singhabhimanyu
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वो ओजुस पढ़न तै जरूर आवेगा. रावण भी ऋषि मुनि सा बनके सीता हरण करण आया था. यो भी ततईया सा बनके तेत्रिस खेलन जरूर आवेगा. माडा सा चूक गया मैं ना तै कर दिया था इस कुल्दीपे का भी तेत्रिस.
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Price Rise due to unchecked increase in Property prices!
- Thread starter kuldeepgrewall
- Start date
1) I think government should fix government rates closer to market rates (people will buy to reside there not to invest)
2) Increase property tax and fund infrastructure to develope suburb residtial like US (property tax overhead will discourage invstors, and encourage people to live in suburbs, no need to move to city)
3) Government have power to resell a property at registration cost (plus inflation for older properties) + 5% (rates are shooting up due to black money only. One of reason flats rate still go up moderately up down as transactions are done with white money)
Government rates are knowingly kept low and original draws are favored to politician deer ones or through some quota. Significant gap in market and government rates further attracts investors. If we can devlop infrastructure for entire Gohana and provide all facilite to suburb like Baroda. I would travel to Rohtak and drive for half an hour rather than staying in 10X10 room in Rohtak. Once we find a way to track black money land prices will go down as there is too much black money involved which can't find a safe heaven within country. If one is willing to sell property in white there is no buyer or ne wants to buy in white there is no seller.
2) Increase property tax and fund infrastructure to develope suburb residtial like US (property tax overhead will discourage invstors, and encourage people to live in suburbs, no need to move to city)
3) Government have power to resell a property at registration cost (plus inflation for older properties) + 5% (rates are shooting up due to black money only. One of reason flats rate still go up moderately up down as transactions are done with white money)
Government rates are knowingly kept low and original draws are favored to politician deer ones or through some quota. Significant gap in market and government rates further attracts investors. If we can devlop infrastructure for entire Gohana and provide all facilite to suburb like Baroda. I would travel to Rohtak and drive for half an hour rather than staying in 10X10 room in Rohtak. Once we find a way to track black money land prices will go down as there is too much black money involved which can't find a safe heaven within country. If one is willing to sell property in white there is no buyer or ne wants to buy in white there is no seller.
[h=1]Black money a malaise in real estate industry; causes excess demand & price rise[/h]
Good article:
Industry insiders say that the process which forces a builder to take approvals from different agencies gives birth to corruption. Every stage involves a malpractice.
For instance, in the Delhi NCR region, a builder needs nearly 60 approvals to construct a property. A developer who operates in North India says that he recently had to pay a kickback of Rs 18 crore to an NCR-based development authority. And, the officials handed over a typed document with heads and subheads of departments and designation of people concerned and their percentage in the total kickback.
The developer says he couldn't believe that corruption was so organized! Kumar Gera, the chairman of Gera Development, says: "It is not about the number of clearances that is a problem. We agree that structural safety and environmental compliance is important and this needs to be checked and regulated . But then it is the manner in which it happens which causes problems.
For instance, if I submit a plan for my construction and the authorities point out three mistakes after 30 days, and I correct them and send them back and then they take another 30 days to re-evaluate and come up with 2 mistakes, it only leads to huge delays."
He says that if the developer submits a plan as per the rules and the processes are in place, it should not take more than 45 days for all clearances to be in place. But, in reality, the time taken for clearances can range from nine months to two years, on an average.
Delay of projects could add 20-30 % to a builder's project cost. Builders pass it on to consumers , and extend the circle of corruption and cash. A consultant points out that builders don't just pass it on - they often add to it big time - for example, how they account for payments to suppliers, to dodge taxes and siphon off cash.
So, everything becomes distorted; how builders price their projects, how they recognize revenues, how they pay their suppliers, how they value their land holdings, how they use their bank loans.
Vineet Chopra, a banker, gives an equation by which corruption leads to inflation. Corruption -> black money -> investment only possible in real estate -> rises in land values -> rise in inflation Vineet says: "Another malaise in real estate industry is the amount of black money.
Black money encourages lavish spending, which causes excess demand and a rise in prices. It is the root cause for unprecedented price hike in real estate sector." It is a well-known fact that if people (read businessmen and politicians) do not take the black money out of the country, they are likely to funnel it into real estate.
Real estate is one the most viable investment options with a longterm gestation period, considering that the investments are huge. It also ensures safe investment when compared to other investment tools like the stock market, for instance. The growth is inevitable and thus it is an ideal option for investments.
Good article:
Industry insiders say that the process which forces a builder to take approvals from different agencies gives birth to corruption. Every stage involves a malpractice.
