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Builders & Real Estate Bulls Theory Proved Wrong

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Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
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  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    Originally posted by realacres View Post

    Firms:- The ones mentioned by you which have gone bankrupt.

    Bankers:- Indian bankers, not American.
    Man (in your style.. ), thanks for explaination!! I was expecting this, that is why I said, those firms (Investment Bankers) are not always right.

    And good to know, atleast you listen someone (Indian Bankers).

    Can you be such aggressive in answering those questions that I put, in my ealier posts..

    But, anyways better is to talk about current RE, Builders, project, instead of so much of speculative.

    And yes, I really appreciate the information about builders/project in pune that you put in this forum.. That really helps to the members..
    Last edited by tpshere; September 16 2009, 11:05 PM.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Use ur head

      "Going forward, DLF will continue to focus on liquidity preservation and launch projects in line with market demand after adequate research of the same," according to company's annual report posted on its website.


      Lines from that DLF report.

      Adequate research will show them that people require affordable houses and not loads of amenities in a cubby hole flats. What the use, if one pays exhorbitant prices for these amenities which one would hardly use . The bldr should focus on giving value for money rather than just milking all the monies / future incomes from customers and all the incentives / discounts from Govt/ authorities .

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Chhota Packet

        The bldr r using the same analogy of Chhota packet and high prices to sell their products.

        Thus, a small 2 rs sampoo packet is much affordable/ selling than 200 gm at a GO. THESE PACKET R MUCH MORE COSTLIER ON SAME SCALES compared to bigger packet. But bldrs have to understand, unlike a small ticket single out go buying ( small shampoo packet), a house is a life time issue. If people start buying these affordable costly houses, they will have to for go lot of things in life

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Sobha to sell land parcels in Bangalore, Pune

          Another Builder selling off assets to avoid bankruptcy.

          http://www.realtyplusmag.com/rpnewsl...=5068&cat_id=1

          Private equity funds sell homes cheap to gain market foothold:-

          http://www.livemint.com/2009/09/14205858/Private-equity-funds-sell-home.html
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            http://timesofindia.indiatimes.com/n...ow/5028901.cms

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Bldg permissions to be given online

              Good one saurabh.

              http://epaper.timesofindia.com/Defau...Mode=HTML&GZ=T
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Interesting ...

                Originally posted by realacres View Post
                Look friends,
                These builders earlier pleaded with Govt. to give them incentives so that they can launch so called affordable housing. Now, the builders have shied away from this & have dropped such projects. Wonder what the situation for the people in such projects would now be. Hence, I reiterate, go for ready poss only.

                ]http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=4951&cat_id=1[/URL]

                All of this started with excessive greed to amass more and more wealth as though one could spend all of this in one lifetime!

                So, while in the 1990s, it was not enough to be worth 100s of crores, in the 2000s it became fashionable to be worth Billions of $$$. People don't seem to understand that much of this is MAYA! The Maya of Credit or fake wealth. So, a Rupee today (rice at Rs.40 per kg) is probably worth only 12-15% of the one in 1990 (rice was around Rs.5 per kg then)! So, your 50k salary is probably worth around 6k of those days - and let me tell you, one needed to work much less and enjoy life much more in those days earning 6k as compared to earning 50k today!!!

                So, the DLFs of the world are in a complete mess. They are seeking to somehow get out of this mess which has locked in 1000s of crores in completely DEAD ASSETS which may not sell for years to come! And one such thing, in tune with the mood of the depressionary times, was low-cost housing. But no one seemed to figure that low-cost also meant low (or no) profits. And it is this profit they are really after, to bail them out of the debt mess.

                So, to make this profit, they cut cost even more than the end-price, giving poor quality. This may be okay for building Govt sponsored slums, but the buyers now are private buyers have a choice to walk away!

                So, whoever imagined that low-cost housing will somehow provide higher profits than too-high-cost housing must have his head examined. This is not going to happen. And DLF, being smart, figured this out early!!!

                cheers

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Affordability trap

                  Well said wiseman. Greed & not profits are responsible for builders' woes today. Here's an article about so called affordable project trap.

                  http://www.mydigitalfc.com/real-esta...ility-trap-171
                  If you are happy, you are successful.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    And I forgot to add ...

                    Originally posted by realacres View Post
                    Well said wiseman. Greed & not profits are responsible for builders' woes today. Here's an article about so called affordable project trap.

                    ]http://www.mydigitalfc.com/real-estate/affordability-trap-171[/URL]

                    Thank you!

                    And one more thing I forgot to add, realacres!

                    "Incentives" is nothing but "bailout" in other words. It has now become fashionable for everyone to take ridiculous risks with other people's money (OPM) and try to con someone. When things do not work (as they do not in 90% of enterprenurial ventures), they then run to the Govt to ail them out!!!

                    So with these incentives you pay the builder in 2 ways. One is the payment for the property. The other is, indirect payment through increased taxes!!!

                    cheers

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      DLF does the unusual: asks buyers to price homes

                      http://www.dnaindia.com/money/report...-homes_1290249
                      If you are happy, you are successful.

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