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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

    ‘Bill to regulate real estate by winter session’

    Originally posted by Saurabh01 View Post
    What a news:
    Chandigarh: Real estate industry body CREDAI on Saturday opposed constitution of a regulatory body for the real estate sector, saying that it would become a "breeding ground for corruption" if implemented.

    "The proposed regulatory bill will become a breeding ground for corruption (if implemented)," the Confederation of Real Estate Developers Association of India (CREDAI) President Lalit Kumar Jain told reporters here.
    CREDAI opposes proposal to form regulator for realty sector
    September 23, 2011

    The proposed Real Estate Regulation Bill, 2011, is likely to be taken up during the winter session of Parliament, minister of housing and urban poverty alleviation and culture Kumari Selja said in Mumbai.

    The bill is expected to fill in the regulatory gaps and bring in more transparency in the unregulated property market. Selja said the regulatory bill is aimed at bringing in transparency and fair deal in the sector whose image has been tarnished by several scams and also one-sided agreements with customers.

    Property Pulse - the Realty Plus Newsletter
    If you are happy, you are successful.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Mumbai property deals registration continues to slide, down 25% in August at 27 month

      Property registration in India's biggest real estate market Mumbai continued its slide in August and touched a twenty-seven month low.

      In the past two quarters, property prices in some localities and specific projects of Mumbai have seen a drop of about 5-10%. However, prices are still in not in affordable zone given the rising interest rates that is making buyers delay their decision making.

      Mumbai property deals registration continues to slide, down 25% in August at 27 month low - Economic Times
      If you are happy, you are successful.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by Venkytalks View Post
        Replied in red
        We also need to to see that if US sneezes, India, especially sectors like IT which are heavily dependent on US, catches cold. But it is not the other way round. Therefore, US gong down is not good for IT which in turn is not good for RE as well.

        Other aspect about population density is not just density but even the purchasing power. We are comparing US & India. Look at Australia then, it has population density of just 2/sq km, & population less than Mumbai with land bigger than India, yet the avg prices in Australia are more than India. Hence, mere population density doesn't work. The reason for this is not population but avg median incomes (PPP), which is even greater than US !!

        * PS:- The petrol is cheaper in US than India, the same car model is cheaper in US than India. Now is it because the roads are bigger so car density is less, hence cheaper cars ??

        Man, the crux of problem is lack of RE regulator & obsolete land laws of the Govt meant to benefit builders.
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Complaints against realtors rising

          Posted: Wednesday, Sep 21, 2011 at 0159 hrs IST

          New Delhi: The recent decision of the Competition Commission of India (CCI) to slap a R630-crore fine on realty major DLF for abusing its dominant position is only a tip of the iceberg. If the records of the Delhi consumer court are taken into account, the maximum number of cases registered are against real estate companies.

          Out of every 10 complaints which get registered at the Consumer Disputes Redressal Commission (consumer court) in Delhi, eight are against real estate players.

          Supreme Court lawyer ML Lahoty, who was the lawyer for the residents’ associations in the case against DLF, said, “Consumers not just from Delhi but from Hyderabad, Kolkata, Mumbai, Pune and many other places have come to me seeking advise against the developers.”

          According to Confederation of Real Estate Developers’ Associations of India (Credai) president Lalit Kumar Jain, transparency is a big issue with the developers. “Most of the developers do not clarify the actual carpet area in their advertisements. Also, there are so many charges that they never mention (these) in their advertisements or their brochures. At the end of the day consumers feel cheated,” said Jain.

          >> This Lallu Jain, himself should introspect before making such statements. It is like a thief saying that theft should not happen .

          Read complete story here:-

          Complaints against realtors rising
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            countdown to China crash beginning?

            China has had massive mis-allocation of funds primarily by Govt (due to policy) and more so by local Govts.

            But I have always had this feeling that the crash would be triggered off by compulsions of Private Loans - like our "Marwari" loans (no offense to Marwaris), or loans at punitive rates that can never be paid back.

