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....
Read more
Reply
12597 Replies
Sort by :Filter by :
  • COMPARING ORANGES TO LEMONS !

    You're absolutely right, my friend, I'm comparing oranges with -- not a*pples -- but lemons -- WHERE PUNE IS THE LEMON:D

    Staying in Pune we are so conditioned to think that every thing HAS to be expensive, especially property. This misconception has overwhelmed us, so that we are blinded to other realities.

    My friend, Uttaranchal has 1/10th the population of Maharashtra; it follows that there is much less pollution, crowd & dirt. There are NO slums. Even state highways and internal roads in towns are FAR BETTER than Maharashtra. Dehradun is a well-planned, cosmopolitan town with NO water or electricity problems Everything is available here, and that too 10 / 15% cheaper than Pune.

    The town itself is only about 5kms in diameter. And yes, I reiterate, quaint bungalows are available bet 12 to 20 lacs hardly 3 / 4 kms from the town center

    When I was transferred to Uttaranchal, I was apprehensive. But I found out that its a better world here.

    Think, my friend, if I -- a thoroughbred maharashtrian, born & brought up in Pune -- have developed such a rabid contempt for Maharashtra-- just think to what level Maharashtra has sunk because of its dirty politics.

    When I was transferred to Uttaranchal, I was apprehensive. But I found out that its a better world here.

    Think, my friend, if I -- a thoroughbred maharashtrian, born & brought up in Pune -- have developed such a rabid contempt for Maharashtra-- just think to what level Maharashtra has sunk because of its dirty politics.

    When I was transferred to Uttaranchal, I was apprehensive. But I found out that its a better world here.

    Think, my friend, if I -- a thoroughbred maharashtrian, born & brought up in Pune -- have developed such a rabid contempt for Maharashtra-- just think to what level Maharashtra has sunk because of its dirty politics.

    When I was transferred to Uttaranchal, I was apprehensive. But I found out that its a better world here.

    Think, my friend, if I -- a thoroughbred maharashtrian, born & brought up in Pune -- have developed such a rabid contempt for Maharashtra-- just think to what level Maharashtra has sunk because of its dirty politics.
    CommentQuote
  • Originally Posted by heretic
    You're absolutely right, my friend, I'm comparing oranges with -- not a*pples -- but lemons -- WHERE PUNE IS THE LEMON:D

    Staying in Pune we are so conditioned to think that every thing HAS to be expensive, especially property. This misconception has overwhelmed us, so that we are blinded to other realities.

    My friend, Uttaranchal has 1/10th the population of Maharashtra; it follows that there is much less pollution, crowd & dirt. There are NO slums. Even state highways and internal roads in towns are FAR BETTER than Maharashtra. Dehradun is a well-planned, cosmopolitan town with NO water or electricity problems Everything is available here, and that too 10 / 15% cheaper than Pune.

    The town itself is only about 5kms in diameter. And yes, I reiterate, quaint bungalows are available bet 12 to 20 lacs hardly 3 / 4 kms from the town center

    When I was transferred to Uttaranchal, I was apprehensive. But I found out that its a better world here.

    Think, my friend, if I -- a thoroughbred maharashtrian, born & brought up in Pune -- have developed such a rabid contempt for Maharashtra-- just think to what level Maharashtra has sunk because of its dirty politics.

    Then why north indians r cming here.....we should tell them all these stuff....

    Unless and untill job opportunities r not there all these things r useless...

    Then why north indians r cming here.....we should tell them all these stuff....

    Unless and untill job opportunities r not there all these things r useless...

    Then why north indians r cming here.....we should tell them all these stuff....

    Unless and untill job opportunities r not there all these things r useless...

    Then why north indians r cming here.....we should tell them all these stuff....

    Unless and untill job opportunities r not there all these things r useless...

    Then why north indians r cming here.....we should tell them all these stuff....

    Unless and untill job opportunities r not there all these things r useless...

    Then why north indians r cming here.....we should tell them all these stuff....

    Unless and untill job opportunities r not there all these things r useless...
    CommentQuote
  • Originally Posted by kothrud_pune
    Then why north indians r cming here.....we should tell them all these stuff....

    Unless and untill job opportunities r not there all these things r useless...


    Close the all companies so there would be not any flow. The requirement is not fulfilled by the locale people so, they are hiring form outside. Even Bangalore is full with Telgu and Tamil people and vice- versa with Chennai and Hyderabad.
    CommentQuote
  • Originally Posted by heretic
    You're absolutely right, my friend, I'm comparing oranges with -- not a*pples -- but lemons -- WHERE PUNE IS THE LEMON:D

    Staying in Pune we are so conditioned to think that every thing HAS to be expensive, especially property. This misconception has overwhelmed us, so that we are blinded to other realities.

