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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

    News items mention builders selling to PE firms, but I haven't found news of banks taking possesion of projects from builders.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by puser View Post
      Ready reckoner rates may rise from Jan onwards...What will be impact on prices?
      There won't be any impact due to this as in anycase the agreements are being carried out at much higher price than RRR. However, those trying to invest in cash & builders willing to accept cash (black) will be hit as the agreement value for them will go up which essentially means the cash component will reduce.
      But for those on loans & regular buyer, expect no upward revision of prices.

      Btw, the property tax for the properties getting CC from 2012 may see hike as PMC plans to hike property tax from Mar 2012. However, projects which already have CC need not worry about the same.
      If you are happy, you are successful.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Drop in flats sales & debt woes for builders

        1.) ‘Mumbai realty sale registrations hit a low’

        December 21, 2011

        Registrations of property sales have hit a 31-month low in this city due to high realty prices and mortgage rates, says a study.

        Property Pulse - the Realty Plus Newsletter

        2.) Market blues hit real estate public issues

        Customers may be in for a surprise as far as prices of residential apartments are concerned. Developers are finding it tough to raise funds through the primary market, thereby increasing liquidity woes.

        Market blues hit real estate public issues - Hindustan Times
        If you are happy, you are successful.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          New Year Greetings

          " When one door closes another door opens; but we often look so long and so regretfully upon the closed door, that we do not see the ones which open for us. Do not wait until the conditions are perfect to begin. Beginning makes the conditions perfect."

          Wish you all a very happy, joyful and loving new year .
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            ready reckoner rate rise signal that prices in some localities will not come to levels that they were in 2009. at some places ready reckoner rates are exorbitant and sometimes even beats few small builder's rates like mohammadwadi now has rate of 3600+ .

            chances of downward correction has become dim; as builders would not sell below RR rate.

            positive side is for govt only(whose efficacy of utilizing money is always under doubt), black money in circulation would be lesser than otherwise and govt would not be at disadvantage where people end up paying less to govt but higher to builders.

            Another inference i could draw that inflation has hit even govt
            Last edited by puser; January 2 2012, 11:23 AM.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by realacres View Post
              There won't be any impact due to this as in anycase the agreements are being carried out at much higher price than RRR. However, those trying to invest in cash & builders willing to accept cash (black) will be hit as the agreement value for them will go up which essentially means the cash component will reduce.
              But for those on loans & regular buyer, expect no upward revision of prices.

              Btw, the property tax for the properties getting CC from 2012 may see hike as PMC plans to hike property tax from Mar 2012. However, projects which already have CC need not worry about the same.
              Hi realacres,

              I think it won't have any impact on new construction and black money from small investor and single buyer will be impacted most.

              Also, it will def. impact resale whr one is buying old construction (15-20 yrs old), I have to pay more amount for 1 bhk I bought in v'nagar when RRR was increased last time.

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by puser View Post
                ready reckoner rate rise signal that prices in some localities will not come to levels that they were in 2009. at some places ready reckoner rates are exorbitant and sometimes even beats few small builder's rates like mohammadwadi now has rate of 3600+ .

                chances of downward correction has become dim; as builders would not sell below RR rate.
                Man, builders quote rates on SALABLE AREA, while READY RECKONER RATE is applicable on the area, which is mentioned in the agreement.

                Essentially, LOADING FACTOR is not there in ready reckoner rates. Hence, even if ready reckoner rates are increased by another 20-25%, still there won't be any difference for WHITE AMOUNT paying buyers.

                positive side is for govt only(whose efficacy of utilizing money is always under doubt), black money in circulation would be lesser than otherwise and govt would not be at disadvantage where people end up paying less to govt but higher to builders.

                Another inference i could draw that inflation has hit even govt
                +1. Agree completely.
                If you are happy, you are successful.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  City Ready Reckoner rates up 17%

                  As we are discussing RRR, here is an update for the same:-

                  MUMBAI: Notwithstanding the economic slowdown and high property prices, which resulted in at least 25% drop in sales registrations in Mumbai, the state government has increased the Ready Reckoner (RR) rates by an average 17% in the city with effect from January 1, 2012. However, some prime areas like Versova, Prabhadevi, Cuffe Parade and Dadar will see hikes of up to 30%, while Vile Parle will see a 140% jump.

                  The RR is used to calculate the market value of flats for stamp duty and registration charges, which are major sources of revenue for the government after sales tax and value-added tax. As regards the rest of Maharashtra, the revision in the RR rates will be in the range of 5-30%. This year too, the government has based its RR calculus on the built-up area, a deviation from its decision of 2008 when it was based on the carpet area.

                  But experts say the 17% hike will not have any major impact on transactions of new flats as the rates quoted by developers in some places are almost 40-80% higher than that quoted in the RR. The hike will, however, hurt sales and purchases of old flats because of the 16% rise in the cost of construction under the new calculus.

                  City Ready Reckoner rates up 17% - The Times of India
                  If you are happy, you are successful.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Realty rates drop across Asia, Mumbai follows suit

                    During the bounce back from the global crisis in 2009, Singapore and Mumbai were the Asian cities that registered maximum appreciation in realty prices — as much as 75%, in just two years. With economies and regulation in regression mode, these cities will be at the forefront of price fall too, said real estate consultant DTZ in a report.

                    From Beijing and Hong Kong to Singapore and Bangkok, leading Asian cities are witnessing a drop of 15-25% in residential realty rates currently. Leading the slide is the realty market of China, where the authorities are deliberately cooling prices by imposing new taxes on multiple ownership and preventing the build-up of a bubble.

                    The trend in Mumbai is also consistent with the situation across the continent, with prices heading southwards after strong resistance from the realty fraternity for over a year.

                    “Residential property prices have taken a beating across Asia Pacific, and Mumbai is no exception."

                    Realty rates drop across Asia, Mumbai follows suit - Mumbai - DNA
                    If you are happy, you are successful.

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Currently, buyers are not expressing any interest in projects that are perceived to be overpriced, and this trend will continue throughout the first half of 2012.
                      Mumbai Real Estate Market... 2012 Forecast:JLL

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