Hereby I will prove how the realty boomers arguments are false.

What are the boomers arguments?

1.) Buy today, houses always increase in value in the long run.
WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.

2.) Renting is just wastage of money.
WRONG. As said before renting is now much cheaper per month than owning. If you don't rent, you either:

* Have a mortgage, in which case you are throwing away money on interest, tax, insurance, maintenance, costs that increase forever.
* Own outright, in which case you are throwing away the extra income you could get by converting your house to cash, investing in bonds, and renting a similar place to live for much less money. This extra income is sufficient for emergency expenses,retirement etc.

Either way, owners lose much more money every month than renters and that's assuming prices don't correct to very high level & everything is smooth in the economy.

3.) As a renter, you won't have any money left as you will spend them on vacations,cars & hence won't have equity/savings etc.
WRONG. Equity is just money. Renters are actually in a better position to build equity/savings through investing in anything but housing. Renters can get rich much faster than owners, just by investing in conservative stocks & bonds.

* Owners are losing every month by paying much more for interest than they would pay for rent. The tax deduction does not come close to making owing competitive with renting.
* Owners must pay taxes simply to own a house. That is not true of stocks, bonds, or any other asset that can build equity/savings. Only houses are such a guaranteed drain on cash.
* Owners must insure a house, but not most other investments.
* Owners must pay to repair a house, but not a stock or a bond.
* Owners lose their money as house prices reduce. The EMI's remain constant in spite of reduction in rates. At the end of loan tenure, they would have paid almost twice than that of current renters who will buy at logical rates. Keep interest rates in mind. Most of the EMI is not principal amount but interest.

4.) There are great tax advantages to owning a house.
WRONG. Many people believe you can just reduce your income tax by the amount you pay in interest, but they are wrong. Buyers may not deduct interest from income tax; they deduct interest from taxable income. And even then, the tax advantage is not significant compared to the large monthly loss from owning.

If you don't own a house but want to live in one, your choice is to rent a house or rent money to buy a house. To rent money is to take out a loan. A mortgage is a money-rental agreement. House renters take no risk at all, but money-renting owners take on the huge risk of falling house prices, as well as all the costs of repairs, insurance, property taxes, etc.

5.) RE is based on local factors, it's not a national phenomenon. RE of Delhi-NCR,Bangalore & rest of the cities has nothing to do with Pune RE.
WRONG. Lending rates remain the same throughout the country. ALL loans are harder to get. This will drive prices down everywhere.

6.) A rental house provides good income. So, you can rent if you have purchased as investment.
WRONG. Rental houses provide very poor income in hyped areas and certainly cannot cover mortgage payments. Remember there is almost 300% difference between EMIs & rent for the same house.

It's pointless to do the work of being a landlord if you can make more money with no risk, no work, and no state income tax by investing in assured good returns bond.

7.) If owning is a loss in monthly cash flow, but appreciation will make up for it.
WRONG. Appreciation is negative. Prices are going down. It only adds to the injury of already high EMI's.

8.) As soon as prices drop a little, the number of buyers on the sidelines willing to jump back in increases.
WRONG. There are very few buyers left, and those who do want to buy will be limited by increasing difficulty of borrowing now that many house owners are near bankrupt as they don't save anything at the end of the month due to high EMI's.
No one has to buy, but there will be more and more people who have no choice but to sell as their payments rise. That will keep driving prices downward for a long time.

9.) House prices never fall atleast in Pune.
WRONG. If you see the RE scenario of 1996, prices crashed by 50% & took a whole 7+ years to recover.
Exact 1996 scenario may not be there today but strong correction is inevitable across the city.

10.) House prices don't fall to zero like stock prices, so it's safer to invest in real estate.
WRONG. House prices won't be zero, but the equity or the principal amount you paid can be zero or even negative. What you will pay as EMIs later in actual terms is not for the principal amount but only the interest as house prices dip. So, you will be only serving the bank.

