Anyone think that the prices of flats will fall 40% from the mid 2007 prices ?
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  • Originally Posted by ks2071746
    Dear friend,

    India can become a better country only if: (a) 2 party system comes in force (b) every Indian treats any fellow Indian of any caste or creed the same as his caste or creed (3) Corruption goes out of the country (4) People believe in hard work and not in only talking big and not doing much (5) People first must have self descipline and obey the laws of the country (6) Bueractrats to become country welfare/people welfare centric than self centric/political bosses centric etc/. etc. the list will go on.

    ks2071746:D


    very true. but we gotta admit that this is NEVER gonna happen and we will always remain talking about the 1300s and 1400s or stories before that. With so much of looters and political morons around, I BET THIS WILL NEVER HAPPEN. SUPER POWER is not only a distant dream, but it is a DAY DREAM. Peace!
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  • Originally Posted by ks2071746
    Dear friend,

    India can become a better country only if: (a) 2 party system comes in force (b) every Indian treats any fellow Indian of any caste or creed the same as his caste or creed (3) Corruption goes out of the country (4) People believe in hard work and not in only talking big and not doing much (5) People first must have self descipline and obey the laws of the country (6) Bueractrats to become country welfare/people welfare centric than self centric/political bosses centric etc/. etc. the list will go on.

    ks2071746:D

    i dont think the BC and SC ( i am not FC) want the caste system to end.bcoz reservation quota will end and with it a lot of benefits in edu and career.
    actually only in india people fight to get their community treated as MBC or SC.what an irony.and KS wants caste system to end. i also want it to end,but the bcs and scs dont want it to end or else why would they fight for inclusion in MBC and SC list
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  • Originally Posted by wiseman

    Flat prices don't remain fixed. Sometimes they decline too :D.

    cheers


    Mr. Wiseman

    Flat prices have started declining already.

    Those who want to sell their flats dont find buyers.

    Now, they are losing their patience and have started quoting lesser rates.

    Thanks

    chataara
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  • Originally Posted by wiseman
    Dude,

    Japan's property bubble is exactly the one faced by the US today. And this bubble was so huge that Japan is in recession for the last 19 years!!!
    And this was done by Japanese banks refusing to let bad assets crash and pumping them up so that, even after 19 years, no one knows what they are worth. RE prices today are as low as they were in the 1980s. The stock market index Nikkei at its peak was over 36000 in the late 80s. Today it is as low as 8000+, 19 years later!!!

    So, by comparing India and egging it on to reach those heights, do you want us too to get into this situation? Extremely BAD comparison!!!

    Besides, Japan was not developing in 1980s. If you get your history straight, Japan was considered a developed country even as early as 1905, when they comprehensively defeated the Russian Navy (considered the most powerful navy in the world then) in the Battle of Sushima Bay, thereby establishing themselves as a modern, developed country even then

    Always check your facts. And also read up a bit so it helps you get a better perspective and does not make you look silly! And worse, it misleads and misguides all the youngsters on this forum into making all kinds of wrong decisions, like the ones you are making.

    Take care

    cheers

    Japan's economy is an ideal example of comparison for a country like yours which is again producing nothng special or original but is peppered to go up. So if a fellow like you who wont mention his college can claim to own a Pattern Recog company that is what India is into. So dont worry, whether u like it or not the same upmove is happening now and then it will fall later. To me today it is up up and up, until fellows like u are sent packing with your bear thoughts to the drain. Then it will probably go into a long recession! BUT THAT IS PROBABLY IN 2015 or LATER, I dont care about it now!
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  • Originally Posted by gone_mad
    In your dreams. Even if Obama levies humongous taxes on outsourcing, many american companies will keep outsourcing because they cant pay peanuts in the US of A even for silly jobs as they do now in India.
    It is all set between US and India, maybe the outsourcing numbers may go down, but I'd say it is an absurd thinking that IT will be wiped off from the country. Get a life, consult the welder, get your top floor treated(oops welded) and think straight!

