showrecentposts({"version":"1.0","encoding":"UTF-8","feed":{"xmlns":"http://www.w3.org/2005/Atom","xmlns$openSearch":"http://a9.com/-/spec/opensearchrss/1.0/","xmlns$georss":"http://www.georss.org/georss","id":{"$t":"tag:blogger.com,1999:blog-19301908"},"updated":{"$t":"2009-12-02T13:30:32.183+05:30"},"title":{"type":"text","$t":"Eclectic Investor"},"subtitle":{"type":"html","$t":"TRADER, INVESTOR AND WICKED NON-ECONOMIST IN THE MAKING; AN ACTIVIST WITH A FAIR SENSE OF JUSTICE; INVESTING WITH A WORLDWIDE VISION."},"link":[{"rel":"http://schemas.google.com/g/2005#feed","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/posts/default"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default?alt\u003djson-in-script\u0026orderby\u003dpublished"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/"},{"rel":"hub","href":"http://pubsubhubbub.appspot.com/"},{"rel":"next","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default?alt\u003djson-in-script\u0026start-index\u003d26\u0026max-results\u003d25\u0026orderby\u003dpublished"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"}}],"generator":{"version":"7.00","uri":"http://www.blogger.com","$t":"Blogger"},"openSearch$totalResults":{"$t":"149"},"openSearch$startIndex":{"$t":"1"},"openSearch$itemsPerPage":{"$t":"25"},"entry":[{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-1003583325465063851"},"published":{"$t":"2009-06-14T16:30:00.010+05:30"},"updated":{"$t":"2009-06-14T17:02:25.846+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"MUTUAL FUNDS"},{"scheme":"http://www.blogger.com/atom/ns#","term":"COSTS"}],"title":{"type":"text","$t":"The Hidden Costs of Mutual Funds"},"content":{"type":"html","$t":"A lot of people invest in mutual funds because they believe that these mutual funds deliver a better return than they could hope to achieve in their lifetimes. Couple this with the glitzy advertising that mutual funds employ that it is difficult to avoid parting with at least some money to the friendly neighborhood financial advisor.\u003cbr /\u003e\u003cbr /\u003eNonetheless, the fact remains that past performance is not a measure for future performance. Mutual funds are linked to the markets and markets can move up, down and sideways for years.\u003cbr /\u003e\u003cbr /\u003eThe biggest problem of investing in mutual funds is not so much average or poor performance but the fact that most funds perform poorly is because the fund manager and the asset management company take large slices of the profit pie even before it reaches your table.\u003cbr /\u003e\u003cbr /\u003eCosts are the biggest problem with mutual funds and responsible for most of the sub-par performance of the funds. What is worse is that the fund industry go out of their way to hide costs by using complex financial structures and using complicated terms. Most investors lack understanding of these and hence do not question.\u003cbr /\u003e\u003cbr /\u003eFees can be broken down into two categories:\u003cbr /\u003e\u003cbr /\u003e1. Ongoing yearly fees to keep you invested in the fund.\u003cbr /\u003e\u003cbr /\u003e2. Transaction fees paid when you buy or sell shares in a fund (loads).\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-weight: bold;\"\u003eThe Expense Ratio\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003eCost of hiring fund managers: Usually 0.5 percent to 1 percent of the assets under management. This may appear small but note that this is the value of the assets and not a percentage of profits. Thus this sum gets deducted before the profits are calculated. Sometimes this could work up to 40 percent of the profits made by this fund manager.\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-weight: bold;\"\u003eAdministrative Costs\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003eCosts of postage, accounting, customer service, rents, staff, etc.\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-weight: bold;\"\u003eAdvertising and Promotions\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003eBrokerage commissions paid when purchasing shares and toward advertising and promoting the fund.\u003cbr /\u003e\u003cbr /\u003eOn the whole, expense ratios range from as low as 0.2% (usually for index funds) to as high as 2%. The average equity mutual fund charges around 1.3%-1.5%.\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-weight: bold;\"\u003eLoads or Distribution Costs\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003eThere are entry loads and exit loads. Loads are costs paid to ensure the funds are available at every nook and corner. They are also called distribution costs. These are paid to the mutual fund agents. The extra kickback you receive from your mutual fund agent is a portion of the load he receives.\u003cbr /\u003e\u003cbr /\u003eLoads comprise entry and exit loads. Entry loads are when you pay a fee to enter a mutual fund. Usually 2-5 percent of the investment. So if you pay Rs 1,000 for the investment in to the mutual fund, you will get just Rs 950 worth of units.\u003cbr /\u003e\u003cbr /\u003eExit loads are charged if you exit the fund before a certain time period. For example, some funds will charge an exit load if you disinvest before one year while others will lock you in for 3 or 5 years. As the number of years increase the exit load is expected to reduce and in the last year of the lock-in, it becomes zero.\u003cbr /\u003e\u003cbr /\u003eThe key to good mutual fund investing is to purchase units of those funds which do not charge any kind of loads.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-1003583325465063851?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/1003583325465063851/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d1003583325465063851","title":"1 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/1003583325465063851"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/1003583325465063851"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2009/06/hidden-costs-of-mutual-funds.html","title":"The Hidden Costs of Mutual Funds"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"1"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-5857248357734279272"},"published":{"$t":"2009-05-26T08:51:00.005+05:30"},"updated":{"$t":"2009-05-26T08:54:35.613+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"FINANCE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"ECONOMY"},{"scheme":"http://www.blogger.com/atom/ns#","term":"OPTIONS"}],"title":{"type":"text","$t":"Garbagemen Beat FMs in Predicting Economy"},"content":{"type":"html","$t":"In December of 1994, the economists sent a questionnaire to four chairmen of multinational companies, former finance ministers from four countries, four Oxford University students, and four garbagemen. They were asked to predict average economic prospects including world economic growth, inflation, the price of oil, and the pound’s exchange rate against the dollar in the ten years following 1994. The economists said the garbagemen and company bosses tied for first with the predictions. The finance ministers came in last.\u003cbr /\u003e\u003cbr /\u003eExtracted from the book \u003cspan style\u003d\"font-style: italic;\"\u003eThe Options Course\u003c/span\u003e by George Fontanills.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-5857248357734279272?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/5857248357734279272/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d5857248357734279272","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/5857248357734279272"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/5857248357734279272"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2009/05/garbagemen-beat-finance-ministers-in.html","title":"Garbagemen Beat FMs in Predicting Economy"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-7043119781779504143"},"published":{"$t":"2009-03-14T10:16:00.009+05:30"},"updated":{"$t":"2009-03-14T20:46:37.805+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"INDIA"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SLUMP"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Real Estate Prices Slump Toward 2003 Levels"},"content":{"type":"html","$t":"\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://2.bp.blogspot.com/_vUrQCOLv5h0/Sbs6Rf_bIWI/AAAAAAAAAjk/_S7BCzSPB-o/s1600-h/Real+Estate+Decline.JPG\"\u003e\u003cimg style\u003d\"margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 379px;\" src\u003d\"http://2.bp.blogspot.com/_vUrQCOLv5h0/Sbs6Rf_bIWI/AAAAAAAAAjk/_S7BCzSPB-o/s400/Real+Estate+Decline.JPG\" alt\u003d\"\" id\u003d\"BLOGGER_PHOTO_ID_5312904257733337442\" border\u003d\"0\" /\u003e\u003c/a\u003eRemember the time when an upmarket property in Malabar Hill \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_0\"\u003eMumbai\u003c/span\u003e cost Rs 12,000-17,000 per sq ft. The same situation is likely to come back within a few months according to real estate agents in \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_1\"\u003eMumbai\u003c/span\u003e. Prices here had touched between Rs 25,000 to Rs 45,000 per square feet.\u003cbr /\u003e\u003cbr /\u003eNew Delhi too is seeing a clear reversal in times. Builders who purchased properties in early 2008 are now wriggling out of deals. In early 2008, a builder had negotiated a Rs 18-\u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_2\"\u003ecrore\u003c/span\u003e deal for a 2,925 sq ft house in New Delhi’s upscale Defence Colony area. His objective was to demolish the house sitting on the land and develop apartments, hoping for a return of about 30 percent. However, today he has opted out of the deal losing even the Rs 50 \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_3\"\u003elakh\u003c/span\u003e paid he had paid as token money. The same property is now being valued at Rs 9-10 \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_4\"\u003ecrore\u003c/span\u003e.