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....
Read more
Reply
12597 Replies
Sort by :Filter by :
  • Asia's Real-Estate Markets Show Signs of Cooling

    China's housing market has been one of the most deeply affected. Housing prices in Beijing and Shanghai (Knight Frank only tracks the prices of those cities in China) rose only 0.3% in the first quarter when compared with the last quarter of 2011. On an annual basis, house prices in China are down 2.2%.

    The Indian market is slowing too, with prices down 0.9%, though Mr. Holt said that was due more to economic problems than government policy.

    Asia's Real-Estate Markets Show Signs of Cooling - WSJ.com
    CommentQuote
  • 150 families locked out as PMC, builder show them highway

    Service road will be ready in 2015: authorities

    flat owners lose access to their homes as NHAI widens NH-4, can’t rent out or sell

    Nearly 150 families residing in the Bavdhan area were left high and dry on Thursday afternoon when a road they had been using for over two years was dug up for widening the existing four-lane Mumbai-Bangalore national highway (NH 4). This road was virtually the lifeline for these families residing in Zinnea, an upmarket residential complex, as far as access to their homes was concerned.

    Late afternoon on Thursday, the contractor hired by the National Highways Authority of India (NHAI) began excavation work on the road in question, making it impossible for those who had left for work in their cars to return, while other cars were left stranded inside the society.

    Nearly 150 families residing in the Bavdhan area were left high and dry on Thursday afternoon when a road they had been using for over two years was dug up for widening the existing four-lane Mumbai-Bangalore national highway (NH 4). This road was virtually the lifeline for these families residing in Zinnea, an upmarket residential complex, as far as access to their homes was concerned.

    Late afternoon on Thursday, the contractor hired by the National Highways Authority of India (NHAI) began excavation work on the road in question, making it impossible for those who had left for work in their cars to return, while other cars were left stranded inside the society.

    Mahendra Kolhe

    The Zinnea apartment complex off the Katraj-Dehu bypass
    Panic-stricken residents called their local municipal corporator Pushpa Kanojia for help but the situation was such that she could do little to alleviate their problems. Meanwhile, an elderly lady had to be taken to hospital in the evening, and the ambulance managed to reach her with great difficulty.

    But bringing the ambulance back on the main road was an uphill task for the driver as it got stuck in a ditch. It was only after a patch of the dug-up road was filled that the ambulance could resume its journey to the hospital. This very patch has come as a saviour for the harassed residents as it allows a two-wheeler to pass.

    It’s not that the residents of Zinnea were caught unawares on Thursday, for they knew that this road-widening work was on the anvil ever since it started some distance away from their building, recently.

    With the unforeseen predicament staring them in the face, residents made frantic efforts to contact the builder as well as the Pune Municipal Corporation (PMC) authorities, who had handed over the Occupancy Certificate to the builder.

    Residents of Zinnea gather near their building off Mumbai-Bangalore highway The PMC had done this without mandatorily verifying if the developer had complied with the rules. Both the builder and the PMC authorities threw their hands up in the air when the residents conveyed their plight to them.

    Regardless, what has upset the Zinnea residents most is the fact that at the time of purchasing their flats, they were given to believe by the developers, Surana, Bhansali and Natekar Associates, that there would be a proper approach road in place for them soon. :D

    For providing this road, informed the builders, they had already paid PMC Rs 24 lakh. Also, the residents are shocked by the apathy of the PMC in not providing them any relief.

    An affected resident, Abhijit Sontakke, said, “We came to stay here over a year ago. Since then, we have been awaiting a proper approach road. With no option left, we were forced to use the highway despite the risks involved.

    Now that the road is dug up, it’s a critical problem as we are marooned inside our homes. We were in a bind when the ailing lady required hospitalisation. Despite the unfit road, the ambulance driver ran his vehicle as it was an emergency. The ambulance got stuck in the ditch and was extricated after much effort.”

    “We wrote to the PMC several times on this issue and also held a meeting with officials including commissioner Mahesh Pathak, city engineer Vivek Kharwadkar and his deputy, Sahebrao Dandge, to make them aware of our difficulties. But we were snubbed by Dandge, who asked us whether we were blind to purchase these flats when there was no road,” revealed another hapless resident, Vivek Chipalkatti. :D

    Housewife Asha Nath laments, “We didn’t expect such problems after buying these expensive flats. It’s an ordeal for us to even get LPG cylinders. Our children too are suffering as their school bus cannot reach the society. Those who have not come to reside are fortunate. It’s a Catch-22 situation for us. We want to relocate but there are no buyers for the flats and nobody is willing to rent them either.”

