Announcement

Collapse
No announcement yet.

Builders & Real Estate Bulls Theory Proved Wrong

Collapse
X
Collapse

Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
12768 | Posts
  • Time
  • Show
Clear All
new posts

  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    Housing project proposals witness 50% drop in Mumbai

    Another clear indication that RE sales are not taking place as earlier.

    The lukewarm response to the real estate market amid skyrocketing prices has resulted in a 50% drop in new housing project proposals in the city in the past year.

    Housing project proposals witness 50% drop in Mumbai - Money - DNA

    Btw, in Mumbai, the FSI for suburbs has been rolled back again to 1 which was hiked to 1.33 when Vilasrao Deshmukh was CM. The BMC says that the infra is not capable of handling such load & this FSI is not in accordance with the DP.

    To make matters worse for the builders, the rate of FSI has dipped from INR 4500/sq ft earlier to INR 1500/sq ft now. So, those who purchased TDR at 4500 levels are now stuck with big losses.
    If you are happy, you are successful.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Medium term is good. Long term ?

      Real ,

      I read in some magazines that Banks have increased rates only for medium term (1-2 years) and not for longer term(3+ years).5 year Fds are still giving lower return than 1+ year deposit .Do you have any idea why are they not giving higher rates for long term deposit ? Are they expecting inflation to come down in near term or they expect even bigger problems like 2008?

      Thanks


      Originally posted by realacres View Post
      Interest rates on home loans into double digits - Money - DNA

      One-year fixed deposits begin to offer double-digit returns again

      BankRecent hike in FD rates:-

      Lakshmi Vilas BankUp to 175 bps
      IDBI BankUp to 100 bps
      Union Bank of IndiaUp to 150 bps
      Kotak Mahindra BankUp to 50 bps
      Dhanlaxmi BankUp to 50 bps

      One-year fixed deposits begin to offer double-digit returns again - Money - DNA

      >> It just shows how FD (cash) now looks very attractive compared to RE. Home loan interest rates are already in double digits while RBI has said that another rate hike is on cards.

      * PS:- Remember the theoretical chap Montek Singh Ahluwalia who alongwith Pranab M, the finance minister said:- " Inflation will be under 5.5% by Sep 10". Seems they too are acting like builders while giving dates .

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        2G scam: CBI arrests DB Realty promoter Balwa

        Now one builder gets arrested by CBI. What next? Chandra of Unitech??

        2G scam: CBI arrests DB Realty promoter Balwa - Latest Current-affairs News

        Man, it seems the 2G is going to hit these builder hard as they not only have to face loans expiring on 31 st Mar 11 but also telecom ministry.

        Anyways, I have latest update about Pune RE ground reality. Will post it in a day here.
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Realty Collapses

          Datawatch: Realty index collapses 7% in 2-days - Moneycontrol.com -
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by Srinidhi View Post
            Real ,

            I read in some magazines that Banks have increased rates only for medium term (1-2 years) and not for longer term(3+ years).5 year Fds are still giving lower return than 1+ year deposit .Do you have any idea why are they not giving higher rates for long term deposit ? Are they expecting inflation to come down in near term or they expect even bigger problems like 2008?

            Thanks
            The reason for this is that banks don't want to commit higher rate of interests for long terms as such situations can't be predicted clearly. Eg. No one in 2005 could say that situation in global economy will be bad in 2008 due to US financial crisis. So, banks keep their risks minimum as far as possible & hence lesser rates on longer duration. Even rate of interest on FDs of over 1 Cr is less, so people do FDs of 50L, 50L in 2 different banks than single FD of 1 Cr.

            For the buyers too it is good in one way as you get more interest for lesser time duration & you can either use this money later for consumption or reinvest it again & if FD returns are good, make yet another FD.

            * PS:- If you make FD for senior citizen, the returns are more as interest rates for them are more by atleast 25 bps or 0.25%/annum.
            If you are happy, you are successful.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Wringing times for realty developers

              Nice article which shows how builders are getting hammered into the wall & how coming days for builders will be bad due to multiple factors as discussed. For complete story, click here:-

              Wringing times for realty developers
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Future Interest Rate prediction?

                The future interest rates are predicted by using Yield curve. It’s a graph which shows Maturity Vs Interest rate. Constructing a yield curve is very complex process, any way it’s a know fact that interest rate will not remain high forever. It will keep fluctuating up & down. If the interest rate expectation for near term(1-2 years) is high the yield curve will go up, if after say 2years the expectations are low the yield curve will go down. When yield curve goes down bingo !!!!!!!, it’s a point of recession & the shape of yield curve is described as humped yield curve.

                The reason behind bank’s raising interest rate for 1-2 years is that they are expecting interest rate will fall again after 1-2 years, means in 1-2 year bingo!!!!!.


                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  2G scam: ?Minister asked I-T to go slow on DB-DMK TV link' - The Times of India

                  Any idea Who could be this minister? Sounds like Praful Patel.. he was minister of state then..

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Govt. will soon make public the names

                    Originally posted by frugality View Post
                    Black money list revealed, 15 Indians named - The Economic Times


                    Names of 15 Indians who have stashed away wealth in offshore banks have been made public by Tehelka magazine in its latest issue.

                    Tehelka claimed it has in possession two more names, but were holding them back for verification. One name is alleged to be that of a prominent politician and the other chairman of a leading company.



                    The 15 names include Manoj Dhupalia, Rupla Dhupalia, Mohan Dhupalia, Hasmukh Gandhi, Chintan Gandhi, Dilip Mehta , Arun Mehta, Arun Koohar, Gunwanti Mehta, Rajnikant Mehta, Prabodh Mehta, Ashok Jaipuria, Raj Foundation, Urvasi Foundation and Ambunova Trust.


                    any Ideas about these names
                    The Supreme Court asked the Centre to ensure that Pune-based businessman Hasan Ali, accused of stashing black money in foreign banks, doesn't leave the country.

                    Meanwhile, the Government in reply to the Supreme Court's statements assured the court that it will soon make public the names of person who have stashed money in foreign banks. This came after a case was registered against them.

                    The Government also informed the court that the Letters Rogatory have been issued to authorities in Hong Kong, Singapore, the UAE, USA and UK in the black money case.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Unitech for single digits?

                      Originally posted by realacres View Post
                      Now one builder gets arrested by CBI. What next? Chandra of Unitech??

                      2G scam: CBI arrests DB Realty promoter Balwa - Latest Current-affairs News

                      Man, it seems the 2G is going to hit these builder hard as they not only have to face loans expiring on 31 st Mar 11 but also telecom ministry.

                      Anyways, I have latest update about Pune RE ground reality. Will post it in a day here.

                      Real,

                      Its more than an year now I had mentioned that an average company with nothing to write home about called Unitech, which was a small RE company back in 2002, took on the huge-debt route to shoot up from around Rs3 per share back in the 2002 bear market to as high as Rs582 in the 2007 boom.

                      It has since hit Rs.22 in 2008 and after going to 100+ is back in the 30s to 40s range.

                      Given the kind of debt is has and the overvaluation of its buildup inventory and the scam effect (and a possible lawsuit by Telenor if things go real bad), etc, etc, technically this stock should go down all the way into single digits and I have been waiting for over 2 years for this to happen and it seems to be playing out correctly so far. If I get a great price in the low single digits, I will take that as a golden opportunity to get into a large block of Unitech and hold out for the next boom where I might even get a 20-50 times investment!!!

                      Anyone wanting to speculate for a once-in-a-decade opportunity?

                      cheers

                      Comment

                      Tags: None
                      Have any questions or thoughts about this?
                      Working...
                      X