\u003cbr /\u003e\u003cbr /\u003eDevelopers are dropping prices but the buyers are simply not coming. It is likely that once the panic button is hit, prices could touch rock bottom within months. There are no financiers in the market, and in Delhi, volumes are down 95 percent from peak. New projects launched are 40 percent cheaper than before. \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_5\"\u003eNCR\u003c/span\u003e regions are also hit. A 11,250 sq ft home in Golf Links, which was purchased for Rs 70 \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_6\"\u003ecrore\u003c/span\u003e, is now available for Rs 50 \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_7\"\u003ecrore\u003c/span\u003e, but there are few takers.\u003cbr /\u003e\u003cbr /\u003e\u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_8\"\u003eMumbai\u003c/span\u003e's troubled times continue. Sometime ago a deal was made in \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_9\"\u003eUsha\u003c/span\u003e \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_10\"\u003eKiran\u003c/span\u003e Apartments, on \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_11\"\u003eAltamount\u003c/span\u003e Road, by an executive of a financial broker. Within days of almost finalizing the deal, the executive backed out. Ten months ago, actor \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_12\"\u003eVinod\u003c/span\u003e \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_13\"\u003eKhanna\u003c/span\u003e offered to pay Rs 1.25 \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_14\"\u003elakh\u003c/span\u003e per sq ft for a 2,500 sq ft apartment for the ultra-luxury apartments, El \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_15\"\u003ePalazzo\u003c/span\u003e, located in the Hanging Gardens area of Malabar Hill. Subsequently \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_16\"\u003eKhanna\u003c/span\u003e  backed out, but it was a wise decision.\u003cbr /\u003e\u003cbr /\u003eCurrent prices in Il Palazzo are around Rs 70,000 to Rs 75,000 per sq ft. Near here, in \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_17\"\u003ePedder\u003c/span\u003e Road, rates are around Rs 45,000 per sq ft. A few kilometers away, in \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_18\"\u003eMumbai's\u003c/span\u003e \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_19\"\u003eCBD\u003c/span\u003e, \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_20\"\u003eNariman\u003c/span\u003e Point, a London-based Indian national acquired a 3,475 sq ft property at \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_21\"\u003eNCPA\u003c/span\u003e Apartments, at Rs 97,842 per sq ft, nearly six months ago, but rates there are almost half that now.\u003cbr /\u003e\u003cbr /\u003eIn the central \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_22\"\u003eMumbai\u003c/span\u003e’s \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_23\"\u003eWorli\u003c/span\u003e and Lower \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_24\"\u003eParel\u003c/span\u003e areas, rates are down to Rs 12,000-18,000 per sq ft, while in \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_25\"\u003eBandra\u003c/span\u003e they have fallen by more than a fifth to Rs 15,000-25,000.\u003cbr /\u003e\u003cbr /\u003eWhere price drops have been of the order of 50 percent, buyers appear to be showing interest. Orbit Corporation is now asking Rs 16,000 per sq ft for its new project in Lower \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_26\"\u003eParel\u003c/span\u003e down from Rs 35,000 per sq ft.\u003cbr /\u003e\u003cbr /\u003eIn India’s technology capital Bangalore, prices have fallen by up to 25 percent in some area, says a Morgan Stanley report, and \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_27\"\u003eDLF\u003c/span\u003e, India’s biggest real estate company, cut rates by about 30 percent at its upcoming project.\u003cbr /\u003e\u003cbr /\u003eBrigade Group's The Gateway project, one of the oldest localities in town, is quoting at Rs 5,090 per sq ft against Rs 5,790 per sq ft last year. Second sales are going at Rs 4,700-Rs 4,800 per square ft.\u003cbr /\u003e\u003cbr /\u003e\u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_28\"\u003eKolkata\u003c/span\u003e too is cooling down on the real estate front. Prices are off their mid-2008 peaks. In areas such as \u003cspan class\u003d\"blsp-spelling-error\" id\u003d\"SPELLING_ERROR_29\"\u003eBallygunge\u003c/span\u003e Circular Road, Sunny Park and Queens Park rates, which were Rs 8,500-10,000 per sq ft in January 2008 jumped to Rs 13,000-14,000 in June-July before dropping to Rs 9,000-11,000. Residential properties sold at Rs 12,000-15,000 per sq ft last year, are averaging Rs 9,000-10,000 per sq ft now.\u003cbr /\u003e\u003cbr /\u003eRead the full story \u003ca style\u003d\"font-style: italic;\" href\u003d\"http://economictimes.indiatimes.com/News-by-Industry/Realty-prices-show-major-decline/articleshow/4257855.cms\"\u003ehere\u003cbr /\u003e\u003c/a\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-7043119781779504143?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/7043119781779504143/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d7043119781779504143","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/7043119781779504143"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/7043119781779504143"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2009/03/real-estate-prices-slump-toward-2003.html","title":"Real Estate Prices Slump Toward 2003 Levels"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"media$thumbnail":{"xmlns$media":"http://search.yahoo.com/mrss/","url":"http://2.bp.blogspot.com/_vUrQCOLv5h0/Sbs6Rf_bIWI/AAAAAAAAAjk/_S7BCzSPB-o/s72-c/Real+Estate+Decline.JPG","height":"72","width":"72"},"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-2593150957799279809"},"published":{"$t":"2009-01-08T18:27:00.004+05:30"},"updated":{"$t":"2009-01-08T18:34:24.813+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"FRAUD"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SATYAM"}],"title":{"type":"text","$t":"The Simple Explanation to What Happened at Satyam"},"content":{"type":"html","$t":"Everyone is asking the question: What happened to Satyam's Rs 5,400 crore cash that was on the books. Amid all the hype, here's the simple story.\u003cbr /\u003e\u003cbr /\u003eRamlinga Raju found a way to give Rs 5,400 crore to his son's real estate companies Maytas Infrastructure and Maytas Properties. This money had already been siphoned out before the declaration that Satyam was buying out the two Maytas companies.\u003cbr /\u003e\u003cbr /\u003eHowever, the shareholder revolt that followed forced Ramlinga Raju to cancel the buyouts. But the money had already been transferred out.\u003cbr /\u003e\u003cbr /\u003eThe other simple story: Satyam had been fudging figures for years. There was no substantial cash in any case. The only way to show this cash as spent, was to acquire Maytas and show is as an asset purchased for the cash.\u003cbr /\u003e\u003cbr /\u003eThis way cash from reserves would be shown as investments or cash paid for aquisition.\u003cbr /\u003e\u003cbr /\u003eEither way, Ramlinga Raju screwed up.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-2593150957799279809?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/2593150957799279809/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d2593150957799279809","title":"3 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/2593150957799279809"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/2593150957799279809"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2009/01/simple-explanation-to-what-happened-at.html","title":"The Simple Explanation to What Happened at Satyam"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"3"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-3703017420893644171"},"published":{"$t":"2008-12-15T11:54:00.022+05:30"},"updated":{"$t":"2009-03-20T08:24:47.412+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"INDIA"},{"scheme":"http://www.blogger.com/atom/ns#","term":"CAPITAL GAINS"},{"scheme":"http://www.blogger.com/atom/ns#","term":"TAX"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Blame the Government for Real Estate Mania"},"content":{"type":"html","$t":"The best way to dampen real estate spiral is to make capital gains on real estate compulsory and not provide any kind of exit routes. After all why should reinvestment back in to property save you capital gains tax.\u003cbr /\u003e\u003cbr /\u003eWhen you purchase shares of Tata Steel, and sell it for a profit, you pay capital gains tax on that transaction, whether or not you reinvest the money in to Infosys or not. So, why should a person selling his apartment in Mumbai be allowed to save tax, but only if he reinvests the proceeds in to an apartment in Bangalore?\u003cbr /\u003e\u003cbr /\u003eThe Indian government is guilty of keeping an excessive real estate spiral in place. It has kept the real estate boom going, by providing an exit route for real estate investors, via reinvestment in property.\u003cbr /\u003e\u003cbr /\u003eIn order to save capital gains tax on property the government says that you can reinvest the money within one year in to real estate and avoid payment of capital gains tax. Alternatively, you lock this money in to a capital gains bonds, which pays you 5 percent each year, for the next five years. At the end of the tenure the capital and the interest becomes tax-free. The capital gains on real estate is taxed at 20 percent for long-term capital gains and 30 percent for short-term capital gains.\u003cbr /\u003e\u003cbr /\u003eWho picks property at Rs 2 per square feet and sells it at Rs 2000 per square feet. It is none but politicians, especially those who are in power. The Indian government has perpetuated a constant stream of investment in real estate by introducing this exit on capital gains.