    Kharwadkar said, “After the residents approached him, commissioner Pathak has asked us to investigate how a service road figures in the plan when there is none in reality. Also, how an occupancy certificate was issued despite the non-provision of an approach road. We will submit our report after thorough investigations.”

    As things stand today, there is no end in sight to the misery of the families staying in Zinnea. Not after learning from the NHAI authorities that the earliest service road can be provided to them would be in 2015.

    See entire news and pics here :-

    150 families locked out as PMC, builder show them highway, News - Latest - Pune Mirror,Pune Mirror

    >> Still want to buy based on DP/PROPOSED stuff ?
    And RE bulls, price appreciation has happened, but whats the use ?? And this is not the only project, I can make a long list of such projects.

    Moral of story is DON'T BE BLIND.
    CommentQuote
  • Originally Posted by realacres
    Service road will be ready in 2015: authorities

    flat owners lose access to their homes as NHAI widens NH-4, can’t rent out or sell

    Nearly 150 families residing in the Bavdhan area were left high and dry on Thursday afternoon when a road they had been using for over two years was dug up for widening the existing four-lane Mumbai-Bangalore national highway (NH 4). This road was virtually the lifeline for these families residing in Zinnea, an upmarket residential complex, as far as access to their homes was concerned.

    Late afternoon on Thursday, the contractor hired by the National Highways Authority of India (NHAI) began excavation work on the road in question, making it impossible for those who had left for work in their cars to return, while other cars were left stranded inside the society.

    Nearly 150 families residing in the Bavdhan area were left high and dry on Thursday afternoon when a road they had been using for over two years was dug up for widening the existing four-lane Mumbai-Bangalore national highway (NH 4). This road was virtually the lifeline for these families residing in Zinnea, an upmarket residential complex, as far as access to their homes was concerned.

    Late afternoon on Thursday, the contractor hired by the National Highways Authority of India (NHAI) began excavation work on the road in question, making it impossible for those who had left for work in their cars to return, while other cars were left stranded inside the society.

    Mahendra Kolhe

    The Zinnea apartment complex off the Katraj-Dehu bypass
    Panic-stricken residents called their local municipal corporator Pushpa Kanojia for help but the situation was such that she could do little to alleviate their problems. Meanwhile, an elderly lady had to be taken to hospital in the evening, and the ambulance managed to reach her with great difficulty.

    But bringing the ambulance back on the main road was an uphill task for the driver as it got stuck in a ditch. It was only after a patch of the dug-up road was filled that the ambulance could resume its journey to the hospital. This very patch has come as a saviour for the harassed residents as it allows a two-wheeler to pass.

    It’s not that the residents of Zinnea were caught unawares on Thursday, for they knew that this road-widening work was on the anvil ever since it started some distance away from their building, recently.

    With the unforeseen predicament staring them in the face, residents made frantic efforts to contact the builder as well as the Pune Municipal Corporation (PMC) authorities, who had handed over the Occupancy Certificate to the builder.

    Residents of Zinnea gather near their building off Mumbai-Bangalore highway The PMC had done this without mandatorily verifying if the developer had complied with the rules. Both the builder and the PMC authorities threw their hands up in the air when the residents conveyed their plight to them.

    Regardless, what has upset the Zinnea residents most is the fact that at the time of purchasing their flats, they were given to believe by the developers, Surana, Bhansali and Natekar Associates, that there would be a proper approach road in place for them soon. :D

    For providing this road, informed the builders, they had already paid PMC Rs 24 lakh. Also, the residents are shocked by the apathy of the PMC in not providing them any relief.

    An affected resident, Abhijit Sontakke, said, “We came to stay here over a year ago. Since then, we have been awaiting a proper approach road. With no option left, we were forced to use the highway despite the risks involved.

    Now that the road is dug up, it’s a critical problem as we are marooned inside our homes. We were in a bind when the ailing lady required hospitalisation. Despite the unfit road, the ambulance driver ran his vehicle as it was an emergency. The ambulance got stuck in the ditch and was extricated after much effort.”

    “We wrote to the PMC several times on this issue and also held a meeting with officials including commissioner Mahesh Pathak, city engineer Vivek Kharwadkar and his deputy, Sahebrao Dandge, to make them aware of our difficulties. But we were snubbed by Dandge, who asked us whether we were blind to purchase these flats when there was no road,” revealed another hapless resident, Vivek Chipalkatti. :D

    Housewife Asha Nath laments, “We didn’t expect such problems after buying these expensive flats. It’s an ordeal for us to even get LPG cylinders. Our children too are suffering as their school bus cannot reach the society. Those who have not come to reside are fortunate. It’s a Catch-22 situation for us. We want to relocate but there are no buyers for the flats and nobody is willing to rent them either.”