    My friend, Uttaranchal has 1/10th the population of Maharashtra; it follows that there is much less pollution, crowd & dirt. There are NO slums. Even state highways and internal roads in towns are FAR BETTER than Maharashtra. Dehradun is a well-planned, cosmopolitan town with NO water or electricity problems Everything is available here, and that too 10 / 15% cheaper than Pune.

    The town itself is only about 5kms in diameter. And yes, I reiterate, quaint bungalows are available bet 12 to 20 lacs hardly 3 / 4 kms from the town center

    When I was transferred to Uttaranchal, I was apprehensive. But I found out that its a better world here.

    Think, my friend, if I -- a thoroughbred maharashtrian, born & brought up in Pune -- have developed such a rabid contempt for Maharashtra-- just think to what level Maharashtra has sunk because of its dirty politics.

    I never been to Dehradun...but I don't believe that roads in uthranchal are better than Maharashtra, as Maharashtra considered to be state which has one of the best roads in India & as uthranchal has hilly terrain, so its very difficult to build & maintain "Good" roads...

    Bytheway I dont belong to Pune, but I feel Pune a better place to live after Bangalore (some ppls says Bangalore also become worst these days) & my own hometown Bhopal...I certainly will plan a holiday in deharadun in coming summers & will see reality with my own eyes:bab (34):

    I never been to Dehradun...but I don't believe that roads in uthranchal are better than Maharashtra, as Maharashtra considered to be state which has one of the best roads in India & as uthranchal has hilly terrain, so its very difficult to build & maintain "Good" roads...

    Bytheway I dont belong to Pune, but I feel Pune a better place to live after Bangalore (some ppls says Bangalore also become worst these days) & my own hometown Bhopal...I certainly will plan a holiday in deharadun in coming summers & will see reality with my own eyes:bab (34):

    I never been to Dehradun...but I don't believe that roads in uthranchal are better than Maharashtra, as Maharashtra considered to be state which has one of the best roads in India & as uthranchal has hilly terrain, so its very difficult to build & maintain "Good" roads...

    Bytheway I dont belong to Pune, but I feel Pune a better place to live after Bangalore (some ppls says Bangalore also become worst these days) & my own hometown Bhopal...I certainly will plan a holiday in deharadun in coming summers & will see reality with my own eyes:bab (34):

    I never been to Dehradun...but I don't believe that roads in uthranchal are better than Maharashtra, as Maharashtra considered to be state which has one of the best roads in India & as uthranchal has hilly terrain, so its very difficult to build & maintain "Good" roads...

    Bytheway I dont belong to Pune, but I feel Pune a better place to live after Bangalore (some ppls says Bangalore also become worst these days) & my own hometown Bhopal...I certainly will plan a holiday in deharadun in coming summers & will see reality with my own eyes:bab (34):

    I never been to Dehradun...but I don't believe that roads in uthranchal are better than Maharashtra, as Maharashtra considered to be state which has one of the best roads in India & as uthranchal has hilly terrain, so its very difficult to build & maintain "Good" roads...

    Bytheway I dont belong to Pune, but I feel Pune a better place to live after Bangalore (some ppls says Bangalore also become worst these days) & my own hometown Bhopal...I certainly will plan a holiday in deharadun in coming summers & will see reality with my own eyes:bab (34):

    I never been to Dehradun...but I don't believe that roads in uthranchal are better than Maharashtra, as Maharashtra considered to be state which has one of the best roads in India & as uthranchal has hilly terrain, so its very difficult to build & maintain "Good" roads...

    Bytheway I dont belong to Pune, but I feel Pune a better place to live after Bangalore (some ppls says Bangalore also become worst these days) & my own hometown Bhopal...I certainly will plan a holiday in deharadun in coming summers & will see reality with my own eyes:bab (34):
    CommentQuote
  • Originally Posted by ash7979
    I never been to Dehradun...but I don't believe that roads in uthranchal are better than Maharashtra, as Maharashtra considered to be state which has one of the best roads in India & as uthranchal has hilly terrain, so its very difficult to build & maintain "Good" roads...