\u003cbr /\u003e\u003cbr /\u003eAs Sam Zell said, there is no shortage of land in India, but there is shortage of zoned land, which means land freed for real estate development. This land is controlled by the government. Zoned land is never made available to individual home buyers.\u003cbr /\u003e\u003cbr /\u003eWhy is it, that people who can pay Rs 30,000 per square feet for an apartment are not allowed to pay Rs 17,000 per square feet for land, on which they can build their own homes.\u003cbr /\u003e\u003cbr /\u003eThe government's job is to focus on creating new cities, by providing infrastructure (excuse this buzzword) - in simple term, water, electricity and roads. Instead, politicians focus on acquiring cheap land, doubling FSI, and selling them at profits that even the stock market cannot provide. This is why real estate is such a darling of the chosen few in India.\u003cbr /\u003e\u003cbr /\u003eThus, it makes sense, that when one votes, it is always in the best interest of the people to ensure that one single party never remains in power for more than one term. If it is a choice between theivves, the best thing a voter can do is to divide the spoils and exercise at least one wee bit of control over the overall process.\u003cbr /\u003e\u003cbr /\u003eAlways vote out the incumbent government, and bring in a new one. This is the sanest thing to do. Irrespective of what the party stands for, just make sure they do not rule for more than one year.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-3703017420893644171?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/3703017420893644171/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d3703017420893644171","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3703017420893644171"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3703017420893644171"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/12/blame-government-for-real-estate-spiral.html","title":"Blame the Government for Real Estate Mania"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-7794972733886574287"},"published":{"$t":"2008-12-08T15:34:00.008+05:30"},"updated":{"$t":"2008-12-08T15:54:06.935+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"AVINASH MKB"}],"title":{"type":"text","$t":"Do not Bail Out Real Estate Companies - Avinash MKB"},"content":{"type":"html","$t":"After yesterday's stimulus package announcement for the Real Esate companies , I read an articke in the Economic Times about real estate companies claiming that the stimulus package was not enough and that they need more. \u003cp\u003eCEO # 1 says : \"They could have done more …. should have cut the steel prices mores …...\"\u003cbr /\u003e\u003c/p\u003e \u003cp\u003eCEO # 2 says:   \"Package should be annouced for loans of upto 30 lakhs and not 20 lakhs , this is not enough.\"\u003c/p\u003e \u003cp\u003eThis is really juvenile behavior on the part of real estate companies. They are crying hoarse about the inadequate sops from the government, while they have done little to stimulate the uptake in real estate via a price reduction.\u003c/p\u003e \u003cp\u003eI am unable to understand the reason why developers are not willing to cut prices (at least by 15-20 percent). While car companies and every other company is offering discounts to sell their stocks, real estate companies are sitting pretty on their profit margins.\u003c/p\u003e \u003cp\u003eAs per my own experience of building a house in Bangalore and also as per the contractor (who also builds many apartments on contract basis) the average cost of constructing a quality apartment is around Rs 1000 to Rs 1200 per sq ft. If you include the cost of land then it would come up to Rs 1500-1700 per sq ft.\u003c/p\u003e\u003cp\u003eBut what's the retail price of an apartment in Bangalore? It ranges between Rs 2300 (at the lower end )  to Rs 3200 (medium) to Rs 4000 (higher end). These real estate guys are making dream margins on each project (even IT companies don't make so much).\u003cbr /\u003e\u003c/p\u003e \u003cp\u003eHowever, on the balance sheets of real estate companies the profit margins are shown lower simply because all profits made during the bull run were invested in creating more and more land banks.\u003cbr /\u003e\u003c/p\u003e\u003cp\u003eGiven all these I don't see a reason why one should give bailout packages, in terms of cheaper loans to the real estate companies.  I believe that the real estate companies should now pay the price for their reckless expansion.\u003cbr /\u003e\u003c/p\u003e \u003cp\u003eMy humble request to the PM and FM is not to give any more sops to real estate companies until they cut prices by 20-30 percent.\u003cbr /\u003e\u003c/p\u003e\u003cp\u003eWrite to Avinash at \u003ca href\u003d\"mailto:avinashmkb@smellthecheeseblog.com\"\u003e\u003cspan style\u003d\"font-style: italic;\" class\u003d\"HcCDpe\"\u003e\u003cspan class\u003d\"lDACoc\"\u003eavinashmkb@smellthecheeseblog.com\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\u003c/p\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-7794972733886574287?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/7794972733886574287/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d7794972733886574287","title":"5 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/7794972733886574287"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/7794972733886574287"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/12/do-not-bail-out-real-estate-companies.html","title":"Do not Bail Out Real Estate Companies - Avinash MKB"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"5"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-31832811375546340"},"published":{"$t":"2008-12-05T08:41:00.004+05:30"},"updated":{"$t":"2008-12-05T08:56:23.600+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"MUMBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"HIGH COURT"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"HIRANANDANI BUILDERS"}],"title":{"type":"text","$t":"Hiranandani Exploited Middle Class for Super Rich"},"content":{"type":"html","$t":"Mumbai builder, Niranjan Hiranandani, exploited a middle class housing scheme in Powai to construct luxury apartments catering to the superrich. This comes across from a High Court order passed Thursday preventing the builder from selling more than two flats to one person.\u003cbr /\u003e\u003cbr /\u003eIn 1986, builder Niranjan Hiranandani was allowed to construct over 230 acres of land under the Powai Area Development Scheme, (PADS), in which 50 percent of the flats constructed had to be less than 40 square meters (430 square feet) and no flat could exceed 80 sq meters (861 sq ft). The objective was to allow the burgeoning middle class to  benefit from the scheme.\u003cbr /\u003e\u003cbr /\u003eHowever, in 1989, Hiranandani was provided an exemption allowing it to merge flats but the amalgamated flats could not exceed 15 percent of the total development.\u003cbr /\u003e\u003cbr /\u003eHowever, the greedy developer built flats of area 1870 sq ft and 4925 sq ft which are currently priced at Rs 4 crore and Rs 8 crore respectively. In March 2008, a report submitted by the MMRDA confirmed the violations. However, the state government allowed the company to get away with just Rs 3 crore as a penalty.\u003cbr /\u003e\u003cbr /\u003eToday's judgment came as a victory for petitioners, Kamlakar Satve and Rajendra Thacker. The judges said that the developer could carry out further construction at its own risk. The next hearing is December 18 when all parties have to file their replies.\u003cbr /\u003e\u003cbr /\u003eRead the story \u003ca href\u003d\"http://www.dnaindia.com/report.asp?newsid\u003d1211582\"\u003e\u003cspan style\u003d\"font-style: italic;\"\u003ehere\u003c/span\u003e\u003c/a\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-31832811375546340?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/31832811375546340/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d31832811375546340","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/31832811375546340"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/31832811375546340"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/12/hiranandani-exploited-middle-class.html","title":"Hiranandani Exploited Middle Class for Super Rich"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-3142923123209296381"},"published":{"$t":"2008-11-30T19:50:00.003+05:30"},"updated":{"$t":"2008-11-30T20:18:35.132+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"GDP"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DEBT"}],"title":{"type":"text","$t":"Dubai Debt to GDP a Whopping 148 Percent"},"content":{"type":"html","$t":"The days of sipping black tea over puffs on shi-sha are over. There will be no more easy on Friday mornings, when expatriates would laze in the security that Dubai was India's cleanest city - considering the number of Indians here.\u003cbr /\u003e\u003cbr /\u003eMany at times would argue that a European lifestyle, without citizenship and rights, was as good  in the desert than one that was offered in the snowy mountains of Canada or coast of Australia or the islands of New Zealand. One could have it all here in Dubai, without the attendant niggling irritant called income tax.\u003cbr /\u003e\u003cbr /\u003eWell until October, nobody cared what the GDP or inflation of Dubai was. They did not care to inform the world community anyway, as long as property prices in Dubai skyrocketed and speculators minted money with every 10 percent put down to book an off-plan apartment.\u003cbr /\u003e\u003cbr /\u003eThis was supposed to be Wonderland, but Alice has to wake up some day, and this day is now. When she does wake up indeed, Wonderland remains just a fantasy. And so it will be in 2009.