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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 harrypoter View Post
    Yip they are on their way.

    Not only in mine company(McAfee), i am hearing, UBS, Alcatel lucent, eBay, etc etc are planning to layoff.
    UBS bank is going to layoff few thousand employees in coming weeks.
    Moto-rola is also doing to the same to cut costs.

    And BEs who passed out latest academic year, their appointment has been put on hold, especially in IT sector. One can confirm the same from colleges like VIT, STES etc. The package for fresher MBAs has also come down. Came to know about this from my friend in gym who studies at Pumba.
    Last edited by realacres; November 1 2012, 02:02 PM.
    If you are happy, you are successful.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Land Rates in Pune is Cheap

      From the following news, it is evident that land prices in Pune are low compared to flat costs. I have always been saying that the builders' logic of high land cost, high cost of labor etc. is just a hogwash. They make no less than 100-120% profit. And yes, the rate quoted to individual buyer is far more than quoted to the builder in reality. See the news below to get all details.

      Realty hit by lack of amenities in Pune

      Real estate watchers operating in the fringe villages believe that bringing these under PMC limits would not have an immediate spiralling effect on the land prices, due to lack of infrastructure here. Besides, with the properties changing hands several times over, demand would be slow to pick up.

      Sus, Mahalunge, Narhe, Kirkitawadi and other villages are being merged within PMC limits. Though local villagers have claimed it would mean a quick escalation of their land prices, experts feel otherwise.

      An established real estate developer of Pune said that the realty industry had already extended its limits long before the state government’s decision was made. “Around 50% of the land has changed hands from the original landholders to the builders, who would now be developing the land,” he said. On an average, the price of per sq ft of land around Pune hovers between Rs800 and Rs1,000.

      In the last decade, land prices have risen in line with the trends of the city at large. Dhiraj Oswal of Devachi Uruli, one of the villages that would come under the PMC, said, “In 1997, the land price for a guntha of land was Rs30,000, which has now gone up to Rs1.5 lakh.”

      Real estate expert Ravi Karandeekar said, “PMC has failed to provide proper infrastructure within its own limits. So, their chances of performing miracles in the merged villages are slim. That’s why, property prices would not rise immediately.”

      Real Estate Pune - Indian Real Estate Forum - www.indianrealestateforum.com
      If you are happy, you are successful.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        PE funds unable to exit RE

        PE funds are unable to exit, realtors are not allowing them to.

        PE funds, realty firms in disputes over exits, corporate governance - Livemint

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by realpune View Post
          PE funds are unable to exit, realtors are not allowing them to.

          PE funds, realty firms in disputes over exits, corporate governance - Livemint
          Thanks for the link. I also got info that many investors are trying to exit projects even in under-constro project, some have already done & builders are showing them fake picture by hiking the rates to create artificial feeling that their money is increasing. However, investors are not buying this any longer. Once they pull out, situation for builders is going to be miserable as their source of funding will completely dry up, especially when banks are not lending to RE; and in latest RBI policy, the interest rates remaining the same.

          RBI Guv has also said that inflation & interest rates will continue to remain high for alteast another 18 months. It is also good to see that RBI is working in interest of the country rather than selfish politicians .
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Indian Sub-Prime Version

            The following news shows that we too may be headed towards US sub-prime crisis like scenario. Check this news :-

            Is SBI, BoB, Union Bank and HDFC Bank lending money to builders without any security?

            Lenders are indirectly financing builders under a tripartite agreement where the bank can create equitable mortgage only after completion of the project. Till such time, the advances or loan provided directly to the builder by the bank remain unsecured and risky

            Several lenders like State Bank of India (SBI), Bank of Baroda (BoB), Union Bank of India (UBI) and HDFC Bank are indirectly providing funding to builders without any tangible security under the guise of “tripartite agreements”.

