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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

    I was seriously considering shifting to bangluroo

    except for language and some education issues.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by Sansei View Post
      After staying 3 yr in Pune followed by 3 yr in Bengluroo

      agree with fence sitter.


      No airport, no metro , no ring road , no development authority

      etc etc etc.

      .
      Agreed. that is why its 40% cheaper RE. Now imagine what will happen once ring road, metro, Airport etc gets added to Pune. When your starting position is low, its easy to rise with less effort. Once you are saturated (liek Bangluru) the upside is limited.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Its Pune that is saturated with old mindset/ grabbed land and other issues not Bengluroo.

        So they went ahead and built the new int airport, created BBMP, metro , an elevated road from airport to Mekhri circle.

        Now in pune we are just doing reports and reports of metro - feasibility studies???
        Airport is stuck in land logjam.
        No ring roads No PMRDA, No metro
        AND now they are thinking of dividing BBMP into smaller units for better management.
        Here along with corrupt netas, black marketer businessmen have gobbled up all the resources and now there is nothing left, despite ULCA .
        try to buy a piece of land anywhere in Pune you will know the truth

        Till some better avenues are available for these investors price are not going to come down.
        Till there are other black wells to hide the ill gotten wealth prices are not going to come down.

        That's why I have suggested that the govt just needs to look inside to get all the black monies it wants, one will find many many Ali Hassan here in Pune

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Don't celebrate too early about falling inflation, says RBI deputy guv - Firstbiz

          Deluded and incompetent institution!!!

          "Warning against "early celebrations" over recent fall in inflation print, RBI Deputy Governor HR Khan today said there are structural issues affecting prices which are complicating the fight against price rise, but expressed optimism that better days are ahead on this front."

          So Mr Khan how is raising interest rates going to solve the structural issues????

          "In the comments, which come ahead of the Reserve Bank's review of the monetary policy on 2 December, Khan cited the example of milk prices being high in villages of Uttar Pradesh, saying all the produce gets diverted to the cities."

          Again how are high interest rates going to solve this problem??? If supply chain has to be improved u need to invest in it. With rates running at 11-12% how will businesses invest in building a supply chain??? What a load of c%@p from the RBI

          Wonder why the media does not tear apart the RBI when it makes such absurd comments. On one hand rates are increased to counter inflation but on the other hand the same rates cannot be brought down as the country faces structural issues??? Why did you raise rates in the first place then!!!!

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Kolte Patil

            The average sales price realization stood at Rs. 5,616 per sq. ft. in Q1 FY15 higher by 16% YoY as compared to Rs. 4,831 per sq. ft. in Q1 FY15. Source - http://www.koltepatil.com/system/dat...se_Q1_FY15.pdf

            In Q2 of FY15 the average price realization was 5,800. Source - See revenue recognition of 6 projects in H2: Kolte-Patil - Moneycontrol.com


            Here is a picture of the realization across all the KP projects. Details at - http://www.koltepatil.com/docs/KPDLR...compressed.pdf
            Attached Files

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by Sansei View Post
              Till some better avenues are available for these investors price are not going to come down.
              Till there are other black wells to hide the ill gotten wealth prices are not going to come down.
              Actually, the black money in Mumbai RE is several times than that of Pune, infact Pune RE looks like peanuts when compared to Mumbai RE, yet RE prices in Mumbai have fallen significantly, not just in terms of sales but as seen yesterday, even in rentals which is down by as much as 35%.

              The forceful grabbing of land, manipulation of land records were all done by greedy & thugs politicians of Pune, be it Dada scorpio or Kite-rao Foot of Bharti vidyapeeth.
              Now just see the fun man, & to see it closely, just see what the situation of land-owners is in fringe areas of Pune - Wagholi, Punawale, Ambegaon, Shirval, Talegaon, Pirangut.
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by herohiralal View Post
                Kolte Patil

                The average sales price realization stood at Rs. 5,616 per sq. ft. in Q1 FY15 higher by 16% YoY as compared to Rs. 4,831 per sq. ft. in Q1 FY15. Source - http://www.koltepatil.com/system/dat...se_Q1_FY15.pdf
                I don't believe in such reports for the simple reason that it is prepared by builder himself. This is like saying that look at me, how saint I am. Man, just see the balance sheets given by DLF.....had it been true, DLF wouldn't have been so close to bankruptcy.
                If you are happy, you are successful.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by realacres View Post
                  I don't believe in such reports for the simple reason that it is prepared by builder himself. This is like saying that look at me, how saint I am. Man, just see the balance sheets given by DLF.....had it been true, DLF wouldn't have been so close to bankruptcy.
                  Expected from you. If the data had shown that the realizations had fallen you would have posted it on 100 threads.