For instance, in the Delhi NCR region, a builder needs nearly 60 approvals to construct a property. A developer who operates in North India says that he recently had to pay a kickback of Rs 18 crore to an NCR-based development authority. And, the officials handed over a typed document with heads and subheads of departments and designation of people concerned and their percentage in the total kickback.
The developer says he couldn't believe that corruption was so organized! Kumar Gera, the chairman of Gera Development, says: "It is not about the number of clearances that is a problem. We agree that structural safety and environmental compliance is important and this needs to be checked and regulated . But then it is the manner in which it happens which causes problems.
For instance, if I submit a plan for my construction and the authorities point out three mistakes after 30 days, and I correct them and send them back and then they take another 30 days to re-evaluate and come up with 2 mistakes, it only leads to huge delays."
He says that if the developer submits a plan as per the rules and the processes are in place, it should not take more than 45 days for all clearances to be in place. But, in reality, the time taken for clearances can range from nine months to two years, on an average.
Delay of projects could add 20-30 % to a builder's project cost. Builders pass it on to consumers , and extend the circle of corruption and cash. A consultant points out that builders don't just pass it on - they often add to it big time - for example, how they account for payments to suppliers, to dodge taxes and siphon off cash.
So, everything becomes distorted; how builders price their projects, how they recognize revenues, how they pay their suppliers, how they value their land holdings, how they use their bank loans.
Vineet Chopra, a banker, gives an equation by which corruption leads to inflation. Corruption -> black money -> investment only possible in real estate -> rises in land values -> rise in inflation Vineet says: "Another malaise in real estate industry is the amount of black money.
Black money encourages lavish spending, which causes excess demand and a rise in prices. It is the root cause for unprecedented price hike in real estate sector." It is a well-known fact that if people (read businessmen and politicians) do not take the black money out of the country, they are likely to funnel it into real estate.
Real estate is one the most viable investment options with a longterm gestation period, considering that the investments are huge. It also ensures safe investment when compared to other investment tools like the stock market, for instance. The growth is inevitable and thus it is an ideal option for investments.
Govt, should not be blamed for inflation and price rise says finance minister Pranab Mukherjee in parliament.
I am relieved that he did not say that foreign powers like Pakistan and China are behind inflation. Govt, is not responsible for anything, people of India are responsible as they are the one who chose you to be in govt.
http://www.ndtv.com/article/india/w...anab-mukherjee-156464?pfrom=home-otherstories
I am relieved that he did not say that foreign powers like Pakistan and China are behind inflation. Govt, is not responsible for anything, people of India are responsible as they are the one who chose you to be in govt.
http://www.ndtv.com/article/india/w...anab-mukherjee-156464?pfrom=home-otherstories
It is a very good topic. I think the prices are artificial created by the syndicate of realtors and those who have invested No. 2 money in land for profit motive. It is a valid suggestion by the originator of this thread that government should devise some mechanism to arrest this trend of spiralling property prices so that the people from villages or low salaried employees can also afford to buy a home in city.
It's difficult even for the salaried individuals to afford rising home loan EMI's. Even a 50K+ bucks earning guy is finding the survival difficult in these big cities.
Moreover, this is what prompting bachelors to find a suitable working match, so as to have a double income and try living a comfortable life.
Also, this add undue pressure for dowry demands.
Hence, rise in property prices. and widening rich-poor gap, income disparity, is making it difficult for low- lower middle income group to dream of having a flat. As one's biggest chunk of savings goes towards meeting this biggest expense only.
This again leads to corruption, by the lower level government employees. Its because of this inflation & rising property prices which is making many more problems to spring up. Dowry demands, corruption, black money..
Very simple - one percent annaul property tax on every property puchased from today onward. Whether it is house or agriculture land. No tax on properties purchased before today. That will drive down the property prices and remove the artificial demand and supply situation created by the realtors.
As someone said bank loans (availability of credit) certainly has contributed to the property price rise and general inflation. Black money is a big factor. But 1% annual property tax will clean some of that too. Huge source of revenue for the state government.
If you can pay 1 crore for a flat, I am sure you don't mind paying 1 lakh in property tax every year.
Right now the affordability is totally out whack.
Collect 1% annual property tax and use it for developing rural infrastructure, clean the filth (kurdis, bitodas and those Bhattas).
Let us start lobbying for property tax.
What do you think?
-ajmer
As someone said bank loans (availability of credit) certainly has contributed to the property price rise and general inflation. Black money is a big factor. But 1% annual property tax will clean some of that too. Huge source of revenue for the state government.
If you can pay 1 crore for a flat, I am sure you don't mind paying 1 lakh in property tax every year.
Right now the affordability is totally out whack.
Collect 1% annual property tax and use it for developing rural infrastructure, clean the filth (kurdis, bitodas and those Bhattas).
Let us start lobbying for property tax.
What do you think?
-ajmer
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