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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 ThePunjabi View Post
    If an unstable government is formed after elections, expect INR to depreciate to 90 or even worse and that will be a very good news for IT companies and TCS etc. will give even better returns.
    economic uncertainty is never a good news for anybody including exporters. If Rupee further depreciates, inflation will rise rampantly and Indians will be stuck paying through their noses just for basic amenities.
    ...Thoda Aasman

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by paaaap View Post
      No I didn't guess it but am I not posting negative news about IT or RE for last 4-5 years. I am just saying that this thread lacks balance. Daily we see 3-4 posts from the same person which are all negative.
      Let's get our fact straight first. This is the internet. People here can post anything. Positive, negative, uninformed, biased, whatever.

      The way I use this forum is to collect information and form my own opinion about things. Nobody is going to make the hard decision for you whether you should go ahead and buy a house or not. You should collect all the information both positive and negative, take your personal situation into consideration and eventually take a decision.

      The positive side of real estate is already oversold. You see glossy ads, pestering call from brokers, or a friend of a friend who has made a killing in the real estate market. heck the amount of people who still blindly believe that "real estate will always go up" is shocking if not shameful.

      Now for the negative side. That is tricky. Look at Coke and Pepsi for example. We all know these are really shitty drinks and really bad for health. But Coke and Pepsi continue to pour millions of dollars in advertising, get the latest kapoor to market their product, and essentially sell a lifestyle and happiness to peddle their products mostly aimed at youngsters especially kids.

      Now if somebody points out the health concerns associated with drinking colas, will that be labelled as negative? things like obesity, diabetes, dental decay are all very much real and colas play a major role in causing all such problems. Coke and Pepsi ofcourse have no incentive to point out such health risks and they even downplay their role in inflicting these diseases.

      The market will always try to sell you shitty stuff. You should be smart enough to figure out what is really worth your time and more importantly money. The lack of government regulation and a solid legal system in India makes things even worse.

      Nobody can predict the future. The true mark of a learned human being is taking into consideration all the factors both positive and negative and take a decision which they can live with for the rest of their lives.

      Also, nobody is saying that India is doomed and we are all going to die. What the "negative" posts are saying is that India is not growing as fast as it was supposed to and that should create problems for Indians in the short-term. Taking this into context, when I look at the overpriced real estate market, the math doesn't add up. At current rates, only people with salaries over 15 to 20 lakhs can think of buying a decent house in Pune. How many people earn that kind of salaries? What about household expenses? What about the 80K EMIs for the next 15 to 20 years?

      After running all the numbers, I personally feel that the real-estate market in Pune is grossly-over priced. I could be wrong. In my lifetime, the prices may continue to rise. But the penalty for taking a wrong decision by buying an overpriced asset is much worse than the penalty of sitting on the sidelines thinking that you have missed out on the train.

      And even if I feel I have missed out, at an extra 65K per month(80 - 15K rent) I can freakin take me and my family out on European Vacations, Disneyland and what not.
      ...Thoda Aasman

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Remittances from Indians overseas totaled $71 billion in 2013, making India the top destination for a record 6 years in a row, reveals a recent report by the World Bank(WB). In 2012, India had received over $69.5 billion. China comes second again, with $60 billion remitted. Together, India and China make up nearly a third of total remittances to the developing world.

        In 2012, India’s IT exports had totaled $69.7 billion.

        Overall, developing nations received $414 billion this year, a 6.3% rise from 2012. The magnitude of such remittances is expected to reach $540 billion in 2016.

        According to the Ministry of Overseas Indian Affairs, as of May 2012, around 21.9mn Indians were living abroad, with the USA being the preferred choice of more than 2.2 million Indians, followed by Saudi Arabia (1.78mn) and the UAE (1.75mn). Kerala, Gujarat, Maharashtra, and Punjab are the maximum inward-remittance generating states, according to the RBI. The largest remittances came from the UAE, at $15.6 billion, and USA ($11.9 billion) in 2012.

        In recent months, the rupee has weakened considerably vis-ŕ-vis the dollar, and a surge in remittances is expected as non-resident Indians take advantage of cheaper goods, services and assets back home, says the WB report.

        Shedding light on the issue, Kaushik Basu, senior vice president and chief economist of the World Bank, said, “These latest estimates show the power of remittances. For Bangladesh, remittances provide vital protection against poverty. In terms of volume, India, with $71 billion of remittances, tops the global chart. To put this in perspective, this is just short of three times the FDI it received in 2012. Remittances act as a major counter-balance when capital flow. Also, when a nation’s currency weakens, inward remittances rise and, as such, they act as an automatic stabilizer.”

        Remittances received by other developing countries were as follows: Philippines ($26 billion), Mexico ($22 billion), Nigeria ($21 billion), and Egypt ($20 billion). Other large recipients include Pakistan, Bangladesh, Vietnam, and Ukraine.


        Remittances exceed India

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          This gyan everyone knows but my point was about just the constant -ve posts on this thread. Make some other +ve thread about real estate sticky so there is balance. There is right now a overload of -ve stories and that does not help people make a informed decision.
          When a person come to this forum to check on projects or on general RE or market trend all he/she can see in the sticky threads is negativity.

          Now taking ur pepsi or coke example further. There are so many posts about the -ve effect of soft drinks that some people have given up drinking water as well Now you may say that this is the internet and people are free to post what they want and say whatever they like but this site is not just any other normal site. But think about those folks who get scared reading about RE crash and IT meltdown. This forum has 100000+ members so a little unbiased posting is expected. Also the people posting are not new members but long timers and some are moderators.

