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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  • Corporators smell 'staircase scam'

    One more scam now, it is in Pune now.

    All construction over 15 metres must have two staircases, but builders misleading buyers

    Abhay Khairnar
    Source:- 3dsyndication

    Standing committee chairman Arvind Shinde has accused a section of builders in the city of misleading buyers that homes would become dearer due to the construction of two staircases in new buildings.

    Recently, the state urban development department (UDD) directed the Pune Municipal Corporation (PMC) to ensure that there are two staircases for all buildings over 15-metres tall for safety.
    "As per the development control rule of 1997, it is mandatory to erect two staircases in the buildings, which are over 15 metres tall. The state government's recent directive is in light of that rule," Shinde added, stating that the matter is not new.

    Shinde said some builders started blaming the PMC and spreading rumours that it adversely affected home buyers. "As per PMC's development control rules, builders are getting additional floor space index (FSI) for the staircases. So, they should not have any problems in erecting two staircases. If builders don't provide two staircases, they are cheating the municipal corporation," Shinde said.

    Standing committee member Ujwal Keskar said they have asked the civic administration to carry out random survey and check whether the builders have erected two staircases in buildings built since 1997.
    Keskar said it would be a big scam. There are chances that builders have used the huge amount of FSI but not erected the staircases.
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  • http://topforeignstocks.com/2009/10/17/is-india-stock-market-building-another-bubble/

    Hello Wiseman ... I would like to have your opinion on this. Is this suckers' rally finally over?
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  • Originally Posted by heretic
    http://topforeignstocks.com/2009/10/17/is-india-stock-market-building-another-bubble/

    Hello Wiseman ... I would like to have your opinion on this. Is this suckers' rally finally over?


    This is a dated story and since then the Sensx has only gone to 21000 level, though not yet crossing previous peak of 21206.

    There are many reasons markets will not crash yet, though they will get more volatile. My short term expectation - despite today's mini-crash in the markets due to another scam in mid-caps being rigged; more about that later - is that markets may seek higher levels of 22500 before they come down significantly.

    Regarding mid and small caps being rigged this is the story of another massive scam by the Financial Services industry on unsuspecting (and greedy and foolish) retail investors. It now appears that the GREAT INDIAN GROWTH STORY is nothing by largely pumping up of suspect stocks (and there are many of them) by a collusion of promoters, brokers, institutions and media using shady ratios like FUTURE P/E and so on, to get people to buy at higher and higher levels with the same story of buy before its too late and they run away and become too expensive. A lot of people who buy stocks of companies like they buy tomatoes without looking at their value) will surely get burnt when the big one comes along; and remain burnt for a long time).

    To continue with the original story ...
    FIIs have pumped in $28 Billion (thats 1 lakh 26 thousand CRORES) to take the market from 17500 to 21000. By the markets coming down to around 19000 they have lost a BIG CHUNK of it at least notionally.

    Now we need to see if they will sell and exit the market licking their huge wounds OR pump in even more money to average their investments and once again take it to higher levels and then exit from their favorite market of the moment. My take is, since they do not have many other markets to chase (most are in deep doo-doo) they will be forced to extricate themselves by pumping in even more into India, China, etc) and so will drive markets higher..

    We need to see if a support level around 18700 - 18800 (equivalent to Nifty 5600 - 5650) is held and market bounces back as expected. If it does you could assume that the next level it will target will be above 21200 and could go all the way upto 22500. Just chart analysis - no astrology :)

    Finally, things are getting much worse in the rest of the world. The only countries that seem to be doing well are Brazil, India, China. The BIG PREDICTION for 2011 is that China will see one of two scenarios -

    There is HUGE inflation that seems to be stretching the Chinese people to the limit and they are unable to cope. So, to curb this inflation there will be a series of measures that may either see the economy cool significantly and also go into a rercession OR there may be a crash in their markets of significant size.

    Europe, US and Japan will see much worse times and these too could crash their markets with Domino Effect on Indian markets.

    2011 will definitely see early jumps in markets to new highs. But it may also see fairly large crashes and Sovereign Defaults. The major crash may be shifted to 2012 or even later.

    Meanwhile there will be lots of opportunity for traders to make money (and lose it too :D)

    cheers
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  • Thanks. You've given me some points to ponder :)
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  • INDIAN GOVERNANCE, THE ITALIAN WAY !

