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Builders & Real Estate Bulls Theory Proved Wrong

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Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
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  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    Originally posted by aamehra View Post
    Biggest joke!! Every single new item is twisted by you. People are waiting for correction for years while prices keep on rising in Pune. All your theories have fallen flat but u still harp your old continue.
    Can you please explain the reasons for builders defaulting on payments & debts ? Also, please let us know why inventory is rising.
    If you are happy, you are successful.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by aamehra View Post
      Selective data analysis as usual. You miss the most imp bit where fresher and mid experience folks are earning awesome salaries and continue to post news item that suit your bias.

      New-breed companies pay big bucks for IT talent - The Times of India

      Software is a very innovative area. Try to keep up with the rapid change or be stuck with old models and old data. ur choice but stop preaching your incorrect analysis.
      This was already discussed earlier. Now let me know the following :-

      > Total no. of people getting getting take home salary of over 18L/annum,
      > Of these how many want to buy a house &
      > Inventory levels in their respective cities.

      Man, see the last sentence of the news you posted :-

      Gururaj said, can suck away the best talent and create some inflation for the top tier of talent. "But they won't create general inflation for the average talent pool. This is a game being played for the best 5% of the talent pool and super high wages will not easily trickle down to the masses," he said.

      Now, the company where I work, the MD has package running into few crores/annum. So, by your logic, RE prices in prime locations like Koregaon Park now becomes affordable.
      Last edited by realacres; August 12 2014, 06:59 PM.
      If you are happy, you are successful.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        SLR cut unlikely to help unless credit growth picks up: SBI

        In the bi-monthly monetary announcement today, the RBI kept its key policy repo rate unchanged as widely expected, but warned about inflationary risks should a shortfall in monsoon rains spark a surge in food prices.

        The Reserve Bank of India (RBI) governor Raghuram Rajan chose to stick to the script on Tuesday, keeping key policy rates unchanged, but warned about inflationary risks should a shortfall in monsoon rains spark a surge in food prices.

        The RBI also lowered banks' minimum bond holding requirements, known as the statutory liquidity ratio (SLR), by half a percentage point to 22.0 percent to free up more money for lending, effective from August 9. The RBI also cut the ceiling on debt that must be held-to-maturity by half a percentage point to 24 percent.

        "With some continuing uncertainty about the path of the monsoon, it would be premature to conclude that future food inflation, and its spill-over to broader inflation, can be discounted," the RBI said in a statement. Most bankers do not see much of an immediate impact of the monetary policy because of poor credit demand.

        SLR cut unlikely to help unless credit growth picks up: SBI - Moneycontrol.com



        RBI doesn't rely on forex market to manage liquidity: Rajan

        A day after the Reserve Bank of India left rates unchanged, it assured that interest rate moves will be guided more by domestic factors than external ones.

        RBI doesn't rely on forex market to manage liquidity: Rajan - Moneycontrol.com
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          US jobs rose since 2008 crisis, but pay is 23 per cent less: Report

          Jobs growth in the US since the 2008 recession has been undermined by lower wages, with workers earning an average 23 per cent less than earnings from jobs which were lost, a report by an organization representing US cities said on Monday.

          The average annual salary in sectors where jobs were lost - particularly manufacturing and construction - during the 2008-9 financial crisis was $61,637, according to the report by the United States Conference of Mayors (USCM), which represents cities with populations of more than 30,000.

          Job gains through the second quarter of 2014 in comparative sectors showed average wages of $47,171, implying $93 billion in lower wage income, the report said.

          The report also showed that the majority of metro areas - 73 per cent - had households earning salaries of less than $35,000 a year.

          The latest monthly employment data from the Labor Department showed that more than 200,000 jobs were created for the sixth straight month in July, but that wages were about flat in the private sector.

          American workers, on average, earned $24.45 an hour in July, up only a penny from June. Over the last year, wages have grown just 2 per cent, in keeping with where they have been stuck since late 2009.


