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Why Gas Prices Are Rising

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When Farallon Capital Management, a U.S. hedge fund, and its joint-venture partner, India bulls, snapped up an 11-acre property in central Mumbai in March 2005 for $54.5 million an acre, the purchase was called an act of idiocy by local developers. A few months later, when the same joint venture offered $95.5 million an acre for a nearby property, its was the second-lowest bid.

Property prices in India are rising fast, and not just in the biggest cities. As the tech boom spreads across the country, as more Indians buy homes, and as the economy grows at faster than 8% a year, real estate is attracting more investors, many of them from abroad.

India is one of the last few countries where there is primary demand for real estate rather than individuals trading up,? says Rajiv Sahney, who runs the India operations of New Vernon Advisory, a $1.4 billion New Jersey hedge fund.

Merrill Lynch forecasts that the Indian realty sector will grow from $12 billion in 2005 to $90 billion by 2015. ?India is the most exciting real estate market in Asia,? says Michael Smith, head of Asian real estate investment banking at Goldman Sachs. ?It's one of the last major countries in Asia with an improving market.?

That improvement worries some. Concerns about an asset-price bubble have led the Reserve Bank of India to rise the risk weight age on real estate loans extended by banks, and mortgage rates have gone from 7.5% to about 9.5% as a result. That's still well below the 15% rates that most Indians were used to, but it's enough to raise questions about whether the speculation of the past year and a half, which has driven land prices up by 30% to 100% and real estate stocks up as much as 2,000%, may be coming to an end.

The run-up in prices has attracted the likes of Morgan Stanley, which has invested $68 million in Mantra Developers, a midsized construction firm in Bangalore, and Merrill Lynch, which invested $50 million in Panchsheel Developers, a regional builder. Foreign companies have also poured money into funds that invest in Indian developers. GE Commercial Finance Real Estate, for example, has invested $63 million in an $800 million fund that is building IT parks, and Calpers and the Oregon Public Retirement Fund have invested $100 million each in the IL&FS India Realty fund.

Real estate funds set up to invest only in India have already raised more than $2.7 billion. And new funds worth as much as $4 billion are being planned by J.P. Morgan, Britain's Knight Frank, and other foreign investors. Warburg Pincus, the largest private-equity investor in India, says it is spending nearly a third of its time studying opportunities in this area. And Deutsche Asset Management recently hired someone to head its real estate activities in India. ?As the largest active managers of real estate funds in the world,? says Edouard Peter, head of Deutsche Asset Management Asia Pacific and Middle East, ?we expect to be actively raising and investing funds in real estate in India.?

It isn't going to be a cakewalk. ?It's not easy to do business in India,? says Seek Ngee Huat, president of GIC Real Estate, an arm of the Singapore government that is planning to invest several hundred million dollars in Indian real estate over the next two years. ?It's difficult finding suitable partners who have the same long-term objectives, as most firms are small and family run.?

Already margins have shrunk. ?The vast majority of the planned real estate funds are targeting annual rates of return of between 25% and 30%, but I'm skeptical that the vast majority will cross 20%,? says Mumbai real estate advisor Rajiv Bhatia.

To achieve the target returns, several funds are focusing on second-tier towns and second-tier developers. ?Many investors are going to lose their shirt here, as it's an opaque market, and a wrong partner can easily do you in,? says S. Sriniwasan, executive director at Kotak Mahindra Realty fund in Mumbai. There's also bureaucracy and corruption to deal with. Says Ashwin Ramesh, who runs a boutique fund called Primary Real Estate Advisors: ?There are a couple of hundred malls currently being developed across India, and predictions are that only 10% will be successful. Yet every developer feels his mall will be among the survivors.

Why Gas Prices Are Rising

Question: Since gas prices are on the rise, is it smart to use gas cards and what are some ways to save money on gas?

