A massive futuristic office complex is rising from a patch of spare, arid land here near the southern Indian city of Chennai. Six butterfly-shaped buildings dock like spacecraft to two long metal-latticed terminals.
About 12,000 people already work at the campus, being built by India�s largest technology company, Tata Consultancy Services. It eventually will have space for 24,000 of Tata�s nearly 180,000 employees.
Meanwhile Infosys, one of Tata�s biggest competitors, has added a corporate campus for 15,000 employees with buildings that resemble the Parthenon, the Coliseum and the Louvre�s glass pyramid. Infosys plans to build an additional 10 million square feet of custom office space by mid-2012, at various sites, adding 25,000 workers to its current 122,000.
It is all part of a construction spree by India�s outsourcing companies, which are growing at a breakneck pace after the lull caused by the global financial crisis in 2008 and 2009.
But the building boom is about more than making room for more workers.
The outsourcing giants, which include Wipro and others, hope that architectural sizzle can help them compete for the nation�s top software programmers, while also burnishing their reputations with overseas clients and prospective customers.
In this nation where world-class high-tech companies co-exist with urban slums and rural poverty, employers like Tata, Infosys and Wipro have set out to create avant-garde, environmentally smart corporate sanctuaries.
And even if some architects and critics complain about the wisdom and taste of the efforts, the executives behind the building boom say their ambitious projects put a modern face on Indian business.
T. V. Mohandas Pai, a director at Infosys, which has 15 campuses around India, said his company�s eclectic mix of designs from all over the world reflected this nation�s inclusive sensibility. �One singular thing is monotonous,� he said. �In India, we are a colorful people.�
Like China a decade earlier, India appears to be at that phase of economic development where buildings are meant to help advertise the nation�s arrival on the world stage. But unlike China, where the government and state-owned corporations took the lead, private companies in India have headed the charge � not the government, which struggles to execute even basic construction projects.
And within India�s business world, technology companies have been more adventurous than others, perhaps because of their outsize financial success and their need to hire tens of thousands of workers to write software for foreign clients. State and federal governments are aiding the effort by offering these companies generous tax incentives and choice pieces of real estate to build big campuses.
Competition for employees is intense, because while India produces about 500,000 engineers every year, most colleges provide such poor education that the industry says that just a quarter of graduates are employable. But among those most qualified � typically graduates of elite places like the Indian Institutes of Technology and Birla Institute of Technology and Science � as many as 18 percent leave for other jobs every year. The outsourcing companies see lavish, environmentally friendly campuses as a way to help attract and retain the best and brightest workers.
With their manicured lawns, power generators and lakes, the campuses are a noticeable improvement on most engineering colleges, which suffer from India�s standard infrastructure deficiencies � blackouts, water shortages and poor maintenance.
�I prefer a big campus,� said Aditya Mathur, a software engineer, 23, who joined Wipro a year ago, and now works at a four-year-old office in Gurgaon, south of New Delhi, as a software tester. �The facilities are better in a big campus.�
Tata Consultancy Services � or T.C.S., as the company is known � is spending $200 million on its Siruseri campus and has hired the Uruguayan-born Canadian architect Carlos A. Ott, who designed the opera house on the Place de la Bastille in Paris. The company is also building big campuses in Ahemdabad, Pune, Calcutta and Hyderabad.
But some critics say that too many of the industry�s new complexes are intended to make a big splash without much thought of how they will function and fit into the local surroundings.
�It is a haphazard reaching for something that will quickly make a statement about the place being world class,� said Himanshu Burte, an architecture critic who writes frequently for Indian newspapers.
But Rahul Mehrotra, a prominent architect who has designed an office building for Hewlett-Packard in Bangalore, the city at the heart of India�s technology industry, argued that rather than being outr�, too many Indian tech campuses had a hackneyed feel, evoking the sprawling suburban campuses of Silicon Valley or American companies like Google and Apple.
