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RE is again bullish

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RE is again bullish

Last updated: April 23 2012
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  • Re : RE is again bullish

    As a very famous advertising guru said.. "Most problems are those of perception rather than those of reality". He meant it for first world countries where hunger and poverty are not real issues but it is applicable to real estate in India also. Builders change people's perception towards projects buy putting is ads of dream homes, swimming pools, gyms etc and quote much more rates than projects deserve. People also buy based on perceived appreciation costs in future. The day Pashan touches 10K would be very bad news because it will increase gap in already divided society. Similarly cutting down on coke will never happen because they have spent billions on a product worth cents creating percived value for customers. "Khushi ki bullbule" is what they are called. Marriages, parties, happiness, fun, cricket, timepass, is all related to coke.

    Similar thing with real estate. People look for guyz who have bought their own house. Although the guy is in debit of 30+Lakh he is a settled guy. This is again a problem of perception. Another perception is own house is better than rented house. This is true if you have bought good house at decent rate. Buying house of 80 L in Pimple Nilakh will be only disaster. Similarly perception about real estate rates always increasing and giving rich dividends is also there. What are the chances that you will buy in Baner for 5K per square feet and expect 100% return in 10 years. You can get more than 100% returns if you invest well in market.

    Some of these problems of perception lead to ugly reality.

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    • Re : RE is again bullish

      How do you explain all these below points in cities in Gujarat. Fundamentally, if one gets money, black or white OR easy loan he/she is going to spend accordingly. Here again, there are folks in every level of society who is careful in spending and spendthrift. Nothing to do with IT. Its fundamental human nature. What add fuel to this is all the advertisements. Let me tell you, more folks at middle class are falling for this than the higher income group. To be in a perceived higher status middle class is also spending beyond their means, which is sad. You can’t generalize that the entire problem in India is because of IT folks.


      Originally Posted by Space
      This is for IT folks.

      IT People can certainly afford following things, But they also have option to -

      1. Stop buying bigger brands and start spending less than 500 rupees on shirt, pant or a jeans.
      2. Don't drint Pepsi / Coke during dinner, go far simple water. Cut down your beer intakes (stop telling people that you can consume 8 bottles and still can stay steady !)
      3. Stop ordering extra food for parties. And unnessessary cold drinks / cakes / desserts. Stop doing unnessessary parties !!
      4. Cut down your movies.
      5. Stop buying electronics which are not worth it. Like mutiple cameras, playstation xbox, silly cells, big LCDs etc.

      And you will start seeing the difference.

      Is there anything I am missing above ?

      Comment


      • Re : RE is again bullish

        How do you explain all these below points in cities in Gujarat. Fundamentally, if one gets money, black or white OR easy loan he/she is going to spend accordingly. Here again, there are folks in every level of society who is careful in spending and spendthrift. Nothing to do with IT. Its fundamental human nature. What add fuel to this is all the advertisements. Let me tell you, more folks at middle class are falling for this than the higher income group. To be in a perceived higher status middle class is also spending beyond their means, which is sad. You can’t generalize that the entire problem in India is because of IT folks.

        Originally Posted by Space
        This is for IT folks.

        IT People can certainly afford following things, But they also have option to -

        1. Stop buying bigger brands and start spending less than 500 rupees on shirt, pant or a jeans.
        2. Don't drint Pepsi / Coke during dinner, go far simple water. Cut down your beer intakes (stop telling people that you can consume 8 bottles and still can stay steady !)
        3. Stop ordering extra food for parties. And unnessessary cold drinks / cakes / desserts. Stop doing unnessessary parties !!
        4. Cut down your movies.
        5. Stop buying electronics which are not worth it. Like mutiple cameras, playstation xbox, silly cells, big LCDs etc.

        And you will start seeing the difference.

        Is there anything I am missing above ?

        Comment


        • Re : RE is again bullish

          Originally posted by Space View Post
          This is for IT folks.
          IT People can certainly afford following things, But they also have option to -
          2. Don't drint Pepsi / Coke during dinner, go far simple water. Cut down your beer intakes (stop telling people that you can consume 8 bottles and still can stay steady !)
          3. Stop ordering extra food for parties. And unnessessary cold drinks / cakes / desserts. Stop doing unnessessary parties !!
          And you will start seeing the difference.
          Is there anything I am missing above ?
          Space,
          Yes you are missing facts. When I was working with TCS, office near Pune station, "Coffee Day" set up their shop inside the office next to the canteen selling everything at double the cost. It survived there only for 4-5 months and shut the shop and disappeared. So dont blame on IT guys.

