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Builders & Real Estate Bulls Theory Proved Wrong

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Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
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  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    Government’s orders: Pay only for carpet area, not super built-up

    This monsoon session, the government is planning to introduce a new consumer-friendly policy that aims to put developers on a tight leash while forcing them to sell homes on the basis of carpet area only.

    Called Real Estate Regulatory Authority (RERA), the policy will have provisions for stricter punishment for those who refuse to tow the line, and make it easier for home buyers to seek legal recourse. Confirming the developments State Housing Minister Sachin Ahir told Mumbai Mirror, "Government has made a change in the draft model which will keep a check on developers who sell flats on the basis of built-up area."

    Over the years, home buyers have been arm twisted into paying for more than what is the actual area of the flat. A 1000 square feet house in Juhu priced at Rs 25,000 per square feet, should cost you Rs 2.5 crore. But thanks to the inclusion of the built up area which puts the saleable area of the flat at 1350 square feet, you have to pay Rs 3.37 crore.

    Though the civic body has banned the sale of flat on the basis of built up area, the builder lobby has largely ignored the diktat, thanks to the lack of punitive measures.

    Ahir said, "No one is following the rules as the government has no control over the sector. That's why we are planning to introduce RERA in this session. This will also have various consumer-friendly provisions."

    Read complete story here:-

    Government’s orders: Pay only for carpet area, not super built-up - The Economic Times
    If you are happy, you are successful.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by Venkytalks View Post
      It has been my prediction for quite a while that all BPO jobs will go back to USA and UK. It is the only work poor people of UK and USA can do.

      Without currency depreciation, India will also not be able to compete with USA in IT sector. Massive college admissions in IT is USA currently will hit the job market in 2 years.

      But I do expect our currency to depreciate to make up for this difference.

      Net net IT sector will still perform.

      BPO may not - we cant handle calls properly and will dwindle or go to phillipines
      Venky,
      I have been reading your posts since long and you are predicting currency depreciation, though I bet this is gonna happen anytime soon.
      If you see the amount of FDI is happening in India is a LOT, given so much supply of dollar how is it possible that Re will depreciate?
      and I don't think FDI is gonna lessen, FMCG is opening up, MF's limit for FDI has been opened up.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Again if to assume that value of Rupee goes down then-
        1. Oil will be costlier
        2. inflation will increase
        3. growth will decrease
        4. FDI will decrease
        5. Venky's points holds true

        But how is that going to happen given FDI is robust and growth is still intact?
        All 5 pointers holds true if growth stall, but question is- is it going to happen?
        Last edited by saggii; July 5 2011, 02:37 PM. Reason: typo

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by realacres View Post
          This monsoon session, the government is planning to introduce a new consumer-friendly policy that aims to put developers on a tight leash while forcing them to sell homes on the basis of carpet area only.

          Called Real Estate Regulatory Authority (RERA), the policy will have provisions for stricter punishment for those who refuse to tow the line, and make it easier for home buyers to seek legal recourse. Confirming the developments State Housing Minister Sachin Ahir told Mumbai Mirror, "Government has made a change in the draft model which will keep a check on developers who sell flats on the basis of built-up area."

          Over the years, home buyers have been arm twisted into paying for more than what is the actual area of the flat. A 1000 square feet house in Juhu priced at Rs 25,000 per square feet, should cost you Rs 2.5 crore. But thanks to the inclusion of the built up area which puts the saleable area of the flat at 1350 square feet, you have to pay Rs 3.37 crore.

          Though the civic body has banned the sale of flat on the basis of built up area, the builder lobby has largely ignored the diktat, thanks to the lack of punitive measures.

          Ahir said, "No one is following the rules as the government has no control over the sector. That's why we are planning to introduce RERA in this session. This will also have various consumer-friendly provisions."

          Read complete story here:-

          Government’s orders: Pay only for carpet area, not super built-up - The Economic Times

          Sir ji, what if builders increase the psf rate for carpet area.

          net net it'll be same.
          The knowledge of what to do in a Recession or Boom is more important than predicting a Recession or Boom.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            State Housing Minister Sachin Ahir
            Do u know who he is ? He is Arun Gowli's bhanja. So will he be able to pass that bill. I highly doubt it. They give from one end and take more from the other end.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by saggii View Post
              Again if to assume that value of Rupee goes down then-
              1. Oil will be costlier
              2. inflation will increase
              3. growth will decrease
              4. FDI will decrease
              5. Venky's points holds true

              But how is that going to happen given FDI is robust and growth is still intact?
              All 5 pointers holds true if growth stall, but question is- is it going to happen?
              Hi Saggi.

              Predictions are frequently proved wrong by the market. In the end markets are full of irrational people and so markets tend to remain irrational for very long periods.