�The architecture in these cases symbolizes the fact that these are places of outsourcing, not cutting-edge research,� said Mr. Mehrotra, who lives in Mumbai and Boston.
Mr. Pai of Infosys said he was unconcerned about such criticism. He said the people who mattered to the company � employees and customers � raved about its buildings, particularly those that resembled landmarks like the Coliseum at its new campus in the city of Mysore. �They like the fact that it�s so diverse,� he said.
Infosys probably set the standard for ambitious corporate campuses in India more than a decade ago. Many other companies grew helter-skelter wherever they could find space. But Infosys started building large complexes, beginning with its first campus on the southern edge of Bangalore, its home city, in 1995, just a few years after India started to open its economy to the rest of the world.
That first campus, which, after many expansions, can now accommodate 24,000 people, was considered cutting-edge for creating an ordered oasis of lawns and lakes in the midst of the urban chaos that envelops most commercial areas in India. The complex also established the company�s quirky style � with a glass pyramid for an auditorium and a building that resembles a washing machine � and helped set a benchmark for big campuses in the technology industry.
Mr. Pai, who determined the overall layout of the campuses with the company�s chairman, N. R. Narayana Murthy, said Infosys was determined to make every new campus �better than our last campus.�
Their rules include the tenet that no two buildings should look alike. Another audacious goal is that every campus should become a �carbon sink� in the next five years. In other words, trees, lakes and other natural features should absorb more carbon than is generated by the campus.
Some other firms, like Wipro, tend to be more understated, opting for standard-looking office buildings. But even these companies have trademark causes. Wipro prides itself on minimizing the use of power and, especially, water. It recycles water and creates lakes to harvest the rain. At one of its campuses in Bangalore, a training center appears to float on one of these reservoirs.
T.C.S., based in Mumbai, has long had significant operations in and around Chennai, the city formerly known as Madras, which is on the Bay of Bengal. But N. Chandrasekaran, chief executive of T.C.S., said the company previously had too many buildings arbitrarily sprinkled around that region.
The new Siruseri campus, 18 miles south of Chennai, is meant to help consolidate some of those outposts and give employees a sense of place and pride of ownership. �We had multiple buildings and we felt that we should have a campus where employees will feel empowerment, will feel good about working,� he said �and at the same time we have a place to host clients.�
For at least some employees, the plan seems to be succeeding.
Deenathajalan Sugumar, who works in production support, recently moved to the new T.C.S. campus in Siruseri from a smaller building in Chennai. He gushed about the campus, even though he now commutes by a company bus for more than an hour every day, more than double his previous travel time.
�It�s my home,� Mr. Sugumar, 24, said. �It�s my company.�
The Outsourcing Battle (http://www.nytimes.com/interactive/2010/12/28/business/global/20101228-sizzle-ss.html) New York Times
wallpaper quot;Life is a Journeyquot; by James
You reiterate exactly what I have in my mind
My thoughts and feelings exactly on the GC side!! Absolutely agree with the bold one liner.
If, for China, resolving the Tibet issue has to come at the price of demanding unreasonable concessions from India, it would be an unfair situation to present to India. India�s position on Tibet has evolved over the years. India has demonstrated a fine balance on Tibet as a humanitarian concern (with Tibetans settled in India) and the risks of using Tibet as some sort of a political trump card. The latter largely remains an insinuation against India � at least over the last quarter century, and has failed to be reflected in China�s foreign policy towards India. Today the tail seems to be wagging the dog since China suspects India of covertly using Tibet and the Dalai Lama for furtherance of some political goal.
Such misperception is in contrast to China�s relatively muted antipathy to those countries that issue a visa to or host Rebiya Kadeer in exile (Virginia, USA), or where the Tibetans are better organized (USA, Australia and several parts of Europe). In any case China would be aware that India has refrained from seeking alliances in the Southeast and East Asian region. Likewise, it is counter productive for elements in the Indian strategic community or media to play-up the �Tibet card� (whatever that means) or indulge in political gimmickry that reflects insensitivity towards the core concerns of either side.
