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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  • Another story

    Originally Posted by Naveen_Flat
    But if u observe, its true, in every thread in Pune on IREF, most of the time there are comments only like this .. 'recession is coming', 'price will fall', 'buying now is foolishness', DSK is low quality. Paranjape is this, Dagade is that, Kumar is cheater, KP is yaaks, Konark is in sink, Goyal Ganga & Gera are gone case... reminds me Jay-Mausi conversation

    Mausi : Arre beta, bas itna samaz lo ke me jawaan beti seene par
    pathhar ke sil ki tarah hoti hai. Basanti ka byaah ho jaaye
    to chain ki saans loo.
    Jay : haa sach kaha mausi aapne. bada bojh hai aap par.
    Mausi : Lekin beta, is bojh ko koi kunwe me to phaik nahi deta.Bura nahi
    maananaa , itanaa to poochhanaa hi padataa hai ke ladke
    kaa khaandaan kyaa hai uske lachhchhan kaise hai, kamaataa kitnaa
    hai?
    Jay : Kamaane ka to ye hai mausi,..,ke ek baar biwi bachhon ki jimmedaari
    sar pe aa gayi to .. kamaane bhi lagegaa.
    Mausi : To kya abhi kuchh bhi nahi kamaataa?
    Jay : Nahi nahi ye maine kba kahaa mausi, kamaataa hai lekin,... ab roj
    roj to aadmi jeet nahi sakataa na. .. kabhi haar bhi jaataa hai
    bechaaraa?
    Mausi : haar jaata hai?
    Jay : haan mausi ab ye kambakht juwaa cheej hi aisi hai ab mai kyaa
    kahoon ?
    Mausi : heynnnn. to kya juwaari hai?
    Jay : chhi chhi chhi chhi mausi, woh aur juwaari na na. woh to bahot hi
    achchha aur nek ladka hai.Lekin mausi, ek baar sharaab pi li na phir,
    achchhe bure ka kahaa hosh rahataa hai. Haath pakad ke bitha liyaa
    kisi ne juwaa khelane. ab isme bechare Veeru ka kya dosh?
    Mausi : Thik kahate ho beta. juwaari woh sharaabi woh lekin, uska koi
    dosh nahi.
    Jay : Mausi aap to mere dost ko galat samaz rahi hai. woh to itanaa
    seedha aur bhola hai. aare basanti se uski shaadi karke to dekhiye,
    ye juwe aur sharaab ki aadat to do din me chhoot jaayegi.
    Mausi : Arre beta, mujh budhiyaa ko samaza rahe ho. ye sharaab aur juwe ki aadat kisi ki chhooti hai aaj tak.
    Jay : Mausi aap Veeru ko nahi jaanati , wishwaas kijiye wo is tarah kaa
    insaan nahi hai. Ek baar shaadi ho gayi to woh us gaane-waali ke
    jaanaa band kar degaa. bas, sharaab apne aap chhoot jaayegi.
    Mausi : Hi hi, bas yehi ek kami raha gayi thi. to kya kisi gaane-waali ke
    bhi aanaa jaanaa hai?

    U decide....



    You need another story to understand this. taken from my post in July 10
    Just consider the situation of Pune/Banglore like IT city ......
    Each of this city has 90% of its business from Euro and US.
    So considering US Client... Walmart for Eg. as "Boss" here....
    And the IT offshore office as a "Chauffeur".

    If all of sudden the Indian Middle class (chauffeur's community they do not invent or do high end work 90% of them compared to US who is from last Century doing all the inventions where 10 % of outsiders too are there) suddenly gets quick money and assumes future will also keep bringing such money starts to spend like anything ....for the same "goods" Boss is using.
    left his style(Money Savers) and now following Boss's style(Living on Credit/Future Earning).
    Boss's businness is going down ...and in some time his business will be gone.
    (America is at a path of No return since decades and no body wishes to acccept it as its loss to whole world.)
    Exclusive: America has ‘reached the point of no return,’ Reagan budget director warns | The Raw Story
    unaware of this .... the chauffeur is happy with his earning and spending the same way his boss has done.....spending on Future earning.

