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Are houses in Chennai really afforable??

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Are houses in Chennai really afforable??

Last updated: April 28 2012
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  • #11

    #11

    Re : Are houses in Chennai really afforable??

    Brother, I understand your anguish. But let me correct you by stating that not all Government school teachers earn 50,000 K. The average salaries as per the Sixth Pay commission still hover around the 25000 mark for senior teachers. Perhaps you were referring to the teachers, who have exemplary qualifications and umpteen number of years of service


    As for the rule of a person not owning more than 2 properties, I perfectly agree with you. The government must make a law to ensure that the poor and lower middle class get a chance to buy a home. But at the moment, it is like expecting rain in a desert

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    • #12

      #12

      Re : Are houses in Chennai really afforable??

      ashwin_kini:
      You are spot on when you make your arguments. However you cannot fight the RBI which is flooding the country with cheap rupees and the US Fed which is flooding the US with cheap dollars, some of which makes it to India. The price of gold has gone up 8 times over the past 10 years. Look at Silver, oil, copper.

      The value of rupee/dollar has been eroded and hard assets have appreciated. Chennai is no mean city in India. The US moved stuff to bangalore when Bangalore land prices were 100 rs per sq/ft, now those prices are 2000 per sq/ft. Same thing has happened to chennai.

      The flat world has made it easy for everyone to exploit. The sixth pay commission is a fact and I know many people who retired years ago making more now then when there were working. Imagine the situation when the pension 20 years later is 30,000.

      In fact you should be thankful that you are in Chennai where prices in absolute terms are still affordable to someone who works in Corporate. If you come to Mumbai people have been driven to outskirts where apts cost 5000 per sq/ft without any businesses.
      In fact GST and OMR are the best thing to happen to Chennai. As a disclaimer I have some plots in GST which have seen nice appreciation over the past 5 years. I expect to hold them for some more time before building a house or selling it. In fact I posted a link of Artha property who has launched tiny houses in villas for 35L on GST. Check out that property on the weekend and post your response. I would like to hear you opinion on that
      Last edited March 27 2012, 11:50 PM.

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      • #13

        #13

        Re : Are houses in Chennai really afforable??

        Well said buddy, thanks for the info regarding the flats in GST road, will check and let you know.
        Unfortunately, I am just eligible for a home loan of 30 lakhs and not more....

        I have to see what is in store for Chennai realty. I was really looking at a decent correction during 2008-09, alas it never happened. I will wait for at least 24 months before taking a decision. Afterall, irrespective of the land rates, I cannot buy any of them even now.

        I am prepared to leave the realty bus because this one seems to be going nowhere.

        I pray that my fellow forum mates get a better deal soon and make their dream home a reality.

        Cheers

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        • #14

          #14

          Re : Are houses in Chennai really afforable??

          hi

          u can get property for 30 lac in medavakkam or pallikaranai , y r u going to GST

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          • #15

            #15

            Re : Are houses in Chennai really afforable??

            aswin_kini,

            Just read this forum and I totally understand your point of view as mine is almost the same.. Being NRI for last 3.5 yrs I find it difficult to afford a decent home in a decent area, so I know the pain. I sometimes wonder the blind confidence of the chennai ppl taking loans of 30-40 lakhs without even having any guarantee of the job that they have now.. well I know what they all think.. its not just me going down,its everyone else . Can you see what I am saying? that drives the market here.. Literally seeing ppl got fired abroad I was so scared to go for any major loan till date.. hey guess what if I havent gone abroad I wudnt care abt those anyway..

            What makes my feeling worse is the ppl who arent qualified or not deserved taking advantage of all the literates and having a great asset... at end of the day we are all the loosers.. if we loose job or take 10 yrs to complete the loan without any major savings.. meanwhile those lucky ones will be flying in bmw or audi.. have u seen so many audis or bmw lately? wow.. I havent seen this many value branded cars before I was going abroad.

