we can expect the property prices to cme down for many reason but may nt be effective in mumbai, but surely suburbs for instance the devlopers have hugely invested in land by raising loans from the finanacial institutions wherein they r nw feeling the pinch of higher interest rates with this they left with a few choices 1. to reduce the rates and sell the flats or issue IPO to use public funds hence reducing the interest burden, developers are aware the this is nt the right time for IPO as realty sector is nt intresting as of nw. Also nw thatg interest rate going up will not fetch more cusstomers.
Anyone who is looking out for buying any property shud ideally wait for 6-8 mnths for the prices to cme down drastically. also its interesting to note that lot of builders are sitting on constructed property which is pilling up their working capital.
Re: Expect the property rates to cme dwn
by jaggu on Nov 14, 2010 10:47 PM
Never buy shares in IPO. These builders are capable of selling flats at discount to own investors and divert the profits completely to some one else ...
we can expect the property prices to cme down for many reason but may nt be effective in mumbai, but surely suburbs for instance the devlopers have hugely invested in land by raising loans from the finanacial institutions wherein they r nw feeling the pinch of higher interest rates with this they left with a few choices 1. to reduce the rates and sell the flats or issue IPO to use public funds hence reducing the interest burden, developers are aware the this is nt the right time for IPO as realty sector is nt intresting as of nw. Also nw thatg interest rate going up will not fetch more cusstomers.
Anyone who is looking out for buying any property shud ideally wait for 6-8 mnths for the prices to cme down drastically. also its interesting to note that lot of builders are sitting on constructed property which is pilling up their working capital.
The price of real estate in India is unrealistic. A thousand square feet is sold as super built up etc, when the real space is probably six hundred. It’s pathetic. A human span of 65 years in ideal condition, which includes good upbringing, good education and a good job cannot make him buy a flat of 1000 sq ft in Mumbai proper. That shows there is a nexus slowly but surely existing where black money creeps in. People have hordes of it which is evident in day to day market transactions, real estate purchases and sundry. Lets not be hypocrites by giving stats which are non existent. The government has to look into this matter seriously. There is a golden rule when it comes to real estate prices. It has to be affordable for a common man at least by his age 45. Now one can work out the algorithm. Anyone listening?
There is a need for introducing ceiling on the number of properties one can buy/ book in his (or his family member's names). There are lots of investors in city like Mumbai who books the property at a cheaper rate and sells it later on at a much higher price. Builders and such investors makes lots of quick money. They are actually financially exploiting genuine buyers. Banks should also investigate no. of loans sanctioned to the buyer before sanctining fresh loans. This may help in controlling artificially escalating property prices.
There is always this misconception about property prices going up. Indeed they did in the past decade. But for property owners and realtors it was a boom time. IT sector was booming and foreign remittances coming through.
What costed 300 rupees a sqft in - say 1990, increased to 3000 in 2005. But again people's earnings too increased to that extent.
Today, there is no such luck. We in IT struggling to get a increase of 5% and so on per annum.
The real estate people think that prices can only increase. yes. true. to increase the price of an apartment, what all you have to do is, write it down on a piece of paper and show that 'look the prices have gone up'. lol.
But end of day , its not some game. Some one has to buy that damn thing.
In cities like mumbai the inventories are so piled up that so many projects have been cancelled or postponed indefinitely.
Which idiot will pay 10000 rupees a square foot ? And a decent 1200 sqft apartment with two bed rooms will cost you what ? 1.5 crores ? Thats fkin almost US$350K. You can buy a decent pent house in New York suburbs. lol.
And then you end up paying taxes, maintenance and so on ? WTF. lol.
Re: The scene of price rise
by Muhammed on Nov 12, 2010 06:47 PM
Nicely Written Post! What goes with this is - You always end up paying higher for buying a House, but when you sell you don't get that price. This Statement will Certainly hold true in coming times!
Re: The scene of price rise
by Jay on Nov 12, 2010 03:48 PM
that's true, real estate prices in Mumbai are the most expensive in the entire world.
Even in US you get real estate much cheaper and of better construction quality. Our local builders are hand-in-glove with politicians, and that's why this mess in our realt markets
It is better that now government has reversed it's policy. This will ensure that only serious buyers will purchase homes on bank loans. Investors in property have been using this facility from banks and artificially escalating prices. The needy buyers will now get homes at the right prices.
Re: Home loans
by chandrasekhar narayanaswamy on Nov 12, 2010 10:01 AM
the property prices will still grow and at the rate of 100% per annum till there is no floor space left.land and property is safest bet against inflation and huge rent bills.
Re: Re: Home loans
by Creator on Nov 12, 2010 10:37 AM
As of today less than 5% people in this country can afford a decent apartment for family. So according to your predictions, one's earnings too will grown at the rate of 100% so that at least this 5% customer base intact.
Otherwise, the so called 'safest bets' will be just shocase pieces - no one will buy , neither dwell.
I wonder when there is an inflation , who will buy properties ? I mean during inflation your buying power is reduced per rupee. So , only brainless moron will invest in property during that time.
That leaves only one thing. People will buy property only when they can afford it. Period. No amount of teasers or luring will work.
After all it's once in a life time investment. 99% of Indian population save all life long to buy a property. No idiot will throw away money just like that into some over priced apartment which costed half 6 months ago and now costs double that.
Re: Re: Re: Home loans
by Rajiv Gupta on Nov 12, 2010 03:11 PM
I live in Gandhi Nagar, Delhi. A place in G. Ngr.is Shanti Mohalla, may be 7-8 months backs i heard a 100 sq. yard plot spld for 10 crore; now yeaterday i heard another 100 sq.yard plot is sold for 22 crores (thats cool 22 lakh per sq. yards). The place is pathetic (no good roads/no parking area/congested etc). Agreed that place has readymade mkt. but then at these prices one can buy good plot at any industrial area or place at any mall. Bottomline is that in India who have money they have that much that they are not able to keep that in their houses, thus they are spending abruptly. These people won't let property mkt. come down easily.
If you read todays newpapers , the leader in Indian Banks SBI has stated that teaser rates will continue and so did LICHFL. Teaser rates are a must for early investors in homeloans.
