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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

    A bulb grows brightest before blowing out...I sense the same for Real Estate.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by Karan Dheer View Post
      A bulb grows brightest before blowing out...I sense the same for Real Estate.
      People are saying this since last 4 years now...
      Problem is with our system... You get 0% interest for buying Iphone and 10% for buying home??? ridiculous, isn't it? what is life essential commodity?

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Well, I am sure all this analysis is well founded and carefully researched and not just wishful thinking. I just wonder why then are the prices in most of Pune still in an upwards spiral?

        I am not an RE expert, just a common buyer on the lookout for a good deal. However, based on whatever discussions (and my attempt at negotiations) with various builders over the past 12 months, I just see the prices staggering higher and higher with each phone call I make to them. Given the facts that have just been posted previously about builders going bust et al, shouldn't the prices be dropping or at least staying stable?

        Seriously perplexed.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Times are tough for builders....no denying that...but regarding the rates it depends on lot many factors other than the general conditions of builders...

          For example: If the land on which the project is being developed is inherited or family owned then the most costly part to start a project is taken care of...construction cost could be raised by bookings as they come...these kind of builders can play games a little longer than others...

          Also if you are calling them repeatedly then it shows your eagerness and it gives them an upper hand...

          One of my friend is in negotiations with a builder for a project in wakad...already brought it down from 4700 to 4300...but will close a deal only if gets the flat for 4100 or so...the builders office calls him in between to visit again...
          Alcohol doesn't solve any problem...but neither does the milk.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by SohamK View Post
            People are saying this since last 4 years now...
            Problem is with our system... You get 0% interest for buying Iphone and 10% for buying home??? ridiculous, isn't it? what is life essential commodity?
            Banks are there to earn and not to lose money. They have the obligation to pay interest for the money people have saved in their bank, so loan rate will always be 1-2% higher than FD rates.

            And less loan rate means further increase in RE prices.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by UncleScrooge View Post
              Banks are there to earn and not to lose money. They have the obligation to pay interest for the money people have saved in their bank, so loan rate will always be 1-2% higher than FD rates.

              And less loan rate means further increase in RE prices.
              Yes, and infact if you see, many builders including likes of Goel Ganga used to advertise something like, XYZ project, 1BHK - EMI 16,000, 2BHK - EMI 20,000 etc. This means builders try to see the EMI capacity of the buyer rather than the worth. I have come across RE chaps who said that most of the time, people don't think whether the price is worth or not, but only think about EMI, so we squeeze them as much as possible.

              If you observe, builders always demand that interest rates should be lowered so as to make housing more affordable. This is indication that they too think about EMI on pricing rather than rate/sq ft or total package.

              Once buyers think about the worth of the property rather than ONLY EMIs, things will change for the better for buyers. No point in working for 20 yrs for builders & banks.
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Is the Pune mall bubble bursting?

                Mere paas mall hai

                ► Abhiruchi Mall now sports 40 street hawkers from Tulsibaug,
                ► With no takers, food court is run by former streetfood vendor,
                ► No complaints from brands, but customers can’t bargain here,
                ► We call it the mini Tulsibaug market. Most shops we built on this floor have not been rented yet, so we decided to give the walking space to small retailers.

                Finally, it seems there’s one mall too many in the city. With no takers for its second-floor shopping area, the Abhiruchi Fun and Food Mall on Sinhagad Road in Vadgaon Budruk — all of 15 months old — has given the level over to streetside hawkers along the lines of the Tulsibaug shopping district in the heart of the old city.

                It doesn’t end there — the food court on the third floor has been given over to a roadside fast food vendor called Godwa Chinese, who now runs a snack centre offering the usual list of vadapav to bhajjis and south Indian fast food. In fact, it is now called the Godwa Food Court.

                Mere paas mall hai, News - Latest - Pune Mirror,Pune Mirror
                If you are happy, you are successful.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by realacres View Post

                  Once buyers think about the worth of the property rather than ONLY EMIs, things will change for the better for buyers. No point in working for 20 yrs for builders & banks.
                  I know one builder......L & T has started quoting price as entire amount of the flat.
                  No per Sq/ foot
                  No loading

                  Of course, like other builders, they also tell you all extra ( society, utilities, Service-tax, VAT ) charges at the time of quoting the basic cost.

                  They give 3 numbers only....
                  Carpet area, basic cost and all inclusive cost...
                  That's it.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by realacres View Post
                    Mere paas mall hai

                    ► Abhiruchi Mall now sports 40 street hawkers from Tulsibaug,
                    ► With no takers, food court is run by former streetfood vendor,
                    ► No complaints from brands, but customers can’t bargain here,
                    ► We call it the mini Tulsibaug market. Most shops we built on this floor have not been rented yet, so we decided to give the walking space to small retailers.

                    Finally, it seems there’s one mall too many in the city. With no takers for its second-floor shopping area, the Abhiruchi Fun and Food Mall on Sinhagad Road in Vadgaon Budruk — all of 15 months old — has given the level over to streetside hawkers along the lines of the Tulsibaug shopping district in the heart of the old city.

                    It doesn’t end there — the food court on the third floor has been given over to a roadside fast food vendor called Godwa Chinese, who now runs a snack centre offering the usual list of vadapav to bhajjis and south Indian fast food. In fact, it is now called the Godwa Food Court.

                    Mere paas mall hai, News - Latest - Pune Mirror,Pune Mirror
                    Very good news... that means those roadside fast food vendor can afford the rent which means his product sells and people want it. No point having 100s of Reebok shoe stores in one city. Also hoping no one else has taken up his place on that road and there is now more room for traffic

                    But yes just too many malls and most of them very poorly planned. Convert all of them to food courts or small stores or even tution centers...

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by realacres View Post
                      Yes, and infact if you see, many builders including likes of Goel Ganga used to advertise something like, XYZ project, 1BHK - EMI 16,000, 2BHK - EMI 20,000 etc. This means builders try to see the EMI capacity of the buyer rather than the worth. I have come across RE chaps who said that most of the time, people don't think whether the price is worth or not, but only think about EMI, so we squeeze them as much as possible.

                      If you observe, builders always demand that interest rates should be lowered so as to make housing more affordable. This is indication that they too think about EMI on pricing rather than rate/sq ft or total package.

                      Once buyers think about the worth of the property rather than ONLY EMIs, things will change for the better for buyers. No point in working for 20 yrs for builders & banks.
                      It happens with a lot of other goods and services as well. Doctors, Tutions, Electricians, Plumbers, Vegetable vendors etc etc....
                      Saris are another classic example.... prices changes based on the location...

                      But the difference between RE and all these other areas is that RE is so closely linked to the political class that when quality is poor or when prices are raised beyond rational explanation then people think is another scam (and Indian RE is a scam) and hence the general anger and frustration.

                      Comment

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