Matt Taibbi on Rick Santelli’s rant on Predatory lending where he said “You can’t cheat an Honest Man”. Yeah, dude, come to India’s ULIP world and I’ll show you how honest people can easily be cheated out of their money. The similarity: Neither regulator gives a rat’s ass.
Mumbai’s BKC land auction fails to get a single bid. A 435 crore expectation for 34,000 sq. foot land didn’t get takers. A friend mails in details – for a (low) construction cost of Rs. 1000 per sq. ft., the project will cost nearly 600 crores, and with a 200 Rs. per sq. ft. rental, realisation will be 38 cr. a year, probably 25-30cr. after costs. That’s a cap-rate of 5%, when rents are as high than downtown Manhattan (where you can get $4 a month rents easy); Comparative returns in Manhattan are near 7% today.
DLF says levy on property tax is counterproductive. A clarification on wednesday noted that only 1/3rd of the agreement value is “service”, so only that portion will be taxed, reducing the quantum of increase to 3.33% on the agreement value. Weighing that as more important than the land sale failure in the earlier link, and the interest rate increases by banks, real estate players went up between 4% and 10% today. [I’m kidding. They could have gone up on any reason, but it’s fun to invent reasons for an indisputable fact]
Salil Tripathi on how India lost it’s M.F. Husain. I hardly get political on the blog but I find it dirty that a bunch of goons can hold anyone to ransom in this country. When a Raj Thackeray says obviously anti-someone things, there is no move to arrest him; because he is only talking, they say. M.F.Husain didn’t even talk – he just painted – and he should be arrested? We need to change this country; we’re younger than Husain, and we don’t have to leave.