              So as I keep screaming currency depreciation, FDI has been aggressively coming in, our forex reserves have risen and Rupee has risen to 44.50 or so to the dollar.

              My predictions are always long term and indicative of more safer direction. So if currency is likely to depreciate, one should accumulate gold and IT stocks.

              As Rupee is currently appreciating, gold prices in Rupee are falling and IT stocks are also likely to fall. This gives one an opportunity to enter these stocks at attractive prices and gives a chance to spend a year or two accumulating these assets until markets revert to the rational expectation.

              With this type of thinking, you will not lose money - so safety of your investment is rock solid.

              At current juncture, the best investment targets are therefore IT stocks, gold and RE (but FD remains the best for 2011)
              Venky (Please read watch a or before posting)

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Property price falls across 7 cities.....

                The cities which have shown significant correction (drop in property prices) during January to March 2011 are
                Bangalore (-17.6 per cent),
                Kochi (-14.92 per cent),
                Faridabad (-6.37 per cent),
                Hyderabad (-4.6 per cent),
                Surat (-3.76 per cent),
                Bhopal (-3.55 per cent) and
                Jaipur (-2.63 per cent). In
                Kolkata, prices dipped marginally by 0.77 per cent.

                Among others,
                Ahmedabad showed an increase of 0.4 per cent,
                Chennai 1.66 per cent,
                Mumbai 1.39 per cent.
                Patna showed no change. Of those which have witnessed an increase in prices are
                Pune (5.02 per cent),
                Lucknow (3.09 per cent), and
                Delhi (2.64 per cent).

                Property price falls across 7 cities

                Let's watch how high Pune builder can raise. ... . higher the speculation much deeper will be the correction.
                If IT/ITS were the driving factor then with Banglore/Hyderabad it should have shown the correction but Pune Cartel is artifically raising the prices.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by khbarilal View Post
                  The cities which have shown significant correction (drop in property prices) during January to March 2011 are
                  Bangalore (-17.6 per cent),
                  Kochi (-14.92 per cent),
                  Faridabad (-6.37 per cent),
                  Hyderabad (-4.6 per cent),
                  Surat (-3.76 per cent),
                  Bhopal (-3.55 per cent) and
                  Jaipur (-2.63 per cent). In
                  Kolkata, prices dipped marginally by 0.77 per cent.

                  Among others,
                  Ahmedabad showed an increase of 0.4 per cent,
                  Chennai 1.66 per cent,
                  Mumbai 1.39 per cent.
                  Patna showed no change. Of those which have witnessed an increase in prices are
                  Pune (5.02 per cent),
                  Lucknow (3.09 per cent), and
                  Delhi (2.64 per cent).

                  Property price falls across 7 cities

                  Let's watch how high Pune builder can raise. ... . higher the speculation much deeper will be the correction.
                  If IT/ITS were the driving factor then with Banglore/Hyderabad it should have shown the correction but Pune Cartel is artifically raising the prices.
                  When will Gurgaon RE prices fall.Any guess
                  Dil Jawan Hai To Jahan Hai

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by saggii View Post
                    Again if to assume that value of Rupee goes down then-
                    1. Oil will be costlier
                    2. inflation will increase
                    3. growth will decrease
                    4. FDI will decrease
                    5. Venky's points holds true

                    But how is that going to happen given FDI is robust and growth is still intact?
                    All 5 pointers holds true if growth stall, but question is- is it going to happen?
                    Hi Saggi,

                    Life is full of suprises. And the best part of future is its UNCERTAIN.

                    4 years ago gold was approx Rs. 10,000 and nobody wud've even imagined it wud spike to 23K. Today its there and ppl are talking abt 30K and even 50K in next few years. Who had imagined our beloved BSE heading from 21K to 6K in just 2 years.

                    Coming back to your point - all the points listed by you may not happen simultaneously. Remember, when u talk in terms of economy everything has a ripple effect, some good - some bad.

                    Tension in middle east --> Rising oil prices --> More Inflation
                    More FDI inflow --> Rupee appreciation --> Export hit
                    More FDI inflow --> More Inflation (since for every dollar coming in u need to print Indian Rupee & release in market).
                    Rupee appreciation --> reduced Oil bill in USD
                    Rupee appreciation --> Reduction in inflation due to stronger currency
                    More FDI inflow --> More capital to companies --> Easy availability of funds for investment
                    Exports hit --> Reduced export earnings

                    So growth would get impacted either +vely or -vely by intermingling of all these situations and many more that i have missed. Important thing - HOPE FOR THE BEST AND PREPARE FOR THE WORST
                    The knowledge of what to do in a Recession or Boom is more important than predicting a Recession or Boom.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by khbarilal View Post
                      T

                      Let's watch how high Pune builder can raise. ... . higher the speculation much deeper will be the correction.
                      Think this is good enough for bears to hang on for next few years .

                      Comment

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