WHY MANY KERALA WHY MANY KERALA PROPERTY SHOWS IN GULFPROPERTY SHOWS IN GULFWHY MANY KERALA WHY MANY KERALA PROPERTY SHOWS IN GULFPROPERTY SHOWS IN GULF

A REALTY ‘REALITY’ show…A REALTY ‘REALITY’ show…A REALTY ‘REALITY’ show…A REALTY ‘REALITY’ show…

INVESTMENTS - REALTY MYTHS AND TRUTH

1. Realty Myth No builder so far proved their claim with convincing evidence.

Assume you have invested Rs. 50,00,000/- for a flat at Cochin.

Annual maintenance cost - Rs. 20,000/- (Very conservative)

Residents Association - Rs. 36,000/- per year

Current charge - Rs. 2000/-per month or Rs. 48,000/- yearly

Water Charges - Rs. 1500/- per month or Rs. 18,000/- yearly

So, the Total annual expense :- Rs. 122,000/-

NOW - If you let out the flat:-

Monthly rent at best - Rs. 8000/- (Rs. 96,000/- pa)

Net loss per year: Rs. 26,000/-

Interest yield for Rs. 50,00,000/- at 9 % per annum

(OLD Rates) - Rs. 4,00,000 per year.

GROSS LOSS :

1. Rs. 4,26,000/- yearly (If you are renting out)

2. Rs. 5,22,000/- yearly (If you are not renting out)

Realty Truth

2. Realty on appreciation by many fold in few years time!!

Now, let's check the realities…. Assume that the flat rate became double in five years time. This means the cost of a new flat of equivalent size will be Rs. 1,00,00,000/ - But when you want to sell the old flat, depreciation of 10% per year is the minimum loss for the building by very reputed firms. There may not be any buyers for the flats build by other companies . Therefore, for the flat of a reputed builder and costs 1 Cr. Now (or 50,00,000 five years back) may get Rs. 65,00,000 at best. Means your profit is - Rs. 15,00,000/- 

Loss after Five years when you wanted to sell:

 

1. For the houses rented out=15,00,000 - (426000*4) = Rs.

3,00,000/-approximately.

2. For the houses not rented out=15,00,000- (5,22,000*4) = Rs.

6,00,000/-

 

Instead of gain net loss of three to six lakhs provided realty

rate doubles in five years time.

Otherwise loss will be higher.

Investing OR simply Wasting???? Investing OR simply Wasting???? Investing OR simply Wasting???? Investing OR simply Wasting????

3. Investing in flats for living after 3. Investing in flats for living after return to India, say after 10 years: return to India, say after 10 years:

Most of the builders are canvassing the gullible Keralites in Gulf in these

pretext.

You have to invest sizeable amount without any returns

- You need to spent lot of money for up keeping, servant charges, current

charges, security, resident association fees, club memberships etc even if

you are living only for one for just month there.

- Most of the building will have a life span of only 20 years.

 (Keep in mind that there is no quality check by any agencies in Kerala.)

  If the building last for 10 years you are lucky.

- It will not be safe to live in a flat which is older than 20 years.

This means you can live maximum 10 years in the flat which you are

buying now.

4. WHY ALL BUILDERS LURE 4. WHY ALL BUILDERS LURE CLIENTS ONLY FROM THE GULF ??CLIENTS ONLY FROM THE GULF ??4. WHY ALL BUILDERS LURE 4. WHY ALL BUILDERS LURE CLIENTS ONLY FROM THE GULF ??CLIENTS ONLY FROM THE GULF ??

It is very easy to cheat Malayalees even though the common

perception is that Malayalees are the most  intelligent.

Examples of cheating histories: LIS, Money chains, Goat farms,

busted blade Companies, real  estate business.

Malayalees are educated...but.. Cowards who are prone and

exposed to:

High rate of Alcoholism, Over Politicization, existence of God-

man , Opposition to  computerization, opposition to

mechanization, open bribes, Police- criminal nexus,

criminalization of politics, very poor civic responsibilities etc.

Every Malayalee wants to become rich overnight with minimum

effort. For that he adopts any means.

5. APPRECIATION IN LAND PRICE 5. APPRECIATION IN LAND PRICE 5. APPRECIATION IN LAND PRICE 5. APPRECIATION IN LAND PRICE

The recent boom in land price is created by fraudsters:

Most of them have got ill-gotten money either from spirit mafia,

Manal Mafia, Political Corruption, Fake notes or by cheating.

Main reason for this is the lack of accountability and law enforcing.

Of late Kerala, India in general, is the land of fraudsters.

Those who wanted to respect law cannot live there.

Either you have to become a cheat or you will be cheated instantly.

This cannot continue forever. At one stage when sellers out

number buyers will lead to a fatal collapse as in the case

developing the case of Flats.

6. FAST DEVELOPING “6. FAST DEVELOPING “IT” CITYIT” CITY IS “COCHIN” IS “COCHIN” 6. FAST DEVELOPING “6. FAST DEVELOPING “IT” CITYIT” CITY IS “COCHIN” IS “COCHIN”

The projected employment of Smart City etc is very inflated.

Even if smart City offer employment opportunity to say

200,000/- people over next 5 years, number of  employees

getting more than 10,000 Rs per month will be just 20 % of

the total. That means mere 40,000  people may have enough

purchasing power for flats.

Getting 40,000 people from in and around Cochin is not a

big deal. Most of the employees will be day commuters from

their own homes from places around 30 KM from work place.

Comparison with IT Bangalore??!!Comparison with IT Bangalore??!!Comparison with IT Bangalore??!!Comparison with IT Bangalore??!!

This is not the case for Bangalore where 80% of the employees

are from outside Bangalore or Karnataka.

One of the reasons for coming smart City to Cochin itself is

the potential to get cheap educated manpower locally. So

who is going to buy all new flats being coming up?

 

- Where is the demand for new flats?

 

- Ultimately only Gulf malayalees are scapegoats to buy and

suffer.

TAKE CUE FROM KERALA TAKE CUE FROM KERALA FRAUDSTERS LIKE FRAUDSTERS LIKE CORRUPT POLITICIANSCORRUPT POLITICIANSCORRUPT OFFICIALSCORRUPT OFFICIALS CORRUPT BUSINESSMENCORRUPT BUSINESSMEN

TAKE CUE FROM KERALA TAKE CUE FROM KERALA FRAUDSTERS LIKE FRAUDSTERS LIKE CORRUPT POLITICIANSCORRUPT POLITICIANSCORRUPT OFFICIALSCORRUPT OFFICIALS CORRUPT BUSINESSMENCORRUPT BUSINESSMEN

(THEY (THEY NEVERNEVER INVEST IN FLATS) INVEST IN FLATS)(THEY (THEY NEVERNEVER INVEST IN FLATS) INVEST IN FLATS)

JUST THINK TWICE BEFORE JUST THINK TWICE BEFORE YOU INVEST IN REAL YOU INVEST IN REAL ESTATE BUSINESS.ESTATE BUSINESS.

IN REALITY … MOST ARE NOT IN REALITY … MOST ARE NOT THAT THAT REALREAL !!!! !!!!

JUST THINK TWICE BEFORE JUST THINK TWICE BEFORE YOU INVEST IN REAL YOU INVEST IN REAL ESTATE BUSINESS.ESTATE BUSINESS.

IN REALITY … MOST ARE NOT IN REALITY … MOST ARE NOT THAT THAT REALREAL !!!! !!!!

Who cares??? …