                  So, just ignore the data and continue ur posts. No value in discussing with you.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Low interest rates do not always lead to faster economic growth

                    The logic is that if the RBI cuts the repo rate, banks will also cut interest rates, and this in turn will lead to people borrowing and spending more. Companies will also borrow more and expand and invest in new projects. And this will lead to faster economic growth.


                    Nevertheless, the thing is that economic theory and practice don't always go together. So, a cut in interest rates doesn't always lead to an increase in investment by the corporate sector. As Crisil Research points out in a report titled Will a rate cut spur investments? Not really “the monetary policy tool of cutting the interest rate is conventionally used to energise a flagging economy. But this does not hold true under all circumstances.”


                    Crisil Research comes to this conclusion after comparing the last two financial years with the pre-crisis years of 2004-2008. During 2004-2008, private corporate investment increased despite high interest rates. The same has not been true during the last two years.


                    The question to ask why has that been the case? Most corporates while making a decision to increase their investment take a look at the expected return. “Investments are undertaken when the expected returns on them are more than the real lending rate (real borrowing cost for corporates). The average rate of return on corporate investment (non-financial firms) – as proxied by return on assets – fell sharply to 2.8% in fiscal 2013 and 2014 from nearly 6% in the pre-global financial crisis years,”Crisil Research points out.


                    This is basic economics at work. And our politicians and businessmen need to be aware of this. Further, what our politicians and businessmen do not talk about is the fact that many large business groups are heavily indebted and this has led to their interest costs shooting up.



                    Also, India has fallen constantly in the global competitiveness rankings. India's position in the Global Competitiveness Index fell to 71 in 2014. It was at 60 in 2013 and 49 in 2009. The RBI was not responsible for any of this. This was a mess made the politicians of the Congress led UPA which ruled the country for a decade and the businessmen who went on a borrowing spree and underestimated costs of setting up projects.


                    Also, the Indian consumer is not ready to get his shopping bags out as yet though he flattered to deceive briefly, after Narendra Modi was elected as the prime minister. This is reflected in a variety of numbers from low manufacturing inflation to low index of industrial production and car sales.


                    The reason for this is that inflationary expectations (or the expectations that consumers have of what future inflation is likely to be) continue to remain high. Hence, the Indian consumer is still not convinced that the high inflation that he has had to deal with over the last few years has finally been killed.


                    To conclude it has become fashionable for the government and the businessmen to blame RBI for slow economic activity in the country. Nevertheless, it is time they started to get their own act right. The RBI can only do so much.


                    Mr Mahindra and Mittal, low interest rates do not always lead to faster economic growth - Firstbiz
                    If you are happy, you are successful.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by herohiralal View Post
                      Expected from you. If the data had shown that the realizations had fallen you would have posted it on 100 threads.

                      So, just ignore the data and continue ur posts. No value in discussing with you.
                      There is a difference between third party report which is based on facts taken up from registrar office & self prepared report. Sorry, if you can't differentiate between the two.

                      These reports is like you prepare question paper, answer it yourself & examine it too yourself & say that you have passed with flying colors. Can you tell me how SOLD OUT flats come back again in market time & again ??

                      Even in KP report, there is no guarantee that actual sales have taken place, it can be mere transfer of flat to its subsidiary or allied companies & shown as sale. Wonder if you think that financial auditing is so straightforward & transparent !!

                      Btw, buyers have vanished from RE market across the country. Just see this news from South too :-

                      No takers for Hyderabad's most expensive homes?

                      Is the Jubilee Hills Landmark Project Pvt Ltd, touted as Hyderabad's most expensive residential venture (only a stone's throw away from KBR Park), struggling to find buyers? Sources in the know of things revealed that the project is in doldrums and Bangalore-based Mantri Developers Pvt Ltd, who replaced Maytas to enter the project (as developer) in December 2011, is running from pillar to post to sell the 126 apartments likely to come up on this sprawling 5.85 acres of prime land in the heart of the city.

                      http://timesofindia.indiatimes.com/c...w/45052970.cms

                      Last edited by realacres; November 7 2014, 10:36 PM.
                      If you are happy, you are successful.

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