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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

    whole Ramayan is preached and if you ask some one "who was Sita?" How would you feel if that person says "Sita? who Sita?"

    We should learn from our and others experiences, to make our own life better.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by informsantosh View Post
      .........I may be wrong about all this but individuals who are buying for end use will be causalities and obviously investor who are fueling this RE rally to multiply their money. As we have been taught that FD does not beat RE and stock market in long run. And so we are left with just RE investment as avenues to beat inflation.
      Very good post Santosh. I would like to inform that the cases of people defaulting has already started. Just yesterday, one fellow in RE told me that few buyers in Mittal projects have defaulted & builder is threating to cancel the agreement with 20% deduction in paid amount till date. Also, some buyers have not yet taken the possession of his ready poss flats at Sun Orbit as the last couple of installments have not been paid. Man, the figs which I have is only 65 people have come to stay here despite the fact that this project poss was given last year itself. Cancelations have taken place in Sun Universe as well.

      Similar issues are there in case of Kumar builders, Goel Ganga & Aditya builders as well. Severe defaults. Now the thing is buyers are stuck & builders too. I feel that if this no. of defaulters continues to rise, the NPAs will be huge, already it has risen by more than 3% YoY.

      These crook builders with greedy banks coupled with RE bakras are sitting in the bus which has no brakes & going downhill. So, many should thank god if they missed such bus.
      If you are happy, you are successful.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by RAJESHP View Post
        whole Ramayan is preached and if you ask some one "who was Sita?" How would you feel if that person says "Sita? who Sita?"

        We should learn from our and others experiences, to make our own life better.
        The problem is that many people feel that Ravan won't kidnap Sita at first place & even if he does, Ram & Hanuman will be least bothered to rescue her. In this assumptions, they then get crushed by Ravan.
        If you are happy, you are successful.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by realacres View Post
          Cancelations have taken place in Sun Universe as well.

          many should thank god if they missed such bus.
          Right realacres.
          When visited builder's office for cancellation of my flat 2 months back, I could see a bundle of canceled agreement appx 20-30 files in a project of 150 flats. These cancellations may be due to below reasons:
          1. Buyers/investors loosing hope and canceling as taking possession is loss-making preposition.
          2. Builders offering incentives to some buyers to move to a bigger flat from earlier registered flat.
          Last edited by hitmady; April 18 2010, 10:20 PM.

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Real Acres, as per my interaction with Jitu sir, I learned that bank first make person to make his/her own contribution (i.e. self contribution) and then disburses a loan.

            So when does a person gets defaulter because he has made contribution and loan is disbursed by builder; now buyer and bank have to confront each other in case buyer is 'defaulter'

            Please correct if I have missed few niche cases of transaction.

            In addition, I am getting some calls for ready posession apartments by individual sellers, saying they want immediate sale; could they be defaulters and trying to get rid of loan burden because of reduce (or overrated) self's repaying capacity?

            Originally posted by realacres View Post
            Very good post Santosh. I would like to inform that the cases of people defaulting has already started. Just yesterday, one fellow in RE told me that few buyers in Mittal projects have defaulted & builder is threating to cancel the agreement with 20% deduction in paid amount till date. Also, some buyers have not yet taken the possession of his ready poss flats at Sun Orbit as the last couple of installments have not been paid. Man, the figs which I have is only 65 people have come to stay here despite the fact that this project poss was given last year itself. Cancelations have taken place in Sun Universe as well.

            Similar issues are there in case of Kumar builders, Goel Ganga & Aditya builders as well. Severe defaults. Now the thing is buyers are stuck & builders too. I feel that if this no. of defaulters continues to rise, the NPAs will be huge, already it has risen by more than 3% YoY.

            These crook builders with greedy banks coupled with RE bakras are sitting in the bus which has no brakes & going downhill. So, many should thank god if they missed such bus.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by puser View Post
              Real Acres, as per my interaction with Jitu sir, I learned that bank first make person to make his/her own contribution (i.e. self contribution) and then disburses a loan.

              So when does a person gets defaulter because he has made contribution and loan is disbursed by builder; now buyer and bank have to confront each other in case buyer is 'defaulter'
              hey the self contribution is limited to down payment, a person still pays EMI and defaults if he does not pay EMI for more than 3 months I think.

              Originally posted by puser View Post
              In addition, I am getting some calls for ready posession apartments by individual sellers, saying they want immediate sale; could they be defaulters and trying to get rid of loan burden because of reduce (or overrated) self's repaying capacity?
              Sellers chasing buyers for immediate sale, First sign of change from Sellers market to buyers market.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by RAJESHP View Post
                hey the self contribution is limited to down payment, a person still pays EMI and defaults if he does not pay EMI for more than 3 months I think.



                Sellers chasing buyers for immediate sale, First sign of change from Sellers market to buyers market.

                Dear Rajesh

                Are you saying bank stops loan disbursement once a person fails to pay EMI for more than 3 months?

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by puser View Post
                  Dear Rajesh

                  Are you saying bank stops loan disbursement once a person fails to pay EMI for more than 3 months?
                  Yes, & his/her property is attached as well, hence the reason many couldn't still get poss.
                  If you are happy, you are successful.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by puser View Post
                    In addition, I am getting some calls for ready posession apartments by individual sellers, saying they want immediate sale; could they be defaulters and trying to get rid of loan burden because of reduce (or overrated) self's repaying capacity?

                    Beware. There could be multiple issues for the same:-
                    1. The owner has defaulted,
                    2. Bank has given him a notice to repay the debt,
                    3. He has mortgaged this property for raising funds elsewhere & now trying to default.
                    Man, you should be cautious when other party is desperate.

                    * In the society where I stay, few days ago, the guards complained to me that some tenants are not putting the entry passes on their vehicles nor are making entry in the register when they come late. When asked in detail, they told that this particular tenant had bought a flat in nearby project & has defaulted & the recovery agents are doing the rounds. Hence, to avoid them, he is staying as tenant here & not willing to enter his name out of fear that the recovery agents may see the entries & locate him. The bank has already sealed his flat.
                    If you are happy, you are successful.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      My intention in earlier post was just to point that institutions in democracy should not over leverage RE, which will create bubbles.

                      I guess in last post I was more bearish we as an Indian society are very resilient.
                      If person wanting to buy property for end use, they should not try to time market. If we have surplus, we should look for VFM and consider all pro’s and con’s mentioned by many senior members on this forum and pull the trigger.

                      There is real wealth of knowledge on this forum. I will always recommend to read a post by user ‘venkytalks’ on 2/18/2010. Its in this same thread page number 117, its amazing.

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