Answer: As we all know, gas prices have risen to an average of $3 per gallon in the United States. Since the gas prices are high again, this means that gas-rebate credit cards will be targeting consumers more than ever. There are some perks and advantages to using gas cards but there are also many disadvantages if you do not take care of your credit.

Advantages

Gas rebate cards offered by financial institutions and oil companies typically offer 5 to 10 cents back for every gallon of gas purchased. Some cards may also provide credit points to be used to buy other products. This can definitely save you money if you pay the entire balance off the gas card every month.

Disadvantages

The disadvantages of having a gas-rebate card probably outweigh the advantages for the majority of consumers. Some disadvantages of using a gas card include the following:

? Gas card issuers can change interest rates, rules and fees. Make sure you read the fine print ? they will inform you of changes to your card.

? Gas-rebate cards are usually in the 14 to 23 percent range, depending on your credit history.

? If you are late paying your gas card bill, they may raise your interest rate and can even freeze your rewards.

According to an article written by Mc Nelly Torres of the South Florida Sun-Sentinel, here are the advantages and disadvantages of four different gas card programs.

1. Discovery Platinum Gas Card promises a 5 percent cash-back bonus on gas and auto parts purchases. If you are late making a payment, the percentage rate could rise to between 15.9 percent and 28.9 percent.

2. Chase PerfectCard Mastercard offers a 6 percent rebate on all gas purchases at any station for the first 90 days after the customer signs up for the card then it drops to 3 percent. The maximum rebate you can earn for gas purchases on a monthly statement is $15. But to achieve the maximum in rebates on gas purchases, you will need to spend up to $500 monthly at any gas station.

3. The Chevron/Texaco credit card program allows customers to earn 10 cents per gallon on their first 500 gallons purchased, but the offer is good for the first five billing cycles. There is another limitation: Cardholders can use the card only branded Chevron retail stores and participating local Texaco stations.

4. At Marathon gas stations, consumers can earn a 10 percent rebate if they use the Marathon Platinum Mastercard for the first 60 days after opening the account. But the rebate drops to 5 percent afterward, and the card can be used only at Marathon gas stations.

Ways to save money on gas

For the people who want to avoid using gas cards, there are several different ways to save money on gas. Keeping proper maintenance of your car can save you significant money. This means keeping your tires inflated to their maximum level. Having under inflated tires can waste fuel, reduce your tire life and above all are a safety issue. Make sure to get regular tune-ups and oil changes. Fresh oil will decrease gas consumption.

Follow the maintenance schedule in your owner's manual and check to see the recommended octane rating for the fuel to be used in your car. Why buy premium if you can use regular?

The way you drive can directly influence your fuel consumption. Making fast starts and sudden stops can burn extra fuel. Try driving a little slower; the faster you drive the more gas you lose. Take the shorter routes for errands and also for the drive to work. Planning your routes accordingly can save you a lot of money on gas.

Try public transportation. In most metropolitan areas, there are many services to choose from such as trains, subways, metro movers, trolleys and buses. If the train or bus schedules coincide with your work hours and place of work, why not use them.

Last but not least, try carpooling to work. Find someone you work with that lives in the same vicinity and ask them if they will be willing to car pool with you to work and back. Work out a driving plan with that person by having them drive one week and you drive the next week. This will cut your work related gas expenditures in half for the month. This is also an excellent way to save money on gas.

Sources: http://www.bankrate.com/brm/news/advice/20000215c.asp http://www.sun-sentinel.com

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Both Jyotika.sharma & Pete Glocker are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

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Pete Glocker has sinced written about articles on various topics from Computers and The Internet, Marriage and Babies. Pete Glocker is employed in the Education and Charitable Services Department at Debt Management Credit Counseling Corp. (?DMCC?), a 501c(3) non-profit charitable organization located in Boca Raton, Florida. Pete graduated from Florida Atlantic University. Pete Glocker's top article generates over 135000 views. to your Favourites.

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The above recommendation is for a normal healthy pet. Should your pet is suffering from an illness ensure you seek necessary advice from your vet on supplementation a special condition