These idiotic builders / bankers / broker & investors and commission journalists from ET do not seem to realise that they are trying to build their castles in the air, BMWs, Mercedes etc on the back of ordinary, middle class people looking to put a roof over our heads .. yes our salaries have increased over the last few years but that is because of the toil we put in and we all want to enjoy the fruits of our labour as opposed to paying off EMIs for the rest of our lives.. Our dreams of enjoying the fruits of our labour have been rudely hijacked by the greed of these nasty people to make 500% margins supported by the corrupt media and politicians Apartments in Mumbai, Delhi are much more expensive that those even in London and New York; but incomes are nowhere close .. 200K USD will get you a more than decent 3 bedroom co-op in the US .. try getting something similar for Rs.1 Cr in Mumbai or Delhi .. you'd be surprised how far you would land up My advise to all the so called "Bears" .. please stop visiting these estate agents and builders till November .. only then will the rates go down .. peek into the psyche of the builders .. they had a pretty good thing going making 500-600% margins .. do you think they will give up so easily?? every single visit to the site tells the builder that there is demand in the market that he can convert into a sale .. and then we all come back frustrated that the rates are not falling and crib .. whereas the biggest culprits are we ourselves
Re: Realestate .. Who is to blame??
by Manoj Ahuja on Oct 06, 2009 05:13 PM
King kimmg salaries have not increased because you are toiling hard. i remember my father as senior executive in a PSU, how efficiently
and sincerely he used to work. i never find him idling even at about 80 now. But now, nobody wants to work, they only want high slary for free.. there is not a single multinational where the executives arre not
corrupt the system itself has become inefficient and corrupt if there are high sales and low prices cos and execs both benefit
and .. if the sales are low and prices are high even then they
make hay. real estate prices are in tune with and a result of these corrupt
and monopolistic volumous trade, benefiting all.
the real estate prices do not depend on a few people not going to
the market for some time. if the demand is artificially suppressed
for some time, and finally when the demand comes to the market
suddely , the increaased demand also increases the prices astronomically.
Re: Re: Realestate .. Who is to blame??
by Manoj Ahuja on Oct 06, 2009 05:19 PM
pl read "benefitting all, except common people (who cant think of buying new houses)"
Re: Re: Realestate .. Who is to blame??
by Agrahara Gopinath on Oct 06, 2009 06:02 PM
Manoj,
This is the one of the most sensible message I have ever seen in rediff.People here talk about 400-500% margin for the builder. NO one accounts for the land value and the briberies involved with the various local govt organizations like muncipality,electricity,water board etc. Agreed that builders make huge margin,but even the above mentioned guys will also have their lion share in it.Its a vicious web which no body can stop. People keep buying and life moves on.
Re: Re: Re: Realestate .. Who is to blame??
by Manoj Ahuja on Oct 06, 2009 08:01 PM
Thanks Gopinath.
and i think you are right, since it is mostly those builders who connive with the politicians and local organisations who make money. Otherwise , if a builder works honestly, i am not too sure how much profit shall he be able to make even after those huge investments ...
The article looks like a piece of research with a clear under current message 'go take a home loan and buy a house' no matter what the price is. It is interesting to note that the author(s) say EMI can be max 40% of one's take home pay. Assuming that 5 lac to 6 lac per annum is the earning of a middle income family in the suburb, of that about 30% of the pay is gone (for the next 10 years to 20 years depending on the nature of the loan), the effective take home money is 3.5 to 4.2 lacs per annum. Now , in the current scenario when food prices have doubled in about a year like every other household expense , how is a family expected to survive?
What is missing in the article above is the justification of how 'borrowing / lending will improve one's financial position'. Especially in a country like India where there exist very few regulations - from realty though daily consumables.
May be the day is not far when the family can afford to send only the 'preferred child' to college ( like in the US) and press other children to leave for destiny.
Personally, it is foolish to pay through your nose exorbitant monies for flats assuming that things will improve.
Every realty article, is syndicated no matter what. It's all part of a huge jigsaw puzzle - Indian realty juggetnaut.
Re: Basically they are doing what they can
by Rohan Desai on Oct 06, 2009 11:23 PM
The research done on the pricing is not fair. Where in Mumbai and in Thane do you see a price range of 4,000-4,100. The prices are in the range of around 5500-6500. Where the entire budget goes for a toss.
Re: Re: Basically they are doing what they can
by common sense on Oct 07, 2009 10:52 AM
The prices mentioned especially for Thane is for 2nd sale homes. In fact, if any body is wise, he will always go for 2nd sale homes (0-5 years)
Great article by Anup. Certainly the best on the real estate sector from a buyers viewpoint I have ever read. Strongly urge rediff to keep it on the headlines for at least two days. Thanks to Anup and Outlook Money.
soon we may have real affordable housing in many of the cities. say 5lac for 2bhk. The house will have only 2 bedrooms. Kitchen & restroom will be common for each floor or may be for the whole block. rest amenities r common anyway
Re: new mantra of affordability
by janijohn janardhan on Oct 06, 2009 03:27 PM
chopping 600sft frm erstwhile _1000sft_2bhk & still making a_2bed_seems_2_have caught everybody's fancy esp the builder/realtor combine
This article was one of the best article I have found it with a perfect & minute observation for each booming cities it has given a clear-cut examples of where to buy, what to buy, whether it is advisable to live on rent for short-term or to go for property buying. Its all perfect!!
This project should have been ready by mid 2008 as per the agreement. I am yet to receive possesion letter from the builder.I am interested in networking with other buyers in this project who are also effected by this delay so that we can protect our interest. Jolly Kochery
Re: Oberoi Springs - a project by Oberoi Construction
by janijohn janardhan on Oct 06, 2009 04:31 PM
instead of networkin thru rdiff please go to consumer court & file a petition. In next 3-4 years you will get your money back with decent interest & damages
In Banaglore house rent is too much than it worth and also too much rent deposite(10times the rent). I think real estate charlatan is much higher than any city in India. Govt should fix the rent range for particular area.
