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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

    Real estate cases top in court

    In a city which boasts of highest number of consumer grievances in the state, cases of insurance default and real estate invariably occupy the top slot.

    We get a large number of cases related to real estate. The number of consumers approaching us for non-delivery of flats in times has been increasing. We have a number of cases of cheating by the builders. This includes even the top builders in the city. We have several cases of builders who are repeat offenders. We have issued arrest warrants against them as well," said an official of the Gurgaon district consumer disputes redressal forum.

    Real estate related cases highest at consumer court - The Times of India

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      India inverted Yield Curve

      As usual, the best predictor of an impending economic slowdown is an inverted yield curve – and that’s precisely the situation in India now. -

      EconoMonitor : EconoMonitor » RBI’s Battle With Currency Weakness Inverts the Yield Curve; Will Cost India’s Economy Dearly

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Offer from Pune builders

        Some latest offers from Pune builders :-

        > Pinnacle group is giving all taxes free, which means cash discount of over 11%+,

        > DSK who on one hand says that RE prices will never come down, if offering FD scheme at 12.50%/annum. Why ask for money from retail investors if everything is good ?
        And yes, the money is not secured, invest on your own risk !!!
        If you are happy, you are successful.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          The much relied upon NRI diaspora in tough financial climate also seems to be loosing interest in the indian growth story.....

          http://profit.ndtv.com/news/economy/...ome-topstories
          B+, even my blood says so

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by rambler View Post
            There are many reasons for fall in INR :-

            > The basic problem was riding CAD or Current Account Deficit, mainly due to pouring of money in hopeless schemes like NREGS, 6th pay commission & now food security bill. The food security bill itself is going to cost us over 1.35 L Cr !!

            > Lot of loan restructuring was done in 2008, which was nothing short of postponing the death of companies (Realty sector included). This led them to take more loans, even by the way of ECB (External Commercial Borrowing). Add to the woes, hedging was done by several companies as they didn't expect INR to fall so low.

            Eg. Reliance ADAG had debt of over 92k Cr, now it's over 1.125 L Cr !! Same is the case with several other cos.

            > Manufacturing was put on back foot, & this led to more imports (oil the most) & less exports. If you see stats from 2008, the IIP & exports are on decline. Wonder why Govt didn't act before.

            > And more importantly, due to pathetic economic scenario, FIIs pulled money out, leading to more losses for INR. Will post more news for this below.

            Fact is, nor the Govt, nor RBI has anything much to do to avoid further fall of INR.
            Deutsche bank & Credit Suisse have already said they won't be surprised to see INR at 75.
            If you are happy, you are successful.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by ani_124 View Post
              The much relied upon NRI diaspora in tough financial climate also seems to be loosing interest in the indian growth story.....
              +1
              Thanks for the link, I was reading it in other tab !!
              This clearly shows that all RE bulls logic that high $ would mean more NRI inflows falls flat.
              As said, one needs to focus on FUNDAMENTALS & not SPECULATION.

              The patriotism of wealthy overseas Indians has helped the country avert economic crises in the past and it is little surprise that embattled policymakers are turning to them again to plug a record trade gap that is battering the rupee.

              This time, though, big investors among the more than 25-million overseas Indian community - the world's second-largest diaspora - are staying away as the economic outlook darkens and political instability looms ahead of national elections.

              Investments in real estate by overseas Indians dropped about 30 per cent in the fiscal year that ended in March, according to the Confederation of Real Estate Developers' Associations of India (CREDAI), an umbrella group of local property developers.

              Rupee crisis: Expats patriotism elusive as growth fades - NDTVProfit.com

              >> The writing in BOLD above should be enough as a proof to RE bulls that NRI aren't coming to invest in RE. All know that RE can be dead for investment at any moment.
              If you are happy, you are successful.

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                SBI raises salary limit for auto loans: sources

                In an attempt to curtail exposure to automobile loans, State Bank of India, the country's largest public sector bank, today tightened the criteria for disbursal of such loans, according to market sources.

                The bank has raised the minimum salary requirement for the loan to Rs. 6 lakh (gross) per annum from Rs. 2.5 lakh (net) earlier, the sources added.

                An increase in distressed loans, and the provisions to guard against them, are likely to eat into the profits of State Bank of India this financial year and also hurt its smaller state-run rivals.

                "I can't see why financial 2014 should get better for SBI. Today, the asset quality pressures are huge, not for SBI alone, for the entire banking sector," said ASV Krishnan, banking analyst for Ambit Capital.

                SBI raises salary limit for auto loans: sources - NDTVProfit.com

                >> The eligibility for car loan has more than doubled now. Car loan is the first to hit, followed by RE. Now if SBI hikes home loan eligibility, imagine the RE fall will be even more than expected. Already RE is in bubble & sales have nose-dived. Having higher salary for home loan would mean even lesser buyers. Now not only the builders, even investors will be hit hard as they will see only vacant flats & half way halted buildings. This time RE will fall so hard, investors will need to think 1000 times next time before getting in, if at all they decide to do so.
                If you are happy, you are successful.

