Greed in Stocks Destroy Traders Investors Wealth

The Investors / Traders Greed for Indian Real Estate stocks has destroyed their portfolio as the famous theory of Radio Active Decay applies to investing in this sector. We have actively covered how stocks have fallen Month over Month and the following screen shot [expandable image] of Live prices is a proof :-)
Real Estate in India is dominated by Shady people of the society - Politicians, Bureaucrats, Black Money Businessmen etc. The forthcoming election is seen as a strong chance for Realty Developers to lobby with the Government asking for doubling of income tax rebate on home loan interest to Rs 3 lakh from Rs 1.5 lakh, hiking the limit of income tax exemption on rentals from 30% to 50%. Apart from enjoying an infrastructure status, further demands of realty sector is under consideration of finance ministry.

Even if the government does what is lobbied for the demand in Indian Real Estate will not pick up immediately. When cash rich companies like Microsoft are firing employees to face the slowdown, Indian employers are under tremendous pressure and hence employees, the ultimate consumers of real estate will stay away. Indian IT is the Worst Employer in 2008 according to FreePress India.

What about Black Money local businessmen, won't they com forward to invest ? No not immediately because Developers have jacked up the prices to such an extent that RoI even for these businessmen is not seen viable.

Affordable Housing or lowering the prices by further 25% is the only solution to this problem. Otherwise, soft corner from RBI Governor will create a mini sub-prime bubble of Real Estate Developers in India if it fails to recover the loans given by Banks to these Shady / Greedy Developers [After all, its our Deposits which the bank has lent]