Announcement

Collapse
No announcement yet.

Builders & Real Estate Bulls Theory Proved Wrong

Collapse
X
Collapse

Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
12768 | Posts
  • Time
  • Show
Clear All
new posts

  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    The life cycle of a bubble: http://www.indianrealestateforum.com...-post1078.html

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Good prodding from finance secretary

      Banks should wrest control of firms from wilful defaulters: Takru - Livemint

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by ashish18 View Post
        Wow... nice going mr financial services secretary... so the govt will put in place all kinds of restrictions.. delays in clearing projects, change laws and policies, create a big fuss on FDI etc etc but promoters should still be able to pay back the banks and if they dont then the management has to make way?

        The financial services secretary makes the following statement
        "“More than your money, it is the banks’ money that is at stake and it is public money that you have mismanaged,”

        In which school did her learn how businesses are run and how a balance sheet is produced? The banks lend to customers and borrow from depositors. The depositors are not directly lending it to the customers. There is a legal entity between the depositor and the customer. And its not public money which is being mismanaged. Its the banks money which is being mismanaged. Did we not learn anything from the credit crisis that hit US 6 yrs back?

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          @Wiseman
          Perhaps risk-management in RE today, buy and hope prices will keep rising up at a rate enough to keep the buyer from going underwater on the loan for next 20 years, is pure hope-based risk management and seems to be turning out to be the "Hopium" of the masses!
          If I buy a house/flat on loan. I see certain financial calculations-that my salary will be able afford the EMI during the duration of loan,Rent should partially at least cover up part of my EMI.Many people reduce some part of their savings in order to cater for EMI and use the interest portion to tackle income tax. Increasing price of the flat will arise only in case of sale of.
          house.With the way our economy is shaping up-hope based risk management is indeed a palliative for decreasing returns on Investment.
          I agree that buying an under construction flat at this juncture of defaults by RE firms is a big risk.
          But still buying a completed flat places more control in your hands.The asset is in hand and in your physical possession.
          The avenues of investment have now become unstable.Gold is volatile,Share market is equally volatile,Bank FD though rates have increased, are not enough to combat inflation.MFs are now not giving adequate returns again being market based.
          So people always eye RE-flats,shops,land as a class of investment. If this continues its roller coaster ride,the people will have to literally keep their savings in cash form only.If the crisis is going to take such a bad turn where RE prices are going to halve,then even banks may default.
          Not withstanding the crony capitalism,family dominated big business and fault lines in the way our industries work,economic decisions are taken by GOI, I am sure the nation will pull back from this economic crisis and economy will soon be on track.
          Last edited by vaibav123; August 14 2013, 06:01 AM.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Jim Rogers: Why I’m shorting India - Livemint


            I am not sure if India has been really a democracy in the true terms—from 1947 onwards, the opposition has had just one full term at the centre. The first five decades of its democracy, the centre has only seen a government led by a single party.

            Compared to many of the countries globally, India was on top in 1947, but relatively India has only declined since then. Remember that you move from dictatorship to oligarchy to democracy to chaos—may be they will throw out these absurd oligarchs who rule India and then it may have a vibrant democracy and regain its proper place, its historic place in the globe.

            We are indeed heading for chaos with regional parties ruling the roost in 2014 - they'll send us back to tribal age .
            Last edited by suryawork; August 14 2013, 10:11 AM.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by fatichar View Post
              And the monthly interest, if taken out monthly, will remain 30k only even after 20 years, whereas rent would have increased ten fold.

              - tapatalk free
              20 years is too long time these days.
              In 20 years, but then India would have faced 1-2 more crises, many things would have changed. Govt. propensity for new taxes will never come - may be by them you might as well inheritance tax, which will badly reduce the investor's appetite for owning the house investments are forever.
              Last edited by ashish18; August 14 2013, 11:37 AM.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by herohiralal View Post
                My experience if quite different. People who have 15 yr exp in the IT industry and those who have stayed in the technical domain or have moved into the business side of things are really minting money at the moment. There are many project managers who will certainly be culled but talented folks have never had it better.
                How many of such examples do you have 1 in 100 or 1 in 1000 ? Is it so trivial to start a business ? If you have worked in technical ladder for years in indian IT, just with technical expertise, anyone will offer you business opportunity ?. Why would they prefer you over CMM level 5 companies ? Cost is not the only criterion to give business. Your credibility about timely execution is equally important.

                Also, most of the folks with 10+ years technical experience move into managerial ladder as there is no meaningful future for technical folks over 15 years experience given the fact that Indian IT is being looked upon as cost saving outsourcing entities and not for technological innovations.

