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Are Real Estate Prices Going To Fall 40% by Mid 2007?

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Are Real Estate Prices Going To Fall 40% by Mid 2007?

Last updated: February 21 2009
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  • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

    Nabhishek, My earlier message should tell u why in reality given a long term perspective one should buy land or flats with lower FSIs. Also why large MSBs (multi storey buildings) should actually be cheap irrespective of their claims for swimming pools and lakes (Like brigade in bangalore!). Even with those costs they should be much cheaper than the normal simple apartments given that they are hardly giving u a long term asset namely land. The problem is not many understand it and I am happy u r attempting to get this picture. In Bangalore this is understood as simple flats in Malleswaram cost more psft than the Brigade fiasco. IN Chennai unfortunately it is the converse. Chennaites are just beginning to learn about the big cheaters also called as builders. So if they price low they are only cutting their profits. They have very little to lose. So in the Carborundum context, go and see the India Bulls stuff at 2700psft in Medavakkam. It is yet very costly by the value of land there. So to me I will expect land price to shoot up there!

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    • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

      Originally posted by Natarajg007 View Post
      Nabhishek, My earlier message should tell u why in reality given a long term perspective one should buy land or flats with lower FSIs. Also why large MSBs (multi storey buildings) should actually be cheap irrespective of their claims for swimming pools and lakes (Like brigade in bangalore!). Even with those costs they should be much cheaper than the normal simple apartments given that they are hardly giving u a long term asset namely land. The problem is not many understand it and I am happy u r attempting to get this picture. In Bangalore this is understood as simple flats in Malleswaram cost more psft than the Brigade fiasco. IN Chennai unfortunately it is the converse. Chennaites are just beginning to learn about the big cheaters also called as builders. So if they price low they are only cutting their profits. They have very little to lose. So in the Carborundum context, go and see the India Bulls stuff at 2700psft in Medavakkam. It is yet very costly by the value of land there. So to me I will expect land price to shoot up there!
      Thank you very much Natraj, I get your point.

      I used to calculate from bottom up and fail to understand why the market price is 4000 Rs/sqft is fixed for 1 ground plot when calculating from the intrinsic value 785 Rs/sqft

      My rate is (1.5 * 2400) * 785 = Rs 28,26,000 which is approximately 1200 Rs/sqft.

      and used to feel since the FSI is less so 4000 rs/sqft shouldnt be paid for 1 ground as ROI is very less.Think i got too granular.

      Now I see that once there is a sale of 1 Cr/ground in the locality, The market price applies to all plots in the layout as collectively the price per acre has increased.

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      • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

        I do not have any questions here, I have just expressed my opinion. Like most conservatives more than 75% of my networth is in land. However, by looking at the current situation my advice to anyone who wants to invest in Land/Flat for investment or othwerwise is to wait for 6-12 months. You will get your dream property at a cheaper rate.

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        • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

          Lands * good price

          Originally posted by ajithpkl View Post
          I do not have any questions here, I have just expressed my opinion. Like most conservatives more than 75% of my networth is in land. However, by looking at the current situation my advice to anyone who wants to invest in Land/Flat for investment or othwerwise is to wait for 6-12 months. You will get your dream property at a cheaper rate.
          Sometimes one can also get it in weeks but ensure that its below 50-60 percent of its peak value and ensure you dont pay and regret later.

          We have seen from a posting here that an land quoted by land-owner * 40 L has been jacked up to 52 lacs. Think of the case when the same property undergoes 2-3 transactions in a year.

          Its just the brokers have taken up the price to peak thanks to cheap loans by salaried IT and MNC employees. As the slowdown will have a impact both on salary and salaried employess , there are corrections now which is being witnessed in apartment and will be followed by Plots.

          Cheers.

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          • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

            40% in Bangalore too

            Just for a info:
            Last JAN 2008 the SQFT in KR Puram Before Bridge land price was 2000/sqft. And today it is 1200/-sqft/ still no buyer....
            Either land or AIR and FOOD. Choice is yours.

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            • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

              For Wiseman

              Wiseman,
              What is your thought about real estate trend considering the reduction of 75 basis points in home loan interest rate?
              Waiting for your insightful thoughts.
              Happy to see Vadivelu(Nats) still wiggling around and begging others to believe him

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              • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

                Price - Not Interest Rate

                The Builders who have robbed gullible peoples money do not seem to understand that the RE slowdown is because of the exorbitant price .

                Read from other thread that DLF has cancelled its recent launch in Bangalore (acco to TOI Chennai Edition) not sure whether DLF has formally announced it.

                The interest rates will have a say on the tenure of torture one will have in the name of EMI.

                Cheers

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                • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

                  Buy Now - Indicators

                  Hi All,

                  Read an interesting article in outlook money, thought should share it.

                  They advise, one should buy when

                  Rental Yield >= 5%-6%

                  Rental Yield = ((Monthly Rent *12) / Market Price of House ) * 100

                  (or) Current Price = 2005 Price + 15%

                  (or) Current Price = 65%-75% of Peak Price.

                  They suggest perhaps, by end of 2009 the prices should bottom out.

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                  • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

                    I do not completely disagree that real estate prices will fall for next 1 year or so.

                    But afterwards it will again pick up. Yes for next one year it is problamatic year for real estate business

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                    • Re : Are Real Estate Prices Going To Fall 40% by Mid 2007?

                      Identity theft?

                      Originally posted by Nataraajg007 View Post
                      I do not completely disagree that real estate prices will fall for next 1 year or so.

                      But afterwards it will again pick up. Yes for next one year it is problamatic year for real estate business
                      Nataraj, are you using both the id's Natarajg007 and Nataraajg007?

                      Hope someone else is not trying to pose as you.Please clarify and confirm.

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