    Friends, many are not aware yet, but a quiet revolution is sweeping in the political governance of our country. This revolution is brought about by our REAL prime-minister Whether we like it or not, our country has adopted the Italian way of governance .... that is total chaos, unbelievable corruption at all levels and a mafia-run Govt. India has now become the Leaning Tower of Pisa on economic & political fronts -- liable to topple any moment, but still miraculously not crashing. Everyday when I open the newspapers, and read about a new scam my conviction is strenghtened that very soon our country will surpass Italy in its corruption and its underworld The head-clerk is absolutely correct when he keeps saying that India is the next superpower ... after all, Italy was also a contender to the mantle of super-power before World War II happened ... and the bottom fell out of that country.
    :bab (45):
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  • whose stoping u to vote for bjp? there is no point in bashing a person and holding her responsible for all miseries in country.
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  • Originally Posted by mahesh pune
    This question is very logical but treand is clear earlier 2 BHK 1700 sq ft * 2000 = 34 lakh , then 1100 * 3000 = 33 lakh now 900 * 4000 = 36 lakh.
    So builders know how to keep final price same.



    Agreed, But can this continue for ever?
    Also consider tomorrow the buyer with 1700 sq feet home wants to sell his home. what price should he ask?:bab (35):

    A new buyer who wants to buy home, would be buy 900Sq home from builder or 1700 sq feet home from the Smart investor?

    You take your call on how many investors are there in Pune market and we already know how they calculate. With prices and rent stagnant from 2008 prices, they(Smart investors) dont even know that their investment is yeilding them -ve returns. They assume its 20% returns and stay happy, but one fine day they will know it right?

    That's why its said RE is a patience game.
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  • Originally Posted by RAJESHP
    Agreed, But can this continue for ever?
    Also consider tomorrow the buyer with 1700 sq feet home wants to sell his home. what price should he ask?:bab (35):

    A new buyer who wants to buy home, would be buy 900Sq home from builder or 1700 sq feet home from the Smart investor?

    You take your call on how many investors are there in Pune market and we already know how they calculate. With prices and rent stagnant from 2008 prices, they(Smart investors) dont even know that their investment is yeilding them -ve returns. They assume its 20% returns and stay happy, but one fine day they will know it right?

    That's why its said RE is a patience game.


    What you are saying is correct. My reply was to question whether homes will be in budget if rates increases further.
    Abt investors I know people having 3 or 4 houses but none of them has invested in loan. either they are lanowners who selled their land and invest cash in houses or senior IT guys or eengineers who earned from onsite and invest in flats. Share market returns may be high but risky and one need good knowledge and for these guys RE is safer option. Other community may be people with lot of black money for them it is safer option to park that in houses or land. This is reason to me there was not much panic resale even during recession even though builders have reduced rates by 20 to 30%.
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  • Originally Posted by heretic
    Friends, many are not aware yet, but a quiet revolution is sweeping in the political governance of our country. This revolution is brought about by our REAL prime-minister Whether we like it or not, our country has adopted the Italian way of governance .... that is total chaos, unbelievable corruption at all levels and a mafia-run Govt. India has now become the Leaning Tower of Pisa on economic & political fronts -- liable to topple any moment, but still miraculously not crashing. Everyday when I open the newspapers, and read about a new scam my conviction is strenghtened that very soon our country will surpass Italy in its corruption and its underworld The head-clerk is absolutely correct when he keeps saying that India is the next superpower ... after all, Italy was also a contender to the mantle of super-power before World War II happened ... and the bottom fell out of that country.


    Well, this means there can be some HOT scandals as well, like Silvio Berlusconni's. Mr.Q is already out, thanks to the fact that Antonia Maino (now, Sonia Gandhi) was Q's ex-GF.

    Anyways, the real part is even Ms. Maino, is powerless. It is just that Congressmen put her as face to get votes on name Gandhi. Man, there are people in this country who will vote to a pig even if his name is Gandhi:o. In current scenario, the main decisions are taken by Ahmed Patel, who is right hand of Ms. 2G:D (first G was Indira). Sonia is liked by all Congressmen as she never stops anyone from doing anything as long as it doesn't hurt Gandhi-Nehru families or Congress' IMAGE.

    Btw, just see how local MP, Kallu was busy arranging Marathon last week in Pune....are the cops or CBI doing anything?? All are eunuchs with long tail.

