11.10.08

Social Article- Buy a Property in India

Hi Friends,

Its pretty new topic / its not a technical topic and no way related to my blog topics. But, to create an awareness among our people (particularly software engineers). I scheduled my time to analyse the facts and express the same in my own words.


People who are involved / affected:

  • Mostly software engineers (70%) , people in very good position (Government job)(10%), business people (10%) and other people (10%).
  • One day, I wish to buy some flowers for my wife and went to a lady(she is selling flowers in the road). I asked flowers for Rs.5. She told about the increase in flower rates and I will be getting very less flowers for Rs.5. I replied her back. "No, i need it for Rs. 5. Its more than enough for me." Immediately, she enquired about my profession, and I told, "I am a software engineer" Immediately, she replied me back "Boss, You are earning lots and lots of money. But, you are not ready to buy flowers" She gave some flowers and forced me to give Rs.10. Its not a huge amount for me, but once, if someone comes to know about our profession, i wondered to see the rates reaching peaks. Are we cursed like this?
  • No one knows the pain and hard work behind our earnings. To Complete an engineering couse is not an easy job. Clearing all the subjects (arrears too)..and after getting a degree with first class distinction. I can remember those days (Carrying resume and requesting others for job - we need to get employee referral - First round , Second round, Third round of interviews). Many people will loose their opportunity in the final round. Its hard time for us to get a good job in software industry.
  • After getting job, we need to survive in this ever changing IT field, daily we need to update our knowledge to survive in this world, need to face lot of junk politics, lots and lots of restriction in the name of cost cutting, no job surety, no proper healthy food (as we are modernised with fast foods and hifi junk foods), no proper timeline to work, cant adhere to particular technology, no proper growth, no proper recognition. Atlast, we become more flexible as a non technology cum non human being (Entire brain loaded with junk politics).
  • No one thinks that, we (software engineers) dont have good money in hand to buy a single toilet room too. Its because with the help of banks we are buying houses. Do we have time to think, if my software job is gone . What I will do? How to repay the loans? We may think that, am having house right. I will sell the house and repay my loans. Then, Whats the reason for buying a house and stretching ourselves under pressure and huge headaches. What happen, If the rates went down. Now, In US market we can get a house for Rs.82,000. But, no one is there to buy that house. Do you think, it wont happen in india?

Increase in rents:

  • Our software engineers will be seeing huge money in the initial stage - Fresher (an average of Rs.20,000 per month). Immediately, they will target to buy a good bike and ready to shift their residence near to their office. Mostly, they(Bachelor) will stay in sharing basis and they wont think about the rent (10,000/5). Obviously Rs.2000 is not a huge rent for them. This makes house owners to think more. Nowadays, house owners were targeting inviting software engineers to their houses.
  • Once after marriage, software engineers will come to know about paying huge rents from their pockets. It becomes a huge headache for them after marriage. So, they are trying to marry a working women to survive. But, they dont find time to rethink about the reason behind. Its because of them, the rents got increased.

Reason for buying a house:

  • Increase in rents.
  • To avoid conflicts and pressure from the house owners to maintaining the
  • Sense of satisfaction - We used to think that, if we have our own house. Then, we will get a satisfaction like, I've got settled in my life.
  • Greediness, to get more income from the houses.
  • To avoid lot of conflicts from neighbours.
  • Very good investment for rich people.
  • NRI were trying to invest their dollars in India.

Reason for reducing land values in india :

  • Due to increase in interest rates. If we calculate the interest rates, How much am getting money and How much am repaying? You will surely get heart attack. Suppose am getting 20 Lakhs as loan amount from a bank. I need to pay around 50 to 60 Lakhs (Includes interest). Is it really worth? Instead, you can earnt / save / invest money and you can buy the same house with out any debts right . Why dont we think in that angle? Instead, unnecessarily we are paying more money to builders and banks.
  • Employees fired from top software companies. Due to cost cutting, downsizing company size, merging of companies. Employees who earned lakhs become jobless on the next day.
  • Due to increase in land rates, software engineers cant afford huge amount and they stopped buying houses.
  • A small awareness started among our people about this land value increase.
  • Everyone around us understand our mentality and playing based on this. We are ready to buy a house of worth 30 to 40 lakhs. Targeting this budget, builders started their plan of building houses 1200 SQ Ft to 2400 SQ Ft. Even, it may worth 25 lakhs, it will become 30 lakhs for software engineers. If we ask the reason, we will get a reply "Boss, You are earning too much money" Are we earning black money? or earning money with out any hard work"

My suggestions in buying a property in 2008:

  • Please dont buy property now, because due to financial break down and problems in software industry. The land value will surely reduce further. Stay for a while, rethink twice thrice before buying a property.
  • Next year, the rates will decrease further....... Lot of changes will happen soon.