Policy Focus: India has to maintain a balance between �justice� and �fairness� on the issue of Tibetans living in India, and the risks of political opportunism that could be associated with insensitivity towards China�s concerns. This principle when applied to India�s own core concerns vis-�-vis China could lead to better diplomacy based on the principle of reciprocity.
4. China engages in doublespeak � political statements of intent differ from actions
The recent row over the arrest of Chinese fishermen in Senkaku/Diaoyutai islands, and the detainment of the captain of the Chinese fishing boat, raised concerns about whether such pin-pricking was part of China�s national strategy. Similar pin-pricking happens on the Line of Actual Control (LOAC) on the India-China border where alleged incursions by PLA soldiers are often amplified in the Indian media. With imperfect information on these matters, one can assume that Beijing would have spelt out a policy direction to go �hard� or �soft� on fishing, for instance, in contested waters (Senkaku/Diaoyutai dispute), but China�s coastal marine and fishing administration may have decided to err on the
side of caution.
The same reasoning may, for all we know, apply when the ilitary on either side of the LOAC patrol the disputed boundary. Beijing may have a policy line on �border vigilance�, which division level PLA officers implement by opting to err on the side of caution by �proactive border patrolling�. While the benefit of doubt could be extended for occasional misunderstandings on any front, it is really up to Beijing to clarify whether pin-pricking as a manifest behaviour results from overzealous implementation on the ground or is a real instrument of policy, which is what is suspected by some Chinawatchers in India. If China feels it has been misunderstood in all these instances, one should extend the benefit of doubt to the leadership in China.
This could apply to the issue of stapled visas to Indians from Jammu and Kashmir (J&K) as well. That the visa issue was �administrative,� as Premier Wen Jiabao has clarified, makes China�s political stand reasonably clear. Then it is for China to reconcile. Accumulating such irritants over time undermines security since most people would only read the direct military and administrative challenge posed to India through such acts. It would be na�ve to assume that such incidents would be consequence free and that in the long run public dividends from the salience of an India-China partnership would remain unaffected.
Policy Focus: India should not draw itself into diplomatic situations that make it appear uncompromising. Hence, more institutional channels could be opened up between ministerial counterparts (water, power, trade and commerce, border, education, foreign affairs i.e. multilateral negotiations, and other areas) and even between political parties in order to propose more pluralistic options on areas of contention or interest for both countries.
5. China has not addressed India�s concerns on Pakistan
While several elements in the China-Pakistan relationship remain antithetical to India�s core concerns, it is futile to forever assess the relationship climate of China and Pakistan as impinging excessively on the health of India-China relations. Such a pursuit does not leave enough room for upgrading the India-China relationship. The classic case is that of the US-Pakistan relationship which for most of the Cold War years and even subsequently did not hinder a drastic upgradation in India-US relations in this decade, when the ground was favourable for the United States to recalibrate its foreign policy on South Asia. Similar room for upgradation of the India-China relationship is essential.
More importantly, what should be expected from a Head of State/Government visit? Was there any resolution on matters relating to currency revaluation, or environment or human rights during Obama�s visit to China in 2009? Did the November 2010 Joint Statement of Prime Minister Manmohan Singh and President Obama affirm the status of Jammu and Kashmir, or even mention Kashmir in the entire text? When it comes to the Indian state of Jammu & Kashmir, India is confident of not involving the United States as a party to the resolution of the Kashmir issue. Obama�s offer to �delegate� regional policing in South Asia to China in 2009 was rebuffed by India, and China has only distanced itself from that issue. The question of seeking clarification from China on its neutrality on Kashmir is one thing. However, since when did seeking China�s affirmations on the status of Jammu and Kashmir become imperative for a Joint Statement?