    When I was in school, my friend was traveling in train where in his same bogey, was some dreaded criminal, his hands & legs were tied & 3-4 cops were there with sten guns. He (criminal) was saying that time, " If you steal INR 500/-, you will get caught, if you steal INR 5000 Cr, even law enforcers will salute you (to be specific, Salam Thokenge:D)....you murder 1 chap, you get caught, you kill 100, you go scot free".

    These are the words still in my head.....so true. So whatever you do, do on large scale so even if it is wrong, you won't get caught:bab (34):.

    To start with, see how to avoid paying taxes, buy without bills as far as possible, save tax...fill fuel outside PMC/PCMC limit as far as possible, avoid octroi,....start & make Govt bankrupt. In any case, it is that way, atleast when you don't pay tax, the babus & mantris won't have money to fill their pockets.

    * In 1971 war, Rajiv & Sonia Gandhi were hiding in Italy as they feared that Pakistan may bomb Prime ministers' residence (Indira that time). So, when country was under threat, they fled.....do you still call them leaders or even patriots? In 1999, when Kargil took place, this moron Rahul Gandhi (real name is Raul, converted to Rahul) was busy watching tennis.

    Btw, read more about anti-national Antonia here:-

    http://santoshbhatt.wordpress.com/2010/11/11/sonia-gandhi-a-mole-in-hindustan/

    Also see her pics of early days.

    Also see her pics of early days.

    Also see her pics of early days.

    Also see her pics of early days.

    Also see her pics of early days.

    Also see her pics of early days.

    Also see her pics of early days.

    Also see her pics of early days.
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  • Scam Hit Indian Real Estate Sector in Acute Need of Regulation

    December 6, 2010
    Source:- IRN

    The year 2010 will probably go down in India’s history as the year of scams. As always, the authorities swing into action after the event. Regulations and compliances notwithstanding, scamsters continue to devise and leverage the loopholes. Unregulated sectors, such as real estate, which is in acute need of regulation, probably demonstrate best the investors’ predicament. The real estate sector probably has the highest rate and volume of investments and the largest number of investors. Contrasted with the various SEBI regulations which aim to protect the capital market investors, real estate development regulation has been sadly neglected, though there is a draft Bill on the anvil.

    Currently, the Indian promoter-developer buys the land from villagers and “obtains” clearances from the competent authorities for the building and layout plans. The predevelopment clearances required range from non-agricultural orders by way of Government permissions for the proper use, as for example conversion of land earmarked for agricultural purposes only. Building and Floor plans are approved by local municipal or state urban development authorities, depending on location. In addition, a no-objection certificates are to be obtained notably from the state pollution boards, water supply and sewerage authorities, properties and respective state and central authorities such as the Archaeological and Airport bodies in order to rule out attendant risks the development may pose to the existing structures and operations.

    In practice, these approvals are taken at a much later point of time. Because of the tight demand and supply situation, booking and collection of a large chunk of consideration from prospective buyers are concluded well before these clearances are obtained. The buyers have no choice but to sign on the standard contract formats, without the right to negotiate, leaving customers and investors to the mercy of unscrupulous promoters and subjected to various unfair trade practices, with cavalier disregard for compliances. The contracts which the buyer is induced to execute have clauses which are onerous and one-sided, with loopholes for the developer to get away with delays, random cost escalations, exorbitant penal interest, to name a few. The Developers ensure that they are fully insulated from all future liabilities,:bab (45): which are passed on to the buyers at a later point of time, when they become aware that their rights to ownership, super areas, common areas and facilities are very different from what was represented.

    The buyers’ recourse so far has been to the Consumer Courts. The National Commission in 2007 dismissed DLF”s appeal from the complaint filed by one Kamal Sood to hold that the builders’ practice of collecting money from prospective buyers without obtaining the required permissions amounted to an unfair trade practice, and the builder is duty-bound to obtain the requisite permissions in the first instance, and thereafter, recover from the buyer. It further held that if there is any express promise that the premises would be delivered within a stipulated time-frame, the builder has to bear the escalation costs. Even then the developer's deep pockets, and rounds of appeals are often a deterrent for most investors.

    A case in point is that of DLF Park Place in Gurgaon, which was represented to be constructed in 22 million square feet in 13 blocks of one floor, to be completed by fiscal 2010. The delay was caused by DLF departing from the original project, in getting approvals for 29 floors with the plot area being substantially reduced, in breach of the Haryana Urban Development Act the Haryana Apartment Ownership Act, 1983. Additional charges were taken for stilted parking spaces, which the Supreme Court in its Judgment of August 2010 in the matter of Nahalchand Laloochand (P) Ltd. vs. Panchali Co-op Housing Society has held to be illegal.

