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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  • Originally Posted by tarcap
    This is true to a great extent, the senior people must ensure,
    1) That they justify their experience (grey hair) by demonstrating special skills
    2) They must ask for a reasonable and affordable salary

    But, once this is done... there should be plenty for everyone to take... IT / outsourcing / offshoring has not yet fully matured.. in fact several world locations are just starting... so creating a panic and saying that golden days of Indian IT are over would be incorrect...

    By the way.... several thousands of IT professionals(including the senior professionals referred here) would have minted money in past decade and would have achieved more than they ever imagined... so the truth is that these senior people just need enough money to maintain their life style... for them basics of life (roti , kapda and makan) have already been taken care of ........



    The problem is once you 'upgrade' to a certain lifestyle, it is never possible to roll that upgrade back...Your basic necessities undergo a sever change of definition. Downgrade is impossible. The kid is now going to school and the school fees are due and everyone is running very fast just to stand at the same place like running on a treadmill..
    CommentQuote
  • Originally Posted by msp1976
    The problem is once you 'upgrade' to a certain lifestyle, it is never possible to roll that upgrade back...Your basic necessities undergo a sever change of definition. Downgrade is impossible. The kid is now going to school and the school fees are due and everyone is running very fast just to stand at the same place like running on a treadmill..


    Agreed.

    One does need to maintain a decent life style and I think by any standards 50K should be more than enough for monthly expenses.

    Assuming that an average 8-10 Yrs experience IT professional earns 80K take home a month... this should be more than enough to survive.. infact this also takes care of once a year expenses like holiday, insurance etc.

    This is all possible because these guys dont have to shell out 30 to 40 K in EMI's.

    So, the Profs in 8 to 10 year range must focus on job continuity rather than worry about rising RE prices or Inflation...
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  • One more step towards single digits?

    Originally Posted by khbarilal
    I guess after Wiseman shorted unitech , all promoters are following the path.



    I'm not short Unitech (actually I don't short stocks. Thats very dangerous, only indices).

    But I'm surely bearish on Builders and expect the REAL crisis coming up to have a temporarily serious impact on their stock prices. This will give me an opportunity to get into a good sector (for the longer term) not just at the ground floor but actually in the basement! :)

    cheers
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  • Originally Posted by Saurabh01
    Fundamental problem in India is, 2 years experienced people like to manage the project and all bullshit and unskilled people follow the managerial path to hide his/her skill ;) . I have seen 55 year old developers in US but can’t find 15 years experienced developer in India.


    because India works on Peter principal!
    If you dont know what it is, check wikipedia!
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  • Originally Posted by tarcap
    so the truth is that these senior people just need enough money to maintain their life style... for them basics of life (roti , kapda and makan) have already been taken care of ........

    But man, the problem is that it is this very lifestyle which is very hard to maintain. This time, for a change from RE & politics, let me give you a bollywood eg. (as this is where I see lot of FAKE guys & gals).

    The monthly expenditure on clothes, perfumes, salon etc. of yesterday actress Sridevi & her daughter is around INR 25L/month. Her husband, Boney Kapoor made lot of money in the movie 'No Entry' (I liked this movie though).
    However, most of the money was spent in repaying the debt which they had, which ran in crores. As there was no reduction in lifestyle expenses, Boney Kapoor had to take up job at Set India (So_ny TV). This incident is of 2011 itself.

    Man, problem is if you get used to dine at Marriott or Taj, it become difficult for many to dine at some small restaurant in some chowk. Similarly, if you are used to Gucci, or ladies with Fendi; how many would use Peter England, Titan etc. ? Thats the problem.
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  • Originally Posted by khbarilal
    Realty major Unitech's promoter Prakausali Investment has pledged 2.15 crore shares of the company.

    As on March 31, 2012, Prakausali held 51,43,32,062 shares in Unitech amounting to 21.54 per cent stake in the company. Out of its total holding, Prakausali had pledged 91.25 per cent shares.

    Excluding the encumbered shares, Prakausali stake in Unitech stands at 1.52 per cent.
    All the Unitech promoters together had 48.35 per cent stake in the company as on March 31, out of which 68.21 per cent were pledged.

    Unitech promoter pledges 2.15 cr shares - The Economic Times


    Are these owners crazy? Why can’t they read the bull story on IREF forum.
    These fools are selling(sold) such a great appreciating Real estate owner ship. :D
    If I am not wrong Unitech was 2nd largest RE company in India in 2008 with land portfolio & luxury projects across the India. May be they should come to Pune & see the b(d)ooming RE.:bab (59):

    Besides this, the biggest RE developer, DLF is out of BSE 30 & is now looking for buyer for its land in Mumbai. It has put on bid the NCTC mill land which it acquired few year back & is in talks with Lodha, Sheth & Oberoi; but no one is offering the price which they want.

