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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 Technocrat View Post
    Interesting discussion

    I am not sure why ash7979 has problem expecting that it was indeed the IT guys who fueled the mad home buying rush, seeing them the investors jumped in The rates went high.

    In 2003-2005 there was an upward trend in IT after a lull period & the new joinees thought this is the norm i.e. getting 30% plus hikes every year.

    As for Bhopal, are you really not aware of the reasons for property price hike in Bhopal or you are just quoting an example to prove that IT is not responsible. If yes then post, I will tell you the reason for price hikes in Bhopal
    I dont have any problem in accepting anything which is logical:p:p...But its matter of perception..Most ppls (investors,builders & others including you man!!!) had perception that IT guys are the ultimate "Bakras" & they have increased the RE prices anticipating that IT guys will still buy at these rates & now they are not able to sell those flats (including Investor)...So, in Real sense this Perception (and that is wrong) was the main reason for RE price rise in many parts in india including Pune...so its " Perception towards IT not ITGs" is responsible for RE price rise & if somebody has "Wrong" perception towards the IT then what an ITGs can do about that
    Cheers,
    -Ashish

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      I asked my HDFC home loan consultant/marketing guy, do you have a flat in Pune. He said, ya, got a good deal last year !

      Well, I didn't stop there, I asked the same question a marketing guy at Shopper's Stop, he said, I am looking to 1BHK along with my 5 friends. Planning to book in Pimpri.

      And last but not least, my relative who owns a restaurant in Aundh, just got, I think, a paint house like flat.

      ITG's gave a lot of jobs/money to others who aren't in the IT field.

      Think like this IT 'kick started' the Ferrari called Indian Economy, now everyone is taking a ride on it, but when it losts its way (its too harsh, lets put it this way - may be had a little bumpo on the road). People are blaming on who started it at the first place.

      Cheers.
      Last edited by Space; February 8 2010, 06:04 PM.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by Space View Post
        ITG's gave a lot of jobs/money to others who aren't in the IT field.
        Yep, but made life miserable for majority of them as well. Ashish, the issue is not just about perception but real facts as well. No doubt people consider IT paying high salaries but the sales in RE dominated by IT can't be ruled out either. See any major projects & you will see special benefits for IT employees. Why builders keep saying that due to IT Kharadi will grow (though this has now been busted:p)Now what does this mean?

        Fact remains ITGs are responsible not only for RE hikes but other areas like clothing, maids etc as well.
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Deemed conveyance clarified

          A meeting in Mumbai went a long way towards clearing the confusion on this important issue affecting several societies


          Recently a meeting on Deemed Conveyance Final Rule Notification was held in Mumbai, arranged by MP Sanjay Nirupam. Mr Sitaram Kunte, Housing Secretary, Government of Maharashtra and CA. Ramesh S. Prabhu, Chairman, Maharashtra Societies Welfare Association (MSWA) and an active member, led the discussion.
          Mr Kunte in his opening speech stated in the present market scenario, the consumer is king but this is not true in the case of flat buyers. Immediately after the formation of the new government, each department was called to give their vision documents for the next five years. Amongst other things, three important issues were discussed.

          First, the stamp duty department, local authorities and the builders will be compelled to sell the flats on carpet area basis only. Secondly, Deemed Conveyance Rules are being finalised and very shortly will be notified. Thirdly, the Central government has advised the state government to frame a legislation to regulate the real estate business by establishing a real estate regulatory authority. The housing department has started to study this and it will be enacted as a legislation shortly in which there will be Regulatory commission as well as appellate Tribunal to deal with real estate issues just like SEBI or Tele Regulatory of India. Even advertisements to be given by builders will be approved by the regulatory commission.
          He explained that many suggestions and objections were received on the draft rules and the consumer friendly suggestions have been incorporated like minimising the documentations , onus on the builder to submit the documents and so on. He also explained that many interactions were held with housing federations, officials, City Survey Department, stamp duty, builders associations like MCHI, PEATA, and NGOs. He then requested CA. Ramesh Prabhu to give a detailed presentation on the rules.