    With the change in law bringing such cases in the ambit of the Competition Act, the Apartment owners Association, in this case approached the Competition Commission (CCI) for abuse of dominant market position, after certain allotments were priced much higher than initially projected. The Competition Commission has restrained DLF from cancellation of the allotments and also creating third party rights. The CCI has also referred the matter to the Director General – Investigations for further investigation.

    If the CCI can deliver fast, and with the appeal lying only to the Supreme Court, the process should be quicker. In the meanwhile, the builder lobby is trying its best to scuttle the Bill, which requires preregistration with the Regulator before the property can be marketed. The Regulator is to scrutinize all advertisements, which are mandatorily displayed on the developers’ website. Unilateral cancellations are subjected to stringent conditions, permitting withdrawal by the investor with full refund and interest thereon:). Given the above, this Bill needs someone like Aruna Roy to fast forward it.
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  • :o
    Originally Posted by realacres
    contd....

    21.) My wife will divorce me if I don't buy a house or shall I show her the savings by not buying the house.
    WRONG. She will divorce you if you do buy a house and go bankrupt trying to pay the mortgage. She won't divorce you if you rent a much nicer place than you can buy, and then take her to Paris for a month in an year, which you can do just by avoiding that suicidal mortgage.

    22.) Drop in interest rates would make people jump into market again which will increase the prices or atleast won't let RE prices crash.
    WRONG. The RE prices reflect the median income of the area. RE market in Pune was largely driven by IT, NRIs & investors. IT industry is slashing jobs or cutting the pays & perks. Due to global economic crunch, NRIs lack funds today. Several investors have burnt their fingers in stock market & they see no appreciation but a RE correction today (some may call it as rates are ‘Softening’). Hence, all these elements that were the main drivers for RE boom are absent today. At the end of the day what matters is whether one can afford EMIs or not. To what extent is priciple amount & interest component is altogether diferent issue. Try to see to it that what is fixed (RE rates) are low so that interest rates fluctuation won't bother you much. The RBI figs. posted by fellow blogger clearly shows how loan dibersement has decrerased despite hike in RE prices. This only means that people aren't simply taking loans. Home loan NPAs are increasing every day passing by. Hence, banks are in no mood to lend further for a highly depreciating asset.

    23.) Demand is there hence, drop won't take place.
    WRONG. Demand is there but definately not at current levels. Current market is dictated by end users & end users alone. Hence, builders can't today enjoy on investors money & neglect the end users.

    24.) No new projects are being announced. This will lead to low supply hence pushing up the rates.
    WRONG. Even if 58% of the projects are abandoned, there simply aren't any buyers for the rest 42%. Add to it the investors 40% additional supply which will flood the market this year.

    25.) Small correction here & there doesn't amount to crash.
    WRONG. The correction of 20% & more, if is small, then another 'Small correction' is sufficient for crash. Consider this as a 'Whirlpool'. Once you are in, you are not out unless you sink to the bottom.

    26.) I just want to own my own house.
    CORRECT. Most people do and that's fine. Buyers will get their chance when housing costs half as much and they have saved a fortune by renting. House ownership is great - unless you ruin your life paying for it. If you can save even just 10% on the price of a house, you can retire several years earlier than you would otherwise. If you can save 50%, then you can easily take a ten year vacation and still come out ahead.

    Conclusion:-

    1.) People are simply not spending due to current RE & economic scenario.

    2.) Investors aren't there, ending the speculation.

    3.) Current market is end user dictated. End user doesn't find rates affordable/logical.

    4.) Builder>> End User or
    Builder>> Investor/speculator>> End user.
    The chain ends with end user. End user is the king. Hence, expect distress sales from investors too.

    5.) Result is visible on ground. Builders slashing prices, thus defying PBAP diktat. One builder reduces rates & now it is catching steam that will set off chain reaction for RE crash.

    6.) Most importantly, the buyers are not homeless. They have a house even if it means rented one. Those who want to upgrade from 2BHK to 3/4BHK have put their plans on hold, as they too are not desperate. Due to several layoffs, people are going back to their native place, thus increasing the number of flats on rent.

    7.) Several news posted earlier, clearly indicate that bankers, economic analysts as well as realty observers state that the RE prices will come down by 50-60% from their peak value, irrespective of place, location. These people are neither bears nor bulls, but analysts with neutral perspective.

