Desperate times needs desperate measures

http://economictimes.indiatimes.com/markets/real-estate/news-/builders-find-ways-to-stay-afloat-hold-on-to-property-rates/articleshow/11680915.cms

Read the above link. The RE mafia is luring cash rich investors and thus staying afloat weathering the slump in the sales. Behind the lines, we need to understand that  they are expecting end users (like you and me) to blink first and fall into their trap. They are holding steady and slightly having upper hand at this moment. The forces working in their favour are

1. Indian Government and their corrupt politicians
2. RBI ( It is trapped into it unknowingly or knowingly)
3. People who already invested in RE ( They are sentiment creators)
4. Share Market ( Sentiment Creator)

But even the mighty federal reserve could not stop the slump in their real estate. We need to wait and watch when the law of natural correction sets in. So far the indications are negative. The indications in our favour is

1. Food Inflation which nosedives showing signs of going up ( ask the vegetable vendor)
2. Many banks started showing negative returns this quarter ( read financial results)
3. Equity markets are at resistance zone
4. News flow from Europe dried down
5. Indian fiscal deficit is at record heights and babus cannot look other side. This budget would be a great disappointment.

Crash is near. Hold on . sit tight.

Investors Selling has begin - Start Music

The much awaited Real Estate Correction has begun in India.

For the past few months I was waiting for this moment when the main stream media talks about the Real Estate correction. This has started. Economic Times has started with this article.
http://economictimes.indiatimes.com/markets/real-estate/realty-trends/jittery-investors-selling-flats-below-market-rate/articleshow/11275674.cms

Please go through it. It says Investors started selling flats much below the price builders quote.(make no mistake, still the investor is making profit). Now this early birds are smart I would say. Because soon the so-called investors would have to sell much below their purchase price.

Start Music.

The Party Begins.

Real Estate Bubble, Real Estate Correction, Real Estate Fraud, India

Something about my favourite punching bag - 4

http://www.livemint.com/2011/11/30231509/Is-price-correction-inevitable.html

Here is an interesting article about the fight to survival by RE sharks. It would be criminal to tell that they are fighting for survival. They are fighting to cling to to their exorbitant profit levels which hopefully won't last.

The article dwells deep into their strategies, options etc







real estate india, real estate correction, real estate bubble, real estate fraud

Something about my favourite punching bag - 2

If you think still Real Estate is a good bet please read this...


http://www.bloomberg.com/news/2011-12-19/sanya-home-bubble-pops-as-property-curbs-deflate-prices-in-china-s-hawaii.html




If you want some India specific news then please read this...


http://www.moneycontrol.com/news/business/india-realty-likely-to-seeto-365-bn-pe-exits2012_636775.html#toptag

A real estate correction in India is round the corner because of the real estate bubble.

Are we traitors?

There is an interesting article in the blog link given below.

They think they have a point when they say we are cheering the fall of our own economy. This is the common allegation we face when we talk/expect about the real estate crash. I would like to give point by point reply to their allegation.

1. By accusing this, they indirectly supports the real estate mafia which is wholly responsible for irrational price rise for housing.

2. Many of them, did not seems to know the basic cycles of economy that growth is cyclical. They only want economy to grow up without any correction. It is no wonder many of them only seen the boom. For somebody who started earning from 2000-2001 would not have seen a proper cycle.

3. Many of them who themselves bought real estate at exorbitant rates and now fearing for lose of wealth. If they bought for housing purpose, anyway they need not worry because in long term the asset will find its own value. If they had leveraged to see quick bucks, then SORRY. It depends on their holding power.

4. We are shouting for a correction, because we want to avoid a hard landing. They dont know the meaning of hard landing and soft landing. Probably they should ask a ordinary US citizen about what happened in US in 2008. US can afford and India cannot.

5. It is not that we want to buy apartments after see the crash. Whether we buy or not, we want our jobs to be safe and unaffected due to this mad rush for property.

6. We are merely saying like any other business, why not Real Estate guys also earn 10-20% profit. Anybody who supports them have any idea about their margin?

I am happy to reply any particular question you have in mind.

Real estate bubble will lead to Real estate correction. NOBODY CAN STOP THE NATURE'S LAW.

Something about my favourite punching bag - 1

Real estate developers are getting finances from banks at 14%.  From private money lenders they are getting funds at 22% and more.

HDIL is neck deep in trouble. See the share prices. DLF debt is increasing alarmingly. Even though they cry and ask banks to bail them out, nowadays banks are wary about putting good money behind bad money as they also know about economic cycles. Banks turned cautious on Kingfisher is good example.

Another six months at same interest rates is enough to break the backbone of realty companies. Even if they succeed in getting a rate cut from RBI to the tune of 50 basis points, it wont be of any help to them.

Time to rejoice -3

http://in.finance.yahoo.com/news/real-estate-prices-correct-now-030000562.html

I am trying to collect the number of articles talk about the imminent correction in RE sector. This above article in Yahoo talks clearly about the happenings.