    Kharwadkar said, “After the residents approached him, commissioner Pathak has asked us to investigate how a service road figures in the plan when there is none in reality. Also, how an occupancy certificate was issued despite the non-provision of an approach road. We will submit our report after thorough investigations.”

    As things stand today, there is no end in sight to the misery of the families staying in Zinnea. Not after learning from the NHAI authorities that the earliest service road can be provided to them would be in 2015.

    See entire news and pics here :-

    150 families locked out as PMC, builder show them highway, News - Latest - Pune Mirror,Pune Mirror

    >> Still want to buy based on DP/PROPOSED stuff ?
    And RE bulls, price appreciation has happened, but whats the use ?? And this is not the only project, I can make a long list of such projects.

    Moral of story is DON'T BE BLIND.


    Why is there no legal recourse in this matter? Why do people still keep voting for the same jokers in Pune Municipal corporation?
    CommentQuote
  • How India fares among its Asian peers

    India's current account deficit has widened to alarming levels. Singapore has a positive current account balance of over 20 per cent. For Hong Kong it was a positive balance of 7 per cent while for South Korea it was 3.8 per cent.
    The slow down in foreign investment has eroded the strength of the rupee. It has fallen sharply against the dollar. Imports are becoming costlier and could further erode India's foreign exchange reserves.
    Business Line : Industry & Economy News : How India fares among its Asian peers
    CommentQuote
  • India's growth: build in an incompetence discount

    To be fair, the external environment does partly explain the faltering growth. However, all of Asia's emerging markets have been buffeted by chill winds from the United States and Europe, and yet India has fared worse than others, losing its ranking as the region's second-fastest growing economy.
    "Goodbye 2020, Hello 1991," the Economic Times newspaper moaned in a front page headline after the weak growth data, referring to India's goal of becoming a developed country by the end of this decade and rubbing shoulders with China.
    Samiran Chakraborty, chief economist at Standard Chartered in Mumbai, said one signal that the decline has become more structural than cyclical is that consumption - a driving force behind the growth spurt of recent years - has lost momentum.

    Analysis: India's growth: build in an incompetence discount - chicagotribune.com
    CommentQuote
  • Originally Posted by realacres
    Service road will be ready in 2015: authorities

    flat owners lose access to their homes as NHAI widens NH-4, can’t rent out or sell

    Nearly 150 families residing in the Bavdhan area were left high and dry on Thursday afternoon when a road they had been using for over two years was dug up for widening the existing four-lane Mumbai-Bangalore national highway (NH 4). This road was virtually the lifeline for these families residing in Zinnea, an upmarket residential complex, as far as access to their homes was concerned.


    On Saturday, there was temporary way provided to people to that complex by filling in some dug-up portion. After paying whatever those guys paid, it is a shame that they have to go through this. Moreover what are people thinking buying so near to highway. Don't they realize that the highway is a major artery and it would get widened some day ? Forget about noise and diesel fumes. They shall need to deploy armed guard at the gate. There would be daytime robberies if house is so near highway. 7/8 armed people would barge in and start looting. Btw that already happened in a Pashan society last year.
    CommentQuote
  • Originally Posted by puser

    I am not lawyer nor do I need confirmation from your colleague/friend. all I am saying is that instead of drawing conclusions or observations based on YOUR IMAGINATIONS rely on what is visible and audible. Visit any builder's office and see their rate cards, that is REAL. there are people who have bought flats or properties at unbelievably high prices. saying that "this buyer is phony" is speculation. thats all i want to say.


    well, I think my friend only saw and heard that person and came to that conclusion that he was a fake customer, yes chances are there that my friend was wrong. I'm NOT trying to prove any BUYER who actually bought a flat (no matter at what price) as a phony one, its all about crowd of hundreds of people - all they are not buyers. But I did not get your reasoning, what other SENSES you usually apply in addition to SEE and LISTEN while concluding the authenticity of crowded people? (well, rejecting them as phony = believing them a genuine).

    Originally Posted by puser

    i am not afraid of the crowd. all i am saying is why will prices correct if there is so much interest shown by buyers. you, me and 50 other folks on forum - in fact many be 80% of people in this city find the prices obscenely and offensively high but then why will builder reduce the price if buyers are flocking at his door and rushing to book on the launch date?


