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Old June 25 2012, 09:40 PM   #1
 
 
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Default Wait & Buy only RTM in NOIDA - Avoid Lots of Risks

Risk reward ratio is against UC purchase as posted in another thread - reposting here since it was OT in that thread.

18.9.12:


In this thread, much of the discussion is about safe investing in NOIDA property. After an initial few pages which are election result centric for UP, the discussion veers around to the topic - which is - should one buy Ready to Move (RTM) or Under COnstruction (UC) property in NOIDA?

It is my contention that:

1. For self end use, buying RTM is better.

2. But while waiting to buy RTM, one should hedge against future price escalations by investing in UC property right away. But this investment should be well within one's earning capacity.

3. Investing more than one can afford in property in the "fear" that prices will rise too much and flat will be unaffordable - is just a fear. Actions should be based on prudent evaluations and not on fear

4. An EMI is like a SIP into property. Other SIP into debt products like FD/FMP and SIP into equities should be accompanied with EMI to invest in property - but within reason - not with excessive leverage.

5. Every diversified portfolio should have property as an essential part of the mix, more so if future flat/house purchase is planned

6. One should not confuse or mix up property for investment and property for end use - especially for those with lower budget and savings capacity.

Most of these aspects are discussed in detail within this thread.

Venkat

Since this thread is sticky and is seeing steady interest, I am posting links to other similar threads also having good discussion on the same topic below:

http://www.indianrealestateforum.com...lly-41426.html

http://www.indianrealestateforum.com...-ft-39043.html

http://www.indianrealestateforum.com...ers-40856.html

http://www.indianrealestateforum.com...and-35911.html

http://www.indianrealestateforum.com...ont-25427.html

http://www.indianrealestateforum.com...ate-16943.html

http://www.indianrealestateforum.com...ons-33070.html

http://www.indianrealestateforum.com...ida-24089.html

http://www.indianrealestateforum.com...est-42023.html

Quote:
Originally Posted by Rajat__B View Post
All points valid and taken..but I have a small problem. Maybe you can help me resolve it. I buy a 2000 sq. ft. house at 6.5K 2 years down the line from someone who purchased at 4.5 K say today. That gives him a margin of 2K in 2 years. In totality, I pay him 40lacs extra.

Now, why would I not like to be the person who can make 40 lacs on an investment of 70 lacs(CLP payment) by that time. Maybe, I have diversified investements in Noida. Gurgaon, Delhi etc along with Gold. But, I don't see that even 25 lacs(lower margin) return too bad in 2 year period from 1 set of investment. If I take it as a pure investment, I do not have time to move my money everyday and need a place to park it. Remember, I am not a full time invester. For me, this would be extra income & not primary...

Also, I am a telecom professional and Noida happens to be one of the hub besides Gurgaon, Delhi, mumbai, hyderabad, bangalore, pune etc. I don't know where I will be or even if I will be living in India but for sure even if I am in India, I won;t mind living in Noida in a nice decent sized flat with my wife as it is close to my ancestral house in Delhi where I can access my parents with ease. Remember, this is not my story alone. All my friends have put their money in Noida and they have same opinion. Its an open world today. Nobody really knows where they will end up. All of us can be end users or all of us be investors and also there is a probability, all of us may end up being end users without actually living in the houses. So, there are too many things that need to be factored in here. Its just not as simple..
Chances are high that 2 years later also price will be 4500 only.

Again, 2 years later you might find these risks have materialised:

1. Builder might have run away
2. Builder bankrupt and project stalled
3. Project not completed or still needs 2-3 more years
4. Project is poor quality
5. Project is in court
6. Project has no sewage/water/electricity
7. Project complete but club house pool and other amenities not existing
8. Project complete and RWA hijacked by corrupt and useless people

Isnt it better for end use to avoid all of these? If prices were low, these were acceptable risks.

When prices are high, these risks are not worth it - RTM is better

Omaxe Grandwoods is the standing example for all of these risks for end user - although investors are happy

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Old June 25 2012, 09:43 PM   #2
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Thanks you Venky bhai for this thread; don't let this vanish in other threads....
I request honorable moderators to make this as a sticky thread...
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Old June 25 2012, 09:54 PM   #3
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TO ADD:

Noida authority continues its attitude like it did in past 5 years and do nothing for the region except launch ''PROPOSALS'' worth Billions on paper...with Zero work on ground....thereby:

1. Service lanes of Expressway in poor shape
2. Sector roads of new projects in poor shape
3. Deteorating Electricity issues
4. Encraochments specially near upcoming commercials
5. Heavy load on infrastructure


Super High Density will be Seen for the First time in NCR Region, therefore:

1. Its possible you or your family realise that its not your cup of tea
2. You see yourself whats the actual meaning of poor lift to flats ratio
3. You see yourself whats the actual meaning of Car PARKING issues in the complex itself....as 99% buyers have bought only 1 car parking but will be keeping more cars
4. You will see yourself what it will be like having 4000 families using common facilties


Even if after 3 years price is 6500psf....You will still be FINE !!!!!!
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Old June 25 2012, 09:56 PM   #4
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Default Biggest Worry of Builders is SP/AKY !!!

