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Buyers Cartel -- Time to hit back!


Buyers Cartel -- Time to hit back!

Last updated: January 11 2009
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  • Buyers Cartel -- Time to hit back!

    My first post here.

    I have gone through a number of threads and was pleased that most members here are well aware of the dark side of Indian real estate sector which has caused an artificial super-inflation of property rates over the past 4 years. Through a border-line illegal nexus between developers, brokers and speculative investors the prices of real estate in India have been pumped up incredibly to an extent that it is no longer feasible or even imaginable for a regular end-user to buy a decent dwelling at a livable location anywhere in India. The current prices are beyond the reach of most, and are absolutely unsupported by any core fundamentals. Bottom line is that the current level of prices are fake and are where they are purely because a lot of powerful groups used their clout, their black money, and opaque and insidious system in India under which the real estate industry operates.

    But now, tide is turning. The house made of playing cards cannot sustain the winds of reality of long. The biggest developers in India are having the rug pulled out from under their feet, slowly but surely. Their stock prices are scraping the bottom of the barrel, their sales have vaporized, and their financial situation has is about as solid as a blob of jelly. In the who-blinks-first tussle between the buyers and sellers, the buyers are on the verge of winning.

    Now is the crucial time folks. It is time that we, the genuine, honest buyers, need to lock our arms together and deliver the final kick to this obnoxious developer-broker cartel who have been holding to ransom our basic right to own a house at a fair price. It is time that we now unite and form our own cartel and bring the realty to its fair level.

    I suggest the following:
    1. Do NOT buy any property for the next 6 months at least.

    2. If possible, do not even contact the brokers/agents/developers. Let their swanky cellphones gather dust.

    3. If at all one ventures out, negotiate HARD. Make offers equal to the prices that we had back in 2004.

    4. Do NOT fall for the bullsh** tactics and gimmicks that they are coming up with these days. There's no point buying a house for three times of what it's worth just because they are giving a free car with it. Some of them are 'guaranteeing' that the prices won't drop for the next 2 years. That's impossible for anyone to guarantee, especially these two-bit developers who themselves are financially in tatters. They can give you post-dated rental checks for the next 5 years, but you do not know that the checks will not bounce. Don't not get yourself in a position where you are the last ones in the line to hold a worthless 'asset' with no one else to pass it on to.

    5. ABSOLUTELY DO NOT put in advance deposits for projects which are just taking off. There are many projects which have already overshot the possession deadline by 1.5 years or more. Your money will be taken by these developers to make payments on the high-interest loans these guys have trapped themselves into, and you'll be stuck for years with a bone in your throat which you can neither swallow not spit out.

    The last few months, the obnoxiously greedy ones are doing all they can to hold on to their astronomical rates. Using their power in the media and in the political circles they are doing everything to paint a rosy picture. Everything except bring down the prices or cut profit margins.

    For the last 4 years they have amassed an incredible amount of wealth. Now, if they have to take a loss to get rid of their accumulated land banks, then so be it. That is free market and the whole supply-demand principle. Let's make them bend to it.

    Remember, you do NOT need to buy a house. You can always go for rentals, or manage at your current abode.

    Let us all unite and show them the power of the common person. Lets snatch back from them what they took from us. We are a thousand times more in number, and we have the power.

    Lets kick them where it hurts. DO NOT BUY ANYTHING till the prices correct by at least 50 to 70%. Spread the word!!!

    Who's with me?
Have any questions or thoughts about this?