    Bytheway I dont belong to Pune, but I feel Pune a better place to live after Bangalore (some ppls says Bangalore also become worst these days) & my own hometown Bhopal...I certainly will plan a holiday in deharadun in coming summers & will see reality with my own eyes:bab (34):


    Yes, Ashish, That's the best way. First-hand experience first, then comments. You can't give opinions when you've not visited a certain region. Do that, then we can exchange views.
    CommentQuote
  • It is false political propoganda that only North Indians are flocking to Mah; or that North Indians are flocking only to Mah. Hundreds of thousands of Maharashtrians are not only working, but have settled down in Delhi, UP, MP and Uttaranchal. Does that mean Mah does not offer employment opportunities?

    Bajaj Auto has now shifted their entire production to Pantnagar near Nainital; and Tata as well as Mahindra have huge production facilities there -- alongwith hundreds of ancilliary units. Perhaps you haven't heard, Uttaranchal has world-class tourist spots :o So*ftware companies are setting up facilities in Dehradun. The state of Uttaranchal was formed in2000, and the progress they have achieved is commendable.

    Anyway, I'm not a spokesman for their tourism department !:D My point was

    1] Pune is very expensive, especially the RE sector. There is NOTHING special about Mah that RE prices should be so high.
    2] There are better places to live in, where one can save a lot on rental / house purchase if one has the initiative to come out of his tent and look around :D is very expensive, especially the RE sector. There is NOTHING special about Mah that RE prices should be so high.
    2] There are better places to live in, where one can save a lot on rental / house purchase if one has the initiative to come out of his tent and look around :D is very expensive, especially the RE sector. There is NOTHING special about Mah that RE prices should be so high.
    2] There are better places to live in, where one can save a lot on rental / house purchase if one has the initiative to come out of his tent and look around :D
    CommentQuote
  • Originally Posted by heretic

    1] Pune is very expensive, especially the RE sector. There is NOTHING special about Mah that RE prices should be so high.
    2] There are better places to live in, where one can save a lot on rental / house purchase if one has the initiative to come out of his tent and look around :D

    Maharashtra is expensive. due to below perceptional reasons:

      Mumbai is very expensive due to corporate-houses and CEO/Managers.
      Pune expensive since close to Mumbai. Mumbaikars find Pune cheaper.
      Kolhapur expensive since close to Pune.

      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
    CommentQuote
  • Originally Posted by heretic
    It is false political propoganda that only North Indians are flocking to Mah; or that North Indians are flocking only to Mah. Hundreds of thousands of Maharashtrians are not only working, but have settled down in Delhi, UP, MP and Uttaranchal. Does that mean Mah does not offer employment opportunities?

    Bajaj Auto has now shifted their entire production to Pantnagar near Nainital; and Tata as well as Mahindra have huge production facilities there -- alongwith hundreds of ancilliary units. Perhaps you haven't heard, Uttaranchal has world-class tourist spots :o So*ftware companies are setting up facilities in Dehradun. The state of Uttaranchal was formed in2000, and the progress they have achieved is commendable.

    Anyway, I'm not a spokesman for their tourism department !:D My point was

    1] Pune is very expensive, especially the RE sector. There is NOTHING special about Mah that RE prices should be so high.
    2] There are better places to live in, where one can save a lot on rental / house purchase if one has the initiative to come out of his tent and look around :D

    "So*ftware companies are setting up facilities in Dehradun."

    Do you have any idea/names of the companies setting up their offices in Dehradun..I would really love to work in deharadun (If I can get job there:D)Do you have any idea/names of the companies setting up their offices in Dehradun..I would really love to work in deharadun (If I can get job there:D)Do you have any idea/names of the companies setting up their offices in Dehradun..I would really love to work in deharadun (If I can get job there:D)Do you have any idea/names of the companies setting up their offices in Dehradun..I would really love to work in deharadun (If I can get job there:D)Do you have any idea/names of the companies setting up their offices in Dehradun..I would really love to work in deharadun (If I can get job there:D)
    CommentQuote
  • Originally Posted by hitmady
    Maharashtra is expensive. due to below perceptional reasons:

      Mumbai is very expensive due to corporate-houses and CEO/Managers.
      Pune expensive since close to Mumbai. Mumbaikars find Pune cheaper.
      Kolhapur expensive since close to Pune.

