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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

    Car sales surge for fourth successive month, auto makers gear up for festive season with new launches - Economic Times

    India's car market remained buoyant for the fourth successive month, indicating a brisk festival season ahead as auto makers, encouraged by strong August sales, have also lined up a slew of new launches to boost demand.

    Were we told a few months back how -ve car sales growth was going to lead to a RE crash?? people had no money to buy cars so how were they going to buy houses.
    Last edited by aamehra; September 8 2014, 09:50 PM.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Ohh the lack of jobs and lack of salary growth logic...

      Hiring up 15% in July led by healthcare, petrochem: TimesJobs | Business Standard News

      Internet start-ups witnessed a 25 per cent rise in jobs in just a month. There has also been over 100 per cent rise in jobs at senior level positions in start-ups.


      However, traditional job roles have also not fallen by the wayside. The top hiring industries in India by volume, outside of the ubiquitous IT sector, are Healthcare, Petrochemicals/ Oil and Gas, Consumer Durables/FMCG and Automobiles/Auto Ancillaries.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        IT is not going to grow and other asian countries are take away all the jobs. Salary growth is not good.. blah blah.. blah..

        Cognizant hands out promotions, hikes to senior management - Livemint

        Average salary hike for offshore associates is around 10%, while onsite staff has been given single-digit hikes

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by aamehra View Post
          IT is not going to grow and other asian countries are take away all the jobs. Salary growth is not good.. blah blah.. blah..

          Cognizant hands out promotions, hikes to senior management - Livemint

          Average salary hike for offshore associates is around 10%, while onsite staff has been given single-digit hikes
          The rate of growth of Indian IT majors is slowing down. They are still growing but at a slower rate than in the good old days.

          In fact the stock tanked 17% percent on NASDAQ when they announced a weak guidance. The bread and butter business of IT majors is becoming increasingly saturated and competitive and these companies are struggling to get a foothold in the next big thing.

          If you have been following the whole Infosys search for the next CEO fiasco, you will know why IT companies are struggling.
          ...Thoda Aasman

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Selective bits of information/news items are being highlighted on the forum.
            There is many a slip between proposed investmnet by companies and actual investment.Proposed investments do not bring about actual jobs on ground.
            We cannot bank on IT alone to be a the driver of Pune economy.
            IT faces multiple challenges.

            While economy is improving because of the hope generated by election of Shri Modi-dynamic man in his own right,presently it is hope and sentiment guiding the market than real changes on ground.Industries are hoping that regulatory changes take place which will ease things.
            My take is changes are necessary but human beings who work on the regulatory system need to have change.
            You cannot develop industry by giving the fig leaf cover of environmental protection.Removal of a check and balance to speed up clearance is not the way ahead.
            Extract from Live Mint about Cogniznt
            Since Cognizant just about met its revenue growth target in 2013, all its top-level managers will be eligible for 85% of their total bonus payouts. In a regulatory filing earlier this year, Cognizant had said chief executive Francisco D’Souza and other top employees would receive 85% of their payouts if the company met revenue targets. Cognizant’s average salary hikes compare favourably against those given by peers such as Infosys Ltd and Wipro Ltd. While Infosys gave hikes of about 6-7% to offsite employees and about 1-2% to onsite employees, Wipro hiked pay by 6-8% for offsite and 2-3% for onsite employees. “This year’s salary revisions are designed to be market competitive, differentiate niche and critical talent, and reward high performance. Our salary increments are at the higher end of the industry range,” Cognizant said in the email. The salary increments and promotions for senior employees come weeks after Cognizant warned of the slowest revenue growth in its 20-year history.
            As far as increase in car sales;
            Maruti and Tata had a dip in sales,nt withstanding efforts to launch Ciaz and Zest by these companies.Yes,there is a hopeful sentiment presently.
            Reduction in petrol prices has had an impact,but diesel cars are presently facing damp demand.there is no more a premium on diesel cars.
            As per my understanding there is reason to be optimistic with change in the air.Hopefully things should improve-politically and the change will filter down to economy,governance and balanced development.I have still serious doubts about this present Governments commitment towards environment.Every government pays lips service toward environment but adopt short sighted policies favouring shortcuts by industry thereby resulting in deforestation and extinction of various animal species,which will make life of people near these industries pretty uncomfortable.