11.) Prices will soften gradually, won't crash immediately.
WRONG. Prices are falling off a cliff. No one knows exactly what will happen, but it looks like prices will continue to fall for long time. These are just more manipulation of buyer emotions, to get them to buy even while prices are falling.

12.) The bubble prices were driven by supply and demand alone.
WRONG. Prices were driven by low interest rates and risky loans & good returns for investors in initial phases of boom in 2004-05.
Prices went up, interest rates went up & buyers savings went down. So prices are violating the most basic assumptions about supply and demand.

13.) There is lack of land.
WRONG. Ample of land is available & continue to be even in future in Pune. Sales volume are down. Even in Japan (small country with less land), prices went down. Current prices here are the same as that of 23 years ago. If we really had a housing shortage, there would not be so many vacant rentals.

14.) If you don't own, you'll live in a cheap neighborhood later.
WRONG. For the any given monthly payment, you can rent a much better house than you can buy. Renters live better, not worse. There are downsides to renting, such as being told to move at the end of your lease, or having your rent raised, but since there are thousands of vacant rentals, you can take your pick and be quite happy renting during the crash. There are similar but worse problems for owners anyway, such as being fired and losing your house, or having your interest rate and property taxes adjust upward. Remember, property taxes are forever.

15.) There's always someone predicting a real estate crash.
TRUE, yet irrelevant. There are very real crashes every decade or so. Even a broken clock is right twice a day.

16.) Local incomes justify the high prices.
WRONG. The mortgage should be more than your 3 years earning. It is much higher today. Most are already in danger/red zone.

17.) You have to live somewhere.
CORRECT. But that doesn't mean you should waste your life savings on a bad investment. You can live in a better house for much less money by renting during the down slide in RE.

18.) It's not a house, it's a home.
WRONG. Wherever one lives in it is home, be it apartment, condo, bungalow , mansion or house. Calling a house a "home" is a manipulation of your emotions for profit.

19.) If you don't buy now, you'll never get another chance.
WRONG. History proves otherwise.
Here's a beautiful quote from a analyst:-
"The real issue isn't whether you will be stuck being a renter all your life, she says. Its whether you'll get so scared about being shut out that you'll buy at the market's peak and be stuck in a property you can't afford or sell."

20.) It would take major economic recession or a major earthquake that wipes out this area in order for the price to fall by over 50%.
WRONG. Even today, if the prices fall by 50%, there will still be very few people who can buy at this levels due to uncertainty in jobs & most importantly high EMIs. Also, look at the rental rates for equivalent houses. Which loss per month is larger? EMI or rent?

contd....
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  • Mumbai has more corporate crowd and hence higher rates than what Pune has. Still, Pune - Aundh/Kothrud prices have been raked up to 8000-9000 per sq feet, similar to what Andheri-Bandra prices are.

    Now, rentals in Adheri-Bandra for a decent fla are definately between 30K-75k per month, in Aundh it is between 12K-18K.

    My take - Buy in Mumbai - Rent in Pune. Use the differntial rental to payup for the flat in Mumbai.

    Dont know how practical this is though.
    CommentQuote
  • Originally Posted by pcpune
    Mumbai has more corporate crowd and hence higher rates than what Pune has. Still, Pune - Aundh/Kothrud prices have been raked up to 8000-9000 per sq feet, similar to what Andheri-Bandra prices are.

    Now, rentals in Adheri-Bandra for a decent fla are definately between 30K-75k per month, in Aundh it is between 12K-18K.

    My take - Buy in Mumbai - Rent in Pune. Use the differntial rental to payup for the flat in Mumbai.

    Dont know how practical this is though.


    In Mumbai it is far more expensive to rent a decent apartment. In Lokhandwala Andheri West for instance, the rent for a good 2BHK apartment is 40k+. A similar apartment (older-resale) can be picked up for around 1.2-1.3cr. The rent-to-buy ratio in this case is around 250 to 300 or so.

