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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  • Buy LAND not FLAT, possibly with maximum cash and minimum loan, thats real asset and real estate. Buyin property with 15 year loan with 80% loan doesn't make sense to me, its working for bank. Instead buy gold of same amount as that of EMI every month :)
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  • Originally Posted by realacres
    Simple eg. is of Gold Coast....still few flats left & no-one is now interested as the project is already 3+ yrs old & even in builders' leftover flats, the paint has come off.


    I remember asking a similar question to Jitu who is planning to release some flats in his Samrajya scheme subjected to PMC approvals. The answer was that they will be sold at the current prices and the flats will be 1.5-2 years old "New" flats... :bab (34):
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  • Originally Posted by realacres
    Venky,

    My replies here. Btw, request all members to use Quotes to reply as color makes difficult to reply.

    Try to copy paste instead of clicking quote. Otherwise your initial argument and my initial response is not available to get the context.


    Classic case of emotion over-riding brains. What you said is correct but not at the price of having sleepless nights on Italian bed ;). Btw, flat which is mortgaged is also on rent, it is just that we pay rent to the bank than landlord.


    So why not wait. In any case no one is asking to wait for years to buy. Had that been the case we wouldn't have checked out projects NOW.


    I don't know 1986 as I was baby then. Anyways, if production of children is what matters then UP prices should be more than Hong Kong:D. And yes, not all produced children are productive.


    Price dipping is very likely. Just check the articles posted above. As far as under-constro risk in concerned, why not check out projects of Unitech, DLF in NCR as you hail from there?? Check how bad the situation of buyers there is. Also check local Pune builders like Kumar or township projects like Amanora, Nanded City, BlueRidge etc.


    Don't understad this logic. Die for 15 yrs repaying loan, living like donkey & after death leave the flat. This seems the reason why the no. of ghosts is increasing:D.


    Flat on mortgage you can not be thrown out of. You can treat it as your own. As I siad earlier, renting is for youngsters, unmarried, , transferable and ambitious. Not for salary earner.

    Please understand realacres and others - buying own flat is a PURCHASE - and not an investment. It is purchased for emotional and personal reasons and because it makes sound economic sense from personal standpoint. IT IS NOT AN INVESTMENT. Mixing investment logic in a purchase is brainless and silly. A rookie mistake in fact.

    UP prices are going to rise astronomically. Mostly along the NOIDA and Yamuna belt. Wait and watch. Farmland prices doubled. Plot prices in NOIDA up 20%. With oversupply glut.

    Articles are written by people who favour both prices falling and rising. Which article will you read? Who is right and who is wrong? Nobody knows.

    You obviously misunderstood what I said about under construction risk - it is a good reason to WAIT for completion. Otherwise there is no reason to wait - IF YOU BELIEVE, AS I DO THAT PRICES WONT DIP - THEY WILL STAND STILL.

    You said anything can happen or some such - a flippant comment. I tried to flip that around and said one such eventuality is death. Since I am older and have medical problems, finishing what I want to do earlier rather than leave it for later is uppermost on my mind - as it should be for anyone over 40.

    And yes, taking a loan and not getting life insurance for greater amount than loan is financial suicide if you happen to die. YOur family is left with EMI rather than flat- and income gone.

    Please note: If you are buying a flat on mortgage, you are not investing your money, you are making a leveraged bet. All that verbiage about working like a donkey etc are obviously an appeal to people's emotions. In your own words,"Classic case of emotion over-riding brains".

    There is nothing wrong with buying own flat for own use at any time, and with mortgage, as long as it is 25% or less than your salary. Again, timing is based on own situation in this case and not based on market timings - which are meant for investment.
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  • Originally Posted by Venkytalks
    Flat on mortgage you can not be thrown out of. You can treat it as your own. As I siad earlier, renting is for youngsters, unmarried, , transferable and ambitious. Not for salary earner.

    Don't pay EMI & see what happens.

    Please understand realacres and others - buying own flat is a PURCHASE - and not an investment. It is purchased for emotional and personal reasons and because it makes sound economic sense from personal standpoint. IT IS NOT AN INVESTMENT. Mixing investment logic in a purchase is brainless and silly. A rookie mistake in fact.

