RE investment in 2012 is SUICIDAL - Page 3 - Indian Real Estate Forum

Jawhar · 07-01-12

If you want to buy in an XYZ project, contact the right broker and tell him that you want to SELL an apartment in this XYZ project- What best can he get for me. Then the broker will tell you that there is no buyer in the market and he can at best get you such and such. Now you can tell him O.K , get me an apartment in such amount

MANOJa · 08-01-12

Quoting an old post of mine . Most of it looks very much relevant in the present scenario .

Quote:

Originally Posted by MANOJa

.................................................. ..................

If the prices increase by 5 % in the next 3 months & there is a correction of 15 %, net gain to an end user/investor is 10 %, plus if somebody has his money invested somewhere, he gains there too ( if it is an FD, additional gain is another 2 to 2.5 % ).

I have always been saying some areas/ some projects would have time based corrections . Many areas/projects which r over hyped could see corrections from 10-15 % . New/unknown builders & projects at real bad locations could be the worst sufferers & decent builders with the best of locations could be least affected . If the D e way is not cleared, when correction hits, we could see that area to be one of biggest sufferers .

So what i am saying is that say, somebody looking to buy CHD /Today's /Tulip today, might be able to buy it cheaper by a good margin, after a few months, but price of say some project located at Gcx. rd. or something right on NH may not fall that much .

All these equations could just vanish, if we see a severe & prolonged correction & all projects across the board facing massive correction .

Correction has happened before & it can happen now . I hope, there is no denying of this fact . This is what is correction is . The prices on resale would definitely correct & come down & prices of projects with original bookings could see huge freebies being offered along with the apartment, making new purchases cheaper .

If u r looking to compulsorily invest, maybe because of some taxation issues or any other issues or the "INVESTORS ITCH", going for established areas/decent builders/decent locations is the most sensible option, so when correction occurs, these could be the least affected segments .

Without getting into any hi-fi jargon & keeping it real simple & plain -

Everything in life has ups & downs, but a thing which goes real high up, very fast, would necessarily come down, maybe not at the rate at which it went up . RE is a cyclic market with ups & downs . If the downs get coupled with overall severe recession in the economy, the downturn in RE becomes huge & may get prolonged for long, there by affecting RE real bad/hard .

What we r seeing in the market now is that GGN has gone real up in the last one year or so ( prices have increased by more than 50 - 60 % ) . So, it is natural, that they would come down . The down turn could come after 5/6 months or may come before that, really no body can predict . If the overall economy also starts slowing down, RE might get hit real hard, otherwise, we may see correction of 15-20 % in some areas & some areas/ projects may just see stagnation in prices .

As i have said earlier, many here in the forum believe that there would be no correction & prices r here to stay & the prices could max. stagnate for some months & we again would see a bull run . My take on this is that in such a scenario too, we r all set to gain, as there are many investors out there looking to make a quick buck & who have over leveraged & would be wanting to move out of their investments soon . When prices stagnate, these investors would get panicky & since they r over leveraged, they would have no option other than to exit . This would be the right time to enter, the catch being that one should be in touch with the market,to find & capitalize on such deals .

RE market is real difficult to understand & this is my take , Some people might agree & some would disagree & some may consider, above a too simplistic view & i could be entirely wrong on this one .

Not looking to preach or something, just giving my views here .

Jawhar · 08-01-12

We do not learn unless we burn our own fingers. Normally it is enough to learn when others have burnt their fingers. As the downturn in property accelerates, all the buyers will go in hibernation. That time will be painful for investors, and the worst advise they can get at that time is - HOLD

Jawhar · 08-01-12

Why are those who used to say buy-buy , started saying bye-bye

Jawhar · 08-01-12

In the clearest sign of where the realty market is headed, leading developer Housing Development and Infrastructure (HDIL) has sold a 15.5-acre Eveready Industries plot at Turbhe-which it had bought for Rs 115 crore from the B M Khaitan group in 2008-for Rs 86 crore to Thyrocare Group, a medical diagnostic group. The hush-hush deal which is Rs 29 crore less than the purchase price has shocked realty experts.

Sources say HDIL has sold it at a much higher loss than Rs 29 crore. When it bought the land, HDIL paid MIDC Rs 4 crore towards differential premium, Rs 5.8 crore towards stamp duty and registration in addition to the land price of Rs 115 crore. Over Rs 2 crore was paid as consultancy fees. So, the total cost came to Rs 128 crore. The sale price included stamp duty, registration and differential premium pricing to MIDC. "So, the loss effectively works out to Rs 42 crore,'' a consultant said

deepakgoyal9 · 08-01-12

MNC's are not getting enough talented manpower , though we have largest pool of engg's and doctors in country ??? Hope i ans ur question .

somthing will sell only it is desired ... if ppl have better choice to buy somehing else at same pricce they will surely buy best deal ...

