The mango man, the Indian fool (I am also guilty of being one): One who ruins his childhood mugging crap, wastes his youth working 60 hrs a week, and if lucky to be in Mumbai / Bambai / Bombay, also travels for 18 hrs / week, and then puts all his miserable savings into the downpayment of a pigeon hole, priced at atleast 5 times his annual salary, if in a village or 10 times if in a metro.
Today mango man has access to instant news, of stock market behaviour, corruption & scams, lower sales = higher inventory of flats. Power is shifting from the real estate mafia / broker to the mango man, because today information is easily accessible.
It is our job to now boycott real estate purchases for at least one year and let these builders reduce prices by around 70% in Mumbai and by around say 40 - 50% in other cities.
Re: Mango Man, you are enjoying powershift
by RathaChamundeeswari Angalamman on Feb 08, 2011 06:15 AM
Govt is also a Mango govt. While education loan charged at 13 percent, home loans start from 8 percent and you get tax benefit also?
Re: Mango Man, you are enjoying powershift
by ad force on Feb 07, 2011 01:18 PM
One has two choices. Buy or take for rent. One of them will be cheaper. it is best to take rent and wait for the prices to come down.
Re: Re: Mango Man, you are enjoying powershift
by Argumentative Indian on Feb 07, 2011 01:20 PM
I chose to stay on rent for 10 years now, still continuing on rent.
Re: Re: Mango Man, you are enjoying powershift
by An Indian on Feb 07, 2011 01:24 PM
No, there are other very good option is also there, what wise people are doing i.e. take propfessional service, only supervise yourself, and get the best at cheaper rate. Consuctruction cost is Rs. 600 - 800 per sq. ft. (without land)
Re: Re: Re: Mango Man, you are enjoying powershift
by Argumentative Indian on Feb 07, 2011 01:57 PM
How can anyone construct a house without land? Where can a common person purchase land? Is it practical to form a cooperative society of > 100 people, while working in one of India's leading sweat shops (which is just any other private sector company) for 60 - 70 hrs / week?
Realistically, we can get about 4 - 5 people together to buy a plot of land? Is any such plot of land available around Mumbai? Say 50Km from Dadar ? 70 KM from Dadar? Same case with any other Indian city. I have recently purchased a small piece of land, it is 80 KM from where I stay, which itself is 15 km away from the heart of the city!!!! Can anyone travel 100 Km one way in India and have any life? I may use the land to build a house to stay in after my retirement, but on duty, I'll end up staying on rent.
If any person properly go for costing, the consctruction cost per sq. ft. is between Rs. 600 - 800, rather at Rs. 800 on can go for very high class construction (without land)for middle class family.
I know few people in Bhoapl who have paid Rs 15 lacs to Rs 30 lacs. for Flats that too in very remote areas, or in other word these fool people have paid Rs. 1600 per sq. ft. to Rs. 2400 per. sq. ft. i.e. 3-4 times higher.
Naturally nobody is going to pay even 50 for re-sale. Everything is not share market, and if it is like share market, then if bought at higher one has to bleed.
uproot villager bring them to cities giving them great dreams and selling them high valuable property and poorer will come to work and majority of them become coolie, slave of sex, prostitution , drug, whole system will start enriching mnc will be happy ,by selling coca cola, pespi chips, dogs,hot,, pizza,,what great fight from self sustained ecomomy to fancies bankrupt economy,,,it is great delusion,,,majority of people are just geting into slavery track justknowingly,,,slave of mortgages,banks , money lender,politician are minting money in unsystem jungle raj law,, where capturing,hobnobing with bureacrate, babu everyone can do everything which bring them money
the value of bombay, delhi, channdigarh is alarming high rate are fixed by socalled monopoly of big bureacrate, mafia and politician,return is 1% than investment, what kind of arthmatic is this,, they whole are making fool,,property in australianewzealand is cheaper than chandigrah, amenties,are much worse , whtkind of business they are doing ,,,going bankrupt,,,,
None of the property provides return equal to interest rate, as such if buyers are reduced to available ratio, builders suffer heavily. Today, property in Delhi and NCR is artificailly high, there are only real purchasers left no investor.
IF YOU ARE INTERESTED TO BUY FLATA,DO'NT BUY NOW. DO'NT INVEST WITH BUILDERS,YOUR INVESMENT WILL SINK.PRICES OF FLATS ARE MANIPULATED VERY HIGH,BUILDERS,BUREAUCRATS,POLITICIANS,BUILDERS,TOWN PLANNERS AND E/F MINISTRY IN SOME STATES,IF NOT IN CENTRE.
Re: Debt trap! Why builders are in a state of panic
by Prakash Mudholkar on Feb 07, 2011 11:56 AM
Very correctly said. Please do not buy a flat as real estate people are not greedy but are avaricious (extreme greed for money). Please do not give away your hard earned money to these real estate people and remain in debt for life time.
As to those in IT field, we do not know the future after 10 years whether it will be with us or shifted to China.