      Besides, RE would be expensive wherever there is loads of black/NRI money :D.
      :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o
      :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o
      :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o
      :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o
      :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o
      :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o
      :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o
      :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o
    CommentQuote
  • Originally Posted by realacres
    :D. Good one. Now Satara will have rates of Wakad soon!! Anyways, the builders' logic of proximity to Mumbai is absurd. Had that been the case, why is Navi Mumbai cheaper than Pune? Rates at Aundh are almost the same as that of Banjara Hills, H'bad, KP has rates same as that of Greater Kailash, Delhi & Kalyaninagar has rates same or more than that of Rajbhavan road, Bangalore...think what are we paying for & note that Pune is not capital city either.:o


    Then I am sure Pune-MP, Kallu is responsible for high RE-rates :D
    RE rise in Pune coincides with his CWG booty. He should be treated like Swin-flu disease and externed from Pune.
    CommentQuote
  • TRAI Recommends To Cancel 2G licenses

    Quick update:-

    TRAI has recommended to cancel all the licenses given for 2G. These include Swan, Videocon, Loop & ...........Uninor!! Unitech used the telecom money by selling some stake to Telenor to repay its realty debts. If licenses are canceled & Telenor demands money back from Unitech, Unitech will go bust:D. I though pity buyers who have bought flats in Unitechs' project as their fate is now uncertain.
    CommentQuote
  • Realtors may miss project deadlines

    27 Nov, 2010, 05.17AM IST,TNN

    BANGALORE: Leading real estate developers in Bangalore feel that the bribe-for-loans scandal could have a short-term adverse impact on the sector. Some also believe that it will have the salutary effect of cleaning up the system.

    Banks that have exposure to real estate are stepping up their due diligence. Such scrutiny may tighten realty firms' liquidity positions as banks may go slow on loan sanctions.

    "In the immediate term, banks will be very cautious. But borrowers with a good credit history will be spared of the trouble," said M R Jaishankar, CMD of Brigade Group.

    J C Sharma, MD of Sobha Developers, said there could be problems on the liquidity front. "But I think stringent checks will only cleanse the system," he said.

    Though some realtors dismiss the problem as a minor aberration, there are worries that project pipelines and deadlines would be impacted. Some even say that banks and financial institutions may recall some loans to avoid them becoming non-performing assets (NPAs). "This may be true for companies that have deployed resources wrongly," said Jackbastian Nazareth, COO of Puravankara Projects . He felt that loans above Rs 50 crore would be critically reviewed.

    Banks had already turned cautious during the recession. The latest developments would make them even more so. "One more level of scrutiny is welcome to avoid mishaps," said Irfan Razack, CMD of Prestige Group .
    CommentQuote
  • CommentQuote
  • Originally Posted by realacres
    Quick update:-

    TRAI has recommended to cancel all the licenses given for 2G. These include Swan, Videocon, Loop & ...........Uninor!! Unitech used the telecom money by selling some stake to Telenor to repay its realty debts. If licenses are canceled & Telenor demands money back from Unitech, Unitech will go bust:D. I though pity buyers who have bought flats in Unitechs' project as their fate is now uncertain.


    Hold On Real...Hold on...you just concluded that Unitech will go burst...Is this so easy to cancel all the licenses..Swan,Videocon,Unitech...are these companies are paper Tiger!!! they have paid license fees,Kickbacks to Raja,Madam & company & still their license revoked...Do you think this can happen...If you think so then you are so naive....But I know you are not:bab (34)::bab (34):
    CommentQuote
  • Originally Posted by ash7979
    Hold On Real...Hold on...you just concluded that Unitech will go burst...Is this so easy to cancel all the licenses..Swan,Videocon,Unitech...are these companies are paper Tiger!!! they have paid license fees,Kickbacks to Raja,Madam & company & still their license revoked...Do you think this can happen...If you think so then you are so naive....But I know you are not

    Man, the fact is this scam is so big that it can't be washed out either. Even today, the parliament was adjourned as opposition parties demanded JPC. In CWG, a new company Picco-Dipali:D has come up where Kallu & Co. gave them INR 230 Cr & the fact is such co. doesn't even exists:bab (34):.

    Do you think Congress will get loose here? Infact with my interaction with some politicos, all of them said that this is one of the best time to beat UPA2 so won't let it go. Already there are cracks in UPA after Mamta Banerjee of TMC too agreed with opposition demand for JPC, though her strategy is to get more assembly seats in WB by using this tool!!

    I am damn sure that these cos won't get away, in worst case they will have to shell out another few thousand crores as penalty perhaps. Add to it that existing major telecom players are lobbying hard as well to eliminate these new crap cos who have captured some share + offering less prices leading to reduction in bottom-line of established telcos. The thing is TRAI going against these new telcos clearly shows that COAI & AUSPI aren't lobbying for them:bab (34):.

    CWG, 2G, Lavasa, Aadarsh, NREGS, Sugar, IPL.....how many scams you want & note than 2G scam is biggest in the history of India till date & is bigger than all scams mentioned above put together.
    CommentQuote