The China-Pakistan relationship does not thrive on what is casually assumed to be a singular anti-India agenda. China�s relationship with Pakistan as a window to the Islamic world often receives muted attention. Since 2009 foreign policy challenges for China arising from condemnation and criticism from Turkey, Iran and Indonesia, in particular, and the Organization of the Islamic Conference (OIC) over the handling of the Uighurs in Xinjiang region have become acute. While liberal democratic sympathies from the West for Uighurs exists, the prospect of pan-Islamic support for the Uighur cause (on the lines of threats
issued by militant preachers such as Abu Yahya al-Libi) is not something China would want to see in its troubled West. From a utilitarian perspective, Pakistan (with a majority Sunni population) serves perfectly fine as a window to the Islamic world, which China could use to placate concerns or grievances against the Chinese state being anti-Muslim in its handling of Xinjiang (most Uighurs practice a moderate form of Sunni Islam).
Policy focus: China and India interaction, particularly in the academic arena, are fewer than the number of Indians and Chinese in conference-circulation in the United States and Europe. This observation is more intuitive, than empirical, but doesn�t seem inaccurate. Greater discussion and engagement to develop a wider and pluralistic understanding of contentious issues would go a long way in understanding each others� concerns. A �semester abroad� programme for researchers or faculty in academic and research institutions from both sides could go a long way in building civic networks.
Both India and China have new avenues to pick up the threads, as it were. Even on the issue of India�s claim for a UNSC permanent seat, the Joint Communiqu� this time reads: �China attaches great importance to India�s status in international affairs as a large developing country, understands and supports India�s aspiration to play a greater role in the United Nations, including in the Security Council� (emphasis added).
Prime Minister Manmohan Singh, and Premier Wen Jiabao have affirmed the idea of
�there being enough space to accommodate the growth of China and India, and for both to cooperate.� This space needs to be nurtured further and the coming year, the Year of China-India Exchange, should be a starting point to engage with China in the shaping of institutional norms for mutual growth and development.
2011 Life#39;s Journey Royalty Free
A simple question here ... I know that if an I 140 gets rejected 485 results in automatic denial as well as denial of all associated benifits. Is there any use with the labor? Can it be used to file for 140 again or can it be used to extend the H1B after 6 years.
Writing to Congress is the single best way to express your view on public policy. The average consumer has a surprising ability to influence legislation by crafting a well written missive and avoiding several common mistakes.
Why Personal Letters Beat Form Letters
Don't get suckered in by the quick and easy "Write to Congress!" form letters littering the internet. Form letters are not an expression of values; they are a show of organizational strength. If the NRA convinces five million people to send letters opposing gun control, it shows that the NRA can muster five million people to action, not that five million people necessarily care about gun laws. Congressional offices know this and generally disregard form letters.
So what happens when you send a letter?
Every office has its own procedures for tabulating constituent correspondence, but most will produce a report at the end of week breaking down how many letters were received by issue area, separating out form letters from letters sent by individual constituents.
Members treat each type of letter differently, but most look for individual letters as a barometer of their district's concerns. These are the letters that have the most influence, the ones we will show you how to write.
What Should Your Letter Say?
We adhere to the three paragraph rule: introduce yourself, introduce your issue, request action. Congressional offices have staffers whose days are spent solely on the mail, so make their lives easier by keeping letter succinct and to the point.
Introduce Yourself: There is a two-prong test for determining your worth: 1) Are you a constituent? 2) Are you an important constituent? Feel free to puff up your chest. Are you a lifelong member of the district? Are you associated with community groups? Say so! Convince the reader that yours is a voice of experience and wisdom.
Be specific: Don't just ask a Member to oppose mandatory binding arbitration agreements. Ask them to rush to the floor to support S.1782, The Arbitration Fairness Act of 2007.
Marshall Facts: Your argument - and you are making an argument - must be supported by facts. Feel free to use facts gleaned from us or other sources, but don't copy and paste paragraphs of pre-written text from form letters. Personal experiences are particularly effective, and often moving. Share them!
Be Exceedingly Polite, Please: Congress attracts haughty personalities. Staffers don't appreciate being spoken down to or insulted. You are trying to rally them to your cause, so be nice!