Some URLs for your reference :

Chennai property bubble bursts, prices dip : http://www.ndtv.com/convergence/ndtv/story.aspx?id=NEWEN20080067248

Chennai properties will be reducing soon:

http://www.articlesbase.com/real-estate-articles/soaring-chennai-property-prices-boon-or-curse-493732.html

Buy a flat and get BMW free: (People should think about this offer. They will dream about the gift offered and forgot to think about the property price. The business people will increase the property rates like (Actual rate+BMW car rate) and they will sell their property easily.

http://indiarealestatemonitor.com/property-news/buy-flat-get-bmw-free/

Property market gone down due to US breakdown:

http://indiarealestatemonitor.com/property-news/indian-realty-wakes-up-to-the-us-meltdown/

Land value is now Rs. 15,000 per square feet against Rs. 40,000 for a similar property in 2007

Analysts predicts that, the land value will go further down to Rs.10,000 in next 6 months.

http://indiarealestatemonitor.com/property-news/affordable-housing-is-the-new-choice/

Realtors were slowly analysing the market and they are not ready to step ahead:

http://indiarealestatemonitor.com/property-news/realtors-advance-tax-payment-falls-down/

http://indiarealestatemonitor.com/property-news/realty-firms-consider-joint-development-for-construction-projects/

Feel free to post your comments and kindly share this URL to your friends and create an awareness among our people.

My article on increase in rates in India:

http://venkattechnicalblog.blogspot.com/2008/10/social-article-increase-in-price-in.html

Venkatesan Prabu .J

9 comments:

Anonymous said...

In the US market you get house for 82000 (probably in a forest)

where did u get this information from?

Anonymous said...

You are correct

Devid said...

Hi,
Its quite interesting article .. my friend forwarded me in morning ..thanks :)

On few points .. I agree with you and on few disagree.

1) By 'Affected' , do you mean to say affected because this economy fall ? then your figures are not correct. In India, in textile industry there more then 3 lakh lay off in just last one year. and for rest of workers .. salary reused by 20% to 30% ! Do you know what is the average salary in textile/garment industry ? its just about 4500 Rs per month !!!!!

By collaborative sorces. In India, there are more then 7 lakhs jobs cuts since Apr'07 to till now, and IT layoffs is just under 60,000.

2) A agree with you .. whenever somebody knows that you are software engineer, they hike there rates, ask for more .. :) that's really bad. and specially for house rent... my god ...!

3) I disagree ! IT jobs are much nicer, comfortable. Think about those who are on border in freezing env and get chance just twice in a year to meet family .. and just for 15 to 30 days. Think about constable do more harder work if you look closely. An IAS officer lives in much more tense environment and work more then 16 hours a day .. and many times more then 24 hours. Doctors living much more hard live then any other citizen, its very hard to get one day leave from job.

4) Well its true that there is big hardwork involved to become a professional. But not you only, so many others did same hard work in schooling/college/first class/distinction .. are all they are in IT ? are all they are earning good money ? I believe a researcher in space science is doing much more hard work .. doing M.Tech.. Ph.D. and serving as scientist with salary of 3000 at start, 7000, after 2 year, 12000, after 4 year.. and 20000 after 10 year........

5) I completely agree "Its hard time for us to get a good job in software industry."

6) Well... Every industry is ever changing industry.. ! just last day Jet layoff 1900 guys ? Banking ? Real Estate ? Textile ? Export ? ... You can evaluate more industries.

7) Politics is everywhere.. and I believe its much lesser in IT industry at software engineer level. Just spend few hours in any government or govt type office.... you will get shocked.
Just try to spend few hour in SBI behind the table...

8) "dont have good money in hand to buy a single toilet room too" ..Its true for most of IT guys. Property rates are hiked by big shot project managers, CEOs, Business owners, NRIs (who lives in foreign countries like hell and save money for buying property in India), and few more.

9) 92% of house buyers are getting loans for house. and question of repay loan is for all .. it doesn't matter buyer is IT guy or banking guy or a taxi driver.

10) "Now, In US market we can get a house for Rs.82,000" ....... NOT at ALL Man !!!! something you studied wrong. An average house in a average town ( not city ) will cost you minimum $200,000 dollars. In cities .. you will get a flat in $400,000 minimum. Obviously if you want to live in forests, it can cost you just 10,000 dollars( still higher then what you quoted ). In India, you can get a house also for 20,000 Rs in far rural/village area, and free if you go to jungle.