Re: Re: Debt trap! Why builders are in a state of panic
by piri on Feb 08, 2011 10:33 AM
China's earnings from IT related exports have already crossed 50 % in value of that of India !!
Imagine ! A country for which English was just another strange foreign tongue till about 10 years ago has managed not only to learn it but also use it well enough to become hot competition to the much hyped Indian advantage in IT because of its familiarity with English !!
Lets recall a couple of years back, this same Emaar was going to come up with an IPO. They had to cancel their IPO launch because the markets had gone kaput because of the sub-prime crisis. They are back, again at the wrong time. Seems like they are condemned to wake up on the wrong side of the bed!
There must be a strong consumer movement against builders. Buyers must unite and force these sharks to reduce prices. Niether Government nor Netas are interested in "common man"
Re: Wake up consumers
by zia khan on Feb 07, 2011 01:14 PM
i fully agree with u mr subramanium ,nobody is bother to ask the govt to scrutinise this sector.unneccessary real price is higher by 40% in metros city.
Re: Re: Wake up consumers
by AK on Feb 07, 2011 06:41 PM
No govt will ever do anything to scrutinise this sector. Real estate is the milking cow for all the politicians in all the Indian states. They would only do things that would maximise their profits.
Re: Wake up consumers
by ad force on Feb 07, 2011 12:55 PM
The government in the US is concerned that people cannot buy houses because their salaries are not enough to pay EMIs. In the US we can buy a house with about 2 year's salary there. Indian government is not least worried that even with 10 times the salary people are earning they cannot buy a house. The gov has stopped constructing houses for the needy, abandoned the people to real estate wolves. Only people with black money can have a house now.
The good thing about capitalism is that these criminals cannot artificially hike the price forever. The market will ultimately beat them by interest rates, lack of demand etc. Wait for it dont blink let these criminal businessmen blink.
Re: Re: Re: Wake up consumers
by Santosh Vijayan on Feb 07, 2011 05:21 PM
Just wait, what goes high has to come down. We fools are more bothered about having a pigeonhole largely coz we wanted to imitate our neighbor, out of the feeling "what people will say" rather than need. We are to blame. I always retaliate with anyone askin me 'why don u buy a home', by saying 'y dont u finance me'? The story eds there. Wait, this s just a bubble going to burst any day, as always been the case! They have shoddy construction, worst amenenities and they use third rated equipments / house wares. Y should anybody pay a bomb for this sick work?
If you check congressi MLA,MPs , you will find all of them linked to construction Industry one way or other. Their slogan of AamAdmi is false. These are blackmarketers out to exploit aam admis needs.They will bend rules to finance these ventures. Ultimatly middle class will suffer.
Re: Congress to be blamed
by anand on Feb 07, 2011 11:41 AM
Haware in Mumbai contested on BJP seat. Loadha is a BJP MP (One of the leading Builder in Mumbai)Raj Thackery, Manohar Joshi & many more saffron leaders are Builders. Aagey Kuan Peechey Khai this is the fate of Common Man
Re: Re: Congress to be blamed
by Sachin Purohit on Feb 07, 2011 11:45 AM
Absolutely. Though I have a preference for a BJP government at the centre, my anger against the builder mafia is such that I have made sure that I am going to vote the other way in my constituency, at least in the Vidhan Sabha. Because the my BJP MLA is a part of the builder mafia.
Re: Congress to be blamed
by ad force on Feb 07, 2011 12:59 PM
All these politicians are elected by the people. Not only the politicians are to be blamed. The voters are the biggest culprits. They dont properly vet the politicians they vote for.
Re: Congress to be blamed
by Sachin Purohit on Feb 07, 2011 11:39 AM
Although I am staunchly anti-Congress and pro-BJP, let me assure you - this is not just the Congress. Its got wealth from across the political spectrum. This Lodha guy is a BJP fellow. He is a sucker with absolutely no record of ever meeting his commitments. In the Mumbai suburb that I stay in - Ghatkopar, most of the new real-estate ventures are said to be happening with the benami money of the local BJP MLA.
Any fight against these land-sharks can come to a logical end only when we the people shun our political biases and fight them all together.
It is the greed story once again. The real estate - the same that was given to banks as colaterals against these loans to developers has been marked to unreasonable prices. Thus these builders have got a loan much larger than the value of land against which they got it. Now they are not able to sell the property anymore. Much worse, in a supressed market, they won't get fools to purchase their equity either. One part of the story that the bankers don't want to have NPAs in their accounts has been covered in the article. Thus suggesting that the bankers will insist on nothing short of repayment. However there is another part of the story. As mentioned above in my comment, the collateral is not worth the price at which the loans were given at the first place. If the builder fails to pay up, bankers may not be able to recover even half of the loan amount from selling the collateral. Also, lets not forget..its not the builders. They are just a mask. The real guys behind them are the politicians. The same guys who legislate. Now they will do everything to protect their own benami wealth, by protecting the builders.