    8.) Most importantly, the holding capacity of buyers is greater than builders. Builders have taken loans from various finance sources with interest rates as high as 20-35%. These are turning defaulters & if they want the finance institutions not to put an attachment to their properties, they will have no other option but to sell off current inventory a very low rates.

    Who blinks first was the question late last year. Today we have the answer:- Builders.

    Like it or not, the current Pune RE scenario is similar to that of a ship heading inside the ‘Bermuda triangle’. What is visible today is just a deflection of ‘Compass’. Once it reaches the epicenter of the ‘Bermuda Triangle’, no one can help it from sinking.

    To conclude, the builders require your money. So, whom should you believe? Facts or theories put forth by boomers? Think for yourself.

    I would be very glad if you can share your thoughts on my article.
    Comments most welcome & I would be happy to hear from you.

    Regards,
    Realacres

    --concluded--



    In matter of years, rentals zoom to EMI levels and still u own nothing.
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  • Originally Posted by realacres
    December 6, 2010
    Source:- IRN


    The contracts which the buyer is induced to execute have clauses which are onerous and one-sided, with loopholes for the developer to get away with delays, random cost escalations, exorbitant penal interest, to name a few. The Developers ensure that they are fully insulated from all future liabilities,:bab (45): which are passed on to the buyers at a later point of time, when they become aware that their rights to ownership, super areas, common areas and facilities are very different from what was represented.


    With the change in law bringing such cases in the ambit of the Competition Act, the Apartment owners Association, in this case approached the Competition Commission (CCI) for abuse of dominant market position, after certain allotments were priced much higher than initially projected. The Competition Commission has restrained DLF from cancellation of the allotments and also creating third party rights. The CCI has also referred the matter to the Director General – Investigations for further investigation.

    If the CCI can deliver fast, and with the appeal lying only to the Supreme Court, the process should be quicker. In the meanwhile, the builder lobby is trying its best to scuttle the Bill, which requires preregistration with the Regulator before the property can be marketed. The Regulator is to scrutinize all advertisements, which are mandatorily displayed on the developers’ website. Unilateral cancellations are subjected to stringent conditions, permitting withdrawal by the investor with full refund and interest thereon:). Given the above, this Bill needs someone like Aruna Roy to fast forward it.


    Its better not to buy from these goons unless there are some laws put in place which empowers the buyers.

    Its better to wait rather than giving all your hard earned to these goons and expose yourself to their mercy.
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  • Originally Posted by REmania
    :o


    In matter of years, rentals zoom to EMI levels and still u own nothing.

    Infact that will be the time to purchase a flat ideally as the bridge between EMI & rent would be small. This is not the case of now, so makes no sense to buy at current prices.
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  • Are realty prices supported by your branch manager?

    A very good article from Ajit Dayal. Please click the link to read on.

    The Indian financial and stock markets are reeling from the recent developments of the arrest of the CEO of Money Matters, the CEO of LIC Housing Finance, and other officials in the banking industry. The leaders of various Indian banks are taking pains to call this a "bribery" case and not a "scam". Really? Maybe they should read this article written on October 8, 2009 and explain how and why PSU banks and financial institutions (like the ones now making the news for all the wrong reasons) gave loans to the real estate developers, many of whom are owned by, are fronts of, or are friends or powerful politicians. Indeed, the qualification to be a real estate developer is the ability to bribe and oil the system, and has nothing to do with the ability to build or construct a structure.:o Read on....

    Are real estate prices supported by your branch manager?

    http://www.equitymaster.com/ht/detail.asp?date=11/29/2010&story=3&title=Are-realty-prices-supported-by-your-branch-manager

    * It is better not to make FDs in banks like SBI or ICICI as your own money will make housing expensive for you.
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  • Originally Posted by realacres
    Infact that will be the time to purchase a flat ideally as the bridge between EMI & rent would be small. This is not the case of now, so makes no sense to buy at current prices.


    Ha Ha Ha....
    Wow Really Makes Sense....

    After all unless we are investors all we need is accomodation.
    Then why not stay in a cheaper apartment ( Rent )
    If you are getting a car for EMI of 8 k per month and same for 3k on rent then why not rent.

    Even if the car is yours after 7 years who will you need that then or not.
    May be car is outdaded by then and all u want is to sell it :)

    So be the case with rentals and EMI
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