    While for Boss its cheaper... in chauffeur's market its costlier.
    (AUDI, Arrow shirt, House price in India and in US)
    While Boss's and chauffeur's house are compareable in price
    Boss stays in 1/2 acre Bunglow while chauffeur is Apartment scheme with Poor infra, no water, lawless society, high Crime so on.....
    Now in this new found wealth chauffeur has reduced its saving and taken addtional burden of loan(Car loan house loan).
    Earlier he used to be spending carefully now he changes his cycle every two year as new models come every six month ... and other chauffeurs are doing it he cannot resist.
    Think for some time what has changed in last 6-7 yrs??
    Unequal distribution of wealth.
    Lots and lots of Non India companies are tapping indian market ....
    for Few years its good but when ROI and break-even comes shops can get closed too....
    Telecom, Electronics , FMCG ....
    Margins are good but are they increasing ?? soon they will be Wafer thin....
    This on top of US , Euro Crisis not yet fully solved (or Started, maybe you just saw the trailer)
    He doesn't want to understand the Economic/System failure.
    This make chauffeur a pig in market terms ... and he is destined to be slaughtered .... either by default or by Inflation weapon.
    Also chauffeur is the last Fool standing(in stock market terms)
    he has been spoon feeded that high inflation is not a depression/Recession. And 2008 was one such event and no such event will occur in future.

    hahahaaa

    Both eat your budget ... one pays less .. other makes ones pay appear less.

    S..t remains S..t even if you cover it with Choclate cream.
    Thats what all the Bosses(Govt, CEO, Fund Managers) have decided to show the world ...check your plate again .. deep inside its the same s..t.

    Patient had a gangrane ... the doctor instead of operating kept on giving caffine when he came in out of sedation .. rest of the time they gave him c.o.caine.
    Thats what Fed and Govts have done till now sooner or later its paytime.
    So if Boss is going to be bankrupt/out of business sooner or later what will hapen to chauffeur?
    He doesn't have brains/wisdom to think or even plan this?????

    And like a teenager is fighting with the wellwisher for why they are not letting him take C.o.caine

    :) :)
    CommentQuote
  • Originally Posted by frugality
    You need another story to understand this. taken from my post in July 10
    Just consider the situation of Pune/Banglore like IT city ......
    Each of this city has 90% of its business from Euro and US.
    So considering US Client... Walmart for Eg. as "Boss" here....
    And the IT offshore office as a "Chauffeur".

    If all of sudden the Indian Middle class (chauffeur's community they do not invent or do high end work 90% of them compared to US who is from last Century doing all the inventions where 10 % of outsiders too are there) suddenly gets quick money and assumes future will also keep bringing such money starts to spend like anything ....for the same "goods" Boss is using.
    left his style(Money Savers) and now following Boss's style(Living on Credit/Future Earning).
    Boss's businness is going down ...and in some time his business will be gone.
    (America is at a path of No return since decades and no body wishes to acccept it as its loss to whole world.)
    Exclusive: America has ‘reached the point of no return,’ Reagan budget director warns | The Raw Story
    unaware of this .... the chauffeur is happy with his earning and spending the same way his boss has done.....spending on Future earning.

    While for Boss its cheaper... in chauffeur's market its costlier.
    (AUDI, Arrow shirt, House price in India and in US)
    While Boss's and chauffeur's house are compareable in price
    Boss stays in 1/2 acre Bunglow while chauffeur is Apartment scheme with Poor infra, no water, lawless society, high Crime so on.....
    Now in this new found wealth chauffeur has reduced its saving and taken addtional burden of loan(Car loan house loan).
    Earlier he used to be spending carefully now he changes his cycle every two year as new models come every six month ... and other chauffeurs are doing it he cannot resist.
    Think for some time what has changed in last 6-7 yrs??
    Unequal distribution of wealth.
    Lots and lots of Non India companies are tapping indian market ....
    for Few years its good but when ROI and break-even comes shops can get closed too....
    Telecom, Electronics , FMCG ....
    Margins are good but are they increasing ?? soon they will be Wafer thin....
    This on top of US , Euro Crisis not yet fully solved (or Started, maybe you just saw the trailer)
    He doesn't want to understand the Economic/System failure.
    This make chauffeur a pig in market terms ... and he is destined to be slaughtered .... either by default or by Inflation weapon.
    Also chauffeur is the last Fool standing(in stock market terms)
    he has been spoon feeded that high inflation is not a depression/Recession. And 2008 was one such event and no such event will occur in future.

    hahahaaa

    Both eat your budget ... one pays less .. other makes ones pay appear less.

    S..t remains S..t even if you cover it with Choclate cream.
    Thats what all the Bosses(Govt, CEO, Fund Managers) have decided to show the world ...check your plate again .. deep inside its the same s..t.