\u003cbr /\u003e\u003cbr /\u003eMillions of expatriates would find 2009 the most painful year in their history. God would indeed send the angel of death to knock them out. So many had got accustomed to easy speculation in real estate - a lot did in fact make money, only to invest in bigger and larger projects with more leverage - building their proverbial castles in the sands.\u003cbr /\u003e\u003cbr /\u003eAs I had said earlier, the devil has now come home to roost. Dubai has declared its debt through formal speeches of its member of the Executive Council, Mohammed Al Abbar, who said the level of debt owed by the Dubai government is $10 billion, with a further $ 70 billion owed by state-owned companies.\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-weight: bold;\"\u003eDubai’s GDP is $54 billion, according to a source that releases such data, which puts Dubai’s debt to GDP ratio at 148 percent.\u003c/span\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-3142923123209296381?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/3142923123209296381/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d3142923123209296381","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3142923123209296381"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3142923123209296381"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/dubai-debt-to-gdp-whopping-148-percent.html","title":"Dubai Debt to GDP a Whopping 148 Percent"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-1276543945194619400"},"published":{"$t":"2008-11-29T18:19:00.010+05:30"},"updated":{"$t":"2009-03-20T08:07:04.047+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"INDIA"},{"scheme":"http://www.blogger.com/atom/ns#","term":"MCHI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"NRIS"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SLUMP"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"MHCI Chief Seeks Greater Fools in Gulf NRIs"},"content":{"type":"html","$t":"Trust desperate real estate developers to act even more foolishly. Zubin Mehta, CEO of the Maharashtra Chamber of Housing Industry (MCHI), is seeking greater fools for his real estate industry a little too late in the day, when even the fools have lost their money.\u003cbr /\u003e\u003cbr /\u003eMehta said MCHI is targeting UAE NRIs to purchase real estate projects in India, his argument being  NRIs could stand to gain up to 20 percent if they purchase now, since the Indian rupee has fallen by this value against the US dollar.\u003cbr /\u003e\u003cbr /\u003eWhy UAE NRIs? He said that these folks work to buy a home in India, unlike those in UK and US, who are given residential status and further citizenship in those countries. Good deals are now available, said Mehta, pointing to a depreciating rupee, discounts from builders, facilities like free parking and a stamp duty write-off.\u003cbr /\u003e\u003cbr /\u003eHowever, Mehta would have a tough task convincing Gulf NRIs, who have already burned their money investing in the Dubai real estate market. Real estate in the Burj Tower area of Dubai is reported to have fallen 50 percent in last three weeks.\u003cbr /\u003e\u003cbr /\u003eMehta also added that he expects the Indian real estate market to perk up January. Now this is really desperation.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-1276543945194619400?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/1276543945194619400/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d1276543945194619400","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/1276543945194619400"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/1276543945194619400"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/mhci-chief-seeks-greater-fools-in-gulf.html","title":"MHCI Chief Seeks Greater Fools in Gulf NRIs"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-5324670212906943038"},"published":{"$t":"2008-11-29T17:56:00.006+05:30"},"updated":{"$t":"2008-11-29T18:11:25.820+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"MUMBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"TIMES PROPERTY"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SLUMP"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Times Benchmark Reflects Residential Property Slump"},"content":{"type":"html","$t":"Times Property, the property supplement of the Times of India, Mumbai, has changed its Benchmark column to reflect the  slump in residential property rates in Mumbai. Benchmark features on the front page of the Times Property Supplement of the newspaper that appears every Saturday. Data for this section is supplied by Mumbai broker Narain's Corp,\u003cbr /\u003e\u003cbr /\u003eBenchmark is widely read and referred to by home buyers in Mumbai.\u003cbr /\u003e\u003cbr /\u003eDespite the massive price correction, Times Property has reacted slightly slower, mainly because the data supplier Narain's Corp was reluctant to do so.\u003cbr /\u003e\u003cbr /\u003eWhile Benchmark shows corrections in the suburbs, its South Mumbai rates are shown has untouched. However, it may take a little more time before the data supplier accepts the new reality.\u003cbr /\u003e\u003cbr /\u003eThe reductions in Times Property's Benchmark will bring cheer to new home buyers.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-5324670212906943038?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/5324670212906943038/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d5324670212906943038","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/5324670212906943038"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/5324670212906943038"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/times-benchmark-reflects-residential.html","title":"Times Benchmark Reflects Residential Property Slump"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-6675066996312749812"},"published":{"$t":"2008-11-28T08:46:00.015+05:30"},"updated":{"$t":"2008-11-28T21:45:07.164+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"OPINION"},{"scheme":"http://www.blogger.com/atom/ns#","term":"TECHNOLOGY"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Rottenization"},"content":{"type":"html","$t":"It has been at least four years since I read articles talking about good values and the right reasons for business success. During the last quartet of years it appears as if the belief in doing good seemed to have been lost, having got replaced by gung-hoism. Thankfully, with this global downturn, the good things should be back and good things lead to great things.\u003cbr /\u003e\u003cbr /\u003eTake the example of Bangalore. I lived in Bangalore in the late 80's and early 90's. The city was a brilliant mix of values and great weather, heritage, history and nostalgia. Then they discovered it to be the Silicon Valley of India. All of a sudden, there was a wave of thinking about how similar Bangalore was to the Bay Area.\u003cbr /\u003e\u003cbr /\u003eIndians from the US suddenly descended in to the city and set up home here, promoting the idea that one could earn salaries in the US but live offshore, in inexpensive Bangalore. The number of NRIs suddenly 'finding' Bangalore was surprisingly higher than during the tech boom of 1998-2001.\u003cbr /\u003e\u003cbr /\u003eIn no time, real estate became the most favored investment and locals who owned ancestral property - and those who purchased it as farmland - began to sell it at a premium to greedy but gullible NRIs. The very people who moaned about Bangalore losing its old world charm were now selling land like fresh cakes at the local Iyengar Bakery. No thought was given to infrastructure and preservation of culture or heritage, or nature.\u003cbr /\u003e\u003cbr /\u003eThe city, which was renowned for its flora - huge gigantic trees over hundreds of years old - was fast being replaced by the visions of the financiers, and ideas of those living in deserts and arid lands. All of this laid out in neat slices, compressed and packaged as progress. So, what has all this progress done to Bangalore?\u003cbr /\u003e\u003cbr /\u003eClogged roads, 3-hour drives to the airport and vague debates on the timings for local pubs, sponsored by the local corporate brewer. The beer capital of India did not give a thought on what laws should be put in place against those drinking, driving and running someone over in one night. This is called a mad culture of \"investing in real estate\", which never allows for thought on how the city should develop.\u003cbr /\u003e\u003cbr /\u003eInternet, and information technology, and consequently digitalization were supposed to make life cleaner and better, for rich and poor, but what has it done. Bangalore, instead, has become another Mumbai - with its hyper real estate prices, fast deteriorating infrastructure, congested roads, pollution and crime. Good folks with good money were replaced by home loan-loaded ecstatic rodeos, riding some new wave of software jobs, airline jobs or financial services jobs, and what have you, thinking that they were writing the story for the next decade. Suddenly debt was cool, and \"this is how it is in the US\" was a statement for every financial misstep possible.\u003cbr /\u003e\u003cbr /\u003eFlipping homes became as easy as flipping burgers. Just put down 10 percent, book a property, sell it for 20 percent profit next quarter. Another variation was: Buy an inflated property on mortgage, calculate the monthly EMI, and expect the rent to pay off the EMI. Real estate trading became the new casino, in which all could participate, without understanding it. Ever heard of options in commodities and stock? What we were seeing between 2005-2007 was real-estate option trading, without any kind regulation - a perfect resume for disaster  if you do not know what options can do.