            Specially in case of SBI, such unsecured home loans were worth about Rs60,000 crore or 60% of the lender’s housing portfolio of Rs1 lakh crore as on 31 March 2012. By not making adequate provisions for such unsecured housing loans, SBI was able to show inflated profit for FY12, Mr Natani said.

            2. What is the risk to the bank?

            The bank starts disbursing the loan amount to the builder on behalf of the borrower as soon as they all sign the “tripartite agreement”. In such a situation, the bank does not have the home loan secured by any tangible security till the EM of such flat is created by the borrower in favour of the bank. This usually happens only after 18-20 months, the time take by the builder to execute the sale deed of the flat or property in favour of the borrower. In case, the builder goes bust due to over exposure to real estate market or slowdown in the markets, the bank may be without any tangible security. This may be detriment to the interest of deposit-holders of the bank.

            Complete news & scan copies here :-

            Is SBI, BoB, Union Bank and HDFC Bank lending money to builders without any security? - Moneylife

            Fortunately, I don't have account in HDFC, and SBI I closed over 5 months back.
            If you are happy, you are successful.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              what is with this negativity all the time...

              Originally posted by realacres View Post
              The following news shows that we too may be headed towards US sub-prime crisis like scenario. Check this news :-

              Is SBI, BoB, Union Bank and HDFC Bank lending money to builders without any security?

              Lenders are indirectly financing builders under a tripartite agreement where the bank can create equitable mortgage only after completion of the project. Till such time, the advances or loan provided directly to the builder by the bank remain unsecured and risky

              Several lenders like State Bank of India (SBI), Bank of Baroda (BoB), Union Bank of India (UBI) and HDFC Bank are indirectly providing funding to builders without any tangible security under the guise of “tripartite agreements”.

              Specially in case of SBI, such unsecured home loans were worth about Rs60,000 crore or 60% of the lender’s housing portfolio of Rs1 lakh crore as on 31 March 2012. By not making adequate provisions for such unsecured housing loans, SBI was able to show inflated profit for FY12, Mr Natani said.

              2. What is the risk to the bank?

              The bank starts disbursing the loan amount to the builder on behalf of the borrower as soon as they all sign the “tripartite agreement”. In such a situation, the bank does not have the home loan secured by any tangible security till the EM of such flat is created by the borrower in favour of the bank. This usually happens only after 18-20 months, the time take by the builder to execute the sale deed of the flat or property in favour of the borrower. In case, the builder goes bust due to over exposure to real estate market or slowdown in the markets, the bank may be without any tangible security. This may be detriment to the interest of deposit-holders of the bank.

              Complete news & scan copies here :-

              Is SBI, BoB, Union Bank and HDFC Bank lending money to builders without any security? - Moneylife

              Fortunately, I don't have account in HDFC, and SBI I closed over 5 months back.
              9 out of 10 posts from you are about negativity and sky falling down... it must be a difficult life....but please also post some positive and good news on the forum.... these negative posts are not helping the hit count of the website...

              and just curious to know which bank do you use then...... if HDFC and SBI are not safe... then is Icici, Axis safe??? Are you into Home Banking

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Chidu is desperate to avoid Junk status!

                That's the reason he was extremely unhappy when RBI denied to lower rates!

                Act now to stave off 'junk grade' tag, Chidambaram warns Cabinet - The Economic Times

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  How to improve Trust deficit ?

                  Excellent read!

                  http://www.firstpost.com/blogs/trust...&utm_medium=hp

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    No i have never heard about Sandy being a hurricane

                    Originally posted by rembrants View Post
                    No..I havent heard any such rumours. No layoffs are coming
                    cause i dont have a TV

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      No buying this Diwali!

                      No one is buying this Diwali!
                      The realtors greed is still on and prices are being raised in spite of no buying.

                      One thing is very clear - interest rate cuts are not attracting buyers anymore, only price cuts will.

                      Home buyers on strike this Diwali: It’s the prices, stupid | Firstpost

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