    In places where you have secondary business districts like Andheri-East, Powai, Malad and such, rentals are very good. And the equation gets a little bit sweeter.
    CommentQuote
  • Urban Land Ceiling Act - It was a big joke on Punekars when this was removed. It was supposed to bring down RE prices, but only helped builders to become richer at the cost of affordability.
    Just ask Jitu, entire Samrajya with 70L + flats was possible because ULC is repealed. Where is affordability?
    Remember, just because rich people are buying there does not make it affordable. Affordability is based on rent : price ratio, pure and simple.
    That is why builders, agents, real estate salesmen love to hate this ratio.
    CommentQuote
  • Last year, BMW 3 series was at a price of 35L. No one was buying. To boost sales, BMW introduced a stripped down version (corporate edition) at 24L, and sales zoomed up.

    This demonstrates that the main factor in affordability is price, not just intangibles like concept, status, quality etc.

    Anything above a rent : price ratio of 1 : 200 should be termed luxury instead of affordable.
    CommentQuote
  • Originally Posted by ani_meher
    Is anyone here following the Mumbai forum as well? I noted that the people there are not as bearish as we folks here! One thing is for sure, the rent:cost ratio in Mumbai (though thoroughly hated by some on the forum) is much better, in the range of 1:300-1:400 even at current prices, unlike in Pune.


    Mumbai corrected to a greater extent last year than Pune. I remember premium projects in Kharadi of all places quoting Rs 4500/sq ft in August 2009. And around the same time I was surprised to see rates of around Rs 6000 to 7000 in the eastern suburbs for ready possession.
    CommentQuote
  • Mumbai RE Vs Pune RE

    There are 2 things which differentiate Mumbai RE from Pune RE:-

      Buyer awareness is more in Mumbai than Pune (money awareness is more in Mumbai than Pune),
      The builders there are professionals (though corrupt practises are prevalent) & far more superior than Pune RE's scorpio chaps.
      Man, in Mumbai, most of the builders decided to venture into RE & hence became builders, so professionalism was seen, but in Pune, the scorpio chaps who owned/inherited land, themselves became builder out of fluke. That's the major difference.

      Simply walk into Hiranandani or Godrej Properties or Shapoorji Pallonji office & see the way their employees interact with you, & walk in some Pune builders' office & then see what's in store for you. Mumbai builders perform on basis of competition, while Pune builders don't perform at all owning to cartel, thanks to PBAP/Credai Pune.Man, in Mumbai, most of the builders decided to venture into RE & hence became builders, so professionalism was seen, but in Pune, the scorpio chaps who owned/inherited land, themselves became builder out of fluke. That's the major difference.

      Simply walk into Hiranandani or Godrej Properties or Shapoorji Pallonji office & see the way their employees interact with you, & walk in some Pune builders' office & then see what's in store for you. Mumbai builders perform on basis of competition, while Pune builders don't perform at all owning to cartel, thanks to PBAP/Credai Pune.Man, in Mumbai, most of the builders decided to venture into RE & hence became builders, so professionalism was seen, but in Pune, the scorpio chaps who owned/inherited land, themselves became builder out of fluke. That's the major difference.

      Simply walk into Hiranandani or Godrej Properties or Shapoorji Pallonji office & see the way their employees interact with you, & walk in some Pune builders' office & then see what's in store for you. Mumbai builders perform on basis of competition, while Pune builders don't perform at all owning to cartel, thanks to PBAP/Credai Pune.Man, in Mumbai, most of the builders decided to venture into RE & hence became builders, so professionalism was seen, but in Pune, the scorpio chaps who owned/inherited land, themselves became builder out of fluke. That's the major difference.

      Simply walk into Hiranandani or Godrej Properties or Shapoorji Pallonji office & see the way their employees interact with you, & walk in some Pune builders' office & then see what's in store for you. Mumbai builders perform on basis of competition, while Pune builders don't perform at all owning to cartel, thanks to PBAP/Credai Pune.Man, in Mumbai, most of the builders decided to venture into RE & hence became builders, so professionalism was seen, but in Pune, the scorpio chaps who owned/inherited land, themselves became builder out of fluke. That's the major difference.