\u003cbr /\u003e\u003cbr /\u003eHaving seen first-hand the Tech boom and bust - I know enthusiasm is great for start-ups but it does not pay in the long run. Most people confuse enthusiasm with happiness. In the Tech boom of 2000, the Internet was supposed to be the great leveler, so anyone with an Internet account and a url was a company. Venture capitalists became the new kids in town, peddling the deadly shot in to the veins of start-ups - cheap capital. Meetings were held where puffed-up child-CEOs (not very different mentally from the child soldiers of Africa) were asked business plans with specific targets for burning money. There were meetings where one was given a dressing down for not spending enough. If it was burning money in 1998 then, it was taking on debt in 2004 that was the new mantra.\u003cbr /\u003e\u003cbr /\u003eFrankly, the impending rout of real estate - it has not even started, mind you - will provide a great pause for all, unless of course we are overloaded with debt, having purchased property with the idea of flipping them over in 3 months and worse still, hoping to rent it for more than the EMI. Clearly, worldwide, this party is now over!\u003cbr /\u003e\u003cbr /\u003eMany ask me why I am delighted with this rout of real estate stocks. I think it comes from deep within. I despise this rottenization of livable spaces,  invading, decimating and converting organic  material in to concrete. It's a contradiction, that we first burn down forests, fill the space up with processed rubble and then put out ads that say: \"Come live in the lush greenery\". Ask those who purchased apartments in Powai (Mumbai) in 1995. How lush is their environment today?\u003cbr /\u003e\u003cbr /\u003eWhat makes real estate dangerous is that you have the most enthusiastic and emotional fools with the least ability buying in to this. The mass participation in speculation thus causes an almost uncontrolled spiraling of prices.\u003cbr /\u003e\u003cbr /\u003eThe repercussions of a never-ending boom in land would have been disastrous. Where would this have led us? The commercialization of water? We almost thought of this. How about air?\u003cbr /\u003e\u003cbr /\u003eFortunately, booms and busts are self-correcting bootstrapping mechanisms. Thankfully, Nature finds its own corrective path, and as this real estate mania grinds to a halt over the next 2 to 5 years, it will allow us to find our real selves and values. By the time the next bull run starts, we would have spent years \"at the grinding mill\" and done our time.\u003cbr /\u003e\u003cbr /\u003eHowever, future generations would perhaps not learn from this financial turmoil, as we have not from the earlier ones, because, as is the nature of emotional beings, we will always get mired in our own ecstasies.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-6675066996312749812?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/6675066996312749812/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d6675066996312749812","title":"3 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/6675066996312749812"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/6675066996312749812"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/rottenization.html","title":"Rottenization"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"3"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-6778982911107591953"},"published":{"$t":"2008-11-26T21:11:00.007+05:30"},"updated":{"$t":"2008-11-26T21:20:25.276+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"BUST"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Dubai Developers Invoke 'Seize Property' Clause"},"content":{"type":"html","$t":"A new trend is emerging in Dubai, which has many developers invoking a default clause in the sale agreements, which state that if a purchaser defaults on payment of installments, the developer can keep the earlier payments as well as the property.\u003cbr /\u003e\u003cbr /\u003eThis is causing speculators a lot of grief, since many had paid the first deposit as a means of booking the property and had hoped to exit before the next installment.\u003cbr /\u003e\u003cbr /\u003eHowever, Dubai lawyer Kavita Panicker, says she receives \"two or three calls each day\" from US-based investors regarding property purchased in Dubai. Most cannot pay the installments and are facing problems paying installments. She said these investors are happy to exit at a loss.\u003cbr /\u003e\u003cbr /\u003eHowever, developers are reluctant to take the properties back and are invoking the seize property clause in the sale agreements.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-6778982911107591953?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/6778982911107591953/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d6778982911107591953","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/6778982911107591953"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/6778982911107591953"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/dubai-developers-invoking-seize-clause.html","title":"Dubai Developers Invoke 'Seize Property' Clause"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-3058950409443222905"},"published":{"$t":"2008-11-26T16:04:00.005+05:30"},"updated":{"$t":"2008-11-26T16:09:29.581+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"ECONOMY"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"GDP"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DEBT"},{"scheme":"http://www.blogger.com/atom/ns#","term":"UAE"}],"title":{"type":"text","$t":"Dubai's Estimated Debt 100 Percent of GDP"},"content":{"type":"html","$t":"A look at Dubai's economy:\u003cbr /\u003e\u003cul\u003e\u003cli\u003eTourism, retail and real estate, which all show signs of being strongly affected by the present world downturn, together contribute around 30% percent of GDP.\u003c/li\u003e\u003cli\u003eFinancial services, hit heavily by the global crisis, contribute around 10 percent of GDP.\u003c/li\u003e\u003cli\u003eThe energy sector contributes only around 6 percent of GDP.\u003c/li\u003e\u003cli\u003eWholesale, transport and storage, which are also likely to be negatively affected, also contribute heavily to the economy.\u003c/li\u003e\u003c/ul\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-weight: bold;\"\u003eThe emirate's debt is estimated at roughly 100 percent of GDP.\u003c/span\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-3058950409443222905?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/3058950409443222905/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d3058950409443222905","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3058950409443222905"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3058950409443222905"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/dubais-estimated-debt-100-percent-of.html","title":"Dubai's Estimated Debt 100 Percent of GDP"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-7629286576549471792"},"published":{"$t":"2008-11-25T20:12:00.008+05:30"},"updated":{"$t":"2008-11-25T22:52:55.050+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"CREDIT CRISIS"},{"scheme":"http://www.blogger.com/atom/ns#","term":"MORTGAGE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"The Mullahs Have Landed - in Dubai"},"content":{"type":"html","$t":"Dubai is soon headed for a crisis of such huge proportions that its expatriate population has never seen ever.\u003cbr /\u003e\u003cbr /\u003eA double whammy of weak crude prices - down from $150 to $50 a barrel - and a weaker US currency - petrodollars - will make its ruling Executive council scour high and low for ideas on how to fund the highly leveraged property market balloon it has created and what to make of asset depreciation. In many ways, the government has got caught in a whirlpool of its own making.\u003cbr /\u003e\u003cbr /\u003eFor expatriates, especially those who made laughable investments believing that Las Vegas could be created around the fringes of Islamic fundamentalism, this could be the wake-up call for a long dreary nuclear winter.\u003cbr /\u003e\u003cbr /\u003eWith the pain starting to ride down the nerve to common people, Dubai's success and any impending failure would get straightaway tied to the non-Islamic indulgences of the place. Financial pain gives rise to conservatism and religious extremism. With Dubai sandwiched between Shia Iran and Sunni Saudi Arabia, it could get caught in any crossfire.\u003cbr /\u003e\u003cbr /\u003eThe role of Dubai has never been understood;  why is Dubai so powerful within the Emirates - even though it has no oil, no manufacturing base, nor has it been able to achieve Singapore's status as a port of repute. Yet, it has been able to hold up to Abu Dhabi, which owns 90 percent of the UAE's oil, and whose rulers, although more powerful, are far more low profile.\u003cbr /\u003e\u003cbr /\u003eOne reason that comes to mind is that Dubai is a refiner for Iran's oil, and a lot of refining margins are tied to the price of oil, which means the last four years were a bonanza for Dubai. This perhaps explains its clout. With clout, comes ambition, and with ambition a penchant for breaking rules, and Dubai has had all of it. In fact its direction toward becoming a tourism hub for Middle East revelers has always been watched closely by the Islamic right.\u003cbr /\u003e\u003cbr /\u003eDubai has no choice, because tourism in desert cannot takeoff without prostitution, alcohol or gambling.  There is always talk about how activities in Dubai are frowned upon by the conservative Islamic countries. Some time in 2005 there was a rumor of some threats by Islamic extremists to bomb City Center, a shopping mall in Dubai, all of which was well-handled and overcome without alarm. Clearly, it had become evident even then that Dubai's success was getting increasingly uncomfortable for some, and sooner or later there was bound to be trouble.\u003cbr /\u003e\u003cbr /\u003eHowever, before Islamic conservatism could get it, the credit crisis from the West got its goat. As much as charging interest is haram (sin) in Islam, this did not stop the mortgage on construction from becoming the fuel for Dubai's real estate bubble, as it goaded the desire of millions of expats of owning castles in the sand.