I am again trying to bring one more important issue.
Since 2005 Govt had allowed foreign direct investments in Indian real estate and an approximate in flow of $20 billion dollars in the form of debt by financial Institutions. In the back ground again these financial institutions give ratings to the cities of India and give recommendations about the future growth of property prices, which ultimately making people to hurry up to lock the sale deal with the builder. Here is the logic behind this.
Usually when will a buyer buy an item?. When the buyer is in need of it and affordable to buy the item are the right judgments. But in this scenario banks are offering the loans and FII(Financial Institutional Investors) give recommendations saying property prices will go up. So here is the tempting moment for the people who are clever and think them selves as intelligent i.e the so called speculator will come in to picture will tap the loan from banks and buy the property and wait for selling after getting some profits.
Here is the govt’s responsibility will come in to picture. Does the govt really supporting the public /supporting the FII’s ?. Does the property will create any wealth to the nation when the public doesn’t have money / job in hand? Isn’t the provoking done by govt and cheating the public?. If the money loaned by banks is given to small businesses they will create some jobs and in turn it will create wealth for the nation.
Since 2005 Govt had allowed foreign direct investments in Indian real estate and an approximate in flow of $20 billion dollars in the form of debt by financial Institutions. In the back ground again these financial institutions give ratings to the cities of India and give recommendations about the future growth of property prices, which ultimately making people to hurry up to lock the sale deal with the builder. Here is the logic behind this.
Usually when will a buyer buy an item?. When the buyer is in need of it and affordable to buy the item are the right judgments. But in this scenario banks are offering the loans and FII(Financial Institutional Investors) give recommendations saying property prices will go up. So here is the tempting moment for the people who are clever and think them selves as intelligent i.e the so called speculator will come in to picture will tap the loan from banks and buy the property and wait for selling after getting some profits.
Here is the govt’s responsibility will come in to picture. Does the govt really supporting the public /supporting the FII’s ?. Does the property will create any wealth to the nation when the public doesn’t have money / job in hand? Isn’t the provoking done by govt and cheating the public?. If the money loaned by banks is given to small businesses they will create some jobs and in turn it will create wealth for the nation.
But by allowing the FII’s to invest in reality the so called boom made public get rid of farming and come out of cultivation. And the same the Govt’s acquired public land for projects and industries?. Is it the real good things Govt’s doing for the public?.
Now in this whole transaction govt is getting revenue in the form of taxes and builder is making money some how. The real estate created jobs are now out. These jobs became a night mare for the public and these real estate lobbyists in India call for the Govt nod to recognize it as an Industry.
The govt’s minimum responsibility to see there are no abnormal developments in any area. But with this abnormal speculated growth govt’s made public as fools and with the investment information the ruling parties made more money with the speculation at the cost of common people of India. I am hoping that education will give discrimination capability and give better future to the nation.
In the bottom line these realtors are paying the agreed profits to the investors and that money is going out of country. Now in the whole transaction who is getting benefited out of this? . It looks like once the highly regarded Finance minister lost his credibility and trust after he became as prime minister. He turned into a true political leader.
In my opinion now the FII also will not invest money in Real estate and they burnt their hands in USA/UK markets. They will wait till we loose our grip on the property by individual and wait till the builder will loose money. Once the builder started loosing money he will be desperate for investor and ready to hand off the property with a great bargain deal. That’s where they enter and take the control of the whole industry. Between govt and banks will lower the intrest rates and again these guys will start making profits. Here our govt is not doing the controlling role which it supposed to do, bcoz their personal money invested in real estate business. They want some body that can fuel the prices where they can make their personal money.
But in opinion it looks like a cycle to me and this is gambling game is over and people are not ready to get fooled again.
Comments are welcome.