      Simply walk into Hiranandani or Godrej Properties or Shapoorji Pallonji office & see the way their employees interact with you, & walk in some Pune builders' office & then see what's in store for you. Mumbai builders perform on basis of competition, while Pune builders don't perform at all owning to cartel, thanks to PBAP/Credai Pune.
    CommentQuote
  • I would rather say, Buy on the outskirts of Pune (some Village about 15-20 kms outside Pune) and build a Farm House/Villa or whatver. Rent in Pune, if absolutely required.

    In 10 years time, the city will have grown and your Villa will be in the middle of the Urban Jungle and since rates will also appreciated. Sell it for a huge profit and buy on the NEW outskirts again. ;)

    Originally Posted by pcpune
    My take - Buy in Mumbai - Rent in Pune. Use the differntial rental to payup for the flat in Mumbai.
    CommentQuote
  • But REAL Sir, when will such practices come to an end...its really SAD to See for city like Pune which is all gifted by nature with ample of resources iis been driven by Land Mafias and Scorpio Builder Lobby....:bab (45):...when will this be observed as a correction towards rates and introduction towards Professional behavior towards its buyers....:bab (38):


    Originally Posted by realacres
    There are 2 things which differentiate Mumbai RE from Pune RE:-

      Buyer awareness is more in Mumbai than Pune (money awareness is more in Mumbai than Pune),
      The builders there are professionals (though corrupt practises are prevalent) & far more superior than Pune RE's scorpio chaps.

      Man, in Mumbai, most of the builders decided to venture into RE & hence became builders, so professionalism was seen, but in Pune, the scorpio chaps who owned/inherited land, themselves became builder out of fluke. That's the major difference.

      Simply walk into Hiranandani or Godrej Properties or Shapoorji Pallonji office & see the way their employees interact with you, & walk in some Pune builders' office & then see what's in store for you. Mumbai builders perform on basis of competition, while Pune builders don't perform at all owning to cartel, thanks to PBAP/Credai Pune.
    CommentQuote
  • Originally Posted by mayurk
    But REAL Sir, when will such practices come to an end...its really SAD to See for city like Pune which is all gifted by nature with ample of resources iis been driven by Land Mafias and Scorpio Builder Lobby....:bab (45):...when will this be observed as a correction towards rates and introduction towards Professional behavior towards its buyers....:bab (38):

    Man, for this to happen, we need to weaken the NCP from twin cities of PMC & PCMC. Once NCP is gone, RE will be good again:bab (34):.
    CommentQuote
  • Builders' Baits

    Found an excellent article about builders' tricks. Putting it up here as well, for the sake of record:bab (34):.

    Mon, May 3 05:15 PM

    Real estate developers are using ingenious lures to sell their projects. Here are the false promises you need to beware of.

    Rohit Sinha's dream was short-lived; it lasted 12 months before morphing into a nightmare. Lured by the builder's promises, Sinha bought and moved into his apartment, in Delhi, in 2007. But much like the promises, the construction quality proved flaky. The advertised facilities were not delivered - the swimming pool was the size of a kids' pool, the club was not even part of the plan, the green area was taken over by the state government.
    Even as he, along with other residents, is fighting for his rights, the builder has launched another project in the same locality - holding out similar promises. "Surprisingly, even though we informed prospective buyers about our problems, the builder has managed to sell a large number of units," says Sinha.
    When money today approached the builder, all he said was, "We sell our projects separately and one has nothing to do with the other. Also, today the situation is very different from that in 2007." It is indeed different, not in terms of the risks buyers face, but in the ingenuity used by builders to sell projects. They are using old tricks, new lures and many false promises. Here are some promised attractions - and the reasons you shouldn't take them at face value.

    SELLING THE LOCATION
    Real estate is all about the right location and a project within 'walking distance' from a metro station or 'along the highway' seems good. This is one reason most developers are selling the location more than the project. But before considering the offer, visit the site. Some developers have renamed locations without official sanction. So you will hear of Gurgaon Extension, Whitefield Extension or Noida Extension despite a denial about the existence of such localities by the respective local authorities. Similarly, a five-minute drive will probably translate to a 45-minute crawl during rush hours.

