i think govt sud regulate pricing in all sectors. these days manufacturers are taking high marginns in their products be it medicines, clothes , food items. first they put MRP 100 which is available in market for say rs50 ( in some other brand) then they will put buy one get one offer to sell this.
Recession is allmost over... but real estate is not booming like sensex...Reason High loan interest rates,High prices of property and fickle job security. Builders and investors r not ready to let prices down... even when there was period of severe recession coz everyone wants to earn huge profit.Now economic things r picking up people r not still buying coz High rates of interest by banks and high prices of property. If Govt and Banks ready to give loans at 5% and property prices come down... and housing loan interest standard dedution increase by 2.5 lacs then there will be lot of movement in market...And things will be very good for India and for world.
Re: Govt banks and builders are responsible!!!
by piri on Oct 11, 2009 02:37 PM
Wrong. Recession is far from over. It is only portrayed as over by vested interests such as the incumbent govt. and certain sections of the press.
Moreover, the world has reached a phase where a sustained 'boom' is no longer so probable owing to the changed ground realities. The chief reason why a sustained boom is no longer probable is that the supply/demand equation of oil - which is still the primary source of energy and the most important factor determining economic growth/recession - has reached a threshold stage where any sign of global growth immediately sends the price of oil rocketing over the 100 USD barrier and automatically sets of an immediate recession ! The main reason for the world reaching this threshold now is the sustained growth of China (which has a fifth of the world population and whose growth rate has remained among the highest in the world and looks set to continue so for a very long time to come and thus absorbing all the oil supplies the world's oil reserves and production capacities can manage to produce).
India, in contrast to China, does not have the economic or political might to counter this global trend and cannot in the least bit escape the effects of any global slowdown, recession !!
Bankers must keep same policy about funding property which are not have same value as builder sale, and purchaser is also need to thing about how much we are paying for what? they are having money and want to spend as they are. IT are ITES measure cause besause they are get lot all income without considering requirement they are not having any knowledg about property rate ,area loading factor. As bank funding for builder in area without any infrastructure as rate giving by builder,that increase builder confidence of coating more rate,and this goies on Causing increase in rate without any logical prof.
Re: bankers and high upper middle and middle class responseble.
by Raina on Oct 11, 2009 01:56 PM
So look for finance from funding sources that give u a better deal like I got.
Re: Re: bankers and high upper middle and middle class responsebl
by Raina on Oct 11, 2009 01:57 PM
at one end its tough to buy home at reasonable price for most folks than you have banks fleecing with high floating rates averaging about 11-11.5% interest.
Thankfully I recently found a way to reduce my interest on home loan to 8% fixed for entire 20 year tenure of the loan.
Re: Re: Re: bankers and high upper middle and middle class respon
by amitkumar bhosale on Oct 12, 2009 10:36 PM
pls.tell deatils about home finance company at 8%fix
Re: Re: Re: bankers and high upper middle and middle class respon
by Raina on Oct 11, 2009 01:58 PM
If_interested_in_lower_interest u too_can_contact rohit_(0)_nine_nine_eight_zero_eight_zero_seven_one_six_four
Builders are regular donar to ruling political parties and hence govt is keeping eyes closed on the spirling cost of housing. I hv doubt if any middle class people wold ever able to have own house within few years. What they would do after retirement ? Another chapter of homeless suicide is looming in India like farmers' suicide.
Soon, the interest rate is going to hit the sky rocket and with the introduction of direct tax code (which is expected on 2011-12) will eventually erode any potential increase in the real estate market. Though actual need for houses will always be there, but it will be more even and distributed unlike present situation where it is all concentrated in big or important cities. This will force people moving out from smaller towns or villages to look for opportunities nearer to their residential areas instead of forcefully moving to big metros or cities. This will leave big cities devoid of rental opportunities and not many takers will be there to buy their houses.
It will be a foolish thing to buy property as investment now because the real estate prices will be stabilized in the next 5-10 years due to the Direct Tax code which will discourage people from heavily investing on real estate.
