Prices doubled from 2009...enough said....
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  • औद्योगिक विकासाचा वेग मंदावत चालला, मंदीच

    http://www.esakal.com/esakal/20110913/5751235707370142542.htm

    नवी दिल्ली - औद्योगिक विकासाचा वेग मंदावत चालला असून, मंदीचे सावट गडद होत असल्याचे स्पष्ट झाले आहे. जुलैमध्ये आर्थिक विकास दर 3.3 टक्‍क्‍यांवर आला आहे. हा विकास दर 21 महिन्यांतील नीचांकी आहे. तो घटल्यामुळे चिंता वाढत चालली असून, रिझर्व्ह बॅंकेने व्याजदर वाढीला आता तरी "ब्रेक' लावावा, अशी मागणी जोर धरायला लागली आहे.

    जूनमध्ये विकास दर 8.8 टक्के इतका होता. गेल्या वर्षी जुलै महिन्यातही 9.9 टक्के इतका विकास दर होता. या तुलनेत यंदा जुलैमधील विकास दराचे आकडे अपेक्षेपेक्षा खूपच कमी आले आहेत. व्याजांचे वाढलेले दर आणि जागतिक अर्थव्यवस्थेची खराब स्थिती यांमुळे औद्योगिक विकासाला फटका बसल्याचे सांगण्यात येते.
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  • Rupee weakness is bullish for RE in India
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  • Considering the all-round pressure on builders to sell their current projects, there is no doubt that the Indian home buyers will have more on their plate during this festival than what they might have expected earlier. But then, those who intend to stretch them to high-end houses, they must enter the builders premises with one or two Indian street buying tricks.
    Full article:

    The great Indian real estate jumble
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  • Originally Posted by Venkytalks
    Rupee weakness is bullish for RE in India


    Eventually it is, if there is significant devaluation without a slowdown in the growth. Proper value for rupee is somewhere in INR70-80 - 1 USD range, but usually devaluations of such magnitude have been accompanied by massive slowdown internally (think 1985-88, 1991-93, 1996-1997).
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  • Originally Posted by Naveen_Flat
    Considering the all-round pressure on builders to sell their current projects, there is no doubt that the Indian home buyers will have more on their plate during this festival than what they might have expected earlier. But then, those who intend to stretch them to high-end houses, they must enter the builders premises with one or two Indian street buying tricks.
    Full article:

    The great Indian real estate jumble


    From the article

    . Not to mention, they are now ready with their new marketing campaigns, discount schemes and loads of freebies to lure the consumers, at least in the high-end segment (Rs 1 crore and above).


    So its only good for buyers looking for 1 cr + real estate:bab (45):...for buyers lookin in range of 30-40 lakh this means nothing...:D
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  • Don't lose hope, Wait for trickling down effect!
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  • Originally Posted by varghese
    Don't lose hope, Wait for trickling down effect!


    Righly said varghese, just wait and watch ;)
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  • Originally Posted by Venkytalks
    Rupee weakness is bullish for RE in India


    But it also leads to increased supply of money in the system. Hence INFLATION.
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  • Originally Posted by amitjj
    Eventually it is, if there is significant devaluation without a slowdown in the growth. Proper value for rupee is somewhere in INR70-80 - 1 USD range, but usually devaluations of such magnitude have been accompanied by massive slowdown internally (think 1985-88, 1991-93, 1996-1997).


    Dude, remember that India imports almost 70% of its energy requirements (oil and coal). The day rupee reaches to INR70-80 to 1USD, domestic inflation will boomerang and prices will blow up like Volcano.

    Besides, it also means that there should be scarcity of USD in our system. And if we want more & more FII to invest in us (either direcly or thru Stocks), then clearly its not possible.
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  • I have signed it and also shared with people
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  • Originally Posted by bhuvang
    But it also leads to increased supply of money in the system. Hence INFLATION.


    RE is a reasonable hedge against inflation. Gold is better than RE but cannot be used.

    RE will not fall when inflation is so high. Instead, Rupee value will be destroyed to make these current astronomical RE prices seem realistic
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  • Originally Posted by bhuvang
    Dude, remember that India imports almost 70% of its energy requirements (oil and coal). The day rupee reaches to INR70-80 to 1USD, domestic inflation will boomerang and prices will blow up like Volcano.

    Besides, it also means that there should be scarcity of USD in our system. And if we want more & more FII to invest in us (either direcly or thru Stocks), then clearly its not possible.


    Yes, it means that the economy will not be doing well. I was pointing out that while major depreciation (not +/- 10%) in the rupee is needed to support real estate, such depreciation also means that the economy is in the doldrums for some time. This scenario is not bullish for real estate.
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  • Originally Posted by Venkytalks
    RE is a reasonable hedge against inflation. Gold is better than RE but cannot be used.

    RE will not fall when inflation is so high. Instead, Rupee value will be destroyed to make these current astronomical RE prices seem realistic


    With rupee depreciation, inflation increases and so does interest rates. And because of them, there can very well be a slowdown or recession and RE crash. And just because of depreciation of the rupee, salaries will not go up in Rupee terms overnight. On the contrary the EMI and daily expenditures will increase. While you may be right over long period of 2-3 years, to benifit from the depreciation we will need to survive during the same period.
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  • Originally Posted by Useless
    With rupee depreciation, inflation increases and so does interest rates. And because of them, there can very well be a slowdown or recession and RE crash. And just because of depreciation of the rupee, salaries will not go up in Rupee terms overnight. On the contrary the EMI and daily expenditures will increase. While you may be right over long period of 2-3 years, to benifit from the depreciation we will need to survive during the same period.


    Absolutely agree with this - YOU HAVE TO SURVIVE THE DOWNTURN!!!!!

    RE purchase on EMI consuming half your salary is a strict no-no during inflation - you may not be able to survive on half salary and in a downturn, you might lose your job as well.

    But if you have a corpus for allocation into various asset classes, not having RE as an asset class at all is also a no-no. So if you have a crore in cash, booking a flat worth 30L would be a wise decision. Not dong so and staying with FD alone would probably erode value over 5-10 years - whereas your 30L in flat or plot will race ahead of inflation and give some 7-8% over and above inflation (which might average 10% per annum for the forseeable future.

    Rent will also start marching up as inflation starts to bite.

    RE will actually react only after there is a slowdown, and RBI cuts rate in response. At that time, RE will run away on a tear.

    Timing so precisely is difficult in RE purchase. This is a good time to scout around for the best deal and a middle of 2012 purchase, might be the best timing possible.

    One should prepare for this
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