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Friday, June 5, 2009

Are you in a mood to purchase home?

Chanda Kochhar, CEO, ICICI Bank, sees a change in your sentiments.

Ms. Kochhar feels that you are in a mood to purchase home.
She claims that more home buyers are closing deals.
Chanda admits that "we" are not yet back to last year's levels.
But CEO of ICICI Bank sees an "improvement".

Why Chanda Kochhar thinks so? Because of the new rate cuts, ICICI's home loan interest rates, up to Rs. 30 lakh would be 9.25% (same as HDFC) and above Rs. 30 lakhs between 10 % to 11 % (depending upon you profile).

Add to it public sector banks' plan to cut the home loan interest rates by mid June!

Are these "rate cuts" changing your mood? Tell me!

Do you fear that these interest rate cuts would change the "mood" of builders to cut the property rates?

Are you going to hear threatening statements like "Book Today. We are increasing rates from Tomorrow." when you will visit the "Best of East Pune" property exhibition starting from today?

Will you be forced to buy an affordable home?

Worried about NPA, i am sure, public sector and private banks will support the real estate developers demand for extension of tax holiday for five years under Section 80-IB(10) for housing projects approved after March 31, 2007.

To give "a fillip to other industries" such as cement, iron and steel besides generating employment opportunities, Rahulbaba and his mom will order PM to give fiscal incentives to the real-estate sector for constructing affordable homes, for Rahulbaba's fans, in urban areas.

Result is, you would be forced to buy, the so called, an affordable home. An Affordable home, as Sansei says in his comment:
Affordable house means small house:-

Where one cannot keep a fridge in kitchen.

Where one cannot keep a washing machine in bathroom.

Where one cannot keep a Big TV + Home theater in living room.

Which is Indian peoples aspiration and very affordable.
I am sure, you will agree with Sansei and join him to ask:
"Why can't builders reduce their margins a bit and share some booty i.e profits with Aam admi?"
"Why should we? We share our booty with Rahulbaba. We share it with Chanda. We share it with Deepak. Why the hell should we share it with Aam Admi?," all builders will wonder!

What say you? Can you see this trend in Pune real estate market? Where would property rates go in 2009? Do you see more publicity stunts like launching of Nano Homes? Share your views in the comments!

Related Story:

Home loans will get cheaper as ICICI, HDFC reduce rates

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  1. yeah sure!!
    there is a change in the sentiment of the average buyer..
    this change is called total boycott!!

  2. 'Chanda Kochhar thinks people are in a mood to buy houses'

    'Goel Ganga think young couples need smaller homes now and larger homes later'

    Why are these people making an effort to push their own thoughts without any regard to what the buyer really thinks?

  3. Chandaa O Chandaa, Chandaa O Chandaa,kisane Churaayee Teree Meree Nindeeyaa,jaage Saaree Rainaa, Tere Mere Nainaa

    Woh kehte hain aap aate nahi,hum kehte hain aap bulate nahi..

    Ravi Dada...its easy to blame builders for sky high prices..but even if you look at the resale flats they are priced @ > 3000 per sq ft by the average joshis and sharmas.Why to blame just the builders ?
    A lot of us here are really looking to buy a second home,assuming we bought our homes at a reasonable rate and we had to sell it ,will we share it at a reasonable rate or will we also expect the high inflated rate that has been set up by builders.I am not taking builders side,all I am saying is most of us like to make money and if it is easy money why not ?So one solution is as you suggested ,dont ask for rate,you tell the rate,if it works out good,else dont buy.
    Anyway at the current rates where a 3 BHK is being sold for 60-70 lakhs it is anyway unaffordable.Are there any other solutions ? I think we should think of solutions now and be firm..Hmm.. Maybe we can convince builders and resellers to give up moh maya ;)


  4. Damn NO until Pune's most premium falt has rate of sub-2000 per sq ft.

    Everything else like inflated rates, small area in name of affordable housing is BULLSHIT which will fall on the face of builders in the end.

    I know you'll term me as daydreamer. Well, time will tell. What goes abnormally up comes down same way.

  5. Wow Mr. Chandra!
    you have said your part.
    But please dont try to make it buyers' voice.
    I appriciate if you can say something to buiiders to reduce the rates.

  6. There are absolutely no buyers in the market... all news are from the speculators...
    Builder lobby launching exhibations after exhibations, this clearly shows their desperation to clear the inventory.

    If people wait till another ONE YEAR, prices will start looking attractive.

    So, guys, do not panic and hold on... don't pay any heed to any threats or fake offers.

    Enjoy monsoon and enjoy your life.

  7. I am waiting for a moment when builders will start making suicide like farmers. They really deserve it.

  8. Hi Ravi, I am residing one of the city in USA, Omaha, since 3 years for job assignment.

    I should better not talk about the Omaha's infrastructure which is like any other foreign countries class infrastructures like best roads, little traffic, no congested signals, almost NIL pollution, best maintained trees/lawns, ZERO load shedding, best schools/colleges around, all major retail chains, CHEAP petrol ( ~ Rs. 25 per litre), LOW cost of living versus earning ratio, etc.

    Still I can find a good independent house (bungalow) for ~Rs. 40-45 lacs.

    URL: http://www.trulia.com/property/1053786330-6326-Binney-St-Omaha-NE-68104

    This is the cost of 2BHK flat in Pune which has got roads full of potholes, crowded streets, congested signals, dense pollution, descreasing number of trees, 4 hours of daily forced load shedding, costly fuel, etc.

    I cant understand why builders community is getting so greedy! Afterall there children and grand children would also be required to surivive in this costly society tomorrow.

  9. Mr. Anonymous (Omaha, USA),
    Now, you may have realized why India is called 3rd world country! What's the difference between "Developed" and "Developing (means Un-Developed) country.

    # Ref: "I cant understand why builders community is getting so greedy! Afterall there children and grand children would also be required to surivive in this costly society tomorrow."

    No. Builders are not "greedy"! If you survive few years after the birth, there are 2 options. Exploit. Get exploited. Everyone tries to avoid getting exploited. How? By exploiting others!

    However, together, we get exploited by the CEO of your company and by the government of your visiting country. Salaam Aleykum Obama!

  10. I know and agree that Pune rates are too high but you can't compare Omaha in Nebraska to Pune. Its like comparing a remote town in a remote state to a big city in a state with good economy.
    Why dont you compare Pune with some place like any B-tier cities in the USA? May be Atlanta, Houston,New Jeresey or anywhere in California? That'll make more sense since these cities also have potholed road, plenty of traffic and pollution. And the rate of real estate in these places is not comparable to the Pune RE rates like you are trying to compare.
    Even though I hate Pune Builders for not reducing rates to a reasonable level, I dont think comparing Pune with Omaha which by the way is know anywhere only because of Warren Buffett.
    Ravi, I did not understand the reason for saying Salaam Aleykum to Obama. If you are not aware he's a Catholic even though his father was a Muslim (not that being Muslim is a bad thing).

  11. Hi Ravi,

    How come American President Mr. Obama is exploiting us? I don't understand this statement.

    Can you please explain? Also Pune builders and Mr. Obama can't be put in the same bracket, i.e., Exploiters.

    Please clarify.

    Concerned Citizen.