          Its seems a little weird that the opinions and nature of posts of people who are out here to help does not take into account the realities of the real estate market. I have started posting +ve posts just to counter the -ve posts but I may not be able to devote the same amount of time that some seniors devote to this forum. So seniors should consider giving a full picture of the market.


          Prices are not going to rise by 20% overnight cause someone is reading good news here or anywhere.

          Originally posted by ThodiSiZamin View Post
          Let's get our fact straight first. This is the internet. People here can post anything. Positive, negative, uninformed, biased, whatever.

          The way I use this forum is to collect information and form my own opinion about things. Nobody is going to make the hard decision for you whether you should go ahead and buy a house or not. You should collect all the information both positive and negative, take your personal situation into consideration and eventually take a decision.

          The positive side of real estate is already oversold. You see glossy ads, pestering call from brokers, or a friend of a friend who has made a killing in the real estate market. heck the amount of people who still blindly believe that "real estate will always go up" is shocking if not shameful.

          Now for the negative side. That is tricky. Look at Coke and Pepsi for example. We all know these are really shitty drinks and really bad for health. But Coke and Pepsi continue to pour millions of dollars in advertising, get the latest kapoor to market their product, and essentially sell a lifestyle and happiness to peddle their products mostly aimed at youngsters especially kids.

          Now if somebody points out the health concerns associated with drinking colas, will that be labelled as negative? things like obesity, diabetes, dental decay are all very much real and colas play a major role in causing all such problems. Coke and Pepsi ofcourse have no incentive to point out such health risks and they even downplay their role in inflicting these diseases.

          The market will always try to sell you shitty stuff. You should be smart enough to figure out what is really worth your time and more importantly money. The lack of government regulation and a solid legal system in India makes things even worse.

          Nobody can predict the future. The true mark of a learned human being is taking into consideration all the factors both positive and negative and take a decision which they can live with for the rest of their lives.

          Also, nobody is saying that India is doomed and we are all going to die. What the "negative" posts are saying is that India is not growing as fast as it was supposed to and that should create problems for Indians in the short-term. Taking this into context, when I look at the overpriced real estate market, the math doesn't add up. At current rates, only people with salaries over 15 to 20 lakhs can think of buying a decent house in Pune. How many people earn that kind of salaries? What about household expenses? What about the 80K EMIs for the next 15 to 20 years?

          After running all the numbers, I personally feel that the real-estate market in Pune is grossly-over priced. I could be wrong. In my lifetime, the prices may continue to rise. But the penalty for taking a wrong decision by buying an overpriced asset is much worse than the penalty of sitting on the sidelines thinking that you have missed out on the train.

          And even if I feel I have missed out, at an extra 65K per month(80 - 15K rent) I can freakin take me and my family out on European Vacations, Disneyland and what not.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Technology entrepreneurs make giant leap from services to product development
            Technology entrepreneurs who honed their skills by delivering services to overseas clients are turning to product development as money and talent become more easily available.


            Technology entrepreneurs make giant leap from services to product development - The Economic Times
            Last edited by paaaap; February 19 2014, 08:26 AM.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              388 IIM-B students placed in 4 days: Salaries rise, global offers double

              This year the average salary is Rs 19.5 lakh per annum and the median salary, Rs 17.3 lakh. Last year, they were Rs 17.2 lakh and Rs 15.5 lakh, respectively. According to reports, some students commanded salaries as high as Rs 30 lakh a year. "There is a rise of 10 to 15 per cent form last year. The salary for this batch is about Rs 19.5 lakh," said Professor Sankarshan Basu, Chairperson, Career Development Services.

              388 IIM-B students placed in 4 days: Salaries rise, global offers double - Firstbiz

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Banks see no immediate end to NPA pain - The Economic Times

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  The government will pump in Rs. 11,200 crore in the next fiscal year into public sector banks as part of a recapitalisation exercise that involves cushioning the balance sheets of banks from bad loans and increasing their elbow room for expansion.

                  Rs 11,200-cr capital injection to boost banks - Hindustan Times

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by paaaap View Post
                    Technology entrepreneurs make giant leap from services to product development
                    Technology entrepreneurs who honed their skills by delivering services to overseas clients are turning to product development as money and talent become more easily available.


                    Technology entrepreneurs make giant leap from services to product development - The Economic Times
                    Dear paaaap,

                    First of all, thanks for such a +.ve news. Please take no offense in what I am trying to say here.

                    This news is indeed positive for those -
                    1. who have been entrepreneur(s) for some time,
                    2. who has failed in past and who still want to be in service + product sector as a businessmen and not workers.
                    3. the businessmen who have been trying to grow there businesses.

                    But, question remains, are these NORMAL-END-USER buyers of RE who want to be in 20 years loan with a not-so-secure job? If yes, then this is positive news for sure.

                    I have personally checked guys like 'Little-Eye' in bangalore. Believe me, there are very few guys out there who want to be entrepreneur(s) AND have to carry 20 year RE LOAN.

                    Please let me know if you have ever talked to a guy who is 10+ years experience - who lost a job - and made a 3 months jobless fight back to come back to IT life. This will help you realize how delicate it is to be in the mode of 'i-have-a-job'

                    "Thinking of 'Other-guys-plate-is-full-of-food' doesnt satisfy one's hunger."

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by vaibav123 View Post
                      anikale
                      Probably that is your feeling .
                      And probably it's not that way is your feeling. By the way, I must admit that I found your posts quite balancing.

                      Comment

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