\u003cbr /\u003e\u003cbr /\u003eWith bright ideas and some really grandiose schemes indeed being delivered, it was western money, and speculation drove up the market in Dubai. There was a time in 2007, when financial executives from New York, speculated on villas in Jumeirah, booking a villa one week, and selling it out the next for a profit. It was this false sense of a bullish market that encouraged lesser mortals among the expatriates to participate in the orgy. Until of course, it all blew up last week in their faces.\u003cbr /\u003e\u003cbr /\u003eFinally, as the sand settles, people will begin to see Dubai what it it really is - a city of imagination but very little lastability: without natural resources, like water and fertile soul, and no oil, it looks like this time the devil has come to stay.\u003cbr /\u003e\u003cbr /\u003eWithout the sins of the West - alcohol, prostitution, gambling -  Dubai would have certainly found it a challenge to sustain its tourism story. Now, as the hype of the glamor and glitz, gets replaced by caution and conservatism, the Mullahs are now going to have all the time to take a hard look at what Dubai represents, and see how it fits in to the general laws of Shariah. With Dubai now having to increasingly depend on Abu Dhabi and Saudi money, the Mullahs have surely landed.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-7629286576549471792?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/7629286576549471792/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d7629286576549471792","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/7629286576549471792"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/7629286576549471792"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/mullahs-have-landed-in-dubai.html","title":"The Mullahs Have Landed - in Dubai"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-8622988973015669887"},"published":{"$t":"2008-11-25T17:13:00.007+05:30"},"updated":{"$t":"2008-11-26T21:11:07.577+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"BUST"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAILAND"},{"scheme":"http://www.blogger.com/atom/ns#","term":"UAE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Dubailand Property Available for Half Price"},"content":{"type":"html","$t":"\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://1.bp.blogspot.com/_vUrQCOLv5h0/SSvrbceCHUI/AAAAAAAAAi4/xAF9EuGR3dU/s1600-h/Dubailand+Balloon.jpg\"\u003e\u003cimg style\u003d\"margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 242px; height: 320px;\" src\u003d\"http://1.bp.blogspot.com/_vUrQCOLv5h0/SSvrbceCHUI/AAAAAAAAAi4/xAF9EuGR3dU/s320/Dubailand+Balloon.jpg\" alt\u003d\"\" id\u003d\"BLOGGER_PHOTO_ID_5272566645498453314\" border\u003d\"0\" /\u003e\u003c/a\u003eDubai-based Elysian Real Estate sent a text message to up to 40,000 mobile phones advertising distressed property sales. The text offered a luxury six-bedroom, six-bathroom villa in Dubailand, a multibillion-dollar luxury theme park on the outskirts of the city-state, at an advertised cost of about £3.86 million – about half its original price.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-8622988973015669887?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/8622988973015669887/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d8622988973015669887","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/8622988973015669887"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/8622988973015669887"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/dubailand-property-available-for-half.html","title":"Dubailand Property Available for Half Price"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"media$thumbnail":{"xmlns$media":"http://search.yahoo.com/mrss/","url":"http://1.bp.blogspot.com/_vUrQCOLv5h0/SSvrbceCHUI/AAAAAAAAAi4/xAF9EuGR3dU/s72-c/Dubailand+Balloon.jpg","height":"72","width":"72"},"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-2363301331827965843"},"published":{"$t":"2008-11-23T13:31:00.009+05:30"},"updated":{"$t":"2008-11-23T13:50:23.792+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"CRASH"},{"scheme":"http://www.blogger.com/atom/ns#","term":"UAE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"ABU DHABI"}],"title":{"type":"text","$t":"Dubai's Burj Tower Prices Crash 50 Percent in 3 Weeks"},"content":{"type":"html","$t":"\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://4.bp.blogspot.com/_vUrQCOLv5h0/SSkPDn6CkjI/AAAAAAAAAiw/iax0ljJjbos/s1600-h/Burj+Tower.jpg\"\u003e\u003cimg style\u003d\"margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 210px; height: 320px;\" src\u003d\"http://4.bp.blogspot.com/_vUrQCOLv5h0/SSkPDn6CkjI/AAAAAAAAAiw/iax0ljJjbos/s320/Burj+Tower.jpg\" alt\u003d\"\" id\u003d\"BLOGGER_PHOTO_ID_5271761393740321330\" border\u003d\"0\" /\u003e\u003c/a\u003eSpeculators in Dubai's Burj Tower - the tallest tower in the world - are in for a rude shock. They have woken up to find that their property values have plummeted up to 50 percent, that too in just 3 weeks. According to brokers, most properties in the Burj Tower district have slumped by at least 22 percent. These were same apartments and commercial establishments that had risen 88-200 percent in the year until September 2008.\u003cbr /\u003e\u003cbr /\u003eZero premium and even discount sales have become rampant as investors rush out of sand castles and in to cash. Prices outside the tower fell from an average of AED 3,500 ($952) per square foot to AED 2,700, and on 8 Boulevard Walk, for instance, dropped from AED 3,300 per sq ft to AED 2,500 per sq ft in three weeks – a 24 percent decrease. Old Town quarter of the development had fallen 30 per cent in the past month, along with nearly 20 per cent at the South Ridges and Residences areas.\u003cbr /\u003e\u003cbr /\u003ePrice fluctuations in the Burj Dubai tower had been far more volatile because of the high percentage of speculators owning these properties, according to brokers. Some had since been sold at significant losses to generate cash. However, they said, the most expensive floors, such as those branded by Armani, sold at about AED 14,000 per sq ft and were holding much of their value.\u003cbr /\u003e\u003cbr /\u003eAbu Dhabi’s high-end developments have also been affected. Many of the buyers appeared to have no intention of holding on to the property long enough to make the first required payments to keep possession of it. Like Al Reem Island, which had 95 percent speculators with no intention to make any payment after the deposit. Residential properties in some cases [are now put into the market] at minus 15 per cent premium.\u003cbr /\u003e\u003cbr /\u003eA floor of offices that was offered in Al Shams Abu Dhabi at AED 2,500 per sq ft three weeks ago is now being offered at Dh2,100. Reem Island's properties purchased at up to AED 2,700 per sq ft are now available at AED 1,800.\u003cbr /\u003e\u003cbr /\u003eRead the story \u003ca style\u003d\"font-style: italic;\" href\u003d\"http://www.thenational.ae/article/20081111/BUSINESS/831532776/0/SPORT\"\u003ehere\u003c/a\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-2363301331827965843?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/2363301331827965843/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d2363301331827965843","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/2363301331827965843"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/2363301331827965843"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/dubais-burj-tower-area-exhibits-3-week.html","title":"Dubai's Burj Tower Prices Crash 50 Percent in 3 Weeks"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"media$thumbnail":{"xmlns$media":"http://search.yahoo.com/mrss/","url":"http://4.bp.blogspot.com/_vUrQCOLv5h0/SSkPDn6CkjI/AAAAAAAAAiw/iax0ljJjbos/s72-c/Burj+Tower.jpg","height":"72","width":"72"},"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-175966395870321229"},"published":{"$t":"2008-11-20T17:52:00.003+05:30"},"updated":{"$t":"2008-11-21T08:42:48.556+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"INDIA"},{"scheme":"http://www.blogger.com/atom/ns#","term":"ARVIND SINGHAL"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"The Denial of Reality - Arvind Singhal"},"content":{"type":"html","$t":"There is no sign of let-up in the economic turbulence all around us. While there is, finally, some realization within the prime minister's office and the key economic ministries that India is not insulated from the global economy and that serious measures have to be undertaken to prevent the Indian economy from melting down too, it is surprising to observe the response of corporate India to this situation.\u003cbr /\u003e\u003cbr /\u003eAs if on cue from the USA, where there is an increasing clamour for more government bailouts, many in the Indian private sector have started to make similar noises. Of all those who have been the most vocal in seeking government support, subsidy and protectionism, the case being put up by the realty sector is the most disturbing. When the recent economic boom started in 2003, land prices in posh Delhi localities ranged from Rs 40,000 to Rs 60,000 per square yard. Builders’ flats in Gurgaon for middle-income customers were being offered for booking at Rs 2,200-2,500 per square foot, while premium residential developments in South Mumbai came to market at Rs 4,000 per square foot. Office rentals in Gurgaon were at Rs 30-35 per square foot per month while in Mumbai, they hovered around Rs 100 or so. In April 2008, the same prices respectively had shot up to Rs 400,000 per square yard, Rs 6,000 and Rs 28,000 per square foot, and Rs 120 and Rs 400 per square foot per month.