    Patient had a gangrane ... the doctor instead of operating kept on giving caffine when he came in out of sedation .. rest of the time they gave him c.o.caine.
    Thats what Fed and Govts have done till now sooner or later its paytime.
    So if Boss is going to be bankrupt/out of business sooner or later what will hapen to chauffeur?
    He doesn't have brains/wisdom to think or even plan this?????

    And like a teenager is fighting with the wellwisher for why they are not letting him take C.o.caine

    :) :)

    frugality, as always great thinking and analysis.
    Teenagers may not ponder over bad times, cause not seen any. And paid media (TOI) paints all glossy/rosy picture about India's RE growth.
    CommentQuote
  • Originally Posted by frugality
    You need another story to understand this. taken from my post in July 10
    Just consider the situation of Pune/Banglore like IT city ......
    Each of this city has 90% of its business from Euro and US.
    So considering US Client... Walmart for Eg. as "Boss" here....
    And the IT offshore office as a "Chauffeur".

    If all of sudden the Indian Middle class (chauffeur's community they do not invent or do high end work 90% of them compared to US who is from last Century doing all the inventions where 10 % of outsiders too are there) suddenly gets quick money and assumes future will also keep bringing such money starts to spend like anything ....for the same "goods" Boss is using.
    left his style(Money Savers) and now following Boss's style(Living on Credit/Future Earning).
    Boss's businness is going down ...and in some time his business will be gone.
    (America is at a path of No return since decades and no body wishes to acccept it as its loss to whole world.)
    Exclusive: America has ‘reached the point of no return,’ Reagan budget director warns | The Raw Story
    unaware of this .... the chauffeur is happy with his earning and spending the same way his boss has done.....spending on Future earning.

    While for Boss its cheaper... in chauffeur's market its costlier.
    (AUDI, Arrow shirt, House price in India and in US)
    While Boss's and chauffeur's house are compareable in price
    Boss stays in 1/2 acre Bunglow while chauffeur is Apartment scheme with Poor infra, no water, lawless society, high Crime so on.....
    Now in this new found wealth chauffeur has reduced its saving and taken addtional burden of loan(Car loan house loan).
    Earlier he used to be spending carefully now he changes his cycle every two year as new models come every six month ... and other chauffeurs are doing it he cannot resist.
    Think for some time what has changed in last 6-7 yrs??
    Unequal distribution of wealth.
    Lots and lots of Non India companies are tapping indian market ....
    for Few years its good but when ROI and break-even comes shops can get closed too....
    Telecom, Electronics , FMCG ....
    Margins are good but are they increasing ?? soon they will be Wafer thin....
    This on top of US , Euro Crisis not yet fully solved (or Started, maybe you just saw the trailer)
    He doesn't want to understand the Economic/System failure.
    This make chauffeur a pig in market terms ... and he is destined to be slaughtered .... either by default or by Inflation weapon.
    Also chauffeur is the last Fool standing(in stock market terms)
    he has been spoon feeded that high inflation is not a depression/Recession. And 2008 was one such event and no such event will occur in future.

    hahahaaa

    Both eat your budget ... one pays less .. other makes ones pay appear less.

    S..t remains S..t even if you cover it with Choclate cream.
    Thats what all the Bosses(Govt, CEO, Fund Managers) have decided to show the world ...check your plate again .. deep inside its the same s..t.

    Patient had a gangrane ... the doctor instead of operating kept on giving caffine when he came in out of sedation .. rest of the time they gave him c.o.caine.
    Thats what Fed and Govts have done till now sooner or later its paytime.
    So if Boss is going to be bankrupt/out of business sooner or later what will hapen to chauffeur?
    He doesn't have brains/wisdom to think or even plan this?????

    And like a teenager is fighting with the wellwisher for why they are not letting him take C.o.caine

    :) :)


    Bravo, frugality.

    Although I do remember reading a similar analogy earlier in some thread - perhaps you have repeated a previous post on this very thread?
    CommentQuote
  • Originally Posted by hitmady
    frugality, as always great thinking and analysis.
    Teenagers may not ponder over bad times, cause not seen any. And paid media (TOI) paints all glossy/rosy picture about India's RE growth.

    Sorry to say but I find it more like a broken record played again and again
    CommentQuote
  • Originally Posted by compuwalah
    Sorry to say but I find it more like a broken record played again and again

    Having seen economic cycles and bad-times, people play this record over times to caution others.
    See economic indexes of the world yourself. This is not the time to make big ticket RE-investment even with full-cash, forget about taking very-high leverage.
    CommentQuote
  • Global Economy is Deteriorating.....

