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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

    All this is false talk!

    Originally posted by Venkytalks View Post
    US has identified IT services as the most important growth area for employment generation, the single biggest. US students chose subjects based on such projections and their guidance councillors.

    Expect slow re-training of US citizens in IT and slow shift of jobs from India to USA.

    Similarly, BPO operations will also shift back to USA as low paying jobs in other areas like supermarkets become scarce.

    A lot of females working part time in real estate and currently out of the job market will also shift to call centers.

    Nursing is another career option being promoted in USA, but doesnt affect India much

    What you guys are saying is strange!

    Govt is saying IT sector is going to boom like anything and reach countless billions in next 5 years.

    Stock market is saying, notwithstanding the single-digit growth figures and low-double-digit margin figures, IT sector is underpriced at 20-40 times trailing P/E and jacking prices up, up and away.

    IT sector CEOs are saying they are launching for the moon shortly (first halt will be the "cloud"s) and there is no stopping them.

    Can they all be wrong?

    cheers

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Govt to allow realtors to book revenues at different work stages

      See how Govt is helping builders to allow them to openly fudge their accounts .

      NEW DELHI: The government will drop a key rule from the new international accounting norms Indian companies have to follow from next year to permit real estate companies to book revenues as they build a property, allowing them to maintain a healthy profit and loss account.

      A recent meeting of the expert group of the ministry of corporate affairs favoured the existing ‘percentage completion method’, even as the country prepares to align its accounting practices with the globally recognised International Financial Reporting Standards (IFRS), which allows developers to book sales only when the project is complete.

      The current move, which was cleared by the National Advisory Committee on Accounting Standards (NACAS), is expected to bring some relief to the country’s real estate sector, which is yet to recover fully from the impact of the economic downturn.

      A change in accounting practices would have weakened the position of real estate firms while dealing with investors and lenders.


      Read complete story here:-

      http://economictimes.indiatimes.com/...ow/6744494.cms
      If you are happy, you are successful.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Dussera Greetings

        Dear friends,

        Greetings, on the occasion of Dassehra .
        Attached Files
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by aditi sharma View Post
          I had posted this and posting yet again, its relevant here.
          In past one 2 years, in my team of 25, some 7 mid and senior (5-10 years) people have left. And managers have hired 8 freshers instead of this 7 senior guys. so go the point. saving will be more than 60% salary of those 7 guys.

          This has happened across many teams here. In one team, where 10 mid,senior guys were working, now it has 4 senior guys and 8 freshers. The company is adding some headcount, but reducing overall cost by getting rid of costly people. My company is not one of the services giant, its a product based US MNC.
          some 7 mid and senior (5-10 years) people have left: They left, not laid off. They must be getting a good 30-40% hike in some other company. So they moved. Simple
          Eat, Pray and Love

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by aditi sharma View Post
            I had posted this and posting yet again, its relevant here.
            In past one 2 years, in my team of 25, some 7 mid and senior (5-10 years) people have left. And managers have hired 8 freshers instead of this 7 senior guys. so go the point. saving will be more than 60% salary of those 7 guys.

            This has happened across many teams here. In one team, where 10 mid,senior guys were working, now it has 4 senior guys and 8 freshers. The company is adding some headcount, but reducing overall cost by getting rid of costly people. My company is not one of the services giant, its a product based US MNC.

            If mid & senior posion guys are leaving for better paying opportunities then it is good news.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              [QUOTE=vivek111;116465]Depends on individual capacity....

              -If prices come down by 15% and rental go up by 15%
              If prices come down by 15 % & someone gets a raise (by switching/promotion/onsite trip etc) he/she would line up to buy,

              Based on my regular discussions with my friends/relatives I believe most of the people take the "buy" decision if they can afford it instead of thinking about the "true Value".
              [B]

              Yes i agree to your true value point as a house(barring exceptions) is considered as a must have where as other investments are nice to have
              MM

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by realacres View Post
                These are following conclusions w.r.t. current scenario:-


                Though compared to now, the deal becomes more VFM for BUY, but on ground nothing changes as this 15% will be wiped out due to inflation + higher interest rates.

                Conclusion:- No change.

                The EMIs are almost 3-4 times the rent in normal conditions, so 15% hike in rents is peanuts. So, renting will still make more sense. Add to it interest rates going up, renting becomes even more lucrative.

                Conclusion:- No change.
                Man-u have hit the nail on its head. This is exactly where i was coming from.
                MM

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  May be you missed my previous posts where I had written this.
                  These are all 'soft-layoffs'. No-one received hike after April 2007. (In April 2008 situation had worsen) And there were no jobs in market until 6 months back. They waited a cool 2.5-3 years period. Meanwhile noone received Variable pay too. Now there is no 30-40% hike for even a 5-6 yr guy. It looks all rosy when you say... it isn't.

                  Originally posted by m_square View Post
                  some 7 mid and senior (5-10 years) people have left: They left, not laid off. They must be getting a good 30-40% hike in some other company. So they moved. Simple

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by RAJESHP View Post
                    In either cases I would buy if price of the flat equals rent * 200, otherwise not.

                    Simple answer isn't it?
                    So basically u want prices of flats to come down generally by 50%.
                    Aisa nahi hoga bhai. What will our politicians/builders eat if that happens, they will die of mal-nourishment.
                    MM

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Well, practically the rentals have gone down -- indicating an OVER-SUPPLY in the market since last 3 years.

                      Also, there has been a flurry of new schemes launched since last 2 months which will really make rentals go down even further. Of course, in high demand areas, the rentals will be steady , but my question to you is simple --

                      HAVE THE RENTALS IN LAST 7 YEARS MOVED ALONG WITH THE REAL ESTATE PRICES ?

                      If the answer is NO, we know it is just a HYPE/BUBBLE building up...

                      Another indication, is the number of "Ready Possession" apartments in the market -- if the market was so hot that even 10-15% was absorbed, they would have been history...

                      The truth is builders/developers and the investors are holding onto the prices, they only want to SELL at higher prices - not bothering to clear inventory...

                      But, when the "total inventory" becomes more than 50% of the demand, you will see a definate correction. The point is PATIENCE.

                      Comment

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