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FD's by builder

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FD's by builder

Last updated: December 7 2009
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  • #11

    #11

    Re : FD's by builder

    Originally posted by HouseHunter View Post
    I guess banks rate these FDs offered by builders too and even recommend them to select customers (mainly HNIs with substantial investment potential).

    As long as a reliable bank recommends the builder I guess it should be safe to invest. Later on you can even convert your investment into a flat depending on the FD provisions.

    Any idea what FDs are going around, their interest rates and maturity period being offered by these major builders?
    Can you please refer one such rating by a bank?

    In the era when the world economy is traumatized by one real estate bubble after another, an argument such as this- "I guess it should be safe to invest", delicately put, is plain absurd.

    Ever since real estate sector made a once considered unshakable giants like lehman bros just disappear, brought the largest economy (US) in the world to its knees, and now what it has done to dubai, I find it criminal to use the word "safe" and "real-estate" in same sentence.

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    • #12

      #12

      Re : FD's by builder

      Too much risk

      Before few months when equity was terribly down, TATA raised capital through FD. TATA is the most respectable name in this country. So, they got good response. But, still many investors felt it is risky to invest in those FD at that point of time.

      Personally, I can’t trust builders at all. There is too much risk in it for any lucrative reward to attract me. I won’t buy builder FD whatever be the interest rate.

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      • #13

        #13

        Re : FD's by builder

        Originally posted by GeekGod View Post
        Can you please refer one such rating by a bank?

        In the era when the world economy is traumatized by one real estate bubble after another, an argument such as this- "I guess it should be safe to invest", delicately put, is plain absurd.

        Ever since real estate sector made a once considered unshakable giants like lehman bros just disappear, brought the largest economy (US) in the world to its knees, and now what it has done to dubai, I find it criminal to use the word "safe" and "real-estate" in same sentence.
        To clarify, I am not recommending buying bldrs FD in todays scenario. In today scenario it is a very risky proposition to invest in any company FD.

        ]http://www.financialexpress.com/news/company-fds-score-badly/76079/0[/URL]

        The only point I am trying to make is that FD doesnt necessarily have to be a avoided JUST because the bld is going for it. Many companies go for FDs as such they are not ALWAYS indicative of a lack of strength on the companies' part.

        However its a very risky proposition. Defn not for the general public.
        You would require either excelent inherent skill or very good advice to spot a winner. For advice you could look a bankable advisor or wait for lord krishna. But either way risk are reward will be in proportion.

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