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- Originally Posted by kingmanishAccording to property research firm PropEquity, nearly half of the 930,000 under-construction residential units in the country, scheduled for delivery between 2011 and 2013, are likely to be delayed by up to 18 months. In recent months, secondary market property sales have been higher than primary sales by developers.
"This is especially true for projects where a considerable portion of construction work is already complete," says Prashant Kaura, director, GenReal Property Advisers. There has been a rise in secondary sales because many investors are looking at cashing out of projects. The reasons for wanting to exit might differ- while some are facing a cash crunch themselves, others are unsure about the developer they are invested with.
The RE sale has dropped considerably in last few months. Its time for a revision in property rates. It is expected than first 6 months of 2012 will see a significant drop in rates.
Realty firms to shun expansion, push sales to avoid cash crunch - Corporate News - livemint.comCommentQuote0Flag
- congrats realacres for having "sticky" thread hereCommentQuote0Flag
- Originally Posted by pusercongrats realacres for having "sticky" thread here
may be he has become moderator now. ;)CommentQuote0Flag
- Originally Posted by shashankgujjarisnt that a shell company , cause almost all companies in Mauritius are shell companies/fronts for Black money
That's true. Black money is sent through hawala channels outside & then bought in as legitimate money as FDI from countries like Mauritius.
Btw, one more news about NPAs:-
Spike in bad loans worries RBI
Spike in bad loans worries RBI - The Times of IndiaCommentQuote1Flag
- In the works, a Rs10,000 cr realty blow for lenders
Banks’ aversion towards lending to the real estate sector may have come a bit late in the day.
Going by some research firms, non-performing assets (NPAs) in the real estate sector could come in as high as `5,000-10,000 crore this fiscal.
The total outstanding debt in the Indian real estate sector as of end-September is around `1.25 lakh crore.
Complete story here:-
In the works, a Rs10,000 cr realty blow for lenders - Money - DNACommentQuote0Flag
- Originally Posted by realpuneI have seen many such properties on sale by Banks for default loans and these were even within one year of the default. Where this 7 years litigation comes from ?
Also, when multiple people default bank can't survive without selling such property immediately :D.
Buddy, where is the demand ? Everywhere sales is down. You are also missing the affordability factor which is very important. If people can't afford something, they can't buy. That's the reason people can't buy even if they need it for end use.
Talking about the supply, well the inventory is piling up across all the cities. Add to it, the investors flats coming at discounted rates now.
To conclude, prices can't keep on going up indefinitely and inflated prices without any meaningful sale can't be sustained, crash is inevitable!
Bank foreclosure is possible only in un-occupied or under construction property i.e investors flats.
It is impossible for bank to evict you if you default on a property loan while residing in it, for 7 years or more.
Sales of "underconstruction" property cannot be equated to the bank foreclosures of USA which are ready to move - as people here keep doing.
An underconstruction flat is not "real" as in real estate. It is only a futures contract and should be treated as such for investment analysis.
Banks dont see defaults in home loans except in rare situations - that is why they are safe. Multiple such defaults dont happen at individual level because that is not how the property market works. Big defaults come from big builders and not individual investors. Usually bank has to write off its capital in such instances (provisioning).
Investors find it difficult to get bank funding for individual homes and mostly survive on own/black money. Investing on bank funding only done by IT guys - when they try to turn into RE investors.
Rest of your post is unrelated to the bank foreclosure issue.
Typically, normal people will never buy from bank in a sale from foreclosure, because there is always doubt about the title in the buyer's mind and they try to avoid it. Do you know anybody who has bought a bank foreclosure? I dont know a single person who has bought such a thing.
Most bank foreclosures in India are bought by investors - who buy with cash at heavy discount, then put it on tha market at a high "market" price and sit on it. I know of three such cases.
For you and me prices dont come down.
As for demand - Indian property is a black market. People corner the flat and sit on it. When you or I or anyone wants to buy- he gets a massive quote for price - take it or leave it. Demand comes from only those who have the money - or those who are attaching emotional value to ownership and pay black market price for this attachment.