Latest eg DDA few days back were selling some thousands flats but somebosy out of ignorance or foolishness in case invested in slump area property then he only is fool ....

Articles also are written by ppl only ... they may conclude nd justify some things which suits them ????

Mere dost " Dikhavo pe mat jao .. apni akal ladao "

Quote:

Originally Posted by AJ2008oo

You seem to be right ...but then why are so many houses unsold in all cities?

ashish18 · 08-01-12

Quote:

Originally Posted by vshinde98

I bought a 240 plot in vatika sector 83 for 99 lakhs in April. Got a firm offer for 1.30 crs today. Till, last week the offer was 1.20 crs.

One of my friends bought a 100 sq yard floor in rajinder nagar for 1.25 crs in august. Today, he can sell it at 1.5 crs with 7 days payment time.

Where the hell is the slowdown ?

I would say there is still a difference between firm offer and actual transaction. Until money has changed hands completely, the firm offer thing in RE has no meaning.

hesitant_buyer · 08-01-12

Guys,

Great Forum. My take on this based on a famous wall street notion. Market behaves opposite to emotions or sentiments of investors. So, as long as there is pessimism about the real estate market the market will do just the opposite -- keep going up! When investors get bullish and all optimistic that's when it’s most likely to come down. Based on what I have seen in this forum, there appears to be a lot of pessimism for year 2012. Guess what's going to happen ?

Cheers!

Jawhar · 09-01-12

Quote:

Originally Posted by hesitant_buyer

Guys,

Great Forum. My take on this based on a famous wall street notion. Market behaves opposite to emotions or sentiments of investors. So, as long as there is pessimism about the real estate market the market will do just the opposite -- keep going up! When investors get bullish and all optimistic that's when it’s most likely to come down. Based on what I have seen in this forum, there appears to be a lot of pessimism for year 2012. Guess what's going to happen ?

Cheers!

You are right. To have your purpose fulfilled, please add more of pessimism.

kapilmunjal · 09-01-12

Well said.

Quote:

Originally Posted by hesitant_buyer

Guys,

Great Forum. My take on this based on a famous wall street notion. Market behaves opposite to emotions or sentiments of investors. So, as long as there is pessimism about the real estate market the market will do just the opposite -- keep going up! When investors get bullish and all optimistic that's when it’s most likely to come down. Based on what I have seen in this forum, there appears to be a lot of pessimism for year 2012. Guess what's going to happen ?

Cheers!

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Next Recession 2012 ?	LChand	Noida	247	1 Week Ago 09:41 PM
UP 2012 Elections & Property Investment in Noida/GN/NE/Ghaziabad regions	trojanhorse	Noida	3	03-06-11 09:26 AM
2012 Dooms Day effect	rajtjrll	Pune	13	14-05-11 03:40 PM
Next Recession 2012 ?	sans_re	Pune	90	12-11-10 07:19 PM
Metro Coming By 2012	atul1111	Greater Noida	0	11-06-10 09:11 PM

07-01-12	#21
Jawhar BANNED Join Date: Dec 2011 Posts: 171 Thanks: 18 Thanked 45 Times in 20 Posts	If you want to buy in an XYZ project, contact the right broker and tell him that you want to SELL an apartment in this XYZ project- What best can he get for me. Then the broker will tell you that there is no buyer in the market and he can at best get you such and such. Now you can tell him O.K , get me an apartment in such amount

08-01-12	#23
Jawhar BANNED Join Date: Dec 2011 Posts: 171 Thanks: 18 Thanked 45 Times in 20 Posts	We do not learn unless we burn our own fingers. Normally it is enough to learn when others have burnt their fingers. As the downturn in property accelerates, all the buyers will go in hibernation. That time will be painful for investors, and the worst advise they can get at that time is - HOLD

08-01-12	#28
hesitant_buyer New Member Join Date: Aug 2009 Posts: 12 My Mood: Thanks: 4 Thanked 0 Times in 0 Posts	Guys, Great Forum. My take on this based on a famous wall street notion. Market behaves opposite to emotions or sentiments of investors. So, as long as there is pessimism about the real estate market the market will do just the opposite -- keep going up! When investors get bullish and all optimistic that's when it’s most likely to come down. Based on what I have seen in this forum, there appears to be a lot of pessimism for year 2012. Guess what's going to happen ? Cheers!