            Having said this,I hope for the best and a booming economy and prosperous times.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Its good that ThodiSeZamin and vaibhv123 posts are on different page. Less confusion to readers .

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by realacres View Post
                See the post below. You will get your answer.
                Btw, Q for you on RE bulls thread right too.

                Please add all taxes & see for yourself. Pump in free goodies like free CP, & waiving off of manmaani charges.

                Btw, did you observe one thing :- Leading eng & mar newspapers almost have no presence about RE in their Sat editions for past 2 weeks.

                * PS: Even if Wadarwadi prices become 50k/sq ft, how many people are willing to buy it is the question.
                Think you do not have any direct answer as its pretty clear that your argument do not hold any water whatever year one may pick up . Tough spot to be in.

                Consider this. A guy bought in Samrajya in 2010 at 5500 , so 55L + 3L (stamp) + 30K registration = 58L

                (Lets add 10K prop tax and 22K soc charges per year)

                58L + 1.2L =~ 60L (I will give buffer of 80K what else paan supari you can fit into it).

                Say Samrajya is giving free registration /stamp (though not true but I will twist argument in your favour). So our guy 2 who waited for price fall buys at 9500 , so 95L + 0 Stamp + 0 registration + 6 L (rental 12 K (av) * 48 months) = 101L

                Now 101L - 60L = 41 L

                (3L waiver of stamp is like 4% waiver and not 15% as you claim)
                (Also let me be clear that both people had minimal amount of cash to start with and they were not sitting on pile of money to start with).

                Apologies my mathematics usage is on simple basis and the equations floating through cloud nine is (like DeMoive roots of -1) are not my type.

                So argument that inflation has caught up with the blah, can you tell me what benefit today's buyer get out of that argument (other than feeling good that the 4 years prior buyer 10% lower in profit than what he thinks).

                Remember this 41L diff comes when I am giving you extra erbte of 5L registration (as good location builders will nto give these freebies) . Othewise true difference will go to level of 46L (enough to buy two properties in Phursungi at that time and with sale price of today some people will need to sniff chloroform :-) ... I will not tell who)
                Last edited by compuwalah; September 9 2014, 02:18 PM.

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by aamehra View Post
                  Car sales surge for fourth successive month, auto makers gear up for festive season with new launches - Economic Times

                  India's car market remained buoyant for the fourth successive month, indicating a brisk festival season ahead as auto makers, encouraged by strong August sales, have also lined up a slew of new launches to boost demand.

                  Were we told a few months back how -ve car sales growth was going to lead to a RE crash?? people had no money to buy cars so how were they going to buy houses.
                  I would like to explain this from my perspective, since i am also going to buy a car. Reason i am buying a car is real estate is simply NOT affordable. Many of my friends also think it's pointless to wait for a flat and sacrifice on many things like cars and holidays.

                  Of course everyone knows its contrary to popular wisdom in india, that one always buys home first and then other things. But what else can one do?

                  I can easily afford a hatchback(without finance) but home, not at all. So yes, i am buying a car with money saved for downpayment of flat. I would have ofcourse preferred to buy a flat first.

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Compuwalah,
                    There is nothing to be confused.
                    What I have posted is a view that news items are being posted in skewed manner to substantiate their point of view.
                    Reading the full article about Cognizant hikes gives true picture of the hike.
                    Similarly all car manufacturers did not have increase in sales.
                    My reading is that the economy is looking like it may improve and jobs will get generated.
                    Too much of optimism or pessimism is unwarranted.

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Recently Synechron laid off people in Pune. There was another news in TOI saying entry level salaries of IT engineer and electrician around same now. Not sure if people are earning enough to support price hikes of last 3-4 years in Pune RE.

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