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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 vhaldavnekar View Post
    Hmm good informative thread. Seems now RE will really pickup it seems. Just to illustrate as per the latest advertisement 3BHK in prabhat road was pegged at 2.5 crores and 3600 sq feet for plot in nav sahaydri was for sale at 4.5 crores. Going as per the latest trend read RE bulls, brokers and builders in coming 2 yrs even if there is 50% appreciation they will cost 3.75 crores and 6.75 crores respectively. Those who want to reap benefits better hurry and book asap!!!

    .....

    ........

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by lovepune
      RBI cuts CRR; home, auto loans set to become cheaper
      Sep 18, 2012, 01.03AM IST TNN

      Home and auto loans will gradually become cheaper over the next few months with the Reserve Bank of India announcing a cut in the cash reserve ratio.
      MUMBAI: Home and auto loans will gradually become cheaper over the next few months with the Reserve Bank of India announcing a cut in the cash reserve ratio (CRR) by a quarter of a percentage point (25 basis points) to 4.5% in its policy review meeting on Monday. The central bank, however disappointed industry by leaving its key policy rates —repo and reverse repo —unchanged, mainly because of a sudden spike in the rate of inflation for August.
      Now read the real news :-

      Banks not passing benefits of rate cut to borrowers: RBI

      New Delhi: Banks are not passing on the benefit of a cut in policy rates to the borrowers, Reserve Bank Deputy Governor K C Chakrabarty said today while asking lenders to undertake reforms and bring down their operation costs.

      He regretted that the lending rates of banks have not come down in tandem with reduction in the CRR and SLR. On the other hand they have gone up, he added.

      Banks not passing benefits of rate cut to borrowers: RBI - NDTVProfit.com

      Apart from this, RBI has declared RE as high risk sector & now home buyer needs to make not less than 30% of amount as downpayment.

      Apart from this, banks are just lending 9.6% of their total deposit amounts fearing rise in NPAs. Always show complete picture man.
      If you are happy, you are successful.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Bangalore real estate market starts feeling the heat

        After Mumbai & NCR, RE in Bangalore too is going down. In Pune it has started, look for schemes now from builders under the name of "Festive Offers"....for limited period only.

        Due to a slowdown in demand and rising cost of funds, many projects showed little progress in construction

        The real estate market in Bangalore which has been to an extent insulated from the weak demand uptick across in India, is starting the feel the heat. According to real estate advisory firm CBRE, Bangalore witnessed a decrease in sales of residential property in H1, 2012.

        Due to a slowdown in demand and rising cost of funds, many projects showed little progress in construction.

        Anshuman Magazine, Chairman and Managing Director of CBRE, South Asia Pvt. Ltd said, “Demand for residential properties has fallen, while that for rental properties has increased as end users deferred purchase decisions, anticipating a change in the prevailing economic environment and reduced interest rates in the coming months.

        Bangalore real estate market starts feeling the heat

        Btw, this is what happens when one buys based on DP/PROPOSED :-

        http://www.indianrealestateforum.com...790-page6.html

        Please read posts # 57,58 & 59.
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Happy Ganesh Chathurthi!

          SBI reduces base rate by 25 bps

          Sep 19, 2012, 05.21AM IST TNN

          MUMBAI: There is good news for home owners, car buyers and all other borrowers. A day after RBI reduced cash reserve ratio (CRR) by a quarter of a percentage point (25 basis points) State Bank of India (SBI), the country's biggest lender, cut its base rate by an equal amount.
          Effective September 22, SBI's base rate will be 9.75% per annum, from 10% now, a release from the bank said. Back of the envelop calculation shows that a 25 basis points reduction in home loan rate of 20 years tenure, can reduce the EMI by about Rs 17 for every Rs 1 lakh loan. So if a homeowner has a Rs 30 lakh loan of 20 years tenure, the annual savings work out to about Rs 6,100.
          "All loans linked to our base rate will benefit from this cut in interest rate," a SBI spokesperson said. "All the existing as well as new customers for home loans, car loans and all other loans which are not fixed, will benefit from this cut," the spokesperson said. Post this cut, SBI's base rate is now the lowest among all Indian banks.
          Base rate is the rate of interest below which banks cannot lend to its customers, except under special situations. All regular borrowers of a bank pay rates of interest usually a few percentage points higher than the bank's base rate. For example, on home loans of up to Rs 30 lakh, SBI charged 25 basis points above its base rate, which is 10.25% now. Effective Thursday, this will come down to 10%.
          The rate cut decision by SBI also came within a fortnight of it deciding to cut deposit rates, which was followed by several other banks. Industry players said the cut in deposit rates was mainly because of low pace of credit offtake, which in turn left large sums of money with the banks.
          Market players believe that since SBI is the biggest player in the banking sector and is also a very competitive lender, there would be pressure on every other bank in the country to reduce their rates. A clearer picture would emerge on Thursday, when banks reopen for business after Wednesday's holiday for Ganesh chaturthi, they said.

          Cheaper loans

          A 25 basis points reduction in home loan rates of 20 years can reduce the EMI by about 17 for every 1 lakh loan. So, if an owner has a 30 lakh loan of 20 years tenure, the annual savings work out to about 6,100 All the existing as well as new customers for home loans, car loans and all other loans which are not fixed, will benefit from this reduction



          SBI reduces base rate by 25 bps - TOI Mobile | The Times of India Mobile Site

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by realacres View Post
            Now read the real news :-

            Apart from this, RBI has declared RE as high risk sector & now home buyer needs to make not less than 30% of amount as downpayment.
            NPAs indeed are on the rise, however I did not come across the 30% downpayment news, can we get the source of this news?