    Remember, just few years back, KP Singh of DLF was worlds richest builder, now forget him, even DLF is gone. Most of its projects in NCR are stuck & some delayed by over 4 yrs.

    The situation of HCC, Indiabulls, Oberoi, Parsvanath & Hiranandani is not good either.

    BTW, I also came to know that Kakade Group of Kakade city, Warje is selling off its land over there. Multiple issues are plaguing this group. Even the plans of this builder to get into Rajya Sabha last month fell flat :D.
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  • Originally Posted by realacres
    But man, the problem is that it is this very lifestyle which is very hard to maintain. This time, for a change from RE & politics, let me give you a bollywood eg. (as this is where I see lot of FAKE guys & gals).

    The monthly expenditure on clothes, perfumes, salon etc. of yesterday actress Sridevi & her daughter is around INR 25L/month. Her husband, Boney Kapoor made lot of money in the movie 'No Entry' (I liked this movie though).
    However, most of the money was spent in repaying the debt which they had, which ran in crores. As there was no reduction in lifestyle expenses, Boney Kapoor had to take up job at Set India (So_ny TV). This incident is of 2011 itself.

    Man, problem is if you get used to dine at Marriott or Taj, it become difficult for many to dine at some small restaurant in some chowk. Similarly, if you are used to Gucci, or ladies with Fendi; how many would use Peter England, Titan etc. ? Thats the problem.


    IT professional of 8 to 10 yrs experience is made up of hard work, week end slogging, night outs and above all use of knowledge &wisdom (at least that is the way it is expected to work).. so it is fundamentally incorrect to compare a knowledge based industry with entertainment based industry... however... your point is valid and that is why i have also quoted in my next post that..

    ---One does need to maintain a decent life style and I think by any standards 50K should be more than enough for monthly expenses.---

    I am sure 90% of the members on this forum can manage with 50K monthly expenses (if they own a debt free house ie,ZERO EMI)... and the other 10% have so much money that they dont need my advice :bab (59):
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  • Originally Posted by tarcap
    IT professional of 8 to 10 yrs experience is made up of hard work, week end slogging, night outs and above all use of knowledge &wisdom (at least that is the way it is expected to work).. so it is fundamentally incorrect to compare a knowledge based industry with entertainment based industry... however... your point is valid and that is why i have also quoted in my next post that..

    ---One does need to maintain a decent life style and I think by any standards 50K should be more than enough for monthly expenses.---

    I am sure 90% of the members on this forum can manage with 50K monthly expenses (if they own a debt free house ie,ZERO EMI)... and the other 10% have so much money that they dont need my advice :bab (59):

    tarcap,

    What you said is absolutely true but problem is financial disasters are made not by those who have 10 yrs exp but those having 1-5 yrs & these were the very buyers who went & bought flats during RE boom time with 100% loan, yes ICICI & likes did that.

    * PS:- If a 10 yr exp person still requires 80% loan for 10+ yrs duration then either the person was repaying some old/family debts earlier or his saving/spending pattern was not proper. Correct me if I am wrong.

    And Moody's rating agency is downgrading SBI, ICICI & HDFC banks.
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  • Re-posting in your thread

    Dear Realacres,

    Realacres, do you really want to own acres or even square feet for that matter, is my humble and honest question to you.

    You have been writing and writing and writing for all these years. You share some good insights and the entire forum is grateful to you, myself included. But somehow I have come to believe that you don't seem to be interested in buying for real.

    I may be addressing this to you so you might feel cornered but I want to ask this to everyone on this forum who somehow have blinding faith in this festival of lights, read Diwali.

    I agree that as of today the markets are a little overheated and one should wait for a little while if he or she has waited this long but not forever and make it a never(buy a house)

    I would like to go back to the period between 2008 November to May 2009 again. Compuwalah is singing ballads of this period everywhere so I am not the first. Even then, I remember you were abstaining from buying and advised the same to everyone. Look where the prices are as of today. When people on this forum were getting 2200/2400 in Malpani Greens or Sonigara kesar in Wakad you kept on suggesting 1500-1600 to be a good price. Common man.

    I for one, did hear the good that you said and bought a ready possession flat that time paying 3100 all inclusive and the price today is 5700 for the same and I can sell my flat within a week if I want to, no exaggeration here.

    Time and Inflation waits for no man especially in a country like India.

    So my dear Realacres and everyone, research, study, bargain hard and go for the kill.

    Cheers,

    NT
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  • Thanks for the Q

    First of all, thanks for putting direct question, appreciate it.
    Here is my reply.

    Originally Posted by perrenialquest
    Dear Realacres,

    Realacres, do you really want to own acres or even square feet for that matter, is my humble and honest question to you.