          CA. Ramesh S. Prabhu gave a clause-wise explanation. He stated that the Competent Authority will hear four important grievances of flat buyers. First under section 5 of MOFA to provide the accounts for the money received towards corpus, maintenance, property tax, conveyance etc by the builder. Secondly, U/s10, to form a legal body like society or condominium or company within four months of sale of 60% flats, Thirdly u/s 11 to provide conveyance of land and building within four months of formation of the legal body else to apply for deemed conveyance before the competent authority and finally u/s 13, to debar the defaulter builder for the next five years, in case of violation of any MOFA obligations.

          Further, he stated that in the original draft rules, 21 documents were required to be submitted by the applicant along with the application for conveyance. Considering the suggestions received, now the applications will be received with whatever documents are with the society/flat buyers and the developer will be directed to produce the same within one month otherwise an adverse inference will be drawn against the builder. Further, if the developer does not provide the same and the competent authority is of the opinion that certain documents are relevant before the same is decided, he is now authorised to appoint an authorised officer like Architect, Advocate, Chartered Accountants to get the relevant documents at the expense of the applicant and later to be recovered from the developer. The Competent authority has to decide on the entire application within six months of registering the same for hearing. He explained that if the developer has expired or there is a dispute between the developer and the land owner or if the case is filed by the landowner against the developer in the court of law, still the deemed conveyance can be imitated and obtained.
          While answering questions raised by participants, Mr Kunte explained that now lay out plot conveyance which was not provided earlier had been well explained. Conveyance cannot be stopped for any reason. Open space, gym, gardens and so on shall be provided to the respective societies as undivided interest in the land in proportion to the FSI/TDR used for constructing the respective buildings.
          CA. Prabhu explained that necessary notification to appoint District Deputy Registrar (DDR) as competent authority has already been published and in Mumbai threecompetent authorities have been notified.

          Regarding the applicability of stamp duty, CA. Prabhu clarified that if all flat owners have paid their respective stamp duty and registration fees on the deemed conveyance Rs.100/- shall be levied as stamp duty. The necessary provision is already there in the Bombay Stamp Act. However, the process of adjudication will have to be done and efforts should be made to reduce this process. Mr. Kunte stated that considering the questions received, an FAQ (Frequently Asked Questions) with relevant answers will be made available to societies for understanding the provisions . He also stated that the same will be published on the government website.
          CA. Prabhu clarified that if the builder does not appear or the land owners legal heirs have a dispute and do not appear and their addresses are not known, the same will be decided ex parte or on merit by the competent authority. Therefore a provision of making public notice in two newspapers is provided. He also clarified that the applications can be submitted by the any societies or the single flat buyers even now before the District Deputy Registrar. The rules are so exhaustive that it is criticised as builder friendly and builder oriented.

          However, Mr. Kunte clarified that the conveyance process being affected by nearly 26 laws and more than 10 departments and the various complications were required to be taken care, the rule was required to be made exhaustive leaving no room for ambiguity. He clarified that it is consumer friendly. CA. Prabhu clarified that any authorised representative can submit the applications. The cost of the applications like notice fees, payment made to government, public notice cost, authorised officer cost shall be mentioned in the order as a cost to be recovered from the builder. He also stated that the rules has provided for various forms and the draft of the order to be issued. While answering, he clarified that if the builder does not comply with the order issued by the competent authority, he has been authorised to appoint an authorized officer to execute and register the conveyance deed on behalf the builder/ land owner.

          When some of the participants wanted to know, why the same is not worded as final conveyance and called as deemed conveyance leading further chance for litigation and when the final conveyance will be available to the societies and legal bodies. Mr. Kunte and CA. Prabhu both clarified that it is compulsory for the developer to give the conveyance within 4 months of the formation of the legal body, if the same is not given, it is assumed to have received the conveyance and enjoy all the rights. But some officer has to authenticate the same and facilitate transfer of the property as provided under the transfer of property Act. Therefore , a competent authority has been appointed to facilitate this deemed conveyance. Once the order of deemed conveyance is passed by the competent authority and the same is registered with the sub-registrar through the authorised officer appointed by the Competent Authority, the societies can apply for change of property card or 7/12 extract and with this society gets final conveyance. There is no difference between actual conveyance and the deemed conveyance . Once you complete the process of deemed conveyance , it will be treated as final conveyance.
          All the participants thanked Shri. Kunte and CA. Prabhu explaining the provisions and also Mr. Sanjay Nirupam for organising such an educational seminar.

