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

    Originally posted by BlotJab View Post
    Why do you forget affordability each time? I was little surprised to see the affordability word in one of your recent posts, but you again forget it here. Builders can't pass this burden to buyers, as buyers are not even able to afford the prices without this burden.
    I am not surprised that you were surprised...

    I've been using that word since beginning....anyway....but what's affordable can be and has already been subject of discussion on this forum to bring you up to speed....
    When the facts change, I change my mind. What do you do, sir? - John Maynard Keynes

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      RBI to hike rates on Tuesday: survey

      RBI to hike rates on Tuesday: survey - Indian Express

      The decision of RBI will tighten the flow of money into the market, and also hamper RE with increase rate of interest on loans, if any. Further, the prospective buyers (who avail home loan from banks) will delay their decision, causing damage to RE.

      Every situation leading to increase the inventory of flats with builders, making them to feel pressure (rather I should say more pressure which Builders are facing from 6 to 8 months, due to continuous increase in Repo rates by RBI, 10 times from March 2010.)

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        RBI hikes repo rate

        Originally posted by patilbha View Post
        RBI to hike rates on Tuesday: survey - Indian Express

        The decision of RBI will tighten the flow of money into the market, and also hamper RE with increase rate of interest on loans, if any. Further, the prospective buyers (who avail home loan from banks) will delay their decision, causing damage to RE.

        Every situation leading to increase the inventory of flats with builders, making them to feel pressure (rather I should say more pressure which Builders are facing from 6 to 8 months, due to continuous increase in Repo rates by RBI, 10 times from March 2010.)
        CREDIT POLICY: RBI hikes repo rate by 50 bps to 8% | Reverse repo also hiked by 50 bps

        http://economictimes.indiatimes.com/...ow/9368519.cms
        Last edited by gandalf; July 26 2011, 11:15 AM.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by gandalf View Post
          CREDIT POLICY: RBI hikes repo rate by 50 bps to 8% | Reverse repo also hiked by 50 bps

          Reserve Bank of India hikes repo rate by 50 bps, more than expected - The Economic Times
          so what? property rates are doubling every 2 years; rbi is so conservative in hiking rates; perhaps subbarao should look at builder....buy now and be "select few" to own a flat at luxurious projects and sell it after next 2 years with 100% gain; you might as well buy 2 flats after next 2 years.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by stoxxx View Post
            yes....that;s why all this does not matter.....builders can pass the burden because there is demand....

            it is a demand v supply game.....everything else just noise...
            C'mon man, don't give that lame duck logic everytime. Time & again we have shown how the sales have dipped, stamp duty reduced by over 70% in one year & still you say demand vs logic. If this is the case, the prices should have dipped by 50% already !!

            You forget everytime that the real reason why builders were able to hike rates post 2009 is due to the TEASER RATES of the banks, who were hand-in-glove with the builders. Now, as the banks too can't do anything, they are staring at large scale NPAs in RE sector. It is this reason why no banker is publicly telling their exposure to RE sector.
            If you are happy, you are successful.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by gandalf View Post
              CREDIT POLICY: RBI hikes repo rate by 50 bps to 8% | Reverse repo also hiked by 50 bps

              Reserve Bank of India hikes repo rate by 50 bps, more than expected - The Economic Times
              Yes, this is what we (so called bears) were saying from earlier.
              It will be now atleast 12-12.25% floating rates & 14.5-15% fixed rates for home loans with 25-30% downpayment.

              Calculate the savings/month & the total amount paid for the flat at the end of the loan tenure. One will easily end up paying over a crore for a flat worth 50L whose real value is not over 25L !!
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by realacres View Post
                Yes, this is what we (so called bears) were saying from earlier.
                It will be now atleast 12-12.25% floating rates & 14.5-15% fixed rates for home loans with 25-30% downpayment.

                Calculate the savings/month & the total amount paid for the flat at the end of the loan tenure. One will easily end up paying over a crore for a flat worth 50L whose real value is not over 25L !!
                I totally agree, but will IT guys with 10+ year experience (or NRIs or IT couples coming back from onsite) understand this fact? When will they understand that society should be balanced, otherwise the rich people will suffer most because of the crime. I know many IT people, who get shocked if their house maid increases the salary by 100 Rs/month and they expect atleast 10% hike from the company. But they will be ready to pay 50L to builder so that builder can buy BMW car but house maid doesn't get 100 Rs extra for food for her children.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Culture clash

                  Originally posted by BlotJab View Post
                  I totally agree, but will IT guys with 10+ year experience (or NRIs or IT couples coming back from onsite) understand this fact? When will they understand that society should be balanced, otherwise the rich people will suffer most because of the crime. I know many IT people, who get shocked if their house maid increases the salary by 100 Rs/month and they expect atleast 10% hike from the company. But they will be ready to pay 50L to builder so that builder can buy BMW car but house maid doesn't get 100 Rs extra for food for her children.

                  When 50-year old Kanjoosi sot Indian outlook (not raising maid by Rs 100 even) is fused with American outlook, the result will be current IT/NRI outlook!

                  cheers

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by realacres View Post
                    Yes, this is what we (so called bears) were saying from earlier.
                    It will be now atleast 12-12.25% floating rates & 14.5-15% fixed rates for home loans with 25-30% downpayment.

                    Calculate the savings/month & the total amount paid for the flat at the end of the loan tenure. One will easily end up paying over a crore for a flat worth 50L whose real value is not over 25L !!



                    Why RBI is so frantic in hiking interest rates UP!!
                    Naive souls will see this as to cool down inflation to help AAM AADMI,but then this line of thought has been originated by media!!!
                    I think RBI is very very nervous about something which it is unable to rectify ,even after spending most of its gunpowder in form of high interest rates!!!
                    Situation looks similar to me when in USA (around 2004-2006) greenspan hiked interest rates to stave off a growing bubble in almost everything,but even then could not do anything about it......
                    Looks like RBI has realized ,rather late that bubble has grown out of there fighting capability and they are now frantically shooting there peashooter to bring down the goliath...............
                    however i think Goliath while going down ,will take with itself indian banks and indian economy.

                    Let's wait and watch all the while being in safe FD'S!!!!!

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by realacres View Post
                      C'mon man, don't give that lame duck logic everytime. Time & again we have shown how the sales have dipped, stamp duty reduced by over 70% in one year & still you say demand vs logic. If this is the case, the prices should have dipped by 50% already !!

                      You forget everytime that the real reason why builders were able to hike rates post 2009 is due to the TEASER RATES of the banks, who were hand-in-glove with the builders. Now, as the banks too can't do anything, they are staring at large scale NPAs in RE sector. It is this reason why no banker is publicly telling their exposure to RE sector.
                      all your narratives are good....looking at your posts for past howsoever many years I can see you have said it all along.....meanwhile RE just keep growing...


                      I'll believe the correction when I see it....for now I can see people (whether end users or black money hoarders) still booking...
                      When the facts change, I change my mind. What do you do, sir? - John Maynard Keynes

                      Comment

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