          US jobs rose since 2008 crisis, but pay is 23 per cent less: Report - The Economic Times

          ^^ This is for those RE bulls who look only at the surface & say all is well.
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by wiseman View Post
            If that was aimed at me, thank you for compliment.



            Assuming that most buying has happened in the 2009 onward period, it is safe to assume that so far most payments of EMIs have gone towards interest leaving behind a thin level of equity in the property itself (meaning buyers still owe banks 80%+ of the price of the property).


            cheers
            What?

            Buyers still owe 80% !

            Let me try to count how many of my friends booked in 2009 / 2010 period and what their current situation is,

            1) People bought in 2009 - cost of 2 BHK was 45 lacs
            2) Assuming 10L downpayment + 35 Lacs Loan
            3) Average IT guy saving per month 50K (single income)
            4) If Double income then savings become 1 L per month
            5) Total savings in 4 years - at least 25 Lacs (most conservative estimate)

            By the way, most of my friends are double income IT households who save more than 1L per month.

            Some of them have repaid their home loanes fully and have moved on to next property loan already.

            Hinjewadi is full of such examples.

            and this is only about salaried class, dont even try to calculate for business men and investors.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              I am sometimes surprised when people quote TOI and other "biased" agencies to claim that property market will revive. Inadvertently in every Saturday and Sunday TOI editions there is a huge report claiming that property prices are heading/about to head north and on the same page we have 10 to 20 builders advertising. If TOI does not portray a rosy picture about property prices who will advertise in their newspaper. If they come out with the fact that property is slowly and steadily going into depression for atleast the next 2 to 3 years who will pay for the advertising space in their newspaper.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Not every IT professional is able to save 1 lac per month. In fact not even 10%. My whole family works in IT and I think only 5 to 8% IT guys are able to save that amount.

                Originally posted by tarcap View Post
                What?

                Buyers still owe 80% !

                Let me try to count how many of my friends booked in 2009 / 2010 period and what their current situation is,

                1) People bought in 2009 - cost of 2 BHK was 45 lacs
                2) Assuming 10L downpayment + 35 Lacs Loan
                3) Average IT guy saving per month 50K (single income)
                4) If Double income then savings become 1 L per month
                5) Total savings in 4 years - at least 25 Lacs (most conservative estimate)

                By the way, most of my friends are double income IT households who save more than 1L per month.

                Some of them have repaid their home loanes fully and have moved on to next property loan already.

                Hinjewadi is full of such examples.

                and this is only about salaried class, dont even try to calculate for business men and investors.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by anshu 1975 View Post
                  Not every IT professional is able to save 1 lac per month. In fact not even 10%. My whole family works in IT and I think only 5 to 8% IT guys are able to save that amount.
                  My estimate is Total savings in 4 years - at least 25 Lacs (most conservative estimate)

                  This means 6 L per year ie, 50K per month.

                  Who in IT with more than 6/7 years is experience is not able to save this much. If its a double income household then savings should be at least 1 L per month.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by tarcap View Post
                    My estimate is Total savings in 4 years - at least 25 Lacs (most conservative estimate)

                    This means 6 L per year ie, 50K per month.

                    Who in IT with more than 6/7 years is experience is not able to save this much. If its a double income household then savings should be at least 1 L per month.

                    @tarcap - I'd fall into your category for 7.5+yrs of exp working for a big MNC. I don't know anybody who save that amount of money in India. Ofcourse when they're onshore you can but not on Indian salary.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by tarcap View Post
                      By the way, most of my friends are double income IT households who save more than 1L per month.

                      Some of them have repaid their home loanes fully and have moved on to next property loan already.

                      Hinjewadi is full of such examples.
                      I wonder that if 1L/month or 12L/annum is the savings, why aren't cars like Skoda Superb, VW Jetta, Hyundai Elantra seen in large numbers in Hinjewadi ??
                      If you are happy, you are successful.

                      Comment

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