Clearly State Your Request: Plainly tell your representative that you want them to support or oppose a certain bill. If you want a response, explicitly (but politely!) ask for one.
It should go without saying that your letter should follow all formal style guidelines, such as a return name and address, and should be free of spelling and grammatical errors.
Send Your Letter To The Right Place
Only write to your representatives. You have three: one Representative in the House, and two Senators. Do not send more than three letters. Some citizens try to get their voice heard by writing to all 435 members of the House. Congressional courtesy compels the 434 Members who do not represent the zealot to forward his letter to the one lucky Member who does. This angers the Member's staff greatly at the expense of any point you are trying to make.
The addresses for your Representatives and Senators are available online, but don't waste your time with an email. Letters carry significantly more weight. Send your letter to the Capitol, where the legislative staff is based, though it will take a while to arrive since all incoming Congressional mail is irradiated thanks to those still-unidentified Anthrax mailers.
For an even greater impact, send your letter care of the staffer covering the issue. These staffers - called Legislative Assistants - are the Member's eyes and ears on their assigned issue areas. Finding the staffer destined to read your letter is easy: call the Capitol switchboard (open 24 hours a day!) at (202) 224-3121, ask for your Member's office, and ask the person who answers for the name of the staffer handling the issue area or bill number. Once you get that name, address your letter like this:
Member Of Congress
Washington, DC 20515
What Should You Expect In Return?
Depends. There are 535 Congressional offices and each handles constituent correspondence differently. The vast majority respond to letters with either a form letter pre-written by a Legislative Assistant, or with a more personal response written by a Legislative Correspondent. Controversial issues that attract many letters normally receive a form letter response, while smaller issues or specific questions often receive the attention of a personalized response.
Members of Congress work for you. Without your votes, they won't stay in office. They go to great lengths to cultivate a positive relationship with you, their boss. Very few people take the time to write to a Member of Congress, so the few that do carry a disproportionate influence.
Fifteen minutes is well worth the time to influence a $2 trillion enterprise.
Is benching that happens in consulting legal? Is paying salary according to prevailing wages in Maine and sending the contractor to work in Manhattan legal? Please tell me how these practises by desi consulting firms are legal.
And you're telling me I am ignorant! You're funny :D
All your assumptions about H1B is only for full time jobs is flawed. USCIS has not said that. There is no law that says that.
BTW why do you think LCA requirements are meant only for consulting companies ? It is applicable to all H1B candidates. That has been the law for a long time. Nothing new here for you to be happy about.
Your posts are driven by your ignorance than any legal base. You need to educate yourself in immigration perspective.
Why USCIS audits are focused on consulting companies ?
It is not because consulting is not allowed on H1B. It is because they figured out that H1B violation are more prominent among small companies.
2010 Life#39;s Journey Art Print
A young man wanted to purchase a gift for his new sweetie for Valentine's Day. As they had not been very long, it was very difficult decision. After careful consideration he decided a good gift would be a pair of gloves. Accompanied by his sister, he went to the store and bought the gloves. His sister purchased a pair of panties at the same time.
The clerk carefully wrapped both items but in the process got them mixed up. The sister was handed the gloves and the young man got the panties.
The young man mailed his Valentine's Day gift with the following note:
"This special Valentines Day gift was chosen because I noticed you are in the habit of not wearing any when we go out in the evenings.
These are a lovely shade, the lady I bought them from showed me the pair she had been wearing for the past three weeks and they were hardly soiled. I had her try yours on for me and they looked quite lovely.
I wish I was there to put them on you for the first time; no doubt, other hands will come into contact with them before I have a chance to see you again.
Just think how many times I'll be kissing them in the future. I hope you'll wear them Friday night for me.
Love, Cuddle Bear
p.s. The sales lady says the latest style is to wear them folded down with just a little fur showing."
Keep barking the same thing again and again. This is not going to make even a small dent on my faith. The more you hate, the more we love our faith.
hair Life#39;s a journey not a
I ask you, have immigrants (or skilled immigrants) have not made a single contribution to this country?