          Source: Maharashtra Societies Welfare Association
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            To each his own.

            As for Bhopal read this

            The primary reason is constant pay revisions that Govt & BHEL employees have been getting since 2000, also BHEL has lot of orders resulting in lots of new ancillary industries being setup. With more business there are more buyers.

            Also it started rising somewhere around the time when people started getting Voluntary retirements which meant, those who opted for these got a lot of lump sum money which they could invest in properties.

            Also being a Govt/BHEL primary city many people who started out in Bhopal 30+ years ago are now either retiring or have retired which meant leaving their Govt residences & building/buying their own flats.

            I hope this clears.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by realacres View Post
              Yep, but made life miserable for majority of them as well. Ashish, the issue is not just about perception but real facts as well. No doubt people consider IT paying high salaries but the sales in RE dominated by IT can't be ruled out either. See any major projects & you will see special benefits for IT employees. Why builders keep saying that due to IT Kharadi will grow (though this has now been busted:p)Now what does this mean?

              Fact remains ITGs are responsible not only for RE hikes but other areas like clothing, maids etc as well.
              I agree to price hikes in RE & labor at some places but Clothing?? Please explain I dont agree to this.

              Also how have IT made life miserable for others by causing price hikes?

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by realacres View Post
                Yep, but made life miserable for majority of them as well. Ashish, the issue is not just about perception but real facts as well. No doubt people consider IT paying high salaries but the sales in RE dominated by IT can't be ruled out either. See any major projects & you will see special benefits for IT employees. Why builders keep saying that due to IT Kharadi will grow (though this has now been busted:p)Now what does this mean?

                Fact remains ITGs are responsible not only for RE hikes but other areas like clothing, maids etc as well.
                I agree to price hikes in RE & labor at some places but Clothing?? Please explain I dont agree to this.

                Also how have IT made life miserable for others? by causing price hikes?

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by realacres View Post
                  Yep, but made life miserable for majority of them as well. Ashish, the issue is not just about perception but real facts as well. No doubt people consider IT paying high salaries but the sales in RE dominated by IT can't be ruled out either. See any major projects & you will see special benefits for IT employees. Why builders keep saying that due to IT Kharadi will grow (though this has now been busted)Now what does this mean?

                  Fact remains ITGs are responsible not only for RE hikes but other areas like clothing, maids etc as well.
                  And please add Sugar as well in this list , as I think these ppls are only who are eating Sugar Wearing Cloths (other non-IT ppls are still living in the Era when they used to wear leafs ).....

                  No, more Argument now ...I Accept it Now, that only IT ppls who are not more than 50 lacs in 100 Cr population,still they are the main reason for all Price rise in India in last 5 years
                  Last edited by ash7979; February 8 2010, 06:47 PM.
                  Cheers,
                  -Ashish

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by Technocrat View Post
                    To each his own.

                    As for Bhopal read this

                    Quote:
                    The primary reason is constant pay revisions that Govt & BHEL employees have been getting since 2000, also BHEL has lot of orders resulting in lots of new ancillary industries being setup. With more business there are more buyers.

                    Also it started rising somewhere around the time when people started getting Voluntary retirements which meant, those who opted for these got a lot of lump sum money which they could invest in properties.

                    Also being a Govt/BHEL primary city many people who started out in Bhopal 30+ years ago are now either retiring or have retired which meant leaving their Govt residences & building/buying their own flats.

                    I hope this clears.
                    Exactly!!!...This is what I was trying to Prove man & you said it all....So, dont we have such govt servant or BHEL like industry in Pune as well (Even Pune is the Auto Hub of India)...And these ppls also getting salary rise in recent past (In fact in 6th pay commission salary revision now, govt servant are getting very handsome salary & Plus B-Money as well) so, reason mentioned in your post applies to Pune (for that matter other cities in India) as well...So, still if you don't want to Open your eyes then its your choice, but Fact remain the fact, whether you accept it or Not
                    Last edited by ash7979; February 8 2010, 06:56 PM.
                    Cheers,
                    -Ashish

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      No my friend Pune has very little Govt employees when compared to Bhopal, it has more industries which grew with IT leading to overall hike.

                      Comment

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