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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

    isnt that a shell company

    isnt that a shell company , cause almost all companies in Mauritius are shell companies/fronts for Black money

    Originally posted by Saurabh01 View Post
    Realty giant DLF today announced that the company and its partner has sold an IT SEZ in Pune to private equity firm Blackstone for Rs 810 crore. DLF, the country's largest realty firm, is selling its non-core assets to reduce debt, which stood at Rs 22,519 crore as on September 30, 2011.
    In a filing to the BSE, DLF said that "the company along with its joint venture partner Hubtown have sold 100 per cent of their respective shareholding in DLF Ackruti Info Parks (Pune) for an aggregate consideration of Rs 810 crore to an entity controlled by realty fund affiliated with Blackstone Group, BRE/Mauritius Investments II".
    DLF and Hubtown held 67 per cent and 33 per cent equity shares in DLF Ackruti SEZ, respectively.
    "The above transaction is in line with the DLF's objective of divesting its non-strategic assets," the filing added.
    DLF has so far raised Rs 3,480 crore from sale of non-cor...
    DLF, partner sell Pune SEZ to Blackstone

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by kingmanish View Post
      According to property research firm PropEquity, nearly half of the 930,000 under-construction residential units in the country, scheduled for delivery between 2011 and 2013, are likely to be delayed by up to 18 months. In recent months, secondary market property sales have been higher than primary sales by developers.

      "This is especially true for projects where a considerable portion of construction work is already complete," says Prashant Kaura, director, GenReal Property Advisers. There has been a rise in secondary sales because many investors are looking at cashing out of projects. The reasons for wanting to exit might differ- while some are facing a cash crunch themselves, others are unsure about the developer they are invested with.
      The RE sale has dropped considerably in last few months. Its time for a revision in property rates. It is expected than first 6 months of 2012 will see a significant drop in rates.
      Realty firms to shun expansion, push sales to avoid cash crunch - Corporate News - livemint.com

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        congrats realacres for having "sticky" thread here

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by puser View Post
          congrats realacres for having "sticky" thread here
          may be he has become moderator now.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by shashankgujjar View Post
            isnt that a shell company , cause almost all companies in Mauritius are shell companies/fronts for Black money
            That's true. Black money is sent through hawala channels outside & then bought in as legitimate money as FDI from countries like Mauritius.

            Btw, one more news about NPAs:-

            Spike in bad loans worries RBI

            Spike in bad loans worries RBI - The Times of India
            If you are happy, you are successful.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              In the works, a Rs10,000 cr realty blow for lenders

              Banks’ aversion towards lending to the real estate sector may have come a bit late in the day.

              Going by some research firms, non-performing assets (NPAs) in the real estate sector could come in as high as `5,000-10,000 crore this fiscal.

              The total outstanding debt in the Indian real estate sector as of end-September is around `1.25 lakh crore.


              Complete story here:-

              In the works, a Rs10,000 cr realty blow for lenders - Money - DNA
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by realpune View Post
                I have seen many such properties on sale by Banks for default loans and these were even within one year of the default. Where this 7 years litigation comes from ?

                Also, when multiple people default bank can't survive without selling such property immediately .

                Buddy, where is the demand ? Everywhere sales is down. You are also missing the affordability factor which is very important. If people can't afford something, they can't buy. That's the reason people can't buy even if they need it for end use.

                Talking about the supply, well the inventory is piling up across all the cities. Add to it, the investors flats coming at discounted rates now.

                To conclude, prices can't keep on going up indefinitely and inflated prices without any meaningful sale can't be sustained, crash is inevitable!
                Bank foreclosure is possible only in un-occupied or under construction property i.e investors flats.

                It is impossible for bank to evict you if you default on a property loan while residing in it, for 7 years or more.

                Sales of "underconstruction" property cannot be equated to the bank foreclosures of USA which are ready to move - as people here keep doing.

                An underconstruction flat is not "real" as in real estate. It is only a futures contract and should be treated as such for investment analysis.

                Banks dont see defaults in home loans except in rare situations - that is why they are safe. Multiple such defaults dont happen at individual level because that is not how the property market works. Big defaults come from big builders and not individual investors. Usually bank has to write off its capital in such instances (provisioning).

                Investors find it difficult to get bank funding for individual homes and mostly survive on own/black money. Investing on bank funding only done by IT guys - when they try to turn into RE investors.

                Rest of your post is unrelated to the bank foreclosure issue.

                Typically, normal people will never buy from bank in a sale from foreclosure, because there is always doubt about the title in the buyer's mind and they try to avoid it. Do you know anybody who has bought a bank foreclosure? I dont know a single person who has bought such a thing.

                Most bank foreclosures in India are bought by investors - who buy with cash at heavy discount, then put it on tha market at a high "market" price and sit on it. I know of three such cases.

                For you and me prices dont come down.

                As for demand - Indian property is a black market. People corner the flat and sit on it. When you or I or anyone wants to buy- he gets a massive quote for price - take it or leave it. Demand comes from only those who have the money - or those who are attaching emotional value to ownership and pay black market price for this attachment.

                Renting is much cheaper and sensible - lots of people rent a really big flat at one fourth the cost of ownership or even less.
                Venky (Please read watch a or before posting)

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Thanks real acres for such a good information. I am about to booka house in two days, but after reading your article i am forced to rethink on my decision. BTw I am planning to buy a resale house at handewadi road (hadapsar, Pune). it is costing me around 38 Lakhs. Area is 1110 sq ft. Flat is in Sanskruti township. What u advice whether its a good deal or not

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by amd072944 View Post
                    Thanks real acres for such a good information. I am about to booka house in two days, but after reading your article i am forced to rethink on my decision. BTw I am planning to buy a resale house at handewadi road (hadapsar, Pune). it is costing me around 38 Lakhs. Area is 1110 sq ft. Flat is in Sanskruti township. What u advice whether its a good deal or not
                    Check these links for Sanskriti:-

                    http://www.indianrealestateforum.com...psar-6089.html

                    http://www.indianrealestateforum.com...r-rd-5369.html

                    If you search for Gini constructions, you will find even more results.
                    Btw, personally, I never liked this area, so irrespective of price I wouldn't have bought one here. The price in late 2009 was 2500/sq ft. Better buy in some other project in Hadapsar. You will get plenty of options here.
                    If you are happy, you are successful.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Ready reckoner rates may rise from Jan onwards...What will be impact on prices?

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