\u003cbr /\u003e\u003cbr /\u003eWhile this increase, ranging from 300 per cent to 1,000 per cent, put many Indian developers on the Forbes list of billionaires, it also resulted in the destruction of the primary demand for residential and commercial property from actual users since it became unaffordable and nonviable, and brought only speculators to the market. In this situation, the noise from the real estate sector exhorting the government to facilitate reduction in the home loan rates is nothing but a denial of the reality that unless the property prices are scaled back to 2003 (or even 2005) levels — making them affordable/commercially viable for actual users once again — the realty sector will not see a boom again irrespective of the lending rates.\u003cbr /\u003e\u003cbr /\u003eContact Abhinav at \u003ca style\u003d\"font-style: italic;\" href\u003d\"mailto:abhinav@technopak.com\"\u003eabhinav@technopak.com\u003c/a\u003e\u003cbr /\u003e\u003cbr /\u003eRead the story \u003ca href\u003d\"http://www.business-standard.com/india/storypage.php?autono\u003d340787\"\u003e\u003cspan style\u003d\"font-style: italic;\"\u003ehere\u003c/span\u003e\u003c/a\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-175966395870321229?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/175966395870321229/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d175966395870321229","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/175966395870321229"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/175966395870321229"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/denial-of-reality-arvind-singhal.html","title":"The Denial of Reality - Arvind Singhal"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-1274348880312247281"},"published":{"$t":"2008-11-20T16:00:00.003+05:30"},"updated":{"$t":"2008-11-20T16:07:14.388+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"BUST"},{"scheme":"http://www.blogger.com/atom/ns#","term":"BAHRAIN"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Bahrain's Property Bubble Has Officially Burst"},"content":{"type":"html","$t":"\u003cp\u003e A senior professor at City University's Cass Business School, London, has said that Bahrain's property bubble has officially burst.\u003c/p\u003e\u003cp\u003eAccording to Prof Stephen Lee, the sector was grossly \"inflated\" sector and would would now fall in line with prices and growth rates in the rest of the world. He said it would take at least 2 years to recover.\u003cbr /\u003e\u003c/p\u003e \u003cp\u003eHe added that the credit crunch has already hit Dubai where if you work for a property developer you will not get a loan to buy a car. Supply will far outstrip demand, according to Lee.\u003cbr /\u003e\u003c/p\u003e \u003cp\u003eHe said that although the Palm Island in Dubai and Bahrain Bay, for example, will be completed, the wealthy will not invest in them, unless confidence comes back.\u003c/p\u003eRead the story \u003ca href\u003d\"http://www.gulf-daily-news.com/story.asp?Article\u003d235126\u0026amp;Sn\u003dBNEW\u0026amp;IssueID\u003d31244\"\u003e\u003cspan style\u003d\"font-style: italic;\"\u003ehere\u003c/span\u003e\u003c/a\u003e\u003cspan style\u003d\"font-family:Verdana;font-size:78%;\"\u003e\u003cb\u003e\u003cbr /\u003e\u003c/b\u003e\u003c/span\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-1274348880312247281?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/1274348880312247281/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d1274348880312247281","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/1274348880312247281"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/1274348880312247281"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/bahrains-property-bubble-has-officially.html","title":"Bahrain's Property Bubble Has Officially Burst"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-3166753922623657836"},"published":{"$t":"2008-11-20T15:47:00.005+05:30"},"updated":{"$t":"2008-11-20T15:56:12.086+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"BUST"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DUBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Dubai Ambitious Palm Project Falls 40 Percent"},"content":{"type":"html","$t":"\u003cspan style\u003d\"font-family: georgia;\"\u003eThe ultimate reclamation from the sea project, the Dubai Palm Jumeirah project, has seen its value erode over 40 percent since September, according to real estate brokers.\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-family: georgia;\"\u003eA four-bedroom villa on the man-made island developed by government-owned Nakheel, is now selling for AED 10 million (Rs 13 crore), down from 15 million dirhams.\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-family: georgia;\"\u003eRehab Gouda, senior sales agent at Al Jabal Real Estate, said that prices had fallen 40 percent during the same period.\u003c/span\u003e\u003cdiv\u003e\u003cbr /\u003e\u003cbr /\u003eRead the story \u003ca style\u003d\"font-style: italic;\" href\u003d\"http://www.guardian.co.uk/business/feedarticle/8045417\"\u003ehere\u003c/a\u003e\u003cbr /\u003e\u003c/div\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-3166753922623657836?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/3166753922623657836/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d3166753922623657836","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3166753922623657836"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3166753922623657836"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/dubai-ambitious-palm-project-price.html","title":"Dubai Ambitious Palm Project Falls 40 Percent"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-4257952847186202179"},"published":{"$t":"2008-11-19T22:43:00.006+05:30"},"updated":{"$t":"2008-11-19T22:59:11.131+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"BANGALORE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SLOWDOWN"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DLF"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"DLF Cuts Price 21 Percent in Bangalore Project"},"content":{"type":"html","$t":"The real estate slump is now beginning to grind harder on developers.\u003cbr /\u003e\u003cbr /\u003eIndia's largest real estate developer, DLF, has slashed prices for apartments in its 80-acre gated community project at BTM Layout in Bangalore. Prices are down 21 percent to Rs 2775 per, from Rs 3500 per sq ft.\u003cbr /\u003e\u003cbr /\u003eThis means that a 1,310 sq. ft two-bedroom-hall-kitchen (BHK) flat in the project would now cost Rs 36.35 lakh, or about Rs 9.5 lakh cheaper than its initial price. The project, however, is yet to receive mandatory approval from the Bangalore Development Authority.\u003cbr /\u003e\u003cbr /\u003eThe project was launched to a closed set of invitees where the price was discussed. An analyst who did not want to be named said that prices could go even lower.\u003cbr /\u003e\u003cbr /\u003eRead the story \u003ca href\u003d\"http://www.livemint.com/2008/11/18234956/Slowdown-DLF-slashes-rates-fo.html\"\u003e\u003cspan style\u003d\"font-style: italic;\"\u003ehere\u003c/span\u003e\u003c/a\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-4257952847186202179?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/4257952847186202179/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d4257952847186202179","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/4257952847186202179"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/4257952847186202179"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/dlf-cuts-21-percent-on-bangalore.html","title":"DLF Cuts Price 21 Percent in Bangalore Project"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-6008346846490163319"},"published":{"$t":"2008-11-17T17:21:00.005+05:30"},"updated":{"$t":"2008-11-17T19:19:48.221+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"INDIA"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SLOWDOWN"},{"scheme":"http://www.blogger.com/atom/ns#","term":"MM"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Arun Nanda: Another Wishful Thinking CEO"},"content":{"type":"html","$t":"\u003cdiv id\u003d\"ctl00_bodyplaceholdercontent_dvArticleCnt\"  style\u003d\"font-family:georgia;\"\u003e\u003cdiv\u003e\u003cdiv\u003e\u003cspan style\u003d\"font-size:100%;\"\u003eHave you not witnessed time and again, the CEO of Parsvnath coming on CNBC and saying that there was no slowdown and there was no cash problem? Did you not see Sanjay Puri, CEO of Unitech say that analysts do not know how to value real estate companies?\u003cbr /\u003e\u003cbr /\u003eSince then, all these companies have had their stock prices relentlessly banged to almost a 1oth of their 52-week highs. Now, here is another joker in the pack.\u003cbr /\u003e\u003cbr /\u003eArun Nanda, executive director of Mahindra and Mahindra said there is no slowdown in its real estate projects, even though there is slump in demand.\u003cbr /\u003e\u003cbr /\u003e\u003c/span\u003e\u003c/div\u003e\u003cdiv\u003e\u003cspan style\u003d\"font-size:100%;\"\u003e“We are not slowing down on any of our projects. Jaipur is rocking, Chennai is doing well, city-based projects such as Faridabad are also doing well,” he was quoted as saying on the sidelines of the India Economic Summit.\u003cbr /\u003e\u003cbr /\u003eNanda, an executive director of the company, was quoted dishing out more gems:\u003cbr /\u003e\u003cbr /\u003e\"Fundamentals of real estate have not changed,\" he said.\u003cbr /\u003e\u003cbr /\u003e\"We have actually got cash in the bank,\" he said, adding there is a huge demand in 30 to 40 lakh apartments segment. He, however, said the housing loan segment is facing problems, adding there were no funding issues for its projects and the company’s affordable housing projects are not going to disappear, but he did admit that investors are not coming forward.\u003cbr /\u003e\u003cbr /\u003e\u003c/span\u003e\u003c/div\u003e\u003cdiv\u003e\u003cspan style\u003d\"font-size:100%;\"\u003e“Demand has been put on back-burner and interest rates are hurting people,” Nanda said. He also informed those present that  Sebi approval for the initial public offering of Mahindra Holidays and Resorts Ltd.