Other than above points biggest worry for Noida/NE/GN under construction society flats is SP/AKY Policies to KILL Builder Maphia Completely .... If do not understand then see FULL Below Video and realize that how SP Gov. want to KILL Noida/NE Builder Lobby & Land Maphia.... SP/AKY only aim is to support Farmers - Farmers - Farmers nothing else.

After Seeing this 1 hour Video all will SCARE. Ajam Khan outshine the PAID Real-state SHOW of SUPERTECH Fully....

SUPERTECH Ke PAID SHOW Ko Purra ka Purra Dho Daala.....

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Old June 25 2012, 10:05 PM   #5
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Sourabh bhai.... iss thread ko sticky thread bana do.... aapko dua lagengee.... joh log bach jayenge phasne se..
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Old June 25 2012, 10:56 PM   #6
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Was it Live Show or recorded?

If recorded, then it's very poor marketing on Sponsor's front. They could have trimmed the show in their favor.
Also they did not have enough arguments to support Noida as growth engine...
Arguments like Metro, EWay, we hear every quarter from different groups with no substantial movements....

Quote:
SUPERTECH Ke PAID SHOW Ko Purra ka Purra Dho Daala.....

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Old June 25 2012, 11:00 PM   #7
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Quote:
Originally Posted by saurabh2011 View Post
Other than above points biggest worry for Noida/NE/GN under construction society flats is SP/AKY Policies to KILL Builder Maphia Completely .... If do not understand then see FULL Below Video and realize that how SP Gov. want to KILL Noida/NE Builder Lobby & Land Maphia.... SP/AKY only aim is to support Farmers - Farmers - Farmers nothing else.

After Seeing this 1 hour Video all will SCARE. Ajam Khan outshine the PAID Real-state SHOW of SUPERTECH Fully....

SUPERTECH Ke PAID SHOW Ko Purra ka Purra Dho Daala.....


Whew - Azam Khan really spooks you. He's no two bit politico either, he proposed ASY's name as the CM candidate.

I think its clear that the focus of RE buffs in Noida for the next 3/4 years is much less about individual builders/projects and much more on how Noida as a town even progresses or is allowed to progress and retains its place as a competitive town of NCR. I think project completion and posession would be a huge achievement in itself.

I think Venky and Zohaib are bang on suggesting to wait and re-enter closer to posession - not only will you ensure that the Project/Builder risks are eliminated, you will also see if Noida itself is worth it or totally finished.

Dark Ages are upon us

Though a part of me still believes that whatever AK may boast about, Noida still fills up or contributes heavily to the state's coffers - and ignoring that will regress U.P even further

Anyhow, Rahul bhai is right - this scared the sh** out of me
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Old June 25 2012, 11:15 PM   #8
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Noida is Not finished as in finished

BUT

it completely lost its track since 2007

In 2003-04....people bought in Noida in projects like ATS, etc as it offered BETTER STANDARDS than Delhi flats AT SIMILAR Rates....or slightly cheaper

Thats what a suburb is ALL OVER THE WORLD......

But BMW decided to screw it and now SP will catch the financer Builder lobby of Noida.

What people are missing COMPLETELY is that Noida was NEVER PLANNED to be so high density.....Never !!!!!

Things are Not right for this region......Its risky to enter at UC levels...

Come back when Project in RTM.....
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Old June 25 2012, 11:25 PM   #9
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Quote:
Originally Posted by zohaib2012 View Post
Noida is Not finished as in finished

BUT

it completely lost its track since 2007

In 2003-04....people bought in Noida in projects like ATS, etc as it offered BETTER STANDARDS than Delhi flats AT SIMILAR Rates....or slightly cheaper

Thats what a suburb is ALL OVER THE WORLD......

But BMW decided to screw it and now SP will catch the financer Builder lobby of Noida.

What people are missing COMPLETELY is that Noida was NEVER PLANNED to be so high density.....Never !!!!!

Things are Not right for this region......Its risky to enter at UC levels...

Come back when Project in RTM.....
Zohaib Bhai - you've obviously observed Noida very closely over the years while a lot of us are recent entrants to RE.

How do you rate the current political scenario - is it simply a case of these Politicos wanting money and things normally settling down after a few months and this is a pattern when the Government changes - or is this time the political headwinds coupled with the sad macroeconomic picture really a recipe for a disaster which can make the Noida Extension issue look puny by comparison
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Old June 25 2012, 11:47 PM   #10
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Az-Khan contains lots of poison for Noida. Not good for Noida and him.

One thing is sure that all the builders have to pay very big bribes now and no more big projects will come in near future and this will definitely lead to cost escalation.

One positive, I think BMW has created a very big infrastructure in Noida and that will drive bread and butter of Noida for another 5 years.
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