(they surely have made many, but these are not for Mr Dobbs coverage. He is as biased as can be....good CNN is giving Ruben Navarette some coverage now)
Were you aware of each and every rule in the immigration law book before you applied for GC?. Did you foresee this delay before you got into this mess?.
Shouldn't you have been aware of this option of EB3 people converting to EB2 and accounted for that when you filed your GC?. Aren;t you blaming your hardship on EB3 people and getting mileage out of it?.
hot The Whole Journey, Life Itself
The greater danger in life is not that we set our aims too high and fail, but we set them too low and still do � Michelangelo
Your aim is to not get fired. You want to buy an insurance policy to a secure job as if you are the only one entitled to have a job. This is a lower aim so you are bound to fail i.e. lose your job.
And how do you define �replacing some American workers�. There is a plant in Yuma, AZ manufacturing aircrafts for Kingfisher airlines in India. Doesn�t this mean that someone in India is being replaced by American worker???? Maybe we should stop all trade and we should have all needs of one country fill within its borders. Maybe we should say � from now on no one is going to do any business, collaboration, partnership and place orders to companies outside of the borders of the country where you live.
The best argument of restrictionist is either talk about no H-1B or green cards or talk about unlimited H-1Bs and green cards as if the extremes make the only reality in this world. Have you ever seen numbers like 290,000 or maybe 450,000. These are called whole numbers in mathematics and reside somewhere between ZERO and INFINITY/UNLIMITED.
Stop bickering in the name of American people. More than 99% Americans don�t even know what is H-1B visa or employment based green card. And one more thing, people�s opinion is the most foolish thing to look at when making a decision. Do you remember the % of people in favor of Iraq war in 2002? - More than 70%
Do you know how many people are in favor of pulling out of Iraq now, putting all the blame on the Administration? � around 70%
Do you know the % of �American people� saying that they screwed up by supporting the war in 2002? � 0%
No one would come out to say the nations and millions of people got screwed up due to "MY" twisted ideology in 2002. So let�s keep this argument of �American People� out of this debate.
In free market and capitalist economy, the measure of productivity doesn�t come from some lawmaker who is out of sink with reality or from the ideology of orgs like IEEE-USA or from posters like you. The measure of productivity comes from the employers and the companies. If employees on H-1Bs were unproductive then why are employers asking for more H-1Bs. I am sure my employer is not in love with me to give me check every two weeks. And if that is how it works best for the competitiveness and for the economy, society and the nation, then so be it. That is the reason why this society is more advanced. You may be afraid of such a situations/competitions but I am not scared of a scenario where someone who can perform a better job, either a citizen or someone on H-1B, takes my job. And I assure you that I won't whine about it. But that is ok, your way of thinking is all based on the premises that every one out is going to get you and some how you have to eliminate this competition at the soonest.
You have used the argument of abuse, productivity, economy, outsourcing, country of origin and the color of Dick Morris� underwear - to argue against H-1B and against green card number increase. Time and again I have said that this is not about H-1B. We, the people on this forum, want to discuss about GREEN CARD BACKLOGS. But you want to keep the discussion away from green card backlog and want the discussion be in the arena of H-1B. I must share with you that I have received atleast 7 different private messages telling me to �not waste my time with idiot like yourself�.
Like you ass, you keep your views and your opinions with yourself. Don�t poke your ass and your views into a place where they don�t belong. And please stop worrying about being displaced by someone else on H-1B. You have not even gotten green card and you have already turned into a restrictionist. Please wait for sometime and there will be enough time and opportunity for you to join the ranks of IEEE-USA. This makes me to think that there are 2 possibilities:
1.) You have very low self esteem and you have a low opinion about yourself. Thus you are scared of the competition
2.) You are not capable enough or you are not technically sound to compete with others around you. And just like IEEE-USA, you are looking for ways to eliminate your future probable competition using words/phrases like �displacement of US workers�.