            If its true then it is a commendable move indeed and will reduce participants willing to over leverage themselves

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by lovepune View Post
              SBI reduces base rate by 25 bps

              Sep 19, 2012, 05.21AM IST TNN

              Cheaper loans

              A 25 basis points reduction in home loan rates of 20 years can reduce the EMI by about 17 for every 1 lakh loan. So, if an owner has a 30 lakh loan of 20 years tenure, the annual savings work out to about 6,100 All the existing as well as new customers for home loans, car loans and all other loans which are not fixed, will benefit from this reduction
              SBI reduces base rate by 25 bps - TOI | The Times of India Site
              What!!! Should we rejoice for saving 6K, when we are getting ripped by thousands more. Doesn't sound right logic to me....

              Hey lovepune, where is the party for saving 6K annually?

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Fri, Sep 21, 2012 at 13:56

                Mumbai Real Estate - Slackness across segments]

                By Prabhudas Lilladher
                Mumbai Real Estate

                Sector Update - Slackness across segments

                - Sales registerations slip 3rd month in a row; 5% MoM

                - Lease registrations too continue on its downward trajectory

                - Rates unchanged, RBI maintains its anti-inflationary stance

                - FDI in retail to provide impetus to leasing as investments kick-in


                Slide from June onwards continues

                The slide in Mumbai sales registrations numbers that started from June has continued in August as well with a 5% MoM decline and a 2% YoY decline. The absolute decline from the peak of May stands at 13%. The lack of new launches, sticky prices coupled with high interest rates are of no help to home sales. The stressed affordability equation continues amid high property prices.

                Lease registrations, though higher by 10% on a YoY basis, on a MoM basis continued to decline by 6% post the 17% decline witnessed last month. The slowdown in commercial real estate is clearly visible from these numbers.

                Mumbai Real Estate - Slackness across segments - Moneycontrol.com

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by lovepune
                  I think people had enough discussions earlier regarding NPA's of a bank. Come on man... We are now tired of reading your posts..... At first during (Nov'09), your post regarding RE crashes really appealed to me and I also fantasized of buying RE in a cheap crashed market... But this has never happenned.. Instead I am pained to inform that I have lost considerably till I made buying decision in Dec'10... We are now very much confused regarding the real motive behind your posts.
                  Do you something which happened in 2009 ? It is called Restructuring of bad loans & teaser rates for buyers. It was only because of these 2 things which helped the builders survive, else many would have gone bust that time.
                  This time though, situation is lot worse, the banks are having huge NPAs & NPAs in realty are registering 30% growth YoY, which is huge. Add to it fiscal deficit & RE being termed as HIGH RISK by RBI, monetary situation is worse for RE.

                  Guys dont worry regarding few bad transactions posted by realacres..This is bound to happen in such a diversified market with thousands of transactions per day...
                  Issue is not just number, issue is the percentage rise in bad transactions, which is huge. Over 15,000 Cr worth houses being sealed in 1 year is not a joke (Please check previous post for the details).

                  IT is true that there is a stagnation in RE demand and prices.. But this is only due to the factors such as high interest rates on home loans and high inflation rates.... There are millions of Indians who do not even have there first home... Once these factors turn in favor of buyers, there will be a strong demand back again.
                  Now you spoke typical words of CREDAI/PBAP .
                  Interest rates is nothing compared to absurd rise in realty prices. When flats don't sell, builders are first to point towards high interest rates, as if, if banks lower interest rates, builders will become Mother Terresa.

                  And which millions you are talking about ?
                  Those staying in rural areas don't have builders there, there are people who stay in slums & then worse case is staying on platform & footpaths.

                  Saying millions don't have home is a sham. And those who stay on rent stay in aashram or what ?? Those who buy flat with loan also don't own the flat in reality, as flat remains with the bank & not buyer till entire loan is repaid. Please don't forget this fact.

                  Yes, I agree that demand is there, but at right prices. People earning above 10L/annum are not even 2% of India's population & if these 2% are finding it hard to buy, imagine what will be the plight of remaining 98% ??

                  Infact, now is the correct time to buy as RE market has already corrected (not reduced)) considerably....
                  LoL. One on hand you say prices won't correct & now you say they have already corrected & won't fall further ??
                  It is true that prices have indeed started to fall but there is ample scope for further downfall. RE bulls make the statement like you above so that people buy at inflated prices which will help you to hold on to the bubble even a bit longer, but my friend this is not going to happen this time. Fun has already started in RE, just keep an eye around & who knows you may get a deal that one may not have expected of just 3 months ago.

                  BTW, when US subprime crisis took place, people thought nothing will happen that way & now we all know what happened next.

                  I have more RE downfall news of this week, will post them below.
                  If you are happy, you are successful.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by pande1 View Post
                    NPAs indeed are on the rise, however I did not come across the 30% downpayment news, can we get the source of this news?

                    If its true then it is a commendable move indeed and will reduce participants willing to over leverage themselves
                    The link was uploaded here over a month ago. RBI has now also stated that all the taxes (stamp duty, reg, ST etc.) shall be kept out of home loan amount, which means additional 10% downpayment for the buyers. And very few banks now lend over 75%-80% loan, hence net effective down-payment of total cost becomes atleast 30%.
                    If you are happy, you are successful.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      2 bhk for 82 lakhs in a society where it was 60 lakhs in 2010....this is builder quote..clearly prices have not cooled down..they are only heading upwards without any reason

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