Renting is much cheaper and sensible - lots of people rent a really big flat at one fourth the cost of ownership or even less.CommentQuote1Flag
- Thanks real acres for such a good information. I am about to booka house in two days, but after reading your article i am forced to rethink on my decision. BTw I am planning to buy a resale house at handewadi road (hadapsar, Pune). it is costing me around 38 Lakhs. Area is 1110 sq ft. Flat is in Sanskruti township. What u advice whether its a good deal or notCommentQuote0Flag
- Originally Posted by amd072944Thanks real acres for such a good information. I am about to booka house in two days, but after reading your article i am forced to rethink on my decision. BTw I am planning to buy a resale house at handewadi road (hadapsar, Pune). it is costing me around 38 Lakhs. Area is 1110 sq ft. Flat is in Sanskruti township. What u advice whether its a good deal or not
Check these links for Sanskriti:-
If you search for Gini constructions, you will find even more results.
Btw, personally, I never liked this area, so irrespective of price I wouldn't have bought one here. The price in late 2009 was 2500/sq ft. Better buy in some other project in Hadapsar. You will get plenty of options here.CommentQuote0Flag
- Ready reckoner rates may rise from Jan onwards...What will be impact on prices?CommentQuote0Flag
- News items mention builders selling to PE firms, but I haven't found news of banks taking possesion of projects from builders.CommentQuote0Flag
- Originally Posted by puserReady reckoner rates may rise from Jan onwards...What will be impact on prices?
There won't be any impact due to this as in anycase the agreements are being carried out at much higher price than RRR. However, those trying to invest in cash & builders willing to accept cash (black) will be hit as the agreement value for them will go up which essentially means the cash component will reduce.
But for those on loans & regular buyer, expect no upward revision of prices.
Btw, the property tax for the properties getting CC from 2012 may see hike as PMC plans to hike property tax from Mar 2012. However, projects which already have CC need not worry about the same.CommentQuote0Flag
- Drop in flats sales & debt woes for builders
1.) ‘Mumbai realty sale registrations hit a low’
December 21, 2011
Registrations of property sales have hit a 31-month low in this city due to high realty prices and mortgage rates, says a study.
Property Pulse - the Realty Plus Newsletter
2.) Market blues hit real estate public issues
Customers may be in for a surprise as far as prices of residential apartments are concerned. Developers are finding it tough to raise funds through the primary market, thereby increasing liquidity woes.
Market blues hit real estate public issues - Hindustan TimesCommentQuote0Flag
- New Year Greetings
" When one door closes another door opens; but we often look so long and so regretfully upon the closed door, that we do not see the ones which open for us. Do not wait until the conditions are perfect to begin. Beginning makes the conditions perfect."
Wish you all a very happy, joyful and loving new year :).CommentQuote4Flag
- ready reckoner rate rise signal that prices in some localities will not come to levels that they were in 2009. at some places ready reckoner rates are exorbitant and sometimes even beats few small builder's rates like mohammadwadi now has rate of 3600+ :bab (59):.
chances of downward correction has become dim; as builders would not sell below RR rate.
positive side is for govt only(whose efficacy of utilizing money is always under doubt), black money in circulation would be lesser than otherwise and govt would not be at disadvantage where people end up paying less to govt but higher to builders.
Another inference i could draw that inflation has hit even govt :bab (45):CommentQuote0Flag
- Originally Posted by realacresThere won't be any impact due to this as in anycase the agreements are being carried out at much higher price than RRR. However, those trying to invest in cash & builders willing to accept cash (black) will be hit as the agreement value for them will go up which essentially means the cash component will reduce.
But for those on loans & regular buyer, expect no upward revision of prices.
Btw, the property tax for the properties getting CC from 2012 may see hike as PMC plans to hike property tax from Mar 2012. However, projects which already have CC need not worry about the same.
I think it won't have any impact on new construction and black money from small investor and single buyer will be impacted most.
Also, it will def. impact resale whr one is buying old construction (15-20 yrs old), I have to pay more amount for 1 bhk I bought in v'nagar when RRR was increased last time. :(CommentQuote0Flag