house a journey of life. life is a
Where do people like mbdriver and senthil stand on the issue of legalization/amnesty for illegal/undocumented people in the country? If the legalization were to happen these are the kind of people who complain saying illegal aliens have slowed down our green card petetions. If legalization were to happen processing of every petetion at USCIS will slow down considerably. I will not surprised if 485 takes 4.85 years or 48.5 years or 485 years ...:)
Which one is a bigger problem 12 to 15 million people totally undocumented or perceived misuse of visa petetions by few bad apples.
tattoo The journey of life posters by
If I meant anywhere that I have problem with muslims, believe me it will be writing issue. Yes, I do have problems with people who are Indian citizens but support Pakistan and terrorism.
What is there in his remarks to be so 'terrorised' about? Where is 'Muslimism' here?
I hope as far as there are people like you and some others who commented as if 'Muslim means Terrorist' (but you won't tell that directly), there will be more terrorists; and it is quite understandable.
pictures final-journey.jpg. In life
The next phase of the logic is: increased foreclosures will lead to increased inventory, which leads to lower prices, which leads to still more foreclosures and "walk aways" (people -citizens- who just dont want to pay the high mortgages any more since it is way cheaper to rent). This leads to still lower prices. Prices will likely stabilize when it is cheaper to buy vs. rent. Right now that calculus is inverted. In many bubble areas (both coasts, at a minimum) you would pay significantly more to buy than to rent (2X or more per month with a conventional mortgage in some good areas).
On the whole, I will debate only on financial and rational points. I am not going to question someone's emotional position on "homeownership." It is too complicated to extract someone out of their strongly held beliefs about how it is better to pay your own mortgage than someone elses, etc. All that is hubris that is ingrained from 5+ years of abnormally strong rising prices.
Let us say that you have two kids, age 2 and 5. The 5 year old is entering kindergarten next fall. You decide to buy in a good school district this year. Since your main decision was based on school choice, let us say that your investment horizon is 16 years (the year your 2 year old will finish high school at age 18).
Let us further assume that you will buy a house at the price of $600,000 in Bergen County, with 20% down ($120,000) this summer. The terms of the loan are 30 year fixed, 5.75% APR. This loan payment alone is $2800 per month. On top of that you will be paying at least 1.5% of value in property taxes, around $9,000 per year, or around $750 per month. Insurance will cost you around $1500 - $2000 per year, or another $150 or so per month. So your total committed payments will be around $3,700 per month.
You will pay for yard work (unless you are a do-it-yourself-er), and maintenance, and through the nose for utilities because a big house costs big to heat and cool. (Summers are OK, but desis want their houses warm enough in the winter for a lungi or veshti:))
Let us assume further that in Bergen county, you can rent something bigger and more comfortable than your 1200 sq ft apartment from a private party for around $2000. So your rental cost to house payment ratio is around 1.8X (3700/2000).
Let us say further that the market drops 30% conservatively (will likely be more), from today through bottom in 4 years. Your $600k house will be worth 30% less, i.e. $420,000. Your loan will still be worth around $450k. If you needed to sell at this point in time, with 6% selling cost, you will need to bring cash to closing as a seller i.e., you are screwed. At escrow, you will need to pay off the loan of $450k, and pay 6% closing costs, which means you need to bring $450k+$25k-$420k = $55,000 to closing.
So you stand to lose:
1. Your down payment of $120k
2. Your cash at closing if you sell in 4 years: $55k
3. Rental differential: 48 months X (3700 - 2000) = $81k
Total potential loss: $250,000!!!
This is not a "nightmare scenario" but a very real one. It is happenning right now in many parts of the country, and is just now hitting the more populated areas of the two coasts. There is still more to come.
My 2 cents for you guys, desi bhais, please do what you need to do, but keep your eyes open. This time the downturn is very different from the business-investment related downturn that followed the dot com bust earlier this decade.
The truth is probably between the extreme pessimism in this post and the unbridled optimism in other posts.
