Time to be euphoric?

"Stock market is a voting machine in the short term and weighing machine in the long term."

with a stable government in place a lot of things would be happened––India would be re-rated from the S&P or Moody’s point of view, the investment climate will improve and India would be a capital investment story. India’s growth rate improves to 6–6.5% that will account to about 20%–22% of the global growth. A country that gives such kind of growth cannot be ignored. So I expect $50 billion investments coming in the full year either in the form of FDI or Porfolio Investment. However,“I think retail investors should be cautious at this point in time.” One should focus on bottom up approach and invest in the stock at the appropriate level rather than looking at the market indices.

The double freeze at the circuit breaker may be a pleasant shock for sentimental purpose. The bulls may have enjoyed a pleasant day in the woods. But the fact remains we are not out of the woods as yet and never know which beast could cause trouble.

Plug into reality and you will realize this overdone ovation is a hope that the best brains would get their act together to decouple India from the myriad of woes plaguing the global economy. Clearly the exuberance has been overdone. Clearly there are several headwinds still to be tackled, both local and foreign.

The market has got into a nice rhythm and will see increased participation in terms of players as well as in terms of stocks. However I caution, it is important not to get carried away by the euphoria but still look for opportunities to increase exposure to equities.

There in no need to indulge in "Panic" buying as every market gives at least one opportunity to enter or exit at correct levels. However there are lots of investors who has left out the entire rally. Huge Liquidity is sitting on the fence to enter into the market which will provide enough support and cushion in the event of any pull back.

Flat Buyers, Beware!

Be Careful While You Book A Flat.

Signing blindly the agreements that the developers want you to sign will place you at a disadvantage

There are a host of real estate developers promising starry flats to investors in NCR (the National Capital Region). These developers invariably collect approximately 35 per cent of the cost of the flat from you within the first six months of booking. The construc-tion schedule committed to is invariably in excess of three years. They commence con-struction generally after a year and earn interest on the instalments collected from the buyers, until then. When asked for an explanation, the developers will invariably pass the buck by attributing it to the delay in receiving government approvals.
Before construction is set to commence, the developers protect themselves from all expo-sures by forcing the buyers to sign a "buyer's agreement" which is unilateral and biased in nature and content. Buyers are given no exit option - either they sign the agreement or pay the penalty for not signing it. The penalty entails cancellation of the flat and forfei-ture of the Earnest Money Deposit (EMD). The EMD accounts for 10 per cent of the cost of the flat already paid. The agreement is couched in such a language that the buyer can never dream of raising any representation / objection to any act of commission and omission on the part of the developers. Since it is a lengthy document, everybody signs without reading it but actually it could shock the buyer into disbelief when he / she actu-ally reads and understands it.

a) While booking, the developers declare in the brochure that the flat will be handed over to the buyer within 36 months from the date of booking. But the agreement on the other hand, says it is 36 months from the date of signing the agreement.

b) The agreement lays down in the definitions that the `super area' of the flat is sub-ject to change. It is understandable that post construction, the actual super area may change slightly but how can a definition change? After all, definition is about things definite and not indefinite!

c) All payment clauses mentioned are one-sided; whenever there is a price escalation, the buyer has to pay the escalation on demand but the developers will adjust the fall in prices, if any, at the end of the project.

d) The developers take it in writing from the buyer that the buyer surrenders all rights to challenge/represent against the developer in a court of law and the developers have the sole discretion to stipulate payment conditions, change specifications, etc, in a manner deemed fit by them.

e) Post construction, buyers sign a `maintenance agreement', without any represen-tation from their side. However many developers do not disclose its content while the buyer signs it. How can a buyer be forced to commit to sign a document whose content will be disclosed after, say, two years?

f) Developers undertake that provision of a three-tier security system is their respon-sibility but in the agreement they seek indemnity from theft.

g) Buyer's agreement expects buyers to pay electricity charges for back-up (genera-tor) services, `as decided from time to time'. But the agreement is silent on who will de-cide these charges. Rightfully, it should be decided by a committee on which the buyers are represented.

h) Buyers are bound to pay administrative charges from time to time. But the agree-ment is silent about the actual amount payable for the purpose; nor does it say who will quantify this amount.

i) The agreement expects buyers to pay electricity charges which are at variance with what is charged by the Electricity Board concerned. How can developers charge more for a service that is delivered by the government?

j) Developers protect themselves by mentioning in the agreement that power back-up facilities are an `additional feature' and buyers will indemnify the developers from all damages accruing from faults in the supply of power from the said back-up facilities. But while launching the project, the developers state that the said facility is a part and parcel of the offer. Also developers charge the buyers up-front for this facility.

k) If the buyer mortgages the flat for finance, the developer is indemnified; on the other hand, if the developer mortgages the entire project, all buyers are a party to it.

l) In case of insolvency of the developer, the entire project will be sold off to clear all the dues of the developers first and the balance of the sale proceeds, if any, will be shared by the buyers. This means that the buyers bear the risk arising from the insolvency of the developers and the insolvency of the developers. Further, the agreement does not say when the buyer will get the money back in such a situation.

m) Developers notify the changes in specifications to the buyers. If buyers do not ob-ject to the specifications within 15 days, it will be deemed as accepted. If they do, the allotment will be cancelled. This means that they do not have a right to represent against their grievance.