            The most visible of this is in the real estate business where a person has even higher pressure to buy a house/flat at any cost - and they frequently do so with recourse to private loans (I've read these loans have interest rates of as high as 20% per month!

            Here is an article about how this is starting to come apart as it reaches a point of no return ...

            ********************
            I want to bring to your attention on a new development in China: private business owners are disappearing or jumping off buildings because they can no longer pay off black market shark loans.

            According to national new paper Economics Information (part of state media Xinhua), on 9/22, Hu Fulin, owner of the biggest eyeglass manufacture of the city of Wenzhou disappeared, leaving behind 2 billion RMB debt.

            On 9/25, 3 more business owners in Wenzhou disappeared (owners of copper, steel and shoe manufacture).

            On 9/27, owner of "Zhengdeli", a shoe manufacture jumped off of a 22 story building and killed himself.

            Since April this year 29 private business owners have disappeared, all of them had over 100 million RMB businesses. 11 of the 29 owned shoe manufacturing businesses.

            An analyst from China Investment (China's Sovereign investment fund) pointed out that it's because they are squeezed by a rapid increase of component and labor costs. A rising RMB is also a reason why many export oriented companies are hit. In August, Zhou Dewen, President of Wenzhou Small-Medium Business Development Association said the profit margin of Small-Medium businesses in Wenzhou has dropped to under 5% and absent of policy changes, 40% of businesses in Wenzhou will go out of business by next Spring Festival (late Jan 2012)

            The complete article is here (in Chinese): ¾­¼Ã²Î¿¼Íø.

            Another article ?? ????_?_??_ (titled: China's Shark Loans Crashing; "Grey Finance" Brewing the Chinese Crisis) states that most of those owners have borrowed "private" loans (typically 70% of all loans), with MONTHLY interest rate ranging from 3% to 10%.

            About 89% of families/individuals and 59% of companies in Wenzhou participated in such "private loan" schemes. In Erdos (the ghost city you blogged many times), such "private loans" are more than 200 billion RMB with annual interest rate over 60%. Now they are crashing, causing rampant unfinished real estate projects in Erdos.

            Note that Wenzhou is one of riches cities in China (No. 3 in disposable income per capita), and is considered the "Birthplace of China's Private Economy". Wenzhou people are among the first that got in trades, manufacturing, export, and in recent years real estate investment/speculation. The Wenzhou economy is considered the "weathercock" of Chinese economy.

            ******************

            Is this one of the factors that is relentlessly dropping the Shanghai Composite? Which, btw is only 500 points away from the 2009 crash bottom!

            So much for China bailing out the world .... India seems to be doing much better.

            cheers

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by wiseman View Post
              China has had massive mis-allocation of funds primarily by Govt (due to policy) and more so by local Govts.

              But I have always had this feeling that the crash would be triggered off by compulsions of Private Loans - like our "Marwari" loans (no offense to Marwaris), or loans at punitive rates that can never be paid back.

              The most visible of this is in the real estate business where a person has even higher pressure to buy a house/flat at any cost - and they frequently do so with recourse to private loans (I've read these loans have interest rates of as high as 20% per month!

              Here is an article about how this is starting to come apart as it reaches a point of no return ...

              ********************
              I want to bring to your attention on a new development in China: private business owners are disappearing or jumping off buildings because they can no longer pay off black market shark loans.

              According to national new paper Economics Information (part of state media Xinhua), on 9/22, Hu Fulin, owner of the biggest eyeglass manufacture of the city of Wenzhou disappeared, leaving behind 2 billion RMB debt.

              On 9/25, 3 more business owners in Wenzhou disappeared (owners of copper, steel and shoe manufacture).

              On 9/27, owner of "Zhengdeli", a shoe manufacture jumped off of a 22 story building and killed himself.

              Since April this year 29 private business owners have disappeared, all of them had over 100 million RMB businesses. 11 of the 29 owned shoe manufacturing businesses.