    True, & we never said it to be investment coz you are not going to sell it later. However, emotions should not come in the way of repaying capacity.

    UP prices are going to rise astronomically. Mostly along the NOIDA and Yamuna belt. Wait and watch. Farmland prices doubled. Plot prices in NOIDA up 20%. With oversupply glut.

    Reason for this is not increasing population of UP but proximity of Noida to Delhi. Check the rate appreciation in areas like Merut, Varanasi etc.

    You said anything can happen or some such - a flippant comment. I tried to flip that around and said one such eventuality is death. Since I am older and have medical problems, finishing what I want to do earlier rather than leave it for later is uppermost on my mind - as it should be for anyone over 40.

    If one is in such age, he has enough resources to buy house with ease under normal conditions & is also sure about his job area & location for settling down. This is not the case with young college passed out grads.

    Btw, sad to know you have some medical probs :(. If you want to share, pm me the issue, I know some of the best docs in several fields including non-conventional ones as well. Maybe I can help a bit.

    And yes, taking a loan and not getting life insurance for greater amount than loan is financial suicide if you happen to die. YOur family is left with EMI rather than flat- and income gone.

    This is what we mean to avoid over-leveraging. See hitmady's eg. of 3 people traveling on a bike to lonavala who own a flat.

    There is nothing wrong with buying own flat for own use at any time, and with mortgage, as long as it is 25% or less than your salary.

    +1. Agree completely.
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  • Loan Scam to Affect Real Estate Companies: SMC Global

    The ongoing investigation of LIC Housing Finance and some public sector banks is set to impact realty companies, which are already facing a crisis of confidence among institutional investors. The development will adversely impact their ability to raise resources either through debt or equity. Given their market performance this fiscal, realty stocks are finding few buyers.

    On top of this, a whopping repayment of Rs 25,000-crore debt to public and private sector banks is staring at their faces, as per industry estimates. Most of the proposed equity issues are aimed to repay debt. “Realty stocks across the globe have been blacklisted after the financial turmoil of 2008. In India, they have remained under pressure for the last two years and naturally after this scam, banks will be extra careful about lending,” SMC Global strategist & head of research Jagannadham Thunuguntla said.

    There are at least six firms that have got the market regulator’s approval to launch their initial public offers (IPO) to raise Rs 9,841.16 crore. Many realty firms such as Emaar MGF , Lodha Developers and Ambience are in queue to hit the market. Ambience chairman Raj Singh Gehlot said that such a development will affect sentiments and therefore the IPO market would be impacted. “We have Sebi approval till February 2011. In case we manage to raise funds, its fine, otherwise we will not regret as the company is sufficiently capitalised.”

    Vatika Group had planned to raise up to Rs 1,000 crore from an IPO by selling around 20% earlier this year. It has now postponed its plan to December next year. Vatika executive director Gaurav Bhalla said: “We are very well capitalised now and have shelved the plan till late next year. ”Three of the six realty firms — DB Realty, Jaypee Infratech and Nitesh Estates — that had entered the market to mop up Rs 4,167 crore in the current fiscal are currently trading at a discount of 26-50%. The other three companies — Oberoi Realty , Ashoka Buildcon and Prestige Estates that mobilised Rs 2,500 crore — are trading marginally below their offer price.

    On Thursday, the Sen was down 0.73%, while the realty index was down 5.4%. Banks are estimated to have outstanding loans of Rs 75,000 crore to the real estate sector, of which Rs 25,000 crore will have to be repaid by March 2011. Builders were given a grace period by bankers to repay the loan, said a developer on condition of anonymity.

    Stung with the ongoing investigation, banks are set to be more cautious in taking fresh exposure in real estate firms, said a top banker on condition of anonymity. “This is more of a systemic issue, the threat of investigation makes the officer more conservative in giving fresh sanction or disbursal,” he added.

    Source:- IRN
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  • Chargesheet against Pune-based hotelier, leader in land grab case

    Man, just look from which type of breeds people buy flats from:o. One work for years paying EMIs while the money is enjoyed by such goons . Hence, before you buy make sure builder is not goon. I know that the options then become limited in current scenario though:D. Nice article again from IE :). Btw, this Agarwal is the builder of Bramha Group, which came to fame due to Bramha Suncity. Btw, does anyone knows the current update for this Suncity project?

