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- we should have some non-profit org
I absolutely agree with you.. like builder we can unite all distributed buyers. There should be some entity which provide consultation to the all buyers . In ideal scenari buyer will seek consultation from some non-profit org and based upn the information he get from org , he will take decision.
Lets at least commit that before we buy any property , we will seek suggestion from this forumCommentQuote0Flag
- Real will be the best person to write up for contents...
- RealAcres and Senior members, please post your views and guide us how to take it ahead.CommentQuote0Flag
- i am with you guys.CommentQuote0Flag
- Builders understand the scenario
Not sure how people will unite like this as people are from different geographies and very small part of janta sees forum like this. Builders will continue to loot us. Because they are like providing us what we need. All I can say is people today have so much of lavish money, that they can throw it also, so they are paying to builders whatever they are asking.
People use to purchase flat when there was boom and right now also when there is slowdown...Builders know that everyone needs for home and in this continuing increasing population country food and home will always be in demand.
So they know that they always have a win-win situation. But still if u guys are successful in making such a forum, I am with u all guys.CommentQuote0Flag
- People are more aware and looking for their rights then 5 years back. Its positive for consumers.CommentQuote0Flag
- Yahoo group HBAP to start a movement
Home Buyers Association of Pune (HBAP) shall work to serve and protect the interests of house buyers . Builders are very strongly organized and their association is a strong body which lobies well with Government Authorities. Unfortunately house buyers is such a scattered lot and so illinformed that one has to depend on information available in some news paper articles or the internet. HBAP can be helpful for the buyers to know first hand information about various aspects of buying house, builder' reputation, loan related matters. It can also work for ensuring that there is no artifically raised property prices with any possible cartelization.
There are many people keen to buy houses and there are many beneifits of doing such things collectively. House buyers association can take up / address issuses / concerns of buyers and help people on a larger scale.CommentQuote0Flag
- Make yourself secure, first
Thanks you friends for trusting us. Let me be frank with you, as always.
Who are we, the so called senior members? Nothing special but just that we analyse the economic scenario which is fundamental to RE.
The one who takes decision on his/her own thinking is wise, others are otherwise:p. Stop being in a herd, don't fall for that everyone is buying, I should buy & give up chalta hai attitude.
We always complain that buyers are not united. Why is it? Not becuase we don't have something like PBAP but we blindly believe PBAP/Credai/NAREDCO. Even on this forum some members sometimes say that builder is saying so & so, what should we do or can be done? This is nothing but internal fear of being homeless (owning to be precise) & that builders always win. What they think is; if not today, never:(. This is bad & it this factor which is exploited by builders.
What many people at the time of purchase fail to do is taking a view for 10-20 years, based on your home loan duration. Some people don't have experience of home loan before & think it is as simple as car loan or personal/credit card loan. What you need to understand that once you are in for home loan, your savings go down drastically due to EMIs or if savings are kept constant, the expenditure goes down.
In all this,what you need to have is FINANCIAL MARGIN even post home loan EMIs. Add to it all the taxes & maintenance of the house.
Don't fall for peer pressure. I have seen people buying out of peer pressure & now think only of EMIs 24*7. Those who don't require loan or very small quantity, it is better to invest it elsewhere & later use the same for house interiors or as pricinple amount etc.
The silver lining though is that the buyers have become more aware than what they were during boom time:). If this trend continues, RE will be more healthier. Note that the biggest culprit for the economic recession was:- HOUSING, due to sub-prime crisis in USA. Think about it.
Just remember the simple sentence:-
There are better things to do in life than just working for builders & banks. RE is just a small part of your life & not your life. House ownership is great unless you ruin your life paying for it.CommentQuote0Flag
- Totally agree with realacres!! We dont want to loose our satisfaction and happyness for a lavish living in fear of unaffordable EMIs for 20 years of precious life!!CommentQuote0Flag
- Originally Posted by realacres
This is nothing but internal fear of being homeless (owning to be precise) & that builders always win. What they think is; if not today, never:(. This is bad & it this factor which is exploited by builders.
What you need to understand that once you are in for home loan, your savings go down drastically due to EMIs or if savings are kept constant, the expenditure goes down.
Don't fall for peer pressure. I have seen people buying out of peer pressure & now think only of EMIs 24*7.
Just remember the simple sentence:-
Have you ever seen dolphins hunt sardines.
The Dolphins come with a plan.
The Dolphins blow air bubbles and frighten the sardines.
The Sardines are pushed together to a corner… the corner here refers towards the surface of the sea.
Obviously the Dolphins do not want to eat all the Sardines.
Few of the Sardines that get panicked and leave their herd are gobbled up by one of the Dolphins.
With no danger to the Dolphins they enjoy the party.
Sometimes some types of Sharks and Whales join the Party too.
The sardines that fall prey to the tactics of the Dolphins end up getting eaten up.
Some Sardines are lucky and are not eaten.
Once the Dolphins have had their Stomachs full they leave only to come back when they are hungry again.
Maybe I could use a little analogy and rewrite the above..
Have you ever seen Builders hunt for Buyers.
The Builders come with a plan.
The Builders blow GDP, economic growth resulting in increase in PSF bubbles and frighten the buyers.
