I appreciate the effort by rediff in bringing the plight of consumers to public front. AS the bloggers said abt CIDCO n MHADA is someting every1 totaly agree on. Its very true. Flat costs are way to ahead of the reach of common man. And yes the black money white money part is something common nowadays. Just to say that the real estate prices are quite inflated and unreal than the normal cost. This cannot be done with the connevance of the government. It is a known fact that builders n industrialists r their biggest financers for election, whichever party it may be. Regulatory body will do no good. Did TRAI do any good for Telecom? my answer wud be no. Law like the once mentioned here which is practiced abroad can help. But im sure politician wont be willing to care about it. Thery r way to busy doing irrelevant things. Only Vaastu bhagwan can save this countries Home owners till then.
Property is worth the investment only if the return on rental income is 8% of purchase price or more. That is - if the cost of house is 50 lakhs - you must be getting a minimum rental of 32 K on it. However - you can lower rental threshold on purchase decision to 6% if property is likely to escalate by 10% in next years annually.
It is a sell call for a house if rental income for the property falls below 4% and price escalation lower than 6%. In case of an expected negative trend in house price - sell call is to be made.
Good theory - my wife does not agree. Too attached to "home"
I fully agree with you people supporting a independant regulatory body for controlling real estate business. This would not only regulate greedy builders but also ensure good houses at rasonable rates for everyone.
There should also be restriction on individual possessing property.
RE:Support for regulatory body
by Antony Kuriakose on Oct 29, 2007 07:55 AM
What are the so called "Law Givers" doing about the reulatory authority and protecting the interests of the buyers? Many of these guys are either involved in construction industry or are being paid off by the Industry. With the building boom around the country, nothing much is being done to protect the poor buyers from the builders. The contracts are totally one sided and builders have no responsibilty to deliver the flats / houses as per the contractual obligations, while any delay in payment by the buyer can lead to stiff penalty!!
