The speculated upsurge in the property rates has resulted in making the lives of people miserable. The average class people, who dreamt of staying in their own houses, now are living distressfully with the fact that they can never buy a house. The house that was 10 lakhs 2 years back is now selling in 30 lakhs. Even the old building resale flat prices have boosted unnecessarily. This in-affordability has caused great tension in the minds of people, which in turn carry this tension to work also. We cant even work peacefully in office now.

But how has this increased. This is just speculation. People know that they can demand high and no one to regulate.

I would also highly appreciate if someone could bring out that the boom in the prices are definately there but there are also certain facts hidden behind it

Is the government not aware of this mess

1. Every deal of property has a huge amount of money given as black. This is mostly around 40% or could be upto 50% also
2. Even though owners of resale flats are demanding huge prices there are hardly deals taking palce with such quoted prices.
3. Ordinary class people suffer drastically.
4. Estate Agent Politics - A major game in hikes

This needs to be looked into deeply. The estate agents play dirty politics in property deals and are also responsible to some extent to the artificial price hikes.
When the seller quotes 50Lakhs for his flat the agents quote 55 or 60 lakhs to the buyer and take their huge cut. Thus the property remains unsold for a long time. Even if there are buyers for teh flat the agents seek the buyers who quote maximum.
Why isnt anyone doing anything about this..... to bring out the reality of realty.

These days the newspapers are posting the Reality news every day on the front pages and I think news channels are the only best channels to bring down the prices.

Second is Tehelka...........Tehekla should strip the Estate agents and builders politics and demands.....

What do you say guys........Isnt it enough now......Do you find a 1BHK flat being sold for 45 lakhs......

Sanjay
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  • Hi sanjay, this is really a major issue. That's why a middle class person never have a home. After doing a good job over the life, a middle class person can save atmax Rs. 8-10-12 lacs. If he invests all his money then also he'll not be able to got a living solution.
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  • Dear Sanjay,
    I agree to your views. Its all game of developers and brokers. They charge so much for a property that a middle class person can not complete repayment of loan after working hard for whole life.
    In India we do not have government rules and regulation of prices. otherwise how the price of property 100% or 200% or 300% in just two year when salary of a common person increase to just 5%!!!! And government on other hand is openining FDI in realty sector.
    Eventough there is reduce in sale, the developers are not reducing price of flats because they have enough buffer money (either raised from FDI or private institution) to sustain for atleast 6-12 more months. I strongly believe that FDI is require in infrastructure development but government should exculde roti, kapda aur makan sectors from this.
    Government should take action on builders who have lots of black money too.
    I think we should sign a petition to government of India to take necessary action to reduce price of basic need of a common man. If a common man is not happy then how can we say that India is shining! or India is growing!
    Hope Indian economy grows to 9% in coming years with price inflation of basic commodity (roti, kapda aur makaan) does not increase to 100% every year!
    Good luck India!!!!!
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  • Yes that true that the suffers are ONLY the middle class.

    It took me years to save a few lakhs for the 15% of the property value but the property rates have trippled.

    Government should take a firm stand against the builders who have hiked the pricess unnecessarily for their own benefits.

    Unless they dont bring down the rates the resale flats pricess will not come down.
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  • Originally Posted by cpu0079
    Dear Sanjay,
    I agree to your views. Its all game of developers and brokers. They charge so much for a property that a middle class person can not complete repayment of loan after working hard for whole life.
    In India we do not have government rules and regulation of prices. otherwise how the price of property 100% or 200% or 300% in just two year when salary of a common person increase to just 5%!!!! And government on other hand is openining FDI in realty sector.
    Eventough there is reduce in sale, the developers are not reducing price of flats because they have enough buffer money (either raised from FDI or private institution) to sustain for atleast 6-12 more months. I strongly believe that FDI is require in infrastructure development but government should exculde roti, kapda aur makan sectors from this.
    Government should take action on builders who have lots of black money too.
    I think we should sign a petition to government of India to take necessary action to reduce price of basic need of a common man. If a common man is not happy then how can we say that India is shining! or India is growing!
    Hope Indian economy grows to 9% in coming years with price inflation of basic commodity (roti, kapda aur makaan) does not increase to 100% every year!
    Good luck India!!!!!

    Please respond to this quote to understand belief of all.
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  • Hello cpu0079

    Its a nice reply

    It is really true that we get a rise of 5 - 10% but the property rate shave gine upto 300%.

    Builders have enough buffer money but if we stop buying then they too cant survive. Its only creating the awareness in the society about the greedy sellers.

    And Government should definately take action on builders who have lots of black money too - They will take action only if we push them..

    Tehelka should open these facts
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  • Black Money In Real Estate Sector

    It is an open secret that huge amounts of unaccounted cash is circulating in the real estate industry. A nexus of Builders, Brokers, Beaureaucrats, Politicians, Underworld, Judiciary will always see that nobody in this sector will be really punished for unlawful activities. The recent raids on builders by CBI is an eyewash.

    Unless this nexus is broken with a firm action from Government( Who will do it when everybody is involved) there is no hope of decent properties within the reach of common man.
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  • why not rent

    if the prices are unaffordable - why not rent? if you wish for the government to intervene - then remember that the past track record of the government shows that the corrupt politicians will only gobble up the real benefits of any scheme. Rajiv gandhi once admitted that any govt scheme results in only 15% effectiveness.

    so pleeease dont wish for Govt - they have their own self interest to look after.

    markets will correct themselves - prices have already stagnated or declined in bangalore.
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  • Middle Class

    Middle Class:
    Yes, it is true that the Middle class always suffer.If you look at why middle class suffer is that they have the crowd mentality,except the governement to help them, hope their dreams should be fulfilled,except rewards with very less risk.
    On the other hand poor, live a day to day life not worried much about the future.
    The Rich think different and live different. It is no doubt that the middle class are controlled by the rich. We work hard to make the Rich happy and be self statisfied.

    Government:
    We except the government to control the prices of real estate, what happens if the government steps in and there is a price control. The developers and builders will stop building as there is no profit, as a result house shortage and the rent will tend to increase.
    Again the middle class will complain about rents.

    Salary and Real estate Price:
    If the salary increases by 25%, the real estate will increase by 250%. The ratio might not be true but real estate price rise a reality.

    Market:
    The price of 1 BR is 45 lacs, In the booming market, the price is not todays price but tommorrows or next days or next month. It is true that the greedy brokers, developers drive the price higher and higher. At some point when there are no buyers, the price rise will stop and adjust itself to the realistic price with time (the fundamentals). Let the market decide what the price is.

    Year2002-2008.
    The real estate started to rise around 2003-2004, the people (middle class) who purchased at that time are very happy with their captial apperication. The people who want to buy now are not happy with the present prices. These people who want to buy now lived through those time 2003 -2008, but failed to look the real estate. I woke up at early 2007 and was complianing about the real estate prices. Now I had stopped complaining and focused on education to look at new opportunites ( which i had failed to look and take action during 2002-2005 peroid)

    Speculators and End Users.
    Now the speculators are exiting the market and more more End users ( middle class) are entering the market. The prices might fall slightly or stablise.

    Commodites and Man Power.
    With the rising prices of Cement & Steel and the lack of availaibity of skilled man power will not allow the prices to come down easily.

    Instead of excepting some miracle or praying for the decrease in price, let us try to be act like the wise people who had purchased real estate during 2002-2004 peroid.
    As a part of that, we are already in the forum like this discussing ,sharing information to be alert and spot the right opportunity.

    Best of Luck.


    Paul
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