    Express News Service
    Posted: Dec 02, 2010 at 0620 hrs IST

    Pune: The CID in Pune today filed a chargesheet against Ramkumar Agarwal, 52, owner of Hotel Le Meridien, as well as Raviraj Group chairman and managing director Ravindra Sakla, 52, former Shiv Sena corporator Ajay Bhosale, 49, and NCP corporator Rajesh Pillai, 43, of the PCMC in a case of land grabbing.

    Deputy SP N K Gaikwad filed the chargesheet in the court of judicial magistrate P K Deshpande through additional public prosecutor H V Doiphode. The four have been charged under IPC sections 447 (criminal trespass), 427 (mischief causing damage to the amount of Rs 50), 424 (dishonest or fraudulent removal or concealment of property), 363 (kidnapping), 365 (secretly and wrongfully confine a person), 120B (criminal conspiracy) and criminal law amendment section 7.

    They had been arrested April 24, four years after Pradeep Kumar Dhorje lodged a police complaint with Chatushrungi police. They were released on bail in May.

    Dhorje had alleged that four persons had forcibly entered a plot at Balewadi and appointed Rajesh Pillai as the caretaker. The chargesheet states Pillai and Bhosale took 30-35 persons to the site, beat up Dhorje and kidnapped the watchman. Pillai later put up his board at the site and appointed a new watchman. The chargesheet lists 39 witnesses.

    The case was later transferred to the state CID. Both Sakla and Agarwal are leading builders of the city and have many upcoming projects at various stages of completion.

    Bhosale was Sena corporator in PMC from Wadgaonsheri. He had contested the Assembly elections in October 2009 and was defeated by NCP leader Bapu Pathare. Bhosale was shot at by unidentified men during the election. He escaped unhurt while a friend was injured. A resident of Bhorade Ali, Bhosale has some police cases registered against him.

    Pillai of the NCP is a representative from Ajmer Colony ward in PCMC. Pillai is a member of the standing committee of PCMC. A few cases are registered against him, too.

    http://www.expressindia.com/latest-news/chargesheet-against-punebased-hotelier-leader-in-land-grab-case/719113/
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  • Originally Posted by realacres

    :) ...........
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  • 2 Newspapers, Different Rates

    Last week, Siddhivinayak Group (Rajesh Sakla) carried ads about their Vision Jai Ganesh, Akurdi in 2 newspapers:-

    DNA (English) & Sakal (Marathi).

    The rate in DNA for office was INR 4300/sq ft & it read office space starting from INR 11 L onwards.

    The rate in Sakal for office was INR 4000/sq ft & it read office space starting from INR 10 L onwards.

    :bab (34):

    Note that the ads were published on the same day, same layout only language was different.

    Now what does the builder think that Marathi newspaper readers are poor or English readers are rich ? Wouldn't there be same readers for both newspapers? Seems such builders think that buyers still remain stupid.

    Infact, I pity such builders, they don't even know how to manipulate publicly:D.
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  • RBI chief for cut in lending rates, deposit rate hike

    MUMBAI: Reserve Bank Governor D Subbarao on Friday asked banks to hike deposit rates and lower the lending interest to improve their efficiency to the level of their global peers.
    “We need to raise the level of national savings and channel those savings into investment. This means banks need to raise the interest rates offered to depositors and reduce the lending rates charged on borrowers,” said Mr Subbarao in his address to the Bancon 2010 here.
    The governor said the net interest margins of the banks, which though have came down by 0.5 per cent in the last decade to 2.5 per cent now, continue to be higher than their peers in other emerging markets even after accounting for their mandatory social sector spends.
    Banks can maintain profitability by optimising operating costs like non-interest expenses, which include wages and salaries, transaction costs and provisioning expenses.
    “The task for our banks clearly is to press on with efforts for sustainable reduction in operating costs through productivity improvement and skill enhancement and by leveraging of technology,” he said.
    Nurturing asset quality, diligent loan restructuring of viable assets and reducing non-performing assets through recovery or upgrade can be the other streams for non-interest costs reduction, he said.
    Flagging the financial inclusion agenda, Mr Subbarao said he is “troubled” that Indian banks see it as an obligation rather than as an opportunity.
    “Financial inclusion will provide banks access to sizeable low—cost funds as also opportunities for lending in the small volume segment,” he said, and added that instead of looking at it as an obligation, banks should embrace it as an opportunity that ca n help them increase their asset base. – PTI
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  • CREDAI fears Drastic Reduction in Credit because of Housing Scam