    Sure, who don't want a profit in business? They are there to make profit, its upto us the customers, how much we afford to pay? As far as we (the end customers) are willing to pay (call it "get robbed"), there will always be a Business men in any sector. As a result, all have to face the consequences (rake hike) irrespective of your participation. But most among us fails to think about the trend of almost any invest-able commodity, there could be ups-&-down. Fortunately, most of the current buyers (in age range of 25-40 yrs) haven't witnessed any downside of RE.


    Originally Posted by StraightDriv
    Interesting?

    Yep. He only uses 2 senses i.e seeing and hearing. He does not use brain to collect data from all the senses (incl. imagination) to come to a conclusion. Imagination is a powerful tool.

    Have you seen some photos where you cannot tell which lines are parallel and which are not?

    Or the high contrast photo of Jesus/any god? If you stare for 30 seconds and look at walls you will see a bigger image of the intended god?

    Senses can be deceived. This is the basic premise / definition of marketing. :D Very well used in India. It is very easy to fool Indians.

    Just count how many people use Fair and lovely/handsome! That will give you a huge part of idiots in our country!

    Intelligence cannot be deceived so easily.


    Spot on! :D
    CommentQuote
  • Originally Posted by AJ2008oo
    Why is there no legal recourse in this matter? Why do people still keep voting for the same jokers in Pune Municipal corporation?

    Once completion certificate is given by PMC & buyers signs NOC at the time of possession, nothing much can be done against the builder as he is free legally. You can file case against him for poor quality etc. but in such case, what one can do is to file a PIL in the court making the builder as well as PMC party to it.
    Let some donkey from PMC come to attend it & then see how court pulls them up. If CCI, SC can hammer DLF, Pune builders are peanuts. What it requires is STEP AGAINST INJUSTICE by the buyers.

    And the reason why same jokers come in power in PMC is because those who stay on DP roads don't vote. Simple. :D
    CommentQuote
  • Another classic eg. of builder delivering inferior end product to the flat buyer than what was committed. It is for this reason to buy from good builders or atleast prefer ready possession flats.

    EVERY THING THE PEOPLE SAY IS TRUE .EVERY THING IS OF CHINA MADE
    GOD SAVED ME FROM PURCHASING THE FLAT WITH NARESH MITTAL PROJECTS.
    NEVER GO TO THE SALES OFFICE FOR ENQUIRY THE PEOPLE R SO GREEDY N LINKED WITH AGENTS.
    THEY CONTINOUSLY CALL N DRILL YOUR MIND.
    MY FRIEND IS IN SUCH A CONDITION THAT HIS FLAT IS NOT GETTING RATES NOW DUE TO THE NAME OF MITTAL N THIRD CLASS QUALITY.
    EACH N EVERY THING IS COMPLETELY CHINA MADE N NO PROPER MAINTENANCE.ALL PEOPLE R UNEDUCATED.
    GOOD PEOPLE R NOT FOR MUCH TIME.THE PEOPLE WHO WORK R FIRED.MY PROMISE TO GOD THAT IF THE FLAT IS FREE THEN ALSO I WILL NOT GO FOR MITTAL.
    PLS FRIENDS DONT GO ON ADVERTISEMENTS N SELECT ANY OTHER BUILDER BUT NOT THE MITTAL (NARESH MITTAL)
    Y WANT TO CRY LATTER WHEN DUMPED.


    Sun Planet Build by Mr Naresh Mittal have approach road from Air only. Flat owner have to by buy small helicopters to go their homes. PMC has given completion to Mittal without having approach road. Now PMC will give subsidy to buy air vehicles as the area surrounded by Sun Planet is owned by NCP local politicians who failed in recent PMC election hence they do not support PMC. Flat owners have invetsted more than 50-60 lacs from Bank loans however the possession got delayed by 2 years. After completion of Flat, Builder is not taking responsibility of appraoch road. PMC should not sanction such project in future unless the builder has to take ownus on him. This is India hence here no body bothers about consumer interest.

    And many more complaints :-

    Mittal Builders, Pune - Inferior Quality

    Man, Mittal, Goel Ganga, Pride-Purple, Pristine, Kumar, Wadhwani, Mirchandani, Runwal, Kolte-Patil, Mont Vert, Nyati...................................... all are having grave issues. Can we have more of Godrej, Shapoorji-Pallonji, Tata or maybe atleast even Hiranandani in Pune ?? Really fed up of these scorpio chaps & chindhi-chor chaps.

    Why doesn't CREDAI Pune build its office on some DP road ? :D
    CommentQuote
  • India faces default, restructuring as devaluation looms

    SINGAPORE: India's mounting economic and political woes are prompting market players to raise the spectre of a crisis in Asia's third largest economy.