    PROPOSED INFRASTRUCTURE PROJECTS:D
    Most speculators, or investors who want to sell at a huge profit, blindly follow one rule - buy property near a proposed mega infrastructure project, such as a metro, second airport or expansion of an existing highway. When the project is completed, the price of the property around it or along the route tends to jump manifold. However, beware of the word 'proposed', be it the access road or a metro station. Housing projects are being sold on the basis of proposals that may be at the approval stage or may not have been planned at all. The Greater Noida location was sold on the promise of an upcoming airport, but it's not even close to being a reality. Most such 'proposed' projects are delayed, shelved or cancelled. In such cases, the property's value remains stagnant, even falls, as speculators cash out and look for other investment opportunities.

    READY FOR POSSESSION
    This is the most common differentiator between a project that is likely to be delayed and one that you can shift into as soon as you buy it. However, the meaning of the phrase varies for different projects and cities. In some cases, buyers have been given 'possession' without basic facilities like lifts or water connection. In others, they have been shown a tower nearing completion, only to be told later that 'their' tower is still under construction. Experts advise a site visit before paying up.

    CONSTRUCTION-LINKED PAYMENT
    The builder's marketing agent will tell you about the meticulous track record in delivering projects on time. To make it more convincing, he will offer you a construction- linked payment plan - "You can pay according to the construction. Don't pay if we are slow." But irrespective of the construction being on schedule, he will make sure you pay on time. Once you've paid half the amount, he can threaten you with cancellation. Remember, construction-linked payment is not an insurance against delayed projects.

    GUARANTEED RETURNS
    Till some time ago, this was used as a carrot for commercial projects, but is now being advertised for residential ones too. It's mostly the smaller developers desperate for funds who are offering such schemes. So, only after you make the down payment will you be told about the fine print - you get the returns only if you share the property with two others or the advertised returns are only for investment above a certain amount. The builder knows that after you put in the money, you will either stay put or invest more for better returns.

    AFFORDABLE HOUSING
    It has been the buzzword for more than a year, but before you buy, discount the project's advertised value and see what you are actually getting. There's likely to be a huge difference between the promised and the delivered project. So the super area-carpet area ratio could be highly skewed. Also, find out the true cost of the project; the builder may not have included the price of club membership, maintenance, pool charges, etc.

    TODAY'S LUXURY, YESTERDAY'S MIDDLE CLASS
    Luxury seems to be back in demand given the number of such projects launched in the past three months. A good opportunity for investors? Not really. The builders are peddling these projects because the margins are higher, but today's 'luxury' is yesterday's 'middle-class'. A comparison with the current box-sized 'affordable' projects makes these seem 'luxury' and gives the developers the right to charge a premium on costs like club membership and maintenance. Experts believe that a double dip may be in the offing when it comes to premium projects as there aren't enough buyers. Some developers have also been selling agricultural land in the name of a 'farmhouse' development without permission from the authorities.

    DUBIOUS DEMAND
    If you tell the developer you need time to think before buying, he'll rattle off the list of buyers queuing up to buy the property. Others will warn you of a possible rise in prices, how these have increased in the past couple of years or how phase 1 of the same project was sold within days. In 90 per cent of the cases it's a lie, and if you haggle, you're bound to get a better deal.

    ARRANGING FOR FINANCE
    Attractive schemes like zero EMI come with a catch. Don't believe the builder if he asks you to make the down payment and promises to arrange the finance later. Even if he puts you in touch with the bank's representative and assures you of the loan, ask the bank directly for better rates. In most cases, the rate offered by the bank's agent, who has put up a stall at the project site, is higher than that offered by the bank if you approach it directly.