n) The agreement mentions that while taking over the flat, the buyer relinquishes all rights to challenge any deviation in quality / specifications promised by the developers while booking the flat.

o) Developers have unlimited rights to erect additional towers/buildings, etc, within the same area. This grossly violates the layout furnished by the developers in the brochure during the launch of the project.

p) Developers always seek `IBMS' or `Interest Bearing Maintenance Security'. Buy-ers are expected to deposit the money, post construction. But it is conveniently silent on the rate of interest payable to the flat buyers.

q) Developers indemnify themselves from any damage arising from non-adherence to any clause/condition/covenant of the agreement. Then what is the sanctity of this agreement? On the other hand, the buyer is expected to abide by it religiously.

r) Any expenses arising from the upward revision of the specifications is chargeable to the buyer but the agreement is silent on the reimbursement to buyers, in case of any downward revision.

Source: Merinews.com

Warren Buffetts’s Advice for 2009

Shubh Griha "NANO HOMES"- Details

Types of Flats
1 BHK - 465 Sq. Ft. No. of Flats 660 Price : Rs. 6,74,250
1 RK Large - 360 Sq. Ft. No. of Flats 474 Price : Rs. 5,04,000
1 RK Small - 283 Sq. Ft. No. of Flats 108 Price : Rs. 3,90,540

Payment Plan
Rs. 10,000 have to be deposited with the Application form.
7.5% –8.5% (depending on type of flat) of the amount to be deposited within 15 days of allotment letter
85% of the amount to given in 7 Quarterly Installments starting from September,2009
Balance 5% to be deposited at the time of Possession

Expected Date of Allotment : 29th June,2009
Expected Date of Possession: May 14th, 2011

Forms will be available at Boisar, Virar, Vasai, Palghar, Nallasopara,Dahanu Road, Thane, Borivali(W), Andheri East branches of SBI.In addition the forms would also be available at the Fort Regional Office of Tata Housing. Detail address: http://shubhgriha.com/pages/forms.php

For Details visit the tata's Subhgriha website:

http://shubhgriha.com/index.php

Yamuna Expressway Residential Plot Scheme Extended till 15th May,2009

Why??
The notice says that the Scheme has been extended till 15th May,2009 due to demand from Public. however the real reason behind extendind the date seems :

1.With the current downtrend in Real estate prices, investors are worried about the returns from the Scheme

2.The Rate of Rs. 4,750 per Sq. Mtr. is considered to be aggressive given that the Scheme may take at least 8-10 years to develop.

3.Investors have doubts about the progress on the proposed Noida - Agra Expressway itself and any dealy on this project would also delay development under the Scheme.

4.The Agra Noida area is more prone to petty crimes and hence reduce the attractiveness of the scheme from Safety point of view.

TATA LAUNCHES "NANO HOMES"

Tata Housing Development Company has launched a low-cost housing project at Boisar, which is about 80 km from Mumbai.
The company said the model, offering apartments of 283 sq ft, 360 sq ft and 465 sq ft, in the price band of Rs 3.9 lakh-6.7 lakh, would be replicated across tier I and II cities.

Booking starts from May11,2009 and forms would be available for Rs. 200. Allotment would be made on basis of Lottery draw.

Shubh Griha project

Announcing the launch of the project, Shubh Griha, of about 1,200 units, Brotin Banerjee, Managing Director and Chief Executive Officer, Tata Housing, said, "We observed that since most of the people in the low-income bracket live away from their families to earn a livelihood in the big cities, there is a large percentage of migrant population living in either rented or company provided accommodation.
"Our study shows that around 48 per cent in the lower segment are currently staying in rented accommodation. As a real estate company, we are sensitive to the need of providing this segment with their own home along with a community life. We believe in empowering them and giving them the pride of owning a house."

Community concept

He said though it was priced at an entry level, the 'neighbourhood and community' concept would change the conventional residential choice available for this segment of consumers today.
With a balanced mix of buildings and open spaces, the projects would be constructed under the guidance of Indian Green Building Council.
The low-cost housing units at Boisar would be built on about eight acres of a total of 63 acres, which will also have homes in the affordable segment, besides shopping, hospital, schools and other amenities, in subsequent phases.
Banerjee said revenues from the sale of low cost units alone would be over Rs 80 crore, while declining to furnish the total project cost. The units would be delivered in two years.

Booking Process

Applicants can purchase application form costing Rs 200 from select SBI branches across Mumbai. The bookings should be made with an initial booking amount of Rs 10,000 at the bank branches.
The first list and the waiting list will be declared after scrutiny of applications. The allottees would be intimated by Tata Housing along with payment schedule

About Boisar

Boisar is a town in Thane district in the state of Maharashtra. It is located 45 kms (28 miles) north of Virar on the Western Railway line of Mumbai Suburban Railway. By Road, it can be reached from National Highway NH-8, {{convert22kmmi} off from Chilhar Phata. There are regular state transport buses from Palghar, Thane, Bhiwandi and Wada.

Subha Griha Project in Delhi & Bangalore

Tata Housing has intends to launch the affordable flats scheme in NCR and Bangalore in this year itself. It will launch this Scheme in other major cities including Chennai and Kolkata in the coming years.