    Hi, Gone mad. These guys think as if IT is what is happening in Chennai in past 5 years. IT is a big game, it is not the System software that I developed in the 80s to 2000 beginning, it is not even the applications that Wiseman is calling as Pattern recognition (since he does not recognize what it is!...ROTFL), it is today anything from BPOs accounting to anything one might say. Now if IT goes then Gocca Mocca cant trouble us as he wont have internet.
    So Wisey, Gocca and the bunch have run out of ideas. They have learnt Goebble's fundas well and keep repeating the same nonsense a million times.
    INFACT I AM WAITING TO SEE THE FELLOW WHO WILL TELL RE WILL FALL 100%. I AM SURE WISEY IS ITCHING TO SAY THAT AS HE DOES NOT KNOW MATHEMATICS! LOL!
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  • Originally Posted by abk
    i dont think the BC and SC ( i am not FC) want the caste system to end.bcoz reservation quota will end and with it a lot of benefits in edu and career.
    actually only in india people fight to get their community treated as MBC or SC.what an irony.and KS wants caste system to end. i also want it to end,but the bcs and scs dont want it to end or else why would they fight for inclusion in MBC and SC list

    I am not sure if BCs or SCs want it. Their politicians want it!
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  • ALL of the above and much more
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  • There is no logic for such a price.May be in posh areas there is supply problem.But even in posh areas only a few localities are good,others are just ordinary i can accept the pricing in posh localities,but in suburbs the prices are ridiculous.since jun08 i m looking to buy a property but in reality the prices havent come down.
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  • Originally Posted by arun1288
    There is no logic for such a price.May be in posh areas there is supply problem.But even in posh areas only a few localities are good,others are just ordinary i can accept the pricing in posh localities,but in suburbs the prices are ridiculous.since jun08 i m looking to buy a property but in reality the prices havent come down.


    i was of the same opinion in jan 2008 and was expexting a correction
    but NO!.the prices have not come down in the suburbs. my family friend who has no issues sold his 2000 sq ft plot with old house in muthamizl nagar ,Pammal for 45.5 L cash down transaction over in 3 days.and now other people offering him 3 L more. pammal muthamizl nagar rate selling hot at 55L per gnd.and not many properties for sale in that locality,and the irony is it gets flooded in rains.
    I still say recession or not the established old localities of chennai and suburbs will not have a correction of more than 15-20%
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  • Originally Posted by chataara
    Mr. Wiseman

    Flat prices have started declining already.

    Those who want to sell their flats dont find buyers.

    Now, they are losing their patience and have started quoting lesser rates.

    Thanks

    chataara

    Flat prices can decline for sure. Infact buying a flat for anyother purpose but to live is in my opinion stupidity. The reason is a. Construction depreciates, Land appreciates b. Those who bought these flats were conned heavily by the builders.
    To take an example, a builder gave flats at 6000psft in 2007 say in place X. He bought the land at 5K rupees a square feet. So it is like 1.25C per ground. His construction expense was 1K psft and even if he took a profit of 500psft his net construction overhead is 1.5K psft. Now each of the 5K land psft could allow 1.5 times (FSI even for the most decent builder). So the net expense for the builder is 5/1.5+1.5K = 4.8K psft. So his margin of safety was 7K-4.8K=2.2K. What I call margin of safety can actually be called as Margin of CONNING. U foolishly bought flat at that price and then let him con your 2.2K psft. Now when demand has reduced and u want to sell your flat the best you might get is 4.8K. Even that will diminish since your construction is old and the 1.5K cost you put in there will reduce. If you rent, in Chennai you hardly get 10Kp.m. for a 50L flat a super lousy return on Investment.
    SO FOOLS BUY FLAT AS INVESTMENT. If you need the flat to live then you should have bought it, in which case the idea of reselling it makes no sense. FOR INVESTMENT BUY LAND and not Flats.
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  • Originally Posted by Natarajg007
    Flat prices can decline for sure. Infact buying a flat for anyother purpose but to live is in my opinion stupidity. The reason is a. Construction depreciates, Land appreciates b. Those who bought these flats were conned heavily by the builders.
    To take an example, a builder gave flats at 6000psft in 2007 say in place X. He bought the land at 5K rupees a square feet. So it is like 1.25C per ground. His construction expense was 1K psft and even if he took a profit of 500psft his net construction overhead is 1.5K psft. Now each of the 5K land psft could allow 1.5 times (FSI even for the most decent builder). So the net expense for the builder is 5/1.5+1.5K = 4.8K psft. So his margin of safety was 7K-4.8K=2.2K. What I call margin of safety can actually be called as Margin of CONNING. U foolishly bought flat at that price and then let him con your 2.2K psft. Now when demand has reduced and u want to sell your flat the best you might get is 4.8K. Even that will diminish since your construction is old and the 1.5K cost you put in there will reduce. If you rent, in Chennai you hardly get 10Kp.m. for a 50L flat a super lousy return on Investment.
    SO FOOLS BUY FLAT AS INVESTMENT. If you need the flat to live then you should have bought it, in which case the idea of reselling it makes no sense. FOR INVESTMENT BUY LAND and not Flats.

