Could AAP's historic debut flood Delhi NCR with cheap Real Estate?
This is a blog post full of questions. If you gently let yourself go with the flow here, you might just be able to see through our eyes for some time. Or maybe not. Feel free to use the comments box below.
Q1. How are expensive election campaigns by political parties funded?
Answer: Political Parties are not into manufacturing, provision of services, software development, producing money raking entertainment (apart from what they involuntarily produce for the media) or building real estate. There are thus massive costs to sustain the various pre-election activities and no revenue stream whatsoever. The huge amount of money required for an election campaign is donated to political parties by us, comprising common people, corporate entities, doctorsand in some extremely rare cases, CAs and lawyers too.
Q2. Why would someone fund a political party's election campaign?
Answer: Because the guy making the donation believes that the political party he is helping out by parting with his hard earned money is going to win the election. Simple. When it is a few thousand rupees, it could be love for the party's ideals and values. If the sum is astronomical it would be mostly because the guy donating the big money needs some favours in return. It is an investment. Let us just keep the thought process simple here. Give. Take. Time. Tested. Thanks.
Q3. So, who is going to fund the Congress's mega election campaign expenditure for the General Elections of 2014?
Answer: After what happened on 08-12-2013 in 4 simultaneous state elections, ideally no one.
Q4. Will the Congress need funds for the 2014 General Election Campaign?
Answer: Yes. More than ever.
Q5. In that case, what kind of people would fund the Congress now?
Answer: Mostly, people who supported the Congress party and reaped huge green harvests in return for all these years. A tender here. A project there. A metro line to nowhere. Such stuff. It is payback time for them. They need to cough it up now, or it could be curtains for their er, high speed corridor.
Q6. Do such people have truck loads of money?
Answer: Yes. They do.
Q7. Are they going to pull that kind of money out of their business' circulation?
Answer: No chance. The way the economy is these days, pulling big money out of business is impossible, no matter what the scale. But if you drive around Delhi NCR, you will see sectors after sectors of finished real estate where no one lives, works, eats or effs. Almost all the real estate unoccupied in these little ghost towns are owned by such investors.
To raise big money to keep the Congress campaign afloat and alive for the showdown in 2014, these investors could start selling their real estate investments in and around Delhi NCR now.
Some more food for thought;
# If you had to repay a loan, which in an ideal situation should be best forgotten by the lender anyway, would you disturb any part of your current precarious financial schedule? Or would you rather liquidate a 'unit' in a ghost town that is a mere file in your investments closet.
# With a lot of real estate on sale to raise election campaign money, could prices come down as supply soars?
# With a humble 3 BHK costing 1 crore or above in Delhi NCR [Down payment 20 lacs and an 80 grand EMI for 20 years] can you really buy one if you are not receiving favours?
# And finally, couldthe promise of better governance make homes more affordable?*
* When real estate becomes affordable, do prices necessarily have to come down? Or would an increase in income levels and a check on inflation do?
We can only think of one definite answer to all of those questions right now.
Time will tell.
 |
| The AAP stunned the nation with a smashing debut in Delhi 2013. It also road rolled the Congress in the process! |
Answer: Political Parties are not into manufacturing, provision of services, software development, producing money raking entertainment (apart from what they involuntarily produce for the media) or building real estate. There are thus massive costs to sustain the various pre-election activities and no revenue stream whatsoever. The huge amount of money required for an election campaign is donated to political parties by us, comprising common people, corporate entities, doctors
Q2. Why would someone fund a political party's election campaign?
Answer: Because the guy making the donation believes that the political party he is helping out by parting with his hard earned money is going to win the election. Simple. When it is a few thousand rupees, it could be love for the party's ideals and values. If the sum is astronomical it would be mostly because the guy donating the big money needs some favours in return. It is an investment. Let us just keep the thought process simple here. Give. Take. Time. Tested. Thanks.
Q3. So, who is going to fund the Congress's mega election campaign expenditure for the General Elections of 2014?
Answer: After what happened on 08-12-2013 in 4 simultaneous state elections, ideally no one.
Q4. Will the Congress need funds for the 2014 General Election Campaign?
Answer: Yes. More than ever.
Q5. In that case, what kind of people would fund the Congress now?
Answer: Mostly, people who supported the Congress party and reaped huge green harvests in return for all these years. A tender here. A project there. A metro line to nowhere. Such stuff. It is payback time for them. They need to cough it up now, or it could be curtains for their er, high speed corridor.
Q6. Do such people have truck loads of money?
Answer: Yes. They do.
Q7. Are they going to pull that kind of money out of their business' circulation?
Answer: No chance. The way the economy is these days, pulling big money out of business is impossible, no matter what the scale. But if you drive around Delhi NCR, you will see sectors after sectors of finished real estate where no one lives, works, eats or effs. Almost all the real estate unoccupied in these little ghost towns are owned by such investors.
To raise big money to keep the Congress campaign afloat and alive for the showdown in 2014, these investors could start selling their real estate investments in and around Delhi NCR now.
Some more food for thought;
# If you had to repay a loan, which in an ideal situation should be best forgotten by the lender anyway, would you disturb any part of your current precarious financial schedule? Or would you rather liquidate a 'unit' in a ghost town that is a mere file in your investments closet.
# With a lot of real estate on sale to raise election campaign money, could prices come down as supply soars?
# With a humble 3 BHK costing 1 crore or above in Delhi NCR [Down payment 20 lacs and an 80 grand EMI for 20 years] can you really buy one if you are not receiving favours?
# And finally, could
* When real estate becomes affordable, do prices necessarily have to come down? Or would an increase in income levels and a check on inflation do?
We can only think of one definite answer to all of those questions right now.
Time will tell.
AAP is certainly looking Positive at present moment,which will definately boost investors and market sentiments and boost certain group of companies concentrating in Delhi.
ReplyDelete