              An analyst from China Investment (China's Sovereign investment fund) pointed out that it's because they are squeezed by a rapid increase of component and labor costs. A rising RMB is also a reason why many export oriented companies are hit. In August, Zhou Dewen, President of Wenzhou Small-Medium Business Development Association said the profit margin of Small-Medium businesses in Wenzhou has dropped to under 5% and absent of policy changes, 40% of businesses in Wenzhou will go out of business by next Spring Festival (late Jan 2012)

              The complete article is here (in Chinese): ¾­¼Ã²Î¿¼Íø.

              Another article ?? ????_?_??_ (titled: China's Shark Loans Crashing; "Grey Finance" Brewing the Chinese Crisis) states that most of those owners have borrowed "private" loans (typically 70% of all loans), with MONTHLY interest rate ranging from 3% to 10%.

              About 89% of families/individuals and 59% of companies in Wenzhou participated in such "private loan" schemes. In Erdos (the ghost city you blogged many times), such "private loans" are more than 200 billion RMB with annual interest rate over 60%. Now they are crashing, causing rampant unfinished real estate projects in Erdos.

              Note that Wenzhou is one of riches cities in China (No. 3 in disposable income per capita), and is considered the "Birthplace of China's Private Economy". Wenzhou people are among the first that got in trades, manufacturing, export, and in recent years real estate investment/speculation. The Wenzhou economy is considered the "weathercock" of Chinese economy.

              ******************

              Is this one of the factors that is relentlessly dropping the Shanghai Composite? Which, btw is only 500 points away from the 2009 crash bottom!

              So much for China bailing out the world .... India seems to be doing much better.

              cheers
              China will attack India when they even sense a glimpse of a crash... they have already completed all the groundwork..

              so now we need to be prepared for both situations.. economic issues as well as war...

              of course CREDAI will immediately say that since there is a war going on, everyone needs a roof on their head.. hence more demand and hence we need to increase the RE prices by another 500 rs/psf...
              Last edited by punerebuyer; September 30 2011, 12:56 AM. Reason: fixed a typo

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Last few months noticing that TOI-let paper has teamed up with MagicBricks to report fake/false pro-builders news. I was wondering why are they advertising Magicbricks so much. Now the answer is that this website is a part of the Times Group. No wonder.....

                In todays' TOI-Bangalore edition, there is an article (aka advt) from Magicbricks about some discussion between Developers and most of the discussion is about RE in Pune. They are saying that the RE prices should increase about 10-15% instead of reducing. Also that Demand outstrips Supply in Pune, hence the RE prices may not come down. Boy, I really admire their "idiotic" optimism. Even when the RE purchases has slowed down and there are umpteen articles/news reports with appropriate data, these folks are showing old data about Dec 2010 and assuming the readers are more foolish. Let me see if there is a URL for that article. Its really funny....

                I think I should stop reading/buying TOI-let paper, instead buy local newspaper. We have made this monster and now it is devouring us.
                Saanp ko doodh pilaya, abhi ye hume hi nigal lega.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by mymarji View Post
                  Last few months noticing that TOI-let paper has teamed up with MagicBricks to report fake/false pro-builders news. I was wondering why are they advertising Magicbricks so much. Now the answer is that this website is a part of the Times Group. No wonder.....

                  In todays' TOI-Bangalore edition, there is an article (aka advt) from Magicbricks about some discussion between Developers and most of the discussion is about RE in Pune. They are saying that the RE prices should increase about 10-15% instead of reducing. Also that Demand outstrips Supply in Pune, hence the RE prices may not come down. Boy, I really admire their "idiotic" optimism. Even when the RE purchases has slowed down and there are umpteen articles/news reports with appropriate data, these folks are showing old data about Dec 2010 and assuming the readers are more foolish. Let me see if there is a URL for that article. Its really funny....

                  I think I should stop reading/buying TOI-let paper, instead buy local newspaper. We have made this monster and now it is devouring us.
                  Saanp ko doodh pilaya, abhi ye hume hi nigal lega.
                  Perception management - Wikipedia, the free encyclopedia

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by punerebuyer View Post
                    of course CREDAI will immediately say that since there is a war going on, everyone needs a roof on their head.. hence more demand and hence we need to increase the RE prices by another 500 rs/psf...
                    toooo good!!!!