    Yes, I do, else why would I have done house hunting for so long ? Man, do you thing someone will hang around here & keep getting latest update for doing time-pass ? There are many members here who communicate with me via pms, they know me well & trust me, I have even informed them about precautions while buying when finalized the flat.

    You have been writing and writing and writing for all these years. You share some good insights and the entire forum is grateful to you, myself included. But somehow I have come to believe that you don't seem to be interested in buying for real.

    I don't know whether you have gone through my very old posts. I had mentioned that the reason why I am here & giving insights about RE, despite myself sharing good relations with many in RE is that many buyers are conned by most of the builders, which I hate. RE buying is a very big decision, maybe the 2nd after marriage, especially for 1st house for end use. I have seen many taking wrong decision & got devastated either mentally, financially or both & I don't want this to happen to anyone, bulls included.


    I may be addressing this to you so you might feel cornered but I want to ask this to everyone on this forum who somehow have blinding faith in this festival of lights, read Diwali.

    As said before, thanks for direct Qs so that it takes off confusion prevailing here, if any. And it was not me who had started Diwali thread, though my posts were surely there. And man, it would indeed have been true had banks not agreed for roll-over of loans & not introduced teaser rates. Imagine the situation in absence of these 2.

    I agree that as of today the markets are a little overheated and one should wait for a little while if he or she has waited this long but not forever and make it a never(buy a house)

    We never asked anyone to not to own a house for life, did we ?
    We always said, BUY without over-leveraging & if possible in ready possession project having good infra. Didn't we ? Please correct me if I am wrong. Infact, today itself on some other thread, I have mentioned 4-5 points which needs to be considered before buying. Why would I have said this if our intention was not to let anyone buy ?


    I would like to go back to the period between 2008 November to May 2009 again. Compuwalah is singing ballads of this period everywhere so I am not the first. Even then, I remember you were abstaining from buying and advised the same to everyone. Look where the prices are as of today. When people on this forum were getting 2200/2400 in Malpani Greens or Sonigara kesar in Wakad you kept on suggesting 1500-1600 to be a good price. Common man.

    Even today I would say that a flat of 850 sq ft CARPET in Wakad is worth not more than 25L all inclusive. That's my valuation. Some may buy even for 1 Cr, its their valuation. And look at neighborhood of Malpani Greens, I won't stay here even on rent, forget buy. Soniagra isn't great either.

    I for one, did hear the good that you said and bought a ready possession flat that time paying 3100 all inclusive and the price today is 5700 for the same and I can sell my flat within a week if I want to, no exaggeration here.

    Yes, its good that you bought ready possession. However, even today, I won't pay 3100/sq ft for Wakad, forget 5700. Btw, which project in Wakad is 5700 ?

    Time and Inflation waits for no man especially in a country like India.

    This is the precise reason why we emphasis more on downpayment & less loan, don't we ? In such situation, cash is king for which savings needs to be more & it can't be achieved by over-leveraging.

    So my dear Realacres and everyone, research, study, bargain hard and go for the kill.

    +1. And guess what, many members have conveyed me that today they can take less loan than what they required 3 yrs back, & more importantly, they have better cash reserves now so that they can strike aggressively once they get good deal.

    Remember man, buy a house, it is a necessity. But ensure that rest of the things in life are not compromised for just one thing. Buy without over-leverage.

    Man, members here are either sellers or buyers. The beauty of the forum is you get bulls & bears version at same time & I am sure that the readers here are mature enough to make their calculations after comparing both the sides of the story. At the end of the day, more the info, clearer will be the picture enabling buyers to make more informed & sound decision.

    Hope this clarifies your doubts & thanks once again for such direct question.:)
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  • Originally Posted by realacres
    First of all, thanks for putting direct question, appreciate it.
    Here is my reply.


    Yes, I do, else why would I have done house hunting for so long ? Man, do you thing someone will hang around here & keep getting latest update for doing time-pass ? There are many members here who communicate with me via pms, they know me well & trust me, I have even informed them about precautions while buying when finalized the flat.


    I don't know whether you have gone through my very old posts. I had mentioned that the reason why I am here & giving insights about RE, despite myself sharing good relations with many in RE is that many buyers are conned by most of the builders, which I hate. RE buying is a very big decision, maybe the 2nd after marriage, especially for 1st house for end use. I have seen many taking wrong decision & got devastated either mentally, financially or both & I don't want this to happen to anyone, bulls included.



    As said before, thanks for direct Qs so that it takes off confusion prevailing here, if any. And it was not me who had started Diwali thread, though my posts were surely there. And man, it would indeed have been true had banks not agreed for roll-over of loans & not introduced teaser rates. Imagine the situation in absence of these 2.


    We never asked anyone to not to own a house for life, did we ?
    We always said, BUY without over-leveraging & if possible in ready possession project having good infra. Didn't we ? Please correct me if I am wrong. Infact, today itself on some other thread, I have mentioned 4-5 points which needs to be considered before buying. Why would I have said this if our intention was not to let anyone buy ?