    December 01, 2010
    IRN

    The Confederation of Real Estate Developers’ Association of India has said that “painting” the ‘loan-for-bribe’ as a scam, would lead to drastic reduction in credit for real estate companies. Bankers would become extremely wary and hesitant to lend to realtors and given the shortage of housing, it would be detrimental to both customers and homebuyers, said Mr Lalit Kumar Jain, Vice-President, CREDAI.

    Mr Jain said the association is writing to the Reserve Bank of India asking it to direct banks to accept or reject developer applications within a certain timeframe — a month or so — and whether their loan applications are acceptable or not. On the scam, he said stray incidents should not be generalised. Advances made to real estate sector were secure as banks insisted on the personal guarantee of the developer, besides collateral security which was invariably 1.5 to three times the loan amount.

    Mr Jain said it should also be understood that availing of liaison services of merchant or investment bankers by developers was routine, while adding that association condemned “all acts of facilitation” for loans. On reports doing the rounds that Kumar Urban Development (earlier Kumar Builders) was among the names on the CBI list, Mr Jain, who is also the Chairman and Managing Director of Kumar Urban, said his company was in no way involved in the issue.

    HCC, in a statement said, “Money Matters Financial Services is associated with our companies on a fee based arrangement where they act as an agent for selling our properties. “In our companies we work with several firms for raising funds and all our transactions are completely transparent and through cheque payments. Money Matters was one of the advisors during the sale of HCC Real Estate-developed 247 Park at Mumbai. HCC Real Estate paid a fee of less than one per cent to Money Matters for coordinating the deal.

    “Similarly, in the case of Lavasa, Money Matters is associated with the company on commission or brokerage basis, to the tune of 1-2 percent of the value of the transaction.” Oberoi Realty, reacting to reports of involvement in the loan scam, said it was a zero debt company. The company (including its SPVs) has no debt from any bank or financial institution for the last two years. It had not taken any loan from LIC, LIC Housing Finance, Bank of India, Central Bank of India and Punjab National Bank. Moreover, Oberoi Realty had never dealt with Money Matters for any transaction whatsoever, the company spokesperson said.

    The Sigrun Group, a listed entity, also denied all reports associating it with the scam. The Sigrun Holdings, its subsidiary companies and group companies have not availed of any credit facilities from LIC or LIC Housing Finance or any other public sector bank. Further, it has no business relationship with Money Matters Financial Services, the group said.

    * PS:- Most statements made on behalf of builders & advice given to the banks is made by Lallu Jain whose own company, Kumar Builders went bankrupt:D. It is like thief teaching a judge on how to deliver a judgment:bab (24):. Btw, Kumar Kruti is still going on. Seems the next generation (kids, if any) of buyers would be able to live in this project. Same is the case with Kumar Shantiniketan. And has anyone seen the ad of Kumar Kruti 11th floor?? It says artists' impression & the view is like Hong Kong!!
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  • Credai fails to address plaint against builder

    Published: Thursday, Dec 2, 2010, 14:47 IST

    The Confederation of Real Estate Developers Associations of India(Credai) Pune chapter has failed to address the grievances of Nyati Enclave residents about defecation in the open behind their premises by labourers from a construction camp of the Nyati Group. This was reported by DNA on November 10.

    Poonam Bharti, resident of Nyati Enclave in Mohammedwadi, had registered a complaint to this effect with Credai on 10 November. In her email to Credai, she wrote, “The Nyati workers colony does not have toilet facilities and hundreds of Nyati workers openly defecate throughout the day. Apart from it being a health hazard, there is no dignity to the workers. “

    Stating that the Nyati Group had failed to attend to this complaint, Bharti asked, “Don’t you think builders should maintain the dignity of their construction workers on whose basis builders earn their income as well as the customers from whom they get their profits?”