11) Job uncertainty is much higher in daily wages kind of jobs, building workers, house painters, repairers, cleaners, factory workers.....and so many other jobs. Top of that ..they are just getting 2000-4000 INRS per month for living a family life. However I seen many peoples .. they dont count such guys as or in a human life and I strongly believe, a human is a human and have similar rights to live in society.

In US and other European country .. wages are almost same for a clear, driver and a software engineer.

10) I still says IT guys are making big salary in comparison to all available jobs in India.
Indian middle class average salary is 9000 Rs per month. Even if you go by profession :

-B class govt officer : 16000
-IAS officer : 18,000 ( start at 12K)
-IPS officer : 18,000
- Bank employees : 7000 - 15,000
- Factory and other labors: 2000- 4000
- So many others workers: 2000-8000
( now dont say IAS/IPS officers can earn more money by correction, )

Only profession I can think gives better salary is 'Doctor'. And doctors those are making good money ..they dont have time to spend it.

Just think about 100 corr Indians and classify them by salary/wedges. Software engineers will be in top three.

An individual example can be given but we are talking about in general salary/employments.

So many things to write .. but let me stop here...

So just try to be happy .. :)

Venkatesan Prabu said...

Thanks Devid,

Very useful information. But, as a software engineer. I wish to express my thoughts from my positioin and if we think in wider perspective. Everyjob and everyone has their own problems and challenges in their life.

I accept all your points and thanks for sharing your views with me.

Regards,
Venkatesan Prabu .J

Anonymous said...

Hi,

Its really a very nice article. This should be an eye opener for all the SW engineers. People please percieve that venkat is concentrating on people looting SW engineers. Please understand him and do not spend even a rupee more than what any product is worth for.

Venkatesan Prabu said...

Dear Friends,

One of our friend have asked where you got the information about house rates around 82000 in US market.

I got it from newspaper am searching for the same. Will surely update those links too.

Thanks for your feedback.

Regards,
Venkatesan Prabu .J

Uma Mahesh said...

to be frank IT fellows are the responsible for what happens in the economy...................

the lands & plots & flats rates r increased because of irresponsible buying of the properties by the IT people

THe FMCG goods has been buyed the Stupid IT people lack of thinking............ they have to think atleast what is going on in the market and why i have to pay this much before buying........

rents has been increased because of IT people lack of how to spend the money and where to invest and how to invest

becose of these 70% IT people only every thing has been increase............
just think abt the MIDDLE CLASSS PEOPLE who has the dreams of buying one house at this metropolitian cities has gone because of this purcheses by the IT people........ now they have to pay for that happen in the IT MELT DOWN......... i hope this should be prolong and continues for the next 2 years ......... thats true because of the OBAMA disinterest in out sourcing....................

now from now onwards the IT people has to feel and think from the middle class people mentality before buying or investing in any thing

the day has to come where IT has to meltdown has started........... now they have to pay for that..............

lakshmi said...

Well, Quite interesting and relevant too. I agree that house owners are like that :). But our situation is not as worse as discussed. Hard ships are there in every profession. Coming to politics, politics are everywhere. Can you think of any profession without politics... Very hard to find. I agree that every person wants to make use of our profession just by saying that we earn more.

Buy a Property in India said...

Nice Article.

My T-SQL Gallery @code.msdn.microsoft


Created my own T-SQL Gallery in Microsoft site. Do visit the same and share your feedback,

http://code.msdn.microsoft.com/VenkatSQLSample/Thread/List.aspx

Thanks and Regards,
Venkatesan Prabu .J

SQL Server Interview questions - Part 1

What is the significance of NULL value and why should we avoid permitting null values?
Null means no entry has been made. It implies that the value is either unknown or undefined.We should avoid permitting null values because Column with NULL values can't have PRIMARY KEY constraints. Certain calculations can be inaccurate if NULL columns are involved.

What is SQL whats its uses and its component ?
The Structured Query Language (SQL) is foundation for all relational database systems. Most of the large-scale databases use the SQL to define all user and administrator interactions. It enable us to retrieve the data from based on our exact requirement. We will be given a flexibility to store the data in our own format.


The DML component of SQL comprises four basic statements:
* SELECT to get rows from tables
* UPDATE to update the rows of tables
* DELETE to remove rows from tables
* INSERT to add new rows to tables


What is DTS in SQL Server ?
Data Transformation Services is used to transfer the data from one source to our required destination. Considering am having some data in sql server and I need to transfer the data to Excel destination. Its highly possible with dialogue based tool called Data Transformation services. More customization can be achieved using SSIS. A specialized tool used to do such migration works.


