Instead of government forcing the state owned banks to reduce home loan interest rates they should have forced builders to reduce the rates or atleast leave the interest rates to the banks. Inflated artificial real estate prices not going to help any economy and that too with poor infrastructure...

Becasue of the boom for last years People borrowed money from banks and gave it to builders. Now salaried people's disposable income has come down affecting every business and the economy.

Daily wages labourers, bank home loan agents should know the pain more than any one who bought the house and cannot pay EMI.

Builders should reduce prices by 40% and go back to 2004 levels and people should start buying houses with in their salary limit atleast for this daily wage workers and to keep the economy moving....
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  • Originally Posted by SHYAMSUNDAR PAHARI
    Ear...please think before u make the comment!!!!...............BANK , Builders and Govt need to come on a single platfrom to think of the Property at evryones reach!!!


    Friend, You are missing the sarcasm and pertinence of the question.People think they are above the government in having evaded tax and feel confident that they can manage their investment themselves, and become richer and richer.They miss out that they are becoming richer only through this system provided by the government and not outside it.

    Government is the only body that can and would give subsidies keeping the larger interest of the people in mind, Not the Banks and Builders.

    Are you expecting the government to liaise between the different bankers and builders for reduction of prices in existing projects?No way.

    Government cannot dictate or direct how banks should be run or how much profit a builder should book.They can at best take efforts to regulate it and try to keep away speculators and prevent malpractices.

    Government can come up with future township projects as public/private partnerships schemes where the government would provide land and the private players build on it.It would be a development,build,finance,operate and transfer model(DBFOT).

    Classic example of BOT are the toll roads by NHAI.Though you end up paying heavy fees each time you make use of the roads.Its beautiful,connectivity is great,it makes travelling pleasurable, transport of goods faster and generates huge revenues.

    Thats the way to go forward.
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  • Originally Posted by BigBear
    Even though India has one of the highest saving ratio in the world we are still dependent largely on external capital for growth as most of the investments in India goes in to illiquid RE and gold.

    What is the value addition if money(both black and white) is invested in RE and remain locked for 30-40 years(I am not talking about house bought for personal use).Mostly politicians and middleman gain as they know the knack of tweaking rules and extract maximum profit.Is land in shortage in India?No.we have lot of land but not land fit for living i.e residential land.For converting non-residential land into residential land one needs to get 64 signatures.This redtape is causing the shortage of land and politicians and middleman will not allow this to change so easily.

    See what happened to gold.In 1970s price of gold was around 850 dollar per ounce.Now also the price is around the same level.Why?US under Nixon abolished the gold standard which was existing before 1970s so that price of gold does not increase drastically.So single piece of legislation can change the game dramatically.Price of gold had increased in rupee terms as government allowed rupee to devalue against dollar which is not good for India in long term.

    Same thing can happen for RE also.If any good government in future abolishes the redtape, more land can be made available for development which will make land affordable for new buyers .Investing in RE now is like investing in ponzi scheme or getting trapped in Greater Fool Theory i.e false belief that they would always be able to sell their assets to “bigger fools” at a higher price.


    I agree with most of your points here.

    But,I feel the fact that we dont have lots of land thats liveable and the politicians have vested interest to keep it that way makes it a good investment for long term.With the speed our government works, It takes atleast 10 years for a place to become liveable with all infrastructure from the time the initial layout is formed.

    I feel when one buys a non-litigated liveable property using cash, at the right price without over leveraging their capacity.They are safe.The risk of the investment is only devaluation and not erosion.

    Unlike stocks where you can lose your money completely.Assets like RE,gold are something that provides balance and prevents wealth from getting eroded completely.They provide hedge against inflation and troubled times.

    While I try to assess risk of various portfolios,I find open ended mutual funds with large corporate investor participation pose higher risk than RE.The overdependance on "professional fund manger(s)" makes them more vulnerable to ponzi like scams despite being regulated by SEBI.Just my 2 cents.
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  • Originally Posted by panther
    Are you implying that the salaries have grown at the same rate as the RE prices? Coming from you, that's an ignorant statement. You are smarter than that, Natz.

    From 2004 to 2007, RE has grown 300 to 400% (if not more). How people do you know who are making 4 times in 2007 compared to what they were making just 3 years back?

    Don't get desperate :)

    I am yet to come across one who has not made more than 3 times his salary in IT or Financial fields between 2004 and 2007. Infact all the examples I have, have made 4.5 times on the average.
    PS. I aint a HR broker...Sethugm will ask that next! LOL!

    PS2. Incidentally if anyone is not making 3 times more between 2004 and 2007 then they should be hopeless or must have retired like me! LOL!
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  • Originally Posted by Natarajg007
    I am yet to come across one who has not made more than 3 times his salary in IT or Financial fields between 2004 and 2007. Infact all the examples I have, have made 4.5 times on the average.
    PS. I aint a HR broker...Sethugm will ask that next! LOL!

    PS2. Incidentally if anyone is not making 3 times more between 2004 and 2007 then they should be hopeless or must have retired like me! LOL!


    Dear friend,

    Regarding PS2, it looks, as you did not make 3 times of salary in 2007 over that of 2004, you chose to retire and now you should be making much more than the 3 times every 3 year period?

    What do people like me, PSU employees, who never made more than a few hundreds by way of increment each year during all these years do, except to await the retirement to come ?

    ks2071746
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  • Chose to retire?

    Originally Posted by ks2071746
    Dear friend,

    Regarding PS2, it looks, as you did not make 3 times of salary in 2007 over that of 2004, you chose to retire and now you should be making much more than the 3 times every 3 year period?

    ks2071746



    Well, y'know, along with salary hikes came much higher work pressure and a commitment to deliver, no matter what! Gone are the days of the 80s and 90s when you could sit on your past laurels (till they got unrecognisably squashed) and keep taking month-end dole!