\u003cbr /\u003e\u003cbr /\u003eSure you have heard of the proverbial deer freezing in the headlights. Or is this simple a case of self-denial?\u003cbr /\u003e\u003cbr /\u003eRead the story \u003ca href\u003d\"http://www.livemint.com/2008/11/17165104/No-slowdown-in-real-estate-pro.html\"\u003e\u003cspan style\u003d\"font-style: italic;\"\u003ehere\u003c/span\u003e\u003c/a\u003e\u003cbr /\u003e\u003c/span\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-6008346846490163319?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/6008346846490163319/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d6008346846490163319","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/6008346846490163319"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/6008346846490163319"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/another-deer-caught-in-headlights-arun.html","title":"Arun Nanda: Another Wishful Thinking CEO"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-3835040330933472398"},"published":{"$t":"2008-11-13T17:56:00.004+05:30"},"updated":{"$t":"2008-11-17T18:25:28.943+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"MUMBAI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"STANDARD CHARTERED BANK"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SLOWDOWN"},{"scheme":"http://www.blogger.com/atom/ns#","term":"BANDRA KURLA COMPLEX"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Stanchart Pays Rs 720 Crore in Bombastic BKC Deal"},"content":{"type":"html","$t":"In a deal that seems to be one-off, albeit bright spark, in an industry gasping for cash, Standard Chartered paid Rs 720 crore for 2.2 lakh sq ft in an under-construction building called Crescendo. The sellers were Parinee Developers.\u003cbr /\u003e\u003cbr /\u003eThe rate works out to Rs 32,000 per sq ft, which is between 30-40 percent lower than the Rs 45,000 shelled out in 2007 by Wadhwa Builders.\u003cbr /\u003e\u003cbr /\u003eThe deal is being shouted down a one-off by brokers, many of whom say that Standard Chartered paid more than it should have. A Stanchart spokesperson said they were planning to set up their corporate headquarters at the new premises which will also have the wholesale and retail banking operations.\u003cbr /\u003e\u003cbr /\u003eCommercial lease in suburban Mumbai is also slumping. Grade-A properties are now leasing at Rs 325 per sq ft as opposed to Rs 400-450 a few months ago. Office space has also fallen to Rs 300-350 as compared to a few months ago. However, even at these rates, there are no lessees available, said industry sources.\u003cbr /\u003e\u003cbr /\u003eRead the story \u003ca style\u003d\"font-style: italic;\" href\u003d\"http://www.dnaindia.com/report.asp?newsid\u003d1205993\"\u003ehere\u003cbr /\u003e\u003c/a\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-3835040330933472398?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/3835040330933472398/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d3835040330933472398","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3835040330933472398"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/3835040330933472398"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/stanchart-pays-rs-720-crore-for-bkc.html","title":"Stanchart Pays Rs 720 Crore in Bombastic BKC Deal"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-2300915242774648147"},"published":{"$t":"2008-11-13T17:50:00.005+05:30"},"updated":{"$t":"2008-11-17T18:13:09.172+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"BUST"},{"scheme":"http://www.blogger.com/atom/ns#","term":"INDIA"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SLUMP"},{"scheme":"http://www.blogger.com/atom/ns#","term":"UNITECH"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"}],"title":{"type":"text","$t":"Unitech Forced to Sell New Delhi Head Office"},"content":{"type":"html","$t":"The morass that Indian real estate companies have sunk in to is now becoming glaringly evident. The nation's second-largest property company, Unitech, is now forced to sell its New Delhi office of over 2 lakh sq ft, to raise cash and meet demands from lenders.\u003cbr /\u003e\u003cbr /\u003eUnitech had borrowed an undisclosed sum from HDFC, using the Saket head office as collateral, while HDFC sources claim this number to be Rs 30 crore.\u003cbr /\u003e\u003cbr /\u003eUnitech sources said that HDFC has agreed to purchase this property for Rs 450-500 crore, and that formal agreement is expected to be signed end of this month. Unitech had itself purchased this land for over Rs 127 crore.\u003cbr /\u003e\u003cbr /\u003eHDFC clearly refused to comment on this.\u003cbr /\u003e\u003cbr /\u003eRead the story \u003ca href\u003d\"http://economictimes.indiatimes.com/News/News_By_Industry/Services/Property__Cstruction/Unitech_puts_Delhi_office_on_block/articleshow/3706403.cms\"\u003e\u003cspan style\u003d\"font-style: italic;\"\u003ehere\u003c/span\u003e\u003c/a\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-2300915242774648147?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/2300915242774648147/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d2300915242774648147","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/2300915242774648147"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/2300915242774648147"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/indias-second-largest-home-builder.html","title":"Unitech Forced to Sell New Delhi Head Office"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-724706930810393365"},"published":{"$t":"2008-11-11T22:44:00.013+05:30"},"updated":{"$t":"2008-11-17T20:18:04.859+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"PARSVANTH"},{"scheme":"http://www.blogger.com/atom/ns#","term":"SLOWDOWN"},{"scheme":"http://www.blogger.com/atom/ns#","term":"CITIGROUP"},{"scheme":"http://www.blogger.com/atom/ns#","term":"UNITECH"},{"scheme":"http://www.blogger.com/atom/ns#","term":"DLF OMAXE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"GOLDMAN SACHS"}],"title":{"type":"text","$t":"Realty Cos Likely to Default on Payments"},"content":{"type":"html","$t":"\u003cp style\u003d\"font-family: georgia;\"\u003eCitigroup, in a note to clients, has warned that Indian real estate companies face a higher risk of payment default as access to cash becomes restricted.\u003cbr /\u003e\u003c/p\u003e\u003cp style\u003d\"font-family: georgia;\"\u003eThe same note states that DLF, the nation's biggest property developer, Parsvnath Developers and Omaxe have shown a decline in Q2 income, as a slowing economy and tighter lending norms by banks cut out the oxygen supply.\u003c/p\u003e\u003cp style\u003d\"font-family: georgia;\"\u003eCitigroup analysts categorically  stated that they do not expect a recovery in the near term.         \u003c/p\u003eIn another development, Goldman Sachs too said, in a separate note, that the earnings of realty companies reflect a slowdown.\u003cbr /\u003e\u003cbr /\u003eNew Delhi-based DLF Q2 profit fell 4 percent, while Unitech's Q2 declined 12 percent respectively.\u003cbr /\u003e\u003cp style\u003d\"font-family: georgia;\"\u003eRead the story \u003ca href\u003d\"http://www.bloomberg.com/apps/news?pid\u003d20601091\u0026amp;sid\u003dawTTX2uSPDyE\u0026amp;refer\u003dindia\"\u003e\u003cspan style\u003d\"font-style: italic;\"\u003ehere\u003c/span\u003e\u003c/a\u003e\u003c/p\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-724706930810393365?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/724706930810393365/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d724706930810393365","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/724706930810393365"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/724706930810393365"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/realty-companies-starved-of-cash-no.html","title":"Realty Cos Likely to Default on Payments"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-19301908.post-5172688141292622674"},"published":{"$t":"2008-11-11T21:13:00.008+05:30"},"updated":{"$t":"2008-11-17T19:32:40.263+05:30"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"SBI"},{"scheme":"http://www.blogger.com/atom/ns#","term":"REAL ESTATE"},{"scheme":"http://www.blogger.com/atom/ns#","term":"CORRECTION"}],"title":{"type":"text","$t":"SBI Chairman Sees 50 Percent Correction"},"content":{"type":"html","$t":"OP Bhatt, chairman of State Bank of India (SBI), the country’s largest bank, expects 50 a percent correction in the housing sector prices in the country.\u003cbr /\u003e\u003cbr /\u003e“In India we may witness up to 50 percent correction in pricing in the mortgage markets. If that happens, it’s good news for the Indian banking system as NPAs would reduce and new business would fall-in,’’ he said at the concluding session of Ficci-IBA Conference on Global Banking: Paradigm Shift, in Mumbai on Saturday.\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/19301908-5172688141292622674?l\u003declectic-investor.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://eclectic-investor.blogspot.com/feeds/5172688141292622674/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"https://www.blogger.com/comment.g?blogID\u003d19301908\u0026postID\u003d5172688141292622674","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/5172688141292622674"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/19301908/posts/default/5172688141292622674"},{"rel":"alternate","type":"text/html","href":"http://eclectic-investor.blogspot.com/2008/11/sbi-chairman-forsees-50-percent.html","title":"SBI Chairman Sees 50 Percent Correction"}],"author":[{"name":{"$t":"Eclectic Investor"},"uri":{"$t":"http://www.blogger.com/profile/16398703010402269262"},"email":{"$t":"noreply@blogger.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"05885932486209326752"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}}]}});