What is the difference between SQL and Pl/Sql ?

Straight forward. SQL is a single statement to finish up our work.Considering, I need some data from a particular table. “Select * from table” will fetch the necessary information. Where as I need to do some row by row processing. In that case, we need to go for Procedural Logic / SQL.

What is the significance of NULL value and why should we avoid permitting null values?
Null means no entry has been made. It implies that the value is either unknown or undefined.We should avoid permitting null values because Column with NULL values can't have PRIMARY KEY constraints. Certain calculations can be inaccurate if NULL columns are involved.

Difference between primary key and Unique key?
Both constraints will share a common property called uniqueness. The data in the column should be unique. The basic difference is,
· Primary key won’t allow null value. Whereas, unique key will accept null value but only one null value.
· On creating primary key, it will automatically format the data inturn creates clustered index on the table. Whereas, this characteristics is not associated with unique key.
· Only one primary key can be created for the table. Any number of Unique key can be created for the table.

Select Statement in SQL Server

Select Statement in SQL Server

String Functions in sql server

String Functions in sql server
Substring/Len/replace/Ltrim/Rtrim

SQL Server Interview Question - Part 2

What is normalization?

Normalization is the basic concept used in designing a database. Its nothing but, an advise given to the database to have minimal repetition of data, highly structured, highly secured, easy to retrieve. In high level definition, the Process of organizing data into tables is referred to as normalization.


What is a stored procedure:
Stored procedures are precompiled T-SQL statements combined to perform a single task of several tasks. Its basically like a Macro so when you invoke the Stored procedure, you actually run a set of statements. As, its precompiled statement, execution of Stored procedure is compatatively high when compared to an ordinary T-SQL statement.


What is the difference between UNION ALL Statement and UNION ?
The main difference between UNION ALL statement and UNION is UNION All statement is much faster than UNION,the reason behind this is that because UNION ALL statement does not look for duplicate rows, but on the other hand UNION statement does look for duplicate rows, whether or not they exist.

Example for Stored Procedure?
They are three kinds of stored procedures,1.System stored procedure – Start with sp_2. User defined stored procedure – SP created by the user.3. Extended stored procedure – SP used to invoke a process in the external systems.Example for system stored proceduresp_helpdb - Database and its propertiessp_who2 – Gives details about the current user connected to your system. sp_renamedb – Enable you to rename your database


What is a trigger?

Triggers are precompiled statements similar to Stored Procedure. It will automatically invoke for a particular operation. Triggers are basically used to implement business rules.


What is a view?
If we have several tables in a db and we want to view only specific columns from specific tables we can go for views. It would also suffice the needs of security some times allowing specfic users to see only specific columns based on the permission that we can configure on the view. Views also reduce the effort that is required for writing queries to access specific columns every time.


What is an Index?
When queries are run against a db, an index on that db basically helps in the way the data is sorted to process the query for faster and data retrievals are much faster when we have an index.


What are the types of indexes available with SQL Server?

There are basically two types of indexes that we use with the SQL ServerClustered -

1. It will format the entire table, inturn physically sort the table.

2. Only one clustered index can be created for a table.

3. Data will be located in the leaf level.

4. By default, primary key will create clustered index on the table.

Non-Clustered Index

1. It wont touch the structure of the table.

2. It forms an index table as reference to the exact data.

3. A reference to the data will be located in the leaf level.

4. For a table, we can create 249 non clustered index.

Happy Learning!!!
Regards,
Venkatesan Prabu .J

SQL Interview question

Extent Vs Page?

Pages are low level unit to store the exact data in sql server. Basically, the data will be stored in the mdf, ldf, ndf files. Inturn, pages are logical units available in sql server.The size of the page is 8KB.

Eight consecutive pages will form an extent 8 * 8KB = 64KB.

Thus I/O level operation will be happening at pages level.The pages will hold a template information at the start of each page (header of the page).

They are,

1. page number,

2. page type,

3. the amount of free space on the page,

4. the allocation unit ID of the object that owns the page.

Extents will be classifed into two types,

1. Uniform extents

2. Mixed extents

Uniform Extents:It occupied or used by a single object. Inturn, a single object will hold the entire 8 pages.Mixed

Extents:Mulitple objects will use the same extent. SQL Server will allow a max of eight objects to use a shared extent.

Property of SQL Server :Initally if an object is created, sql server will allocate the object to the mixed extent and once if the size reaches 8 pages and more... immediately, a new uniform extent will be provided for that particular object.

Herecomes, our fragmentation and reindexing concepts.

Best Joke - Enjoy it

Best Joke - Enjoy it