Never trust what realtors tell you, they are in it to make a sale and it is always in their interest to talk up the market. I have never yet seen/read/heard a realtor speak negatively about the market. Even if they are asked an obvious question like do you think prices have fallen in the last year they will say they have trended down a little but the foreclosure crisis is over now, and the fed is acting decisively and the demographics speak to a longer term secular uptrend bla bla blaaaaaaaaaaaaaa. Some BS to justify their talk.
The bottom line is there will be a hangover of a few years from this unprecedented bubble in housing, it will be more severe in hotspot areas we all know about. In those areas you will likely see a 25-30% drop with about half of it already baked in, another half spread out more slowly over the next 3 yrs that that graph illustrated. Additionally the inflation rate of 3-4%(you can expect an uptick over the next 2-3 yrs) will eat away another few percentage points of your capital , while also eating away at your loan.
The net effect is that you would be another 20% or so the worse off in these hotbed areas in the next 3-4 yrs. In more steady areas, that fall will be much more muted perhaps half or less of that. However sales will slow to a crawl with the slowing jobs market.
The main determinants of house prices are.
1) Inventory............a negative right now.
2) Credit............negative but with scope for improvement in the next 12 mths.
3) Jobs...........likely to be down for the next 6 months atleast.
4) Salaries..................Global pressures on these will likley persist with some tax help to average americans likley if Dems. take control.
5) Market psychology...................likely damaged for the near term atleast 12 mths.
6) The replacement value of homes. Land is a non factor here in this country. I scoff at suggestions to the contrary. Even in cities with restrictions, this is a yawn yawn factor. Unless you are speaking about downtown manhattan it is not a factor. Construction costs on the other hand are a factor. A value of $100 per Sq Ft of constructed value is perhaps par for the course right now, that can only go up, with rising commodity prices, salaries for construction with illegals kicked out etc over time this will go up.
7) Rental rates to home prices. This too will catch up. Folks kicked out of sub prime mortgage homes need to go somewhere. They will likley drive demand for rentals.
All of this points to a fast then a slow correction. I think we are nearing the end of the fast phase of home price correction. 20-25% in hotbed areas and 7-12% in other areas. I think you will see a more gradual correction of a similar magnitude spread over 3-4 yrs now.
Lets see how it all unfolds.
Remember Every drinking binge has a hangover! The US housing market is now in one.
dresses Journey of life
My point is sivakasi rocket has the capability of killing 6 people and 7000 hamas rockets taken lesser than that. We are reacting as if they have wiped out the entire nation. How inferior these rockets are when compared to sivakasi rocket. I am not justifying the rocket attack, but pointing out their impact and the voilent reaction to that.
Every nation has right to defend itself and its people. Isreal has the same rights to protect people. That doesn't mean they can go and kill innocent civilians including elderly person, women, children, shcool children and bombing schools, hospitals, detroying infrastructure etc. After killing school kids, just dont justify your killing by saying they use kids as human shield. Dont destroy and don't lie.
makeup it here: Life Is A Journey
welcome back. it would be interesting to hear your views on the whole July VB fiasco and it's aftermath. thanks!
girlfriend Life is a journey;
hairstyles #39;Life is a Journey#39; by Agnes
Nobody came to Kasab's house and killed his brothers and sisters, yet he went on to become a terrorist. It is very easy to stop rational thought and breed hatred. It is loose thinking like yours that perpetuates terrorism. There are injustices all over the world, yet not everyone goes on a spree killing inncoent people.
Let's ignore quoting Lou here (don't quote the devil). Let the Ad industry be happy with him. His audience reach has climbed from 400k to 900k because of his immigration rant. I guess he will land with a thud once this dust settles down.
He is just using this to play illegals vs legals. If you watch his lousy program, he is constantly ranting that this CIR bill will increase immigration by 100 million plus in the next few years. Some time back he also said that the CIR is a covert operation to increase H1Bs and legal immigration, not just about illegal immigrants. You can tune out what Lou says, he's doing what he can to improve his ratings.