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  A part of the Indian diaspora will have to repatriate money as they will be coming back after a short stint offshore.That is not a measly amount.

                  Originally posted by realacres View Post
                  +1
                  Thanks for the link, I was reading it in other tab !!
                  This clearly shows that all RE bulls logic that high $ would mean more NRI inflows falls flat.
                  As said, one needs to focus on FUNDAMENTALS & not SPECULATION.

                  The patriotism of wealthy overseas Indians has helped the country avert economic crises in the past and it is little surprise that embattled policymakers are turning to them again to plug a record trade gap that is battering the rupee.

                  This time, though, big investors among the more than 25-million overseas Indian community - the world's second-largest diaspora - are staying away as the economic outlook darkens and political instability looms ahead of national elections.

                  Investments in real estate by overseas Indians dropped about 30 per cent in the fiscal year that ended in March, according to the Confederation of Real Estate Developers' Associations of India (CREDAI), an umbrella group of local property developers.

                  Rupee crisis: Expats patriotism elusive as growth fades - NDTVProfit.com

                  >> The writing in BOLD above should be enough as a proof to RE bulls that NRI aren't coming to invest in RE. All know that RE can be dead for investment at any moment.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by realacres View Post
                    +1
                    Thanks for the link, I was reading it in other tab !!
                    This clearly shows that all RE bulls logic that high $ would mean more NRI inflows falls flat.
                    As said, one needs to focus on FUNDAMENTALS & not SPECULATION.

                    The patriotism of wealthy overseas Indians has helped the country avert economic crises in the past and it is little surprise that embattled policymakers are turning to them again to plug a record trade gap that is battering the rupee.

                    This time, though, big investors among the more than 25-million overseas Indian community - the world's second-largest diaspora - are staying away as the economic outlook darkens and political instability looms ahead of national elections.

                    Investments in real estate by overseas Indians dropped about 30 per cent in the fiscal year that ended in March, according to the Confederation of Real Estate Developers' Associations of India (CREDAI), an umbrella group of local property developers.

                    Rupee crisis: Expats patriotism elusive as growth fades - NDTVProfit.com

                    >> The writing in BOLD above should be enough as a proof to RE bulls that NRI aren't coming to invest in RE. All know that RE can be dead for investment at any moment.
                    NRI Indians have traditionally been sending huge remittances to india and the inflow from them sustains economies like Kerala and play substantial role in RE>
                    But when the economic crisis is man made to great extent in our nation due to populist policies,knowingly providing subsidies to schemes meant to entice voters to support a particular party.
                    Hard decisions to tighten the belt are missing.Fiscal discipline is totally lacking.
                    Reduce imports and buy more of Indian products
                    Stop buying cheap Chinese goods and running a negative trade balance of 29 Billion dollars.( It's no secret that the omnipresent Chinese goods, mainly fake versions of your favourite brands—be it garments, toys, computer hardware, I-pods, chocolates and even cellphones are available at throwaway prices in the Indian markets. But now, even the Tricolour comes with the 'Made in China' tag.)Link:http://articles.timesofindia.indiati...hadi-gramodyog
                    India needs a hardheaded look at its finances and start moving toward tightening financial discipline,plug revenue leakages and cut down Government spending. Sending IT notices to mostly middle class people who buy or sell a flat is not going to increase tax complaince in big way. Middle level businesses,hotels,land deals etc need to be scrutinised for revenue generation and corresponding tax payments.Movement of cash needs more monitoring
                    Forthcoming Elections should not be a reason to avoid taking prudent steps to reign in the downfall of our economy.Our Government is hostage to electoral considerations.
                    Our nation has the knowledge to ability to come out of this crisis,but the will is lacking.Electoral considerations of political parties are holding the economy down.
                    All of us are patriotic and wish the best for our nation,but with the present uncertainty,if NRIs are holding their money in their place of work, it is just that they are waiting to see unfolding situations before remitting money back to home land.They are looking at safety first.
                    Last edited by vaibav123; August 30 2013, 05:56 AM.

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      http://m.moneycontrol.com/news/business/empty-realty-spaces-profitable-no-more-dtc-plugs-loopholes_942355.html

                      Empty realty spaces profitable no more! DTC plugs loopholes - CNBC-TV18

                      The government is now going to go after speculators and all those investors that like to buy properties to only hold on till a significant price appreciation takes place. All these investors may now feel the need to exit all of those properties before the developer gives possession and that could add more pressure to an already subdued real estate market. According to the revised Direct Tax Code (DTC), A person could own 10 houses and may not be liable to tax if the same are not rented out. In such a scenario precious house property stock would be under utilised along with a net revenue loss to the government. To plug this loophole it is proposed that rental value is to be taken as the higher of contractual rent or 6 percent per annum of ratable value fixed by the local authority. Vacancy allowance would be allowed."Till now all these investors only factored in a capital gains tax and a one percent TDS for properties above Rs 50 lakh that was only recently introduced in this

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