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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

    Originally posted by hitmady View Post
    Hi realacres
    It seems we think alike on Rent vs Emi analysis. It is quiet true and practical. Had decent savings living in rented apmt.

    After booking a house, I almost felt poorer thinking of future EMI payments for 15 years.
    Ultimately. cancelled home-loan and booking becoz of low-value in return and job-insecurity.

    May take risk and buy one if price falls 20% from current-level.
    For me price at 2006 level would be affordable.

    I think there is a similarity between buying a house at inflated price and buying a luxury car.(I can survive on hired vehicle).
    Its more of ego-statement. But how many of middle/upper-middle-class people can go on such ego-trip?
    Sirs,

    I virtually argued every single point with myself and my family when i was deciding for my flat. I also did the opportunity cost analysis of renting v/s owning. Renting was a clear clear winner. It just doesnt make a financial sense .ALso, I would be living in a not so great location , add to that the extra fuel cost incurred travelling to office.The only 2 points which forced me to go for a flat

    * In my wife's opinion it would be a real hassle to keep on shifting every year (I have done my schooling from 10 different places in India, so I was pretty OK with that)

    * Inflation - There is no denying the fact that inflation will keep devaluing the money that means the EMI I am paying will be much affordable 6-7 year down the lane. For eg. sbdy who took a home loan 5-6 years back with a EMI of 10-15k are now pretty comfortable paying that coz salaries in long run have to match inflation. EMI also would be rising coz. of interest rates but not to that extent.

    Regards,
    MTB
    Great Demand and limited supply doesnt means that one will pay any price

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Interesting article on the global RE, check out -
      The world's house price hotspots - Yahoo! Finance UK
      Last edited by monds; March 27 2012, 05:46 PM.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Nice article from ET!!
        Why you should not buy that dream house you can't afford - The Economic Times

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          good report from PL on the RE stocks

          Report is based for Mumbai based builders, but cannot be vastly different for all of them..
          Attached Files

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Really nice article
            Attached Files
            Last edited by RealHunter1; March 29 2012, 12:33 PM.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              When builders don't deliver

              In fact, a buyer has to sign with a builder one of the most one-sided commercial agreements one can come across in the world of business. It contains elaborate conditions that would enable the builder to get away with any defect in construction or delay in possession—that has to be suffered by the buyer.

              Nobody denies that an aggrieved buyer can always take recourse to legal action, but are we not aware of the inordinate delays in seeking justice from the courts? Such delays invariably work in favour of the defaulters. In the few cases that have managed to reach conclusion, courts have rarely imposed exemplary costs on builders; imprisonment is not even considered. In such a scenario, why should a builder bother about the buyer from whom, in any case, he collects almost 95% of the total consideration much before the building is completed?


              Real Estate: When builders don't deliver - Moneylife Personal Finance site and magazine

              Unless government wakes up to the virtual fraud being committed by a large number of builders, lakhs of buyers will continue to suffer and be cheated by builders.

              But Politicians are busy watching ...

              http://www.bloomberg.com/news/2012-0...al-police.html

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                TDS slips to be must for registering property

                "Buyers will need to show income tax challan to get their property registered from October," a finance ministry official said.

                Real estate is considered to be one of the most widely used means to generate and park black money. Cash component in land and property transactions could be as high as 60%, according to some estimates.

                Come October, TDS slips to be must for registering property - The Economic Times

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Competition commission flooded with complaints against realtors

                  Encouraged by the penalty slapped on the biggest real estate company DLF in a Gurgaon case last August, there has been a rush of complaints at the Competition Commission of India (CCI) against several property majors since then. “At least 200 complaint letters came to us against real estate players, of them around 15 were official cases,” said an official at CCI.

                  Competition commission flooded with complaints against realtors

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Sale of property in city hits 3-year low

                    The city’s realty market seems to have reached an impasse with inventory mounting to a three-year high and absorption nose-diving to a three-year low. According to the latest report by Kotak Institutional Equities, Mumbai has seen a total absorption of 1.7 million sq ft residential space in January this year, a decline of 60 per cent as compared to January last year. This is the lowest recorded absorption since December 2008. Proportionately, the inventory or the number of unsold homes in Mumbai has peaked to a 32-month high.


                    Sale of property in city hits 3-year low: Report - Express India

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by khbarilal View Post
                      The city’s realty market seems to have reached an impasse with inventory mounting to a three-year high and absorption nose-diving to a three-year low. According to the latest report by Kotak Institutional Equities, Mumbai has seen a total absorption of 1.7 million sq ft residential space in January this year, a decline of 60 per cent as compared to January last year. This is the lowest recorded absorption since December 2008. Proportionately, the inventory or the number of unsold homes in Mumbai has peaked to a 32-month high.


                      Sale of property in city hits 3-year low: Report - Express India
                      For a market to be called healthy, only 8 months of inventory should be present. In current times, the inventory is of over 32 months !! This clearly show poor off-take in sales.

                      And the RE prices in Mumbai have already come down between 10-20%. Discounts are being given especially by following builders -

                      Indiabulls, Oberoi, Wadhwa, Lodha (heard some of his projects are severely stuck), HDIL (it is going bust). Akruti is in also some dire situation, seems Bobada Pawar is not bailing it out .

                      Btw, DNA has bought yet another RE exhibi at Pride Hotel . Man, how many exhibis ?
                      If you are happy, you are successful.

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