Hi

In chennai the prices of plots or even a flat for that matter is going beyond the reach of a common man. Is there any chance for the prices to correct in near future?

With a salary of 15k, it is beyond the capacity of common man to buy a house or flat
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  • Originally Posted by karthikdoss
    Dear Big Bear,
    Your figures are incorrect.Mine is 1810 sq ft apartment , if you calculate the rent per sq ft is approx Rs 14.I am not here to promote Sylvan county.Just passing the information as I am the owner and I am earning the rental as stated.

    So if you are getting rs 14 and another guy had quoted for rs 6 (By the way I saw 2 ads in 99acres one was for rs 5 and another for rs 6)Does that mean rentals have dropped more than 50% in Sylvan county?
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  • I appreciate your thoughts.
    I WAS QUOTED WITH 13 LAKHS FOR A FLAT BEFORE 5 YRS .
    THE SAME IS NOW QUOTED FOR 1.3 CRORES. THANKS TO THE PROFESSIONALS, WHO BLINDLY BUY HOUSES RELYING ON EMIS
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  • Now an article in Hindu!!

    Right time for fresh buys?

    SRIKALA BHASHYAM

    Signs of recovery in the property sector are becoming visible, but investors can benefit more by focusing on the mid-price segment


    International real estate consulting firm Cushman & Wakefield, in its latest report, has some interesting news for the property sector: the demand for residential units is expected to be 7.5 million and a large chunk of it — as much as 85 per cent — is expected to be in the mid-price segment.
    The report couldn’t have come at a better time for investors who are beginning to wonder whether this is the right time to make fresh buys. As you are aware, after a lull for nearly a year, the sector is beginning to look up though volumes are nowhere comparable to previous levels.
    Even in terms of buying interest, there has been a shift in focus. The new launches have been focussing more on the mid- and upper middle class segment instead of villa projects.
    Though land prices haven’t really crashed in the last 12-18 months, builders are squeezing in more (read flats) in the given area and most new projects are coming up on the outskirts of major cities. At the other extreme, builders are focusing on the sub Rs. 10-15 lakh category. These are large housing projects with the promise of common amenities but the catch is that the buyer/property owner would be sharing them with a large number of households.
    While the advantage is that it lowers the cost of acquisition, the disadvantage is that it may deny the buyer the comfort factor.
    Buying strategy
    In the current environment, the buying strategy needs to be different for self-occupants and investors. While the current environment looks good for those who are acquiring their first property, investors need to be cautious with their location choice and quality of property.
    These two factors assume significance as the buyer is dependent on rental income or property appreciation for his investment.
    It is common knowledge that returns from property depend on a number of factors. For instance, no two property with the same price tag offer similar returns.
    The real test
    The recent downtrend has brought back fundamentals into focus and the reputation and past record of a builder is an important component of real estate investment. While boom conditions enable every builder to make hay, the downtrend separates the boys from men.
    As you would have noticed in recent times, only builders who stuck to financial discipline have been able to come out winners in the current slowdown.
    Hence, while choosing a property, the builder’s track record should be the determining factor rather than mere location or amenities. It holds good not just for self-occupation but also for investors as an unfinished property can leave you with little cash flow.
    Prior to the real estate meltdown, the mid-price segment was an ignored lot as few builders were willing to focus on property in the price range of Rs. 20-40 lakh. As a result, a good number of buyers were kept away from property investment. And in the higher end of the category, there were few buyers, which resulted in excess supply in a number of cities.
    Right segment
    If you are looking at property for investment, you need to invest in a segment which has buyers over a longer period of time. In cities, this category could fall in the price range of Rs. 25-40 lakh as a prospective buyer can acquire a property with a home loan of Rs. 15-30 lakh.
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  • Property prices in Chennai will not fall back to low levels seen 5 years back. Waiting and wasting time is useless.

    China and India are leading the world growth now, with car sales in both countries reaching all time high in 2009 when the rest of world is still in recession.
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  • Originally Posted by sivaram1979
    Hi

    In chennai the prices of plots or even a flat for that matter is going beyond the reach of a common man. Is there any chance for the prices to correct in near future?