    Even today I would say that a flat of 850 sq ft CARPET in Wakad is worth not more than 25L all inclusive. That's my valuation. Some may buy even for 1 Cr, its their valuation. And look at neighborhood of Malpani Greens, I won't stay here even on rent, forget buy. Soniagra isn't great either.


    Yes, its good that you bought ready possession. However, even today, I won't pay 3100/sq ft for Wakad, forget 5700. Btw, which project in Wakad is 5700 ?


    This is the precise reason why we emphasis more on downpayment & less loan, don't we ? In such situation, cash is king for which savings needs to be more & it can't be achieved by over-leveraging.


    +1. And guess what, many members have conveyed me that today they can take less loan than what they required 3 yrs back, & more importantly, they have better cash reserves now so that they can strike aggressively once they get good deal.

    Remember man, buy a house, it is a necessity. But ensure that rest of the things in life are not compromised for just one thing. Buy without over-leverage.

    Man, members here are either sellers or buyers. The beauty of the forum is you get bulls & bears version at same time & I am sure that the readers here are mature enough to make their calculations after comparing both the sides of the story. At the end of the day, more the info, clearer will be the picture enabling buyers to make more informed & sound decision.

    Hope this clarifies your doubts & thanks once again for such direct question.:)


    good discussions...

    but most of all, I liked your attitude realacres. keep posting valuable information from your side.

    anyone thinking about 40-50L in RE should at least be wise enough to read all the comments here (and elsewhere) and to make his/her own decisions.

    People shouldn't believe anonymous forum members blindly but they also should not believe builders and their sales agents blindly too... Builder provides positives of a side (sometimes cheating or false promises included) and many on this forum members highlight the negatives. people need to strike a balance considering both views...
    CommentQuote
  • Originally Posted by perrenialquest
    Dear Realacres,

    Realacres, do you really want to own acres or even square feet for that matter, is my humble and honest question to you.

    You have been writing and writing and writing for all these years. You share some good insights and the entire forum is grateful to you, myself included. But somehow I have come to believe that you don't seem to be interested in buying for real.

    I may be addressing this to you so you might feel cornered but I want to ask this to everyone on this forum who somehow have blinding faith in this festival of lights, read Diwali.

    I agree that as of today the markets are a little overheated and one should wait for a little while if he or she has waited this long but not forever and make it a never(buy a house)

    I would like to go back to the period between 2008 November to May 2009 again. Compuwalah is singing ballads of this period everywhere so I am not the first. Even then, I remember you were abstaining from buying and advised the same to everyone. Look where the prices are as of today. When people on this forum were getting 2200/2400 in Malpani Greens or Sonigara kesar in Wakad you kept on suggesting 1500-1600 to be a good price. Common man.

    I for one, did hear the good that you said and bought a ready possession flat that time paying 3100 all inclusive and the price today is 5700 for the same and I can sell my flat within a week if I want to, no exaggeration here.

    Time and Inflation waits for no man especially in a country like India.

    So my dear Realacres and everyone, research, study, bargain hard and go for the kill.

    Cheers,

    NT



    Can you please try putting it on real estate portal for 5700 or perhaps 500 psft high and see who comes to strike a deal?know some people with 7 digit annual incomes and yet unable to buy houses in Pune(ready possession in good area) then who are buying. this will be good exercise to know answer of this question who forms current buyer segment in real estate

    i feel government should make a new index below property line and people with annual income anual income <= 10lakhs categorized as below property line:bab (59):
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  • Has anyone seen this:Real estate in Delhi-NCR is a bubble about to pop | Firstpost ?

    Worth reading. I am not aware if something like this happens in Pune. Also can someone throw a light on whether the power of attorney abuse happens here?
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  • Thanks for the link....that is a very good insight in the Reality market...It would sure be interesting to know if the similar scam is cooking up in Pune...On a negative note, whenever any RE consultancy firm has predicted burst...prices has gone up...will have to wait to see its true impact...
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  • Originally Posted by puser

    i feel government should make a new index below property line and people with annual income anual income <= 10lakhs categorized as below property line:bab (59):


    Absolutely agree on this. We always talk about common man, but a person earning 50k(should be upper middle class, but sadly not) is not able to buy a 1000 sqft flat in pune. So who is buying? and what about a normal salaried person who is having no other source of money and have to manage everything on mere salary.

    I have seen most of the people buy on 80% loan thinking that salary also increase by the time,and just because of this RE people increase rate everyday.But people forget that what if things not happened the way they should be(not get good appraisal,have some emergency in life) then how to pay the loan? which is so high that you can't afford a single month without salary.

    So people having less than 10L annual income declare below poverty line.
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