    The link is here:-

    http://in.news.yahoo.com/248/20100503/1592/tbs-builders-baits.html
    Attachments:
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  • Mumbai Loksatta Article

    Friends, read this article...very interesting and true. My apologies for non-marathi readers...

    http://www.loksatta.com/index.php?option=com_content&view=article&id=66736:2010-05-01-19-11-21&catid=127:2009-08-06-07-25-02&Itemid=139
    CommentQuote
  • http://loksatta.com/index.php?option=com_content&view=article&id=67965 :2010-05-07-11-

    Originally Posted by monds
    Friends, read this article...very interesting and true. My apologies for non-marathi readers...

    http://www.loksatta.com/index.php?option=com_content&view=article&id=66736:2010-05-01-19-11-21&catid=127:2009-08-06-07-25-02&Itemid=139


    Thanks monds! This is nice article. I usually read loksatta but I missed it somehow. There is one more article today and is very interesting. Hope you people like it.

    Read complete article here:
    http://loksatta.com/index.php?option=com_content&view=article&id=67965:2010-05-07-11-57-45&catid=104:2009-08-05-07-53-42&Itemid=117


    Summary pasted here directly...
    मनमोहनसिंगांनी अर्थव्यवस्थेचे दार थोडे किलकिले केल्यावर गुजरात, तामीळनाडू, केरळ, हरयाणा, ओरिसा अशांसारख्या महाराष्ट्राच्या तुलनेत अविकसित राज्यांना आपली ४० वर्षांची औद्योगिक भूक भागवायची संधी प्राप्त झाली आणि त्यावर ते तुटून पडले. या काळात पंतप्रधानपदाची इच्छा बाळगणारे शरद पवार दिल्लीहून काहीशा अनिच्छेनेच महाराष्ट्रात परत आले होते. बीजिंग ते वॉशिंग्टन असा कॅनव्हास सोडून त्यांना मुंबई ते नागपूर अशा कॅनव्हासवर नाइलाजाने सेटल व्हावे लागले होते. खैरनार, अण्णा हजारे यांनी निव्वळ कानगोष्टींच्या जोरावर कोणताही पुरावा नसताना पवारांच्या विश्वासार्हतेला सतत आव्हान उभे केले होते. खैरनारांना तर पत्रकारांनी डोक्यावरच उचलून घेतले होते. वेळ फुकट जात होता. जागतिकीकरणाचे भान असूनही महाराष्ट्राने त्याकडे अक्षम्य दुर्लक्ष केले होते. या भानगडीत पवारांचे सरकार गेले आणि युतीचे बिनअनुभवी सरकार आले. हाताच्या बोटावर मोजता येतील असे काही सन्माननीय अपवाद वगळता कोणालाच जागतिकीकरणाचे पडले नव्हते.
    मध्यंतरात बाबरी प्रकरण, नंतर मुंबईत झालेले दंगे आणि त्यानंतर बॉम्बस्फोट यांत मुंबई होरपळून गेली होती. बांगलादेशी विस्थापित स्थापित होऊन त्यांनी गिरणी कामगारांची जागा भिवंडी- मालेगावसारख्या असंघटित पॉवरलूम क्षेत्रात तसेच बांधकाम आदी क्षेत्रांतून घेतली. संघटित क्षेत्रातील कुशल कामगार त्यांच्या अरेरावीमुळे आणि चढत्या मागण्यांमुळे घरी बसले. भाडे नियंत्रण, यू.एल.सी.सारख्या विकासविरोधी कायद्यांनी घरांची टंचाई वाढवली. घरांचे भाव चढू लागले. राजकीय नेतेच बिल्डर बनले. शहर विकास नियम धाब्यावर बसवण्यात आले.
    महाराष्ट्राच्या कर्जाचा बोजा आता दोन लाख कोटी रुपयांच्या घरात पोहोचला आहे. आमदानीत १०० रुपयांतील ६० रुपये वेतन आणि निवृत्तीवेतन यावर, तर २० रुपये व्याज आणि इतर आर्थिक बाबींवर खर्च होतात. उरलेल्या २० रुपयांत पायाभूत सुविधांची देखभाल, शिक्षण व वैद्यकीय सेवा, नागरी सुरक्षा, अनुदाने, शेतकी सुविधा, सिंचन, रस्तेबांधणी वगैरे खर्च कसे भागणार? कर्जफेड करणार का नवे कर्ज (या वित्तीय वर्षांत २३ हजार कोटी!) काढत बसणार? विकासासाठी पैसा येणार कोठून?
    त्यातल्या त्यात जमेची बाजू म्हणजे मुंबई-पुण्याचे तयार इन्फ्रास्ट्रक्चर आणि सुशिक्षित, इंग्रजी जाणणारा मध्यमवर्ग हाताशी असल्यामुळे तेजीत असलेल्या सेवाक्षेत्राने जागतिकीकरणाच्या प्रक्रियेत महाराष्ट्राला हात दिला. आजची महाराष्ट्राची अधोगती ही खरे तर जागतिकीकरणाच्या गतीबरोबर राहता न आल्यामुळे झालेली आहे. आयटी क्षेत्रातही बंगलोर आणि हैदराबाद हे पुण्यापेक्षा खूप पुढे आहेत, हा काही योगायोग नव्हे. एकंदरीत महाराष्ट्राची स्थिती शर्यतीतील सशासारखी झाली आहे. आणि जाग येताच आता हा ससा सर्वागीण विकासाचे ध्येय सोडून रिअल इस्टेटच्या मृगजळाकडे धूम पळतो आहे. तो कधी कोणत्या मंदीच्या खाईत कोसळेल, हे सांगता येणार नाही.
    :bab (59):
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  • Originally Posted by monds
    Friends, read this article...very interesting and true. My apologies for non-marathi readers...