    Out of self-interest, debt trapped builders are trying to mislead buyers. Though the thread started in 2009, the current slowdown alert was flagged in Dec-2010.
    After reading Double deep recession news, the scared builders are now trying last attempt to fool buyers. The current market indicators are pointing to ….. The Pune real estate market activity barometer is pretty much down, inventory piled up, registration trend is down. :bab (61)::bab (61)::bab (61):

    People, who are blaming others for missing 2009 bus, can come forward & show their courage after 2 months. :bab (22):
    Surprisingly, the pride purple has put “Park turquoise” project on hold, 1 month after prelaunch; they are giving some junk excuses to buyers.

    The MSCI Asia Pacific Index slid 1.5 percent at 11:20 a.m. in Tokyo. Standard & Poor’s 500 Index futures lost 1.8 percent, following a two-week rout that dragged the gauge down 11 percent and erased its 2011 gain. The dollar reached an all-time low of 74.85 Swiss centimes before trading at 76.15. Treasury 30-year yields climbed four basis points. Oil sank 2.9 percent in New York, while immediate-delivery gold topped $1,690 an ounce.

    http://www.bloomberg.com/news/2011-08-07/u-s-stock-futures-oil-plunges-on-rating-downgrade-n-z-index-declines.html
    CommentQuote
  • reality of realty

    Well, i m not sure on Pune real estate scenario but all i can say demand supply logic does not work well when it comes to Indian Realty. The reason is India has two parallel ecomonies- White economy run by many salaried employees, corporations etc and black economy-the REAL ENGINE of India run by small/medium/big businessmen spread across country.
    We know real estate developers fall in which category!!
    The nexus-political-beurocrats-builder-media has much more sustaining power that we can imagine.Historically this lobby has played major role in policy decision, changing Realty economics by various means in country.
    Even if rates fall- it won't fall beyond 5 to 10% in my opinion. Do you really think one can purchase 2 BHK decent flat in Kalyani Nagar/Deccan even if worst recession comes? I doubt.
    CommentQuote
  • Exactly!

    Originally Posted by compuwalah
    Sorry to say but I find it more like a broken record played again and again



    Thats exactly the point we are trying to make!

    That the record is broken and it needs to get fixed.

    Somehow this message got ignored by everyone chasing the wrong points! The recession never ended. It only got pushed out while making financial condition more dangerous.

    But people got taken in by Govt propaganda. Builders used this propaganda to trigger the fear and greed characteristics in each one of us and enticed everyone to buy higher and higher. Banks as usual became partner-in-crime of builders.

    And see where it has led us to. Buying RE is NOT like buying the usual fridge or washing machine. The impact (positive or negative) is much greater.

    Coming to the IT sector, I have said this time and again. The leadership was forged in earlier years in conditions of total slothfulness. In general, they have absolutely NO IDEA about anything except IT (and their knowledge in that too is about 15 years outdated). Like the builders - and most industrialists in our not-so-competitive India - they hire the most and spend the most predicting strong future growth EXACTLY as the market is poised to go off a cliff!

    Once again!!!!:D

    Now you will start hearing the familiar term (as in 2001 and 2008) ... "Visibility is very poor"! Enjoy!

    cheers
    CommentQuote
  • Market Turmoil Continue.....

    India's top tech firms denied any plans to trim their payroll or begin a hiring freeze because of macro economic worries in the US, but recruitment agencies and experts tracking the sector warned that these companies are already going slow on hiring experienced professionals.

    Indian IT companies like MindTree, Infosys, Wipro deny hiring freeze because of US market worries, analysts keep fingers crossed - The Economic Times

    India weathered the 2008 crisis well, but there are fears that this time round the country is not even ready for a crisis of much lesser magnitude, let alone a full-blown debt default in Europe or a possible US recession.

    The current account deficit is likely at over 2.7% of GDP, much higher than 1.3% in 2007-08, and foreign direct investments are not as forthcoming. The C Rangarajan-headed Prime Minister's Economic Advisory Council expects only $14 billion in inflows in the current year. Even without the crisis, things were not looking good for Indian economy. It has got much worse, though difficult to say how much.