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by wiseman View Post
                      China has had massive mis-allocation of funds primarily by Govt (due to policy) and more so by local Govts.

                      But I have always had this feeling that the crash would be triggered off by compulsions of Private Loans - like our "Marwari" loans (no offense to Marwaris), or loans at punitive rates that can never be paid back.

                      The most visible of this is in the real estate business where a person has even higher pressure to buy a house/flat at any cost - and they frequently do so with recourse to private loans (I've read these loans have interest rates of as high as 20% per month!

                      Here is an article about how this is starting to come apart as it reaches a point of no return ...

                      ********************
                      I want to bring to your attention on a new development in China: private business owners are disappearing or jumping off buildings because they can no longer pay off black market shark loans.

                      According to national new paper Economics Information (part of state media Xinhua), on 9/22, Hu Fulin, owner of the biggest eyeglass manufacture of the city of Wenzhou disappeared, leaving behind 2 billion RMB debt.

                      On 9/25, 3 more business owners in Wenzhou disappeared (owners of copper, steel and shoe manufacture).

                      On 9/27, owner of "Zhengdeli", a shoe manufacture jumped off of a 22 story building and killed himself.

                      Since April this year 29 private business owners have disappeared, all of them had over 100 million RMB businesses. 11 of the 29 owned shoe manufacturing businesses.

                      An analyst from China Investment (China's Sovereign investment fund) pointed out that it's because they are squeezed by a rapid increase of component and labor costs. A rising RMB is also a reason why many export oriented companies are hit. In August, Zhou Dewen, President of Wenzhou Small-Medium Business Development Association said the profit margin of Small-Medium businesses in Wenzhou has dropped to under 5% and absent of policy changes, 40% of businesses in Wenzhou will go out of business by next Spring Festival (late Jan 2012)

                      The complete article is here (in Chinese): ¾­¼Ã²Î¿¼Íø.

                      Another article ?? ????_?_??_ (titled: China's Shark Loans Crashing; "Grey Finance" Brewing the Chinese Crisis) states that most of those owners have borrowed "private" loans (typically 70% of all loans), with MONTHLY interest rate ranging from 3% to 10%.

                      About 89% of families/individuals and 59% of companies in Wenzhou participated in such "private loan" schemes. In Erdos (the ghost city you blogged many times), such "private loans" are more than 200 billion RMB with annual interest rate over 60%. Now they are crashing, causing rampant unfinished real estate projects in Erdos.

                      Note that Wenzhou is one of riches cities in China (No. 3 in disposable income per capita), and is considered the "Birthplace of China's Private Economy". Wenzhou people are among the first that got in trades, manufacturing, export, and in recent years real estate investment/speculation. The Wenzhou economy is considered the "weathercock" of Chinese economy.

                      ******************

                      Is this one of the factors that is relentlessly dropping the Shanghai Composite? Which, btw is only 500 points away from the 2009 crash bottom!

                      So much for China bailing out the world .... India seems to be doing much better.

                      cheers
                      I have also been reading increasing news of economic problems in China.

                      From 2005, I have been expecting crash and burn in China. Each year it has failed to materialise.

                      Chinese economy managers have allowed 50% orice downturn in Shanghai composite. They have raised interest rates. They have allowed mild currency appreciation.

                      So far, somehow, they have staved off the major economic dislocations which common sense predicts.

                      Either they are brilliant (for a while I have been quite impressed) or they have postponed and magnified their problems.

                      Anyway, global powers seem to be shifting towards formation of a Iran-Pakistan-CHina-North Korea axis with Russia helping from outside.

                      If Pakistan breaks with USA totally (seems inevitable within 6 months) - expect a India Pakistan war in which CHinese will intrude into Kashmir, Sikkim and Arunachal in a major way, in addition to helping Pakistan in many other ways.

                      Also expect use of tactical nukes chich CHina has given to Pakistan for just this eventuality.

                      Expectation of these eventualities within 2012 = 5% by guesstimate
                      Venky (Please read watch a or before posting)

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