    http://www.loksatta.com/index.php?option=com_content&view=article&id=66736:2010-05-01-19-11-21&catid=127:2009-08-06-07-25-02&Itemid=139



    Monds,
    Thanks for such a fantastic post. A MUST read for all the folks all over Maharashtra.
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  • Originally Posted by monds
    Friends, read this article...very interesting and true. My apologies for non-marathi readers...

    http://www.loksatta.com/index.php?option=com_content&view=article&id=66736:2010-05-01-19-11-21&catid=127:2009-08-06-07-25-02&Itemid=139


    Excellent Article. But kind of disagree with this part.

    "पण यामध्ये अनेक राजकारण्यांचे हितसंबंध गुंतल्याने काही काळानंतर काही सरकारी सूत्रांमधून भारताची अर्थव्यवस्था मजबूत असून भारताचा नऊ टक्के विकास दर असून जागतिक मंदीचा आमच्या देशावर काहीही विपरीत परिणाम झालेला नाही, वगैरे बातम्या पद्धतशीरपणे प्रसारित होऊ लागल्या. त्यात भर म्हणून की काय ज्यांना काही महत्त्वाची पदे मिळाली आहेत असे अर्थतज्ज्ञ म्हणविणारेही त्याला पुष्टी देऊ लागले."

    I think banking system (Credit System) plays major role in real estate bubule. If Credit expansion is controlled it will make Bauble burst faster. Its a good step that RBI has taken regarding N.P.A. in real estate.
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  • Back again!!!

    Folks,

    Did you see the 1000 point DOW crash? Are you in touch with the Greek Tragedy? Are you aware that (umteenth time I'm repeating this), the excess debt that has fuelled RE worldwide - INCLUDING INDIA - will eventually have to be eliminated? Do you know the consequences of this removal of debt?

    The Doom & Gloom guy is back. As we have been seeing, this fake "recovery" is more-or-less over and the next leg down in the global bear market has started. The bottom of this bear is likely (at least in the US) to be around 2016 as per the Panchang! :)

    And the way markets have started this leg down (violence and sharpness) this promises to be an epic third leg which normally is the most violent and destructive.

    Eliminate debt, save cash, buy some silver and . Take cover.

    India should do better than most of the world.

    Was busy and could not post. More later.

    cheers
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