, but I do not think that people have understood this scam rightly.

            The scam is actually a case of bribery, where the building companies have paid kickbacks to high ranking bankers to pass their loans. These loans are in crores.

            These building companies under question are fairly large and are probably listed on stock markets as well. The likes of Unitech and DLF.

            The effect of this will only be more scrutiny when giving out leans. Which is great!

            Comment

            • #7

              #7

              Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

              Originally posted by harshalx View Post
              I'm sorry to continue this thread further, but I do not think that people have understood this scam rightly.

              The scam is actually a case of bribery, where the building companies have paid kickbacks to high ranking bankers to pass their loans. These loans are in crores.

              These building companies under question are fairly large and are probably listed on stock markets as well. The likes of Unitech and DLF.

              The effect of this will only be more scrutiny when giving out leans. Which is great!
              Let me tell you the actual reality in the market, and how those scamsters operate...

              A builder launch a scheme, he books flats on the names of his agents and those agents borrow money from the banks. Banks pay maximum amount of the total loan amount (nexus) and builder starts the construction.
              When the tower is up and visible, builder increases the PSQFT rate and lure the end user...Agent's flat is passed on to the real end user (bakara)

              The same trick is used for the second...third..fourth...xxx tower...
              Banks and Builders nexus works well as long as there are fools to buy it...This worked well so far as the end user thought he will afford it...

              Now onwards, all the small - big banks would be under scanner and there would be strict control over the housing loan disbursement. This will shrink the liquidity and thus lead to FALL in the high real estate prices. Also, the high income jobs in India are under pressure due to global economic crises...so there is no assurance that X person is earning 20L per annum will continue to earn that much for the next 5 years...

              Mango man now realised that there is a Bank-Builder nexus that will ruin his whole life under debt...so better stay away from the TRAP and enjoy whatever wealth in hand on something else...

              Any other views are welcome..!!
              Cheers,
              MONDS

              Comment

              • #8

                #8

                Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

                RE Or Ponzi

                Current RE scenario looks more like Ponzi scheme to me.

                * For those who don't know what Ponzi scheme is, please visit the following link:-

                http://en.wikipedia.org/wiki/Ponzi_scheme
                If you are happy, you are successful.

                Comment

                • #9

                  #9

                  Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

                  Lot is said about the nexus between the builder and bank, but i think its known.
                  and where does the bankers dont take the percentage of loan allotment, try asking SME or even farmers . but they pay the commision to the bank manager.

                  other point how big is the bribery case when compared to 2G scam, my feeling is its more to transfer the focus.

                  but one thing is clear builders may be now in the pressure to clear the inventory as the liquidity might be choked to an certain extent.

                  Banker who were preferring lending to high margin business (Realty) will now have to lend to the infra companies (low margin business)
                  , which will be good as hopefully infra would see some improvement

                  Comment

                  • #10

                    #10

                    Re : HOUSING SCAM: WAIT for crash in prices or go ahead to Buy

                    Originally posted by monds View Post
                    Let me tell you the actual reality in the market, and how those scamsters operate...

                    A builder launch a scheme, he books flats on the names of his agents and those agents borrow money from the banks. Banks pay maximum amount of the total loan amount (nexus) and builder starts the construction.
                    When the tower is up and visible, builder increases the PSQFT rate and lure the end user...Agent's flat is passed on to the real end user (bakara)
                    This is hardly true. It might be a very rare case. A typical bulding scheme contains more than a good 100/200 flats. The builder possibiliy cannot recruit 200 agents to have flats on their names.

                    Mango man now realised that there is a Bank-Builder nexus that will ruin his whole life under debt...so better stay away from the TRAP and enjoy whatever wealth in hand on something else...
                    Mango man, unfortunately doesn't want to get into details and make some analysis. He is more worried about his emotions and how all his relatives are investing into real estate.

                    Comment

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