          I agree with ash7979, that its mostly the Teenagers/Black money people spending lavishly on these things.

          Completely agree with akssenti above.

          Comment


          • Re : RE is again bullish

            Originally posted by RAJESHP View Post
            Space,
            Yes you are missing facts. When I was working with TCS, office near Pune station, "Coffee Day" set up their shop inside the office next to the canteen selling everything at double the cost. It survived there only for 4-5 months and shut the shop and disappeared. So dont blame on IT guys.

            I agree with ash7979, that its mostly the Teenagers/Black money people spending lavishly on these things.

            Completely agree with akssenti above.
            I had similar perception about IT but it turned half-truth. IT has created a new middle class on which, other dependent-industries like real-estate, auto etc are thriving and more black money. Thus obscene RE rates.

            Half-truth is that most of IT guys are NOT buying and complaining about very-high RE price.

            Half-truth is that few IT guys are still buying (herd-mentality?) at 60x monthly salary out of fear & greed that RE will go up.
            Depression in US, US and Japan with weak dollar & inflation, might throw these highly-leveraged guys to bankruptcy.
            Last edited by hitmady; November 4 2009, 10:01 PM.

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            • Re : RE is again bullish

              OLD STORY ----------- The ANT works hard in the withering heat all summer building its house and laying up supplies for the winter. The GRASSHOPPER thinks, the ANT is a fool and laughs and dances and plays the summer away. Comes winter, the ANT is warm and well fed. The GRASSHOPPER has no food or shelter so he dies out in the cold. NEW STORY, INDIAN VERSION ----------------------------- The ANT works hard in the withering heat all summer building its house and laying up supplies for the winter. The GRASSHOPPER thinks, the ANT is a fool and laughs and dances and plays the summer away. Comes winter, the shivering GRASSHOPPER calls up a PRESS CONFERENCE and demands to know why the ANT should be allowed to be warm and well fed, while others are cold and starving. NDTV, BBC, CNN show up to provide pictures of the shivering GRASSHOPPER, next to a video of the ANT in his comfortable home with a table filled with food. The world is stunned by the sharp contrast. How can this be that this poor GRASSHOPPER is allowed to suffer so!! ARUNDHATI ROY, stages a demonstration in front of the ANT's house. MEDHA PATKAR, goes on a fast along with other GRASSHOPPERS demanding that GRASSHOPPERS be relocated to warmer climates during winter. MAYAWATI states this as 'injustice' done on MINORITIES. UN & KOFI ANNAN, criticize the Indian government for not upholding the fundamental rights of the GRASSHOPPER. The INTERNET is flooded with online petitions seeking support to the grasshopper.
              Last edited by Winner; November 4 2009, 10:06 PM.

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              • Re : RE is again bullish

                winner too Good!

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                • Re : RE is again bullish

                  I agree ...

                  Originally posted by informsantosh View Post
                  winner too Good!
                  Yes, Winner I agree its excellent!

                  But how does it end?

                  In another post it was said that its the college kids who do all the profligate spending! I agree since I was just reading the Deccan Herald today and in an article of what kids do today to spend time, they talked about the Forum Mall being their favorite haunt and every single thing they talked about was spend, spend, spend!!! Movies, clothes, food (junk), games, accesories, blah, blah

                  It struck me. Wow! When I was in college we must have spent about a hundredth (thousandth?) of what kids do today!!!

                  But here is a question to everyone ... Who are these kids of? IT guy of course!!!

                  cheers
                  Last edited by wiseman; November 4 2009, 10:37 PM.

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                  • Re : RE is again bullish

                    Originally posted by wiseman View Post
                    In another post it was said that its the college kids who do all the profligate spending! I agree since I was just reading the Deccan Herald today and in an article of what kids do today to spend time, they talked about the Forum Mall being their favorite haunt and every single thing they talked about was spend, spend, spend!!! Movies, clothes, food (junk), games, accesories, blah, blah
                    It struck me. Wow! When I was in college we must have spent about a hundredth (thousandth?) of what kids do today!!!
                    But here is a question to everyone ... Who are these kids of? IT guy of course!!!
                    cheers
                    Most of the IT guy kids are of age less than 10yr old. They dont spend so much. These kids are mostly of Business men/Govt babus with tons of black money at hand.

                    Comment


                    • Re : RE is again bullish

                      Originally posted by RAJESHP View Post
                      Most of the IT guy kids are of age less than 10yr old. They dont spend so much. These kids are mostly of Business men/Govt babus with tons of black money at hand.
                      Bingo!!! thats the whole point here
                      Cheers,
                      -Ashish

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