Dream or reality

People need home and for this need they need to pay penalty, with recent hike in Benchmark rates, housing loan are set to get more costly. The rate hike will definitely impact the housing sector reducing the demand of loan and eroding bottom line of builders due to reduced margin. Prospective buyers are now in dilemma as to buy now or wait for a correction in prices

With banks already increasing there lending rate the EMI’s are certainly going to step up and this will dilute the interest of many prospective buyers, but whether this will bring a correction in property prices or not, that is not very evident.

The reason of property prices not cooling down is because with the developers cost incurred in terms of labor, raw material and borrowing have gone up and they can’t reduce the cost below certain point. Cost of funds for developers is already very high, ranging up to 16%, depending on the credibility of the borrower, and banks have not been willing to lend to the real estate sector in the recent past. Apart from all these factors in mid term the property prices will go up.

There might be some correction in metro cities and that too for high end residential and commercial units, but in non-metro cities correction seems to be not in horizon, as the prices are still affordable and there is always a buying interest and the current credit policy will not discourage the first time buyers. Only Buyers with investment perspective will hold on there purchases but the real buyer will not deter the jacked up EMI’s.

This is also high time for housing finance companies to segment the home buyers i.e. buyers for affordable housing and buyers for luxurious housing and frame the policies accordingly. For an upper segment buyer the loan contribution is merely 20% of the entire cost whereas for the affordable housing segment the contribution ranges between 80-100% and with every rise in financing rates the buyer of affordable housing feels the heat.

I’m sure that the decision maker will understand the dynamics of the home finance and will create diffentiation among the class of buyers. I also feel that Home finance institution should absorb the increase cost of finance and should not download it to the customer as the housing loan being one of the most secured loans and with India seen on growth trajectory there seems to be no reasons for doing this right away.

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Enough is enough…!!

Plea to the decision makers, allow us to lead a stable and smooth life, don’t give us financial jitters every when and then…!!! Adopt some measures which are really giving results and drop the myopic way of looking the things.

Yes they did it again… They applied the same conventional old formula of matching inflation with interest rates, RBI firing on all cylinders. Since last few months we have seen increase in the benchmark rates every when and then with an objective to tame the inflation. Even after an increase of the benchmark rates ten times in series inflation is far above the comfort level. I’m sure that there might be other ways also to tackle inflation, which probably they are not exploring or didn’t want to explore.

Prices of commodities are on fire; if the commodities prices are to be brought under control then supply has to increased, is it a very difficult equation to understand for the decision makers. We have leaders for issue related to black money and corruption but no leaders for this issue…

I wish and pray that someone takes a lead in drawing a national level attention to this issue. Cost of living has really gone multifold and it going very difficult for common man to make his ends meet. On top of it, if one has financial obligations like housing loan etc. then the situation even worsens. With rising interest rate the obligations and tenure of obligation increases and on the other side the inflation dents the money value of rupee.

How one can adjust to the extra money required to honor the liabilities and support the livings. Rising interest rate will not only leave borrowers bleeding but also will dilute the economical growth in a longer run, defaults are bound to shoot up. A borrower carries some internal projections for the financial liabilities, but with rising interest rates the projections are going haywire

It’s a mere inefficiency of the government to tackle the issue because of which life of common man is getting ruined. Why a common man needs to pay for inefficiency of the government? Plea to the decision makers, help us in leading a better life…!!! Is someone addressing…!!!

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IIP: Industial Inconsistent Production

Perception shifts happens and suddenly we start asking how, when and what did it happened, Till date we were boasting that our economy is growing and we were poised to be the fastest growing economy globally. But the latest IIP Numbers indicates that we were inconsistent and missing the targets.

Today we discover that the green picture of economy was a myth and we are not only stagnant at many ends but also de- accelerating on many fronts.

Be it IIP Number, inflation, fuel cost or benchmark rate hikes; all collectively are giving tough time to Indian economy indicators as a result the indices are closing on an negative note from last three weeks. Today Market was anxiously waiting for the IIP numbers to be announced and post announcement it simply headed south. Major indexes went down and the sentiment being very week.

Sentiments are also weak as, In coming weeks Market pandits expect a .5% hike in lending rates during the next round of economy review meeting of central bank, but as the IIP numbers are below the expectation the rate hike may be limited to .25%.

Efforts and measures of government machinery to curb inflation didn’t generated any positive results and inflation is still a bull on fire; even after a series of rate hike, Growth is getting hampered in an entirety because of series of rate hike. Market is still under the fear of rise in price of petro products, meeting for which is yet pending.

To please the voter government is set to increase the minimum support price for agricultural commodities which will make the products dearer, ultimately adding to food inflation. India’s food inflation may accelerate post October when new crops, affected by higher farming costs and rising oil prices, arrive in the market, there seems to be less relief as on one hand government tries to protect the customer and on other hand it handhold the farmers interest.

Globally there is still a lot of unrest in terms of growth indicators, oil, political and economical stability adding more pressure to Indian indexes.

Time ahead seems to be tougher with interest rate hike in cards, dearer fuel and agricultural commodities and below average returns in equity market.

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Tainted niche

Indians have a great affection and fascination towards gold jewelry, and this zeal has been cashed in by Indian corporate. I’m narrating one of my bitter experiences with one of such big brand “Tanishq” which is backed up by TATA sons.

Much obvious that TATA as a brand has touched our life in many ways, and the association of the word TATA is to an extent that we use the word TATA in our formal gesture instead of saying “good bye” or “see you”, interestingly there is no word in English dictionary as TATA which can be synonymically used in place of “good bye” or “see you”. This word found place in our lives as most of truck that we have seen since childhood have TATA written on the boot J

Well having trust in brand name and there products are obvious thing and learning that Tanishq as a brand is endorsed by TATA fundamental I developed faith on it.
Every Indian family have happy occasions to purchase gold so did I, I made few purchases from Tanishq, but my experiences till date are not encouraging me to recommend this brand to anyone.

In the entirety of purchase, use of products, experience and workmanship I’m not at all satisfied with the brand in a wider sense. Though TATA has maintained the quality of base product i.e. gold and also the employees in terms of the behavioral aspect and decorum but failed to come up with products which are good in durability, experience and friendly to consumer pockets.

I tried to find a justification on making charges of different products but the executive were shying away with an excuse of design pattern. Hardly do the they know that all the designs are made on high efficient machines and one can say that there is hardly any waste in cutting and molding the design.

With celebrity endorsing there brands I have observed there making charges jacking up exorbitantly, the store doesn’t shy out in demanding 500 rupees per gram of making charges, now imagine if you buy a product of 10 grams you need to shell out 5000 rupees as making charge which are highly unrealistic tuning to 20-25% of the cost of gold.

I argued with the sales person on justification of the charges but in vain, For simplest of the design they were charging anywhere between 350 to 400 rupees per gram, I would have been better off if I would have chosen a local jeweler who would have given me same 22 carat jewelry at a much cheaper making charges.

Though, the local jeweler doesn’t endorse his product with a certificate of authenticity, but his face value and my relations with him would have been more authentic then a formal certificate. To me Tanishq as a brand really didn’t appealed much and I’m one of the unhappy customers of the products and relations and with a hope that they improve in future

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