    When DNA contacted Credai, the association responded that it would take 15 days to revert to the complainant. “We send the complaint to the builder, giving them 15 days to revert, then forward their response to the complainant,” said a Credai representative.

    Despite the lapse of almost three weeks, Bharti has not received any response from the builder, Nyati Group, or from Credai.

    When contacted by DNA, the Credai representative claimed that the builder, Nitin Nyati, was out of the country and perhaps that is why no response had been received by Credai. She added that a reminder had been sent to the builder, though she was unable to clarify if and when the case would be resolved.

    Incidentally, Nitin Nyati is a committee member of Credai holding the post of honorary secretary.

    http://www.dnaindia.com/mumbai/report_credai-fails-to-address-plaint-against-builder_1475424

    The original article alongwith a pic can be found here:-

    http://epaper.dnaindia.com/epaperpdf%5C10112010%5C9pune%20main%20edition-pg3-0.pdf

    See & check yourself how workers are treated by the builders.:bab (45):
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  • Originally Posted by realacres
    Published: Thursday, Dec 2, 2010, 14:47 IST

    The Confederation of Real Estate Developers Associations of India(Credai) Pune chapter has failed to address the grievances of Nyati Enclave residents about defecation in the open behind their premises by labourers from a construction camp of the Nyati Group. This was reported by DNA on November 10.

    Poonam Bharti, resident of Nyati Enclave in Mohammedwadi, had registered a complaint to this effect with Credai on 10 November. In her email to Credai, she wrote, “The Nyati workers colony does not have toilet facilities and hundreds of Nyati workers openly defecate throughout the day. Apart from it being a health hazard, there is no dignity to the workers. “

    Stating that the Nyati Group had failed to attend to this complaint, Bharti asked, “Don’t you think builders should maintain the dignity of their construction workers on whose basis builders earn their income as well as the customers from whom they get their profits?”

    When DNA contacted Credai, the association responded that it would take 15 days to revert to the complainant. “We send the complaint to the builder, giving them 15 days to revert, then forward their response to the complainant,” said a Credai representative.

    Despite the lapse of almost three weeks, Bharti has not received any response from the builder, Nyati Group, or from Credai.

    When contacted by DNA, the Credai representative claimed that the builder, Nitin Nyati, was out of the country and perhaps that is why no response had been received by Credai. She added that a reminder had been sent to the builder, though she was unable to clarify if and when the case would be resolved.

    Incidentally, Nitin Nyati is a committee member of Credai holding the post of honorary secretary.

    http://www.dnaindia.com/mumbai/report_credai-fails-to-address-plaint-against-builder_1475424

    The original article alongwith a pic can be found here:-

    http://epaper.dnaindia.com/epaperpdf%5C10112010%5C9pune%20main%20edition-pg3-0.pdf

    See & check yourself how workers are treated by the builders.:bab (45):


    Builders dont treats their buyers properly, so no surprises if they treat their workers badly...

    most of the corporations follow the following principal - praise the customers / scr*w the employees/contractors...

    now since builds start with "scr*w the customers" one can imagine what follows next... :bab (38):
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  • there should be a strict regulator over these Credai guys
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  • Guys,
    I thought housing scam would have an impact on at least RE stocks if not the actual RE. But all of a sudden all RE stocks are recovering. Agree , they lost a lot before recovering. But i fail to understand what made them recover in such a short span of time. Look at scrips like DB realty India bulls etc. they have gone up by a lot in the last few trading days. This is crazy.
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  • Originally Posted by kaatesha
    Guys,
    I thought housing scam would have an impact on at least RE stocks if not the actual RE. But all of a sudden all RE stocks are recovering. Agree , they lost a lot before recovering. But i fail to understand what made them recover in such a short span of time. Look at scrips like DB realty India bulls etc. they have gone up by a lot in the last few trading days. This is crazy.


    DB Realty fell from 426 to 240 and IndiaBulls RE from 206 to 148.6 in a month.
    People who bought these stocks last month are sitting on loss of 30-50%.
    Market is still jittery about RE stocks.
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