1. WHY MANY KERALA PROPERTY SHOWS IN GULF A REALTY ‘REALITY’ show… INVESTMENTS - REALTY MYTHS AND TRUTH

2. 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/-

3. 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

4. 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/-

5. 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????

6. 3. Investing in flats for living after 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.

7. 4. WHY ALL BUILDERS LURE 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.

8. 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.

9. 6. FAST DEVELOPING “IT” CITY 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.

10. 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.

11. TAKE CUE FROM KERALA FRAUDSTERS LIKE TAKE CUE FROM KERALA FRAUDSTERS LIKE CORRUPT POLITICIANS CORRUPT POLITICIANS CORRUPT OFFICIALS CORRUPT OFFICIALS CORRUPT BUSINESSMEN CORRUPT BUSINESSMEN TAKE CUE FROM KERALA FRAUDSTERS LIKE TAKE CUE FROM KERALA FRAUDSTERS LIKE CORRUPT POLITICIANS CORRUPT POLITICIANS CORRUPT OFFICIALS CORRUPT OFFICIALS CORRUPT BUSINESSMEN CORRUPT BUSINESSMEN (THEY NEVER INVEST IN FLATS)

12. JUST THINK TWICE BEFORE YOU INVEST IN REAL ESTATE BUSINESS. IN REALITY … MOST ARE NOT THAT REAL !!!! JUST THINK TWICE BEFORE YOU INVEST IN REAL ESTATE BUSINESS. IN REALITY … MOST ARE NOT THAT REAL !!!! Who cares??? …