            So what do you think can happen if slowly ppl loose jobs? no has any idea. can you tell me what anyone will do? sell their parents house to keep this? but by the time market is down u cant do that too.. so we sell the gold? wud that be enough? give me some ideas..

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            • #16

              #16

              Re : Are houses in Chennai really afforable??

              The fact is these high price units are selling, and in fact many are selling like hot cakes (Just read the Appaswamy Greenville thread)! So the question is not 'are houses in Chennai really affordable??' It's 'How do people afford to buy these houses??" rather.

              My 2cents: the trigger for rise was set initially by NRIs and IT companies(I know what you'd say, but no denying that they triggered the escalation, with the perception that IT guys have the moolah!). This is unlike Mumbai where the decade old escalation was due completely to indigenous reasons. Once prices started going north the real chennai'ites had only two options - i) some how or the other join the run and buy a property somewhere at what ever prices, or ii) keep debating how can anyone afford these houses!

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              • #17

                #17

                Re : Are houses in Chennai really afforable??

                True, but what is the use?

                I have been searching for a property in chennai for almost an year now... I have also been thinking the same all this long, even now... But, what is the use?

                1 year back, properties in Siruseri were being sold at ~2000/sq.ft. Today, even that has increased to ~3000 to 3500. The rate increases in other areas is understandable. We have only been thinking its high and not getting anywhere...

                I have decided to just move ahead and find a decent property and invest in whatever is affordable at this time - it is definitely going to go up in the next 2/3 years.

                But, the bigger problem now is in getting to know of the good / decent projects - good ones dont get advertised much...

                Instead of thinking if its affordable or not, just move on and buy whatever is possible.

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                • #18

                  #18

                  Re : Are houses in Chennai really afforable??

                  Prices have kept up with Inflation. We went through a period of Hyper-Inflation during the early 2000's.

                  1995 to now, prices should have gone up 5 - 7 times (10-12% increase).
                  There is no use comparing old prices to now. Rs2 coffee now costs Rs15 or more. Maruti car was luxury, now Beemers are.

                  Prices eased out a little bit in late 2009. But thats it. With the recovery, the prices seems to have gone up. Look at NHB residex, price have tripled from 2007.

                  The fact is prices can go much higher. I will list out why.


                  1. Madras is smallest city compared to other metros. 174sqKm has 46 lakh people. One of the highest densities. Sea is one one side and factories & lack of infrastructure in north and south-west makes it hard to expand. We do not have satellite cities like Noida & Gurgaon (OMR is more like a suburb). More people are going to migrate, farmer's son in a village with college degree will not go back to farming but come to city and work here and buy a home here.

                  2. Low FSI. Along with Bombay, we have one of the lowest FSI in the country.

                  3. Low returns in Stock Market. Demand for hard assets.

                  4. Const material prices could shoot up once the global economy turns. Labor is already getting expensive day by day.

                  5. Inflation is a big factor.


                  I still find older flats to be a good value. New homes are priced around 70%-90% more.

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                  • #19

                    #19

                    Re : Are houses in Chennai really afforable??

                    Originally posted by shk007 View Post
                    u can get property for 30 lac in medavakkam or pallikaranai , y r u going to GST
                    Hi - can u list out a few options? I have been looking in the area but no luck. I managed to find out some studio apartments in indiabulls greens....approx 500 sq ft Rs.4000/- per sq f

                    Purvia Windermere all 2 bhk are sold out.3bhk's are way too expensive.....

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                    • #20

                      #20

                      Re : Are houses in Chennai really afforable??

                      Prices are bit above Inflation

                      K11 > you are right to an extent, but RE prices are bit above inflation especially in Chennai. So there is a minute correction expected. I have doubt even in this case due to the Govt land guidance rates going up.

                      RE rates may not go down anywhere in Chennai or surroundings unless some unexpected political or economic events within India or World happens.

                      Otherwise there might be slight ups or downs in land rates in specific localities on the needs of buyer or seller. Land owners will hold on to the price.

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