Corrupt Congress Governments will force our people to indulge in share market trading and will try to loot common man money through Mutual Fund rout (by increasing the Home Loan rates & discourage Real Estate Investments) since by that time P Chidambaran, Mukharjee, Sonia will require more billions to handle their empire!!!
because the asking price of property is far off from its rental value . how much rent do you expect to have from a unit located 35km outside city. the best thing at this time would have been for government to start developing satellite townships. why we don't hear of any new satellite townships like noida,salt lake etc when it is easily possible for the government to finance new satellite townships leveraging the enormous prices charged by private players. this will however not happen as the government is fully in the hands of realtors. however this situation is unsustainable over a long term and price must come down to realistic levels.
Property prices in big cities of India can hit the downward slope if IT, ITes and other service sectors move to smaller towns. Where is the need to have a bank back office in Mumbai or Bangalore or IT/ITes in any of these cities. Mohali, Kochi, Baroda are some of the new IT destinations coming up. So property prices can move in the oppostite direction too.
Kalyan is a distant suberbs of Mumbai where the rate of one BHK or so was not more than 4-5 lakhs in the 90's which was fairly reasonable for middle class service holder to afford it. But with the span of 5 years the big high rising bldgs & projects with some big brands & names have come up in the same location with a price tag of 30-35 lacs for no good reason. The roads are so bad that you can't even drive half a KM comfertably without damaging your vehicle. No water or very less water supply & a teribble extn of load shed. but still people are carried away by lucrative offers of builders & loan insitutions(banks). Not only this at kalyan there is not even a single good office of any big co where one can have a good job. every one has to ultimately travel to the town for job. Not even this there is no facility for even for a good business. No business premises, No industrial estates not even a small one. So i don't understand why the hell people go and buy flats the rates of which should be not more than 8 lacs or say a max of 10 lacs & its really unfortunate that even educated people are buying them in 30 to 35 lacs. may god give them the wisdom.
Re: unrealistic rates
by B Subramani on Oct 11, 2009 10:50 AM
Prices of 30-35 lakhs are definitely unaffordable even for an individual earning a decent salary of Rs.25,000 to 30,000 per month. Assuming one is able to put aside Rs.10,000 as savings it will take almost 30 years to reach 35 lakhs. One wonders who are the people buying at these prices. Speculation in housing property should be banned. Investing in property for selling at a profit at a later date should be banned. Since banks give loan readily to young earning individuals, builders keep raising the price for no reason. Banks should not lend more than 50% of the property price and borrowers must arrange the balance 50%. It will make buying property difficult and builders will be forced to bring down prices to affordable levels.
Recently I looked around to enquire some properties in bengaluru after a gap of 2 years. People are still asking 1cr a for piece of $hit land( 1500 sft) in bangalore south 6-8 kms from railway station. I wonder who will buy those and why.
these are located on 20-25 ft wide road. asphalted few years, dusty,and greenary is not even in your dreams.
I'm not frustrated but I feel sad for comman man. How can they own a property in and around city. I also own such a piece of land 12 kms away from railway station and it is still worth 2500 psft as per agents/brokers.
FYI for the people of other states, Blore is no more a garden city. It is good example of concrete jungle now with high pollution. Exiting tress are being chopped in the name of devlopment and also from insensitive rsidents for their car parking space. it looks so ugly now.
PLease think before inveting your hard earned money for this land with out any infrastructure.
Re: real estate ???
by Dony Worry on Oct 11, 2009 09:34 AM
Because, People from Northern, Western & Eastern parts of the country influx Bangalore & Chennai and making these cities completely unlivable. They bring their looted money to South (all Mumbai black money and other shady businessmen from North & East) and inflate the real estate price like anything. They are the biggest culprit.
Typically, Chennaites (barring Telugus who dominate the real estate market through their speculative stuffs) never indulge in luxury style living with 1 Cr or 10 Cr houses which is hitting.