    In the article above I can say a typical example of place X is Saligramam. Builders asked me for my land at 1.25C to 1.5C but will sell flats at 6K. Even today I wont sell it at that price since if I became a builder and found one guy to book one flat I can build the entire 4 flats in a typical ground and then resell the rest at liesure and lo and behold my land price will work as follows.
    Cost of construction = 1K
    Cost of sale per sqft = 6K
    So cost of 1/1.5 (FSI) sqft of land = 6-1=4K
    So cost of 1sqft of land = 5x1.5= 7.5K
    Now if the FSI can be moved to 2 then the cost of 1sqft of land
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  • Sorry could not complete the last line in the prev article.
    With FSI of 2 cost of 1sqft of land = 5x2=10Kpsft.
    So either as land owner I deserve close to 10kpst, even if I give a 15% discount for 1 year time of construction it should be 8.5Kpsft or the price of flat should be 4.8kpsft instead of 6K psft.
    In other words if I were Wiseman and wanting to sell land in Mylapore I wont be crying like a baby. I will rather make flats myself and use that to generate huge rate for my land. Ofcourse you will have to wait and go through some hassles.
    Hope this example helps all on this board to understand what is the SUPER CUSHION that BUILDERS HAVE HAD and even now if they take out the cushion they will yet be VERY PROFITABLE. Also note that builders like land price to fall but in reality even at current (or for Wiseman's imaginary sake price in 2007 or whatever he calls as peak)l prices of land builders can reduce their prices easily by 20% and yet make fair profits. As I showed the flat of 6K psft actually costs only 4.8K psft to construct even after the builder makes a sweet profit of 500psft.
    I hope in future the IDIOTIC CRY BABIES ON THIS BOARD who just imagine that price of flat as DICTATED by some shit BUILDER dictates realestate price will shut up and go and LEARN MATHEMATICS.
    PLEASE LEARN CLASS 5 or 6 MATHEMATICS AND TRY TO USE UR BRAIN. WISEMAN PLEASE DO THAT AND YOU WILL BE ABLE REALISE YOUR MYLAPORE DREAM.
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  • Nice calculation,but in reality u cannot achieve 1.5FSI in small plot.In order to achieve 1.5FSI ur land should be square in shape like 60x60 or u shud have atleast 55sq.ft frontage and facing atleast 30sq.ft road width and ur plot coverage should not exceed 65%.If u have 1grnd plot with 40x60 size on less than 30ft road u can achieve only 1.25 r 1.35.so ideally u shud have approx 2 grnds with 60sq.ft frontage on a 30ft road to achieve 1.5FSI.
    cheers
    Arun
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  • Originally Posted by arun1288
    Nice calculation,but in reality u cannot achieve 1.5FSI in small plot.In order to achieve 1.5FSI ur land should be square in shape like 60x60 or u shud have atleast 55sq.ft frontage and facing atleast 30sq.ft road width and ur plot coverage should not exceed 65%.If u have 1grnd plot with 40x60 size on less than 30ft road u can achieve only 1.25 r 1.35.so ideally u shud have approx 2 grnds with 60sq.ft frontage on a 30ft road to achieve 1.5FSI.
    cheers
    Arun


    As Arun said Calculation nice. But we can not achieve it
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  • Nataraj007
    "
    Hope this example helps all on this board to understand what is the SUPER CUSHION that BUILDERS HAVE HAD and even now if they take out the cushion they will yet be VERY PROFITABLE. Also note that builders like land price to fall but in reality even at current (or for Wiseman's imaginary sake price in 2007 or whatever he calls as peak)l prices of land builders can reduce their prices easily by 20% and yet make fair profits. As I showed the flat of 6K psft actually costs only 4.8K psft to construct even after the builder makes a sweet profit of 500psft.
    I hope in future the IDIOTIC CRY BABIES ON THIS BOARD who just imagine that price of flat as DICTATED by some shit BUILDER dictates realestate price will shut up and go and "

    Your own admission builders can reduce price and still make profit. so there is no reason they should not opt to do that and people buying flats see reduction in prices. which is what most of them are redicting.

    I don't have as passionate views as yours, but its hard to believe that with all the things going on around the world TN realestate will be insulated

    I do agree in longterm these corrections might even out

    -SRI
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