The Buyers are pushed together to a corner… the corner here refers towards an illusion about Quality Real Estate and the probability of missing the RE Bus to high prices.
Obviously the Builders do not want to target all the RE Buyers. (If Builder has 50 flats to be sold he only wants 50 buyers and no more).
Few of the Buyers that get panicked and leave their herd are gobbled up by one of the Builders into paying high prices for the apartments.
With no REGULATOR for the Builders they enjoy the party.
Most of the times Banks and politicians join the party too.
The Buyers that fall prey to the tactics of the Builders end up getting EMIed.
Some Buyers are lucky Or maybe some are intelligent and are not EMIed.
Once the Builders have had their Apartments sold they leave only to come back when they have more apartments to be sold again.
- Too Good !!!!
Hope we guys learn from our mistakes.CommentQuote0Flag
- Interesting VK.. But I think that the Sardines that remain in the herd are few(like us in the forum)..
We are speculating here that RE prices will fall and there are lots of unsold flats. While there may be unsold flats, all the good projects get sold out. Sometime back I enquired Raheja vistas if they had a greater than 1000 sqft 2bhk. The sales said that they earlier had 11 units of above 1100 sqft and now all are sold out. What is remaining is 2bhk of 855 sqft(ie the matchbox flats). I have yet never receieved a call from them saying that now flats are available, and if I would like to have a look. I have many more examples of this. Hence I infer that people are buying and the reasons I think people are buying are-
- People have lots of money to spend from themselves, from parents etc. Why not, nowadays many double income IT families have lots of cash.
- They must have negotiated very well with the builder, the low prices are never advertised. its all 1to1 between builder and buyer.
-Europe and Japan are out of recession. America is also coming out of recession. The job losses there have stopped or reduced to a great extent. India and China was technically never in recession in first place. There was just a slow economic growth during this period and companies became conservative on spending due to the world scenario. Now the whole world is coming out of recession and companies are now hiring again(though not bullishly like before), RE is finding more buyers now.
Here is what I think will happen to the RE pricing for the next 2 years - The prices are not going to drastically come down or go up. All the new projects have smaller flat sizes of less than 950 sqft. This is to keep the overall price low, but are not going to lower the rate psf. This is what happened in Mumbai and Chennai where due to the rise of land price, lots of matchbox sized apartments mushroomed to make the overall price affordable. One example, Ganga Sampatti in phase II are launching 900sqft size apartments while in phase I it was minimum 1000 sqft for 2bhk. Sunshine hills have area of 725 to 825 sqft for 2bhk. In Karan Rhea, the area for 2bhk is less than 900 sqft. Even Clover who always had apartment sizes of atleast 1200 sqft for 2bhk are thinking of coming up now with smaller sized apartments. If all builders start coming up with smaller sized apartments, the buyer would have very less choice left. This is what has happened in most of Chennai. Yes, Finally you have the option of continuing to put money in FD and other savings and can live in a rented place throughout career life and finally retire to your hometown where most of us already have a home or can buy one there since it would be much less expensive and have more space.CommentQuote0Flag
- Nice post.CommentQuote0Flag
Eventually even we will be gobbled up.
Maybe we do. But we also are concerned about unreasonable EMIs, Lies by Builders, Lack of Quality, Lack of Commitment, amongst other issues.
Hence I infer that people are buying and the reasons I think people are buying are-
-Europe and Japan are out of recession. America is also coming out of recession. The job losses there have stopped or reduced to a great extent.
This is not completely correct. Where do u get your information from?
As of 2nd October 2009.
US's job losses accelerated in September, driving the unemployment rate to a 26-year high of 9.8% and casting a cloud over the incipient recovery, economic data showed Friday.
As of 5th October 2009.
Though the euro area had negative growth overall, Germany and France both had positive growth, at 1.3 percent and 1.1 percent annualized rates, respectively. In most other countries, like the United Kingdom, the rate of decline slowed considerably.
Each of one has to decide on our own about what is beneficial to us. Just because tomorrow homes are going to be extremely unaffordable let us buy today when they are already unaffordable does not make sense. Just because next week the Dolphins are going to eat us so why not become their prey today does not make sense. What if meanwhile the Dolphins are caught by some fishermen and they don’t return at all.
This is personal choice. I would like to stay in a place that is quite and calm and obviously only if I can afford it when I retire.
Personally I am also concerned about my working life given the amount of stress and strain that we take nowdays, Health wise I do not think we will be able to work till 60. At-least I don’t think I will be able to. Probably I would not want to. Now if I spend 15-20 years paying EMIs and do not save much, What will be left for me after retirement – TAMBURA*
*Famous word used by Baburao Ganpatrao Aapte in move Hera Pheri
- Another major reason among lack of unity among buyers is that once they buy a house they tune off real estate completely. Have seen so many people getting delighted about the fact that the house has appreciated by 150% over the last 4 years. Thats actually bad new for 99.9% of people. Also that money is fictitious money since you cannot sell your first home.
So while buyers are united till they buy a house builders will always be united since they in the business of making money of buyers..
You will have to factor this in while trying to design a solution to this problem...CommentQuote0Flag