    Recession 2011: 2011 could be worse for India as US recession looms large - The Economic Times
    CommentQuote
  • Recession and RE pricing

    Originally Posted by PuneJoker
    Well, i m not sure on Pune real estate scenario but all i can say demand supply logic does not work well when it comes to Indian Realty. The reason is India has two parallel ecomonies- White economy run by many salaried employees, corporations etc and black economy-the REAL ENGINE of India run by small/medium/big businessmen spread across country.
    We know real estate developers fall in which category!!
    The nexus-political-beurocrats-builder-media has much more sustaining power that we can imagine.Historically this lobby has played major role in policy decision, changing Realty economics by various means in country.
    Even if rates fall- it won't fall beyond 5 to 10% in my opinion. Do you really think one can purchase 2 BHK decent flat in Kalyani Nagar/Deccan even if worst recession comes? I doubt.


    :oI fully agree with your analysis on Recession and Indian RE scenario.Our parrallel coloured economy is immune to recession upto some extent.:D
    CommentQuote
  • The indian IT scenario has the most overrated hype ever, we have not till date created a single product of reckoning. It's sole play is labour arbitrage, as wisey quotes we use redundant technology to produce or service the demands of externals !

    There are no value additions or effieciencies,
    generally it's moto "bas gisthe raho" or "bas gisathe raho" !
    Generally run by suits who have no understanding of tech & resultant efficiencies, boy i could go on here for pages !

    anyways w.r.t real estate this is interesting link which people should see the outcomes of leverage

    The Big Squeeze

    Edit
    -----------
    leverage is leverage there is no such thing as affordability on account of leverage, it is a myth which has dangerous ramifications which unfortunately certain posters willfully ignore.
    CommentQuote
  • Originally Posted by khbarilal
    Out of self-interest, debt trapped builders are trying to mislead buyers. Though the thread started in 2009, the current slowdown alert was flagged in Dec-2010.
    After reading Double deep recession news, the scared builders are now trying last attempt to fool buyers. The current market indicators are pointing to ….. The Pune real estate market activity barometer is pretty much down, inventory piled up, registration trend is down. :bab (61)::bab (61)::bab (61):

    People, who are blaming others for missing 2009 bus, can come forward & show their courage after 2 months. :bab (22):
    Surprisingly, the pride purple has put “Park turquoise” project on hold, 1 month after prelaunch; they are giving some junk excuses to buyers.

    The MSCI Asia Pacific Index slid 1.5 percent at 11:20 a.m. in Tokyo. Standard & Poor’s 500 Index futures lost 1.8 percent, following a two-week rout that dragged the gauge down 11 percent and erased its 2011 gain. The dollar reached an all-time low of 74.85 Swiss centimes before trading at 76.15. Treasury 30-year yields climbed four basis points. Oil sank 2.9 percent in New York, while immediate-delivery gold topped $1,690 an ounce.

    http://www.bloomberg.com/news/2011-08-07/u-s-stock-futures-oil-plunges-on-rating-downgrade-n-z-index-declines.html

    Thanks for the Park Turquoise updates man :). This just shows what can happen if people Queue to book in nascent stage from such crook builders.
    Even Mittal builders have delayed their launch of Corona & Prestige projects.
    Paranjape schemes Madhuban 2 is delayed.
    Darode-Jog Oakwood County is in mess.
    Ravirraj Group is unable to sell their project Ozone Villas at Wagholi.
    Kumar Builders, KUL is selling of 30% stakes in his projects to raise some money to repay the debt.

    And the story continues.
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  • You may get cheaper homes, thanks to US

    You may get cheaper homes, thanks to US
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  • Reasons why I think that property prices cannot infinitely appreciate!

    Hello Readers,
    That is a superb post up there. Researched and executed. One big reason for ever increasing real estate prices is rural- urban migration. But as holistic growth touches India, we reckon that this slow down is inevitable. Do read this article.
    Is the real estate slowdown in India inevitable?
    Click the link above.
    It will give you a slightly different angle to things...
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  • Originally Posted by realacres
    Thanks for the Park Turquoise updates man :). This just shows what can happen if people Queue to book in nascent stage from such crook builders.
    Even Mittal builders have delayed their launch of Corona & Prestige projects.
    Paranjape schemes Madhuban 2 is delayed.
    Darode-Jog Oakwood County is in mess.
    Ravirraj Group is unable to sell their project Ozone Villas at Wagholi.
    Kumar Builders, KUL is selling of 30% stakes in his projects to raise some money to repay the debt.

    And the story continues.

    Found this link about water-issue reported by residents of Ozone Villas, Wagholi:
    amu.shindes Diary - Ozone Villas, Wagholi - Water Problem - MouthShut.com
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