                Often during the boom times, redundant managerial positions are created and it busts, the redundant positions are eliminated.

                Originally posted by herohiralal View Post
                A 12 yr old and a 20 yr old maybe producing the same quality of output but you need to ask that 20 yr old some serious questions if he/she is still in India and has to compete with 12 yr experienced IT folks.
                Many want to be India due to their personal preferences parents, kids, spouse etc. What questions would you ask if 20 years if someone with 15-20 years of experienced has to compete with someone with 12+ years - Please tell ? Its a hard fact of the IT industry, you simply don't have so many openings as you move up in the pyramid.
                Last edited by realpune; August 14 2013, 11:50 AM.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by realpune View Post
                  Nothing can impact RE, it can only go up! Just kidding

                  Although, the article talks about freshers. There is bigger problem for those with 15+ years of experience. When it comes to cutting costs, such people are looked upon as easy targets. The kind of low end consulting work done in Indian IT, doesn't' add up any value to your experience once you go past 15 years. If someone with 12 years exp can deliver similar to the one with 20 years, why the company will spend more!

                  Recently, I have seen such trend where high salaried seniors are targeted. There are very few openings for this experience in IT these days. Growing insecurity can be easily noticed.

                  Sent from my KFTT using Tapatalk 2
                  I don't think I have learned anything for the past 2 years of my professional life. 5 years of total work-ex. That is why I am thinking of starting a factory or trading business from my life's saving of the last 5 years of the so called "professional life". Anyways, there is hardly any "life" left in my "professional life". "Profession" ate the "life" in it. So, if it is factory work or programming, it hardly matters.
                  Last edited by ankitnagpal; August 14 2013, 11:49 AM.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by realpune View Post
                    How many of such examples do you have 1 in 100 or 1 in 1000 ? If it so trivial to start a business if you have worked in technical ladder for years in indian IT ? Just with technical expertise, anyone will offer you business opportunity ?. Why would they prefer you over CMM level 5 companies ? Cost is not the only criterion to give business. Your credibility about timely execution is equally important.
                    Just to inform everyone, I am doing IT business for the last 3 years now. And I think it is toughest business to get any money, irrespective of your technical expertise. Though, this might be true only in my case, other entrepreneurs probably are better than me and this post is not not demotivate any entrepreneur.

                    I have earned good money than my job that I left 3 years back. like 3-4 times more, but I had to work 24/7 looking for money like a stray dog looks for food rotting in garbage and I was lucky to get good business and it was a great timing and pure luck. But there is no job security, everyday I wake up praying to god that my business survives one more day in this not-so-perfect world where human life has no value.

                    A note for future entrepreneurs:

                    If you are in IT just like half of the employed Indians, you would think let's start a development company like TCS, Infosys, Wipro, or lets start a SEO company or lets start a e-commerce shop, let's sell goods online. TCS earns from our work, so why not start a company of our own and all fortune 500 companies will give project to you because you are willing to work at 1/4th the price of TCS billing. What a dream !!! You know what, YOU WILL FAIL because there are more than million "one-man-show" online shops like these who will do all sorts of programming for you, will do all sorts of SEO for you, will even dance for you. So, don't be a fool to start a business, especially in IT. Start a chemist shop or grocery shop or garments shop instead. At least you do not have to sit idle and wait for projects. You will contact all your friends who are in IT companies to get a development project. You will get NONE. Then you will start "make website for Rs. 2000 only" business. And when that fails, you will realize the only way to get a project is to rank your website high on Google ranks for good keywords like "outsourcing to India", "php developers needed" etc. And when you won't get any project for 6 months then you will start online marketing of your own "one-man-shop" website in a hope that Google will rank you in top 5 ranks and then you might get any project in the next 1000 years. I was lucky enough that I did not end up like that and will probably be able to survive for the next 2-3 years. But I can not say the same for you all "Bill Gates" wannabe.
                    Last edited by ankitnagpal; August 14 2013, 12:18 PM.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Talking of pyramid in IT if you maintain your technical skills then there is demand irrespective of 10/12/15/20 years of experience and this is from my personal experience . There is a severe shortage of senior people with good technical skills especially in services organisations since guys start to move into people management roles at 8+ years and start to have a comfortable life .

                      No private job will pay you based on years of experience but on what value you bring to the company . Making and keeping money is not easy and thats why this RE rot is not stopping...all stakeholders want to earn their lifetime in a few years , so dont blame them - its the public who has to make wiser decisions - remember , no pensions , social security , health care benefits on retiring(and your career might last only for 20 years) - dont over leverage based on your future uncertain income !!!

                      Comment

                      Tags: None
                      Have any questions or thoughts about this?
                      Working...
                      X