    Talk of a Greek-style crisis in which the government struggles to pay back its debts is overdone - the country has a manageable foreign currency debt and ample foreign currency reserves. But the corporate and financial sectors have borrowed in foreign currencies and would be hit by any depreciation of the rupee.

    "It could go to stratospheric levels against the dollar and it looks to me as if the Indian government is aiming at a de facto devaluation in an effort to prop up flagging economic growth. And you then have to worry about all the unpleasant boxes such an action would inevitably tick, such as straining further the country's already strained balance of payments as well as bringing on an almighty wave of inflationary pressure," said a credit analyst at a ratings agency in Singapore.

    India faces default, restructuring as devaluation looms - Economic Times
    CommentQuote
  • Originally Posted by realacres
    Once completion certificate is given by PMC & buyers signs NOC at the time of possession, nothing much can be done against the builder as he is free legally. You can file case against him for poor quality etc. but in such case, what one can do is to file a PIL in the court making the builder as well as PMC party to it.
    Let some donkey from PMC come to attend it & then see how court pulls them up. If CCI, SC can hammer DLF, Pune builders are peanuts. What it requires is STEP AGAINST INJUSTICE by the buyers.

    And the reason why same jokers come in power in PMC is because those who stay on DP roads don't vote. Simple. :D

    I think builder's responsible for 3 years maintenance for all major constructions...
    CommentQuote
  • Originally Posted by realacres
    Another classic eg. of builder delivering inferior end product to the flat buyer than what was committed. It is for this reason to buy from good builders or atleast prefer ready possession flats.

    Man, Mittal, Goel Ganga, Pride-Purple, Pristine, Kumar, Wadhwani, Mirchandani, Runwal, Kolte-Patil, Mont Vert, Nyati...................................... all are having grave issues. Can we have more of Godrej, Shapoorji-Pallonji, Tata or maybe atleast even Hiranandani in Pune ?? Really fed up of these scorpio chaps & chindhi-chor chaps.

    Why doesn't CREDAI Pune build its office on some DP road ? :D

    Even in city like Nagpur has builders like TATA, Mahindra, Godrej, SP, Mantri.. but Pune real estate still not able to attract any of them..Pity..
    CommentQuote
  • Originally Posted by kirunOnly
    Even in city like Nagpur has builders like TATA, Mahindra, Godrej, SP, Mantri.. but Pune real estate still not able to attract any of them..Pity..


    SP (Shapoorji Pallonji) is in Pune for a quite a long time. SP Infocity is developed by them and now they have the residential project in the same campus, I have visited it few times as my friend used to work there. They have row houses as well. Also I read few Ads about low cost housing projects by TATA group (Not in Pune City, but in outskirts, may be on expressway or in PCMC area), Mantri tried their luck in Pune but not fruitful. SOBHA is there in Kondhwa and probably launching project in Wagholi, in future. In every city, local developers will drive the market and some major realtors can only mark presence depending upon space left by locals.
    CommentQuote
  • ULC Arrests

    In past fortnight, some 6 brokers, land dealers and builders were arrested by CID & later granted bail for ULC scam. One of the builder was Naresh Mittal who has projects with name starting from 'Sun'. Now some 2003 scam has come to light and reports indicate that those buyers are now tense and conveyance is still not done and in such situation, they don't to do any silly thing either. CID officers have said that there will be some more names cropping up in coming weeks.

    Morale of Story :-

    Check land titles independently with the help of good property lawyer, you never know how it can come back to haunt you after few years of possession.

    * PS:- This makes going for projects who don't have NA title, required sanctions etc. even more riskier. I find it wierd when people can book a flat by paying atleast 1L without seeing documents but try to save 5-6k as lawyer fees.
    CommentQuote
  • Nobel cuts prize money after years of overspending

    Even Nobel awards are facing the heat of liquidity crunch !!

    Stockholm: The prize money given to Nobel laureates is to be cut by a fifth, the foundation behind the prestigious awards said on Monday, after a decade of overspending that has stretched its finances.

    Nobel cuts prize money after years of overspending - World News - IBNLive

    > Perhaps Nobel fellows should invest their money in Pune RE, increase their money and retain the amount. Germans on other hand, rather than giving bailout package to Spain & Greece should invest in Pune RE in pre-launch rates, sell it in 2 months with 20% profits and use this money to reduce the debt and avert Euro crisis. Seems no one told Europeans and Americans that there is money making machine called as Pune RE. :D
    CommentQuote