    So, I'm wondering weather 'chose to retire' could more likely be 'got kicked out', what with all the dilly-dallying and dithering characteristics demonstrated in the endless inability to sell property on some flimsy excuse or other!!! :D

    cheers
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  • Hmmm...Got kicked out in 2003 May and well could not find a job when every other idiot was recruited when he trespassed as they used to say in TCS until now! Hmm.
    Hope that idiot is happy!!!
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  • 300% raise in salaries in three years? no sir, that is not how it has been. you are mistaken. oh, and btw, when you say LOL, it does not mean you are happy or you have won the argument. for someone who is retired, using these slangs is rather juvenile.
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  • Originally Posted by Freenivas Reddy
    300% raise in salaries in three years? no sir, that is not how it has been. you are mistaken. oh, and btw, when you say LOL, it does not mean you are happy or you have won the argument. for someone who is retired, using these slangs is rather juvenile.

    Retired...does it mean I am 60plus? I chose to retire from mundane jobs at 40-! Got it.
    As for 300%, let us know what ur salary in 2003 and 2008 was. If it did not increase 3 times or close to that then u must be hopeless. I cant even LOL at you.
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  • Friends,

    Following are the numbers on average salary increase in India across various industries from annual survey conducted by hewitt.

    2009 - 8.2% (projected)
    2008 - 13.3%
    2007 - 15.1%
    2006 - 14.4%
    2005 - 14.2%
    2004 - 13.7%

    Hope it helps to come to a conclusion whether RE appreciated in line with raise in salary or not.
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  • Originally Posted by Natarajg007
    Retired...does it mean I am 60plus? I chose to retire from mundane jobs at 40-! Got it.
    As for 300%, let us know what ur salary in 2003 and 2008 was. If it did not increase 3 times or close to that then u must be hopeless. I cant even LOL at you.

    my salary in '03 and '08 cannot be compared because i am in a different country now(for 3+ years) than i was in '03. i am talking about people who have worked in india all this while. 300% *raise* is an outlandish claim, the keyword here is "raise".
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  • Dear friend,

    RE appreciated much, much more than these every year from 2003 to 2008.

    ks2071746
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  • Originally Posted by nabishek
    Friends,

    Following are the numbers on average salary increase in India across various industries from annual survey conducted by hewitt.

    2009 - 8.2% (projected)
    2008 - 13.3%
    2007 - 15.1%
    2006 - 14.4%
    2005 - 14.2%
    2004 - 13.7%

    Hope it helps to come to a conclusion whether RE appreciated in line with raise in salary or not.

    These Hewitt data are Bullshit to be polite. They use higher numbers even in bad years and lower numbers in good years.
    Go and find out what is Hewitt numbers for 1987 to 2002. My personal rate CAGR was around 30%. However for the ordinary guy the number was around 15%. Hewitt will give u much lower figure.
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  • Originally Posted by Freenivas Reddy
    my salary in '03 and '08 cannot be compared because i am in a different country now(for 3+ years) than i was in '03. i am talking about people who have worked in india all this while. 300% *raise* is an outlandish claim, the keyword here is "raise".

    300% is outlandish abroad not in India my friend. Many Indian NRIs are just missing the point that they are nothing but beggars abroad and those who are well off in India are really kings. In 1988 when I first went abroad I had a shopping list.
    In 2002 I did not have a shopping list and did not know how to spend my perdiem. Today I wont travel abroad for purchase. I will get most of it in the Malls and shops of Bangalore. I was given a PR by Singapore in 1997 after just 3 months there, I yet hold the PR (the card) but my Visa has expired and I wont want to be a Singapore PR. Infact I have lived in Singapore totally for just one and half years and most of my 5 year Multiple entry visa was not used by me. So much for the foolish view of NRIs that they are better off. They are just imagining and why I crib on this board is because NRIs are not just cribbing but as losers are crying that prices have gone up in India. Even today in the small dot called as Singapore flats are sold for 300K S$ which is like 1.5 crores and we are talking about 1000 sft at best. What is the reason?
    Then in Bangalore or Chennai the prices have to be better. Think of it. There is lots of land in India, in TN, in Karnataka but development happens only in Cities, read Chennai and BLR. So prices here have to shoot up.
    So forget your INCORRECT VIEWS OF INDIA and Indian salaries.
    My niece was earning around 2.5L in 2003, now it is around 10L. My friend in Kotak was earning 2.5L in 2003 now it is 13L.
    I dont talk in thin air like my great Bear friends. I dont need to name myself Wise. Others can know I am more than Brilliant even without such naming jargons.
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  • Originally Posted by Natarajg007
    These Hewitt data are Bullshit to be polite. They use higher numbers even in bad years and lower numbers in good years.
    Go and find out what is Hewitt numbers for 1987 to 2002. My personal rate CAGR was around 30%. However for the ordinary guy the number was around 15%. Hewitt will give u much lower figure.


    These numbers indicate the percentage growth in salary for the same position and work experience.

    Salary growth due to promotion, increase in experience,shift to another better paying company/industry is not considered.
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  • Originally Posted by Freenivas Reddy
    my salary in '03 and '08 cannot be compared because i am in a different country now(for 3+ years) than i was in '03. i am talking about people who have worked in india all this while. 300% *raise* is an outlandish claim, the keyword here is "raise".


    Dear Friend,

    Even for those who have worked only in India salaries have gone up 400% between 2003-2008 particularly in emerging industries like IT and ITES (provided they were good performers and were willing to move to better employer when needed).

    As regards your stay outside India, its natural that salaries are much higher in places in US, UK. But be careful before being sarcastic about those who are working in INDIA, you may even return to India and may have to work under some INDIAN manager.
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