    With a salary of 15k, it is beyond the capacity of common man to buy a house or flat

    Yeah you are right...I don't think that prices will go down in future..
    So there are no hopes for common man to buy house......
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  • We can't stop them. But we can atleast warn you.

    We can't stop them. But we can atleast warn you.

    Central banks the world over, including the one in India, are in a copious situation. They have too much money floating around them without visible means of their utilization. Pulling back the money supplies would mean calling short the stimuli that the economies are banking on for recovery. Hence worldwide, asset prices are rising much faster than nominal GDP growth rates. That is, monetary growth is being used to support leverage, mostly in the financial sector. As a result, instead of the money supply flowing into productive uses, the same have flowed in asset markets creating a bubble-like situation. Noted economist Andy Xie says, "Money supply growth has sparked an asset market boom that supports the economy, not the other way around. Don't get burned." We concur with his warning.

    Although the RBI has been a relatively more responsible central banker, the situation in India is not very different from that in the developed nations. Globally unemployment rates are at record highs while global trade is still at one-fifth its peak level. The small- and medium-sized companies that are the most labour intensive are struggling. While experts have argued that the answer is not to limit the money supply but to reform the financial system, it must be remembered that this is not a zero sum game. Both, efficient use of liquidity and better regulated financial markets are necessary to rein in the main factors that lead to the recent crisis.
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  • Why property prices did not fall enough in 2008

    ]http://www.moneycontrol.com/news/business/why-property-prices-did-not-fall-enough2008_421668.html
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  • Yes. You must buy immediately!

    Originally Posted by HomeLoan
    Property prices in Chennai will not fall back to low levels seen 5 years back. Waiting and wasting time is useless.

    China and India are leading the world growth now, with car sales in both countries reaching all time high in 2009 when the rest of world is still in recession.



    All people buying cars are buying with full cash down! Similarly, despite there being a big decline in home loans, buyers are making up by buying homes with cash down.

    This cash is now available because of the IT sector fully turned around and booming now and dishing out special increments (20% upwards), promotions and bonuses (bonuse equal to full payment for homes).

    Please do not consider the small things like Wipro HR head on TV talking about "selectively" (he used the word around 4-5 times within 2-3 sentences) giving hikes, while the TV anchor simultaneously talking about IT companies now giving hikes to "most" employees (I noted this word being used around 3 times within a couple of sentences). It was almost like she was being prompted from behind - pump it up, pump it up ... comical!

    Oh, and btw, the hikes being talked about was only applicable for the top 4 IT companies (that number quoted accurately from TV :D).

    Anyway, looking at how home prices have not come down for last few months (if it doesn't come down instantly, then it never will) and how all the hot money from abroad (around 57000 Crores) has come in within the past few months to pump up the markets and give a sense of boom times again, and how Maruti, etc are booming in sales and profits (never mind that a big part of the increase in profits of Maruti and Tata Motors are due to Excise Duty cutback not passed onto customers) and notwithstanding the recent weakness in markets and notwithstanding the fact that the real markets are showing serious declines in volumes and food and commodities are sharply rising and inflation is going up 0.3% weekly and is going to hit 10% by march and that everyone is now having at least 3-4 job offers in hand ...

    Don't worry about these trivial things ... Just go ahead and buy those homes that builders are jacking up prices already of ... just waiting for guys like you to jump in!

    Don't wait. Call you friendly neiborhood builder now!!!:D

    cheers
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  • Demand for office space rises by 19 pc in Q2: C&W

    Vacant office spaces have seen demand for them rise by 19 per cent during the last quarter amid signs of economic recovery.

    According to a latest report by global realty consultant Cushman & Wakefield (C&W), the average demand in India's eight major cities rose by 19 per cent at 6.7 million sq ft during July-September period over the previous quarter.

    "Bangalore witnessed the highest demand in the quarter with 2.3 million sq ft followed by Mumbai at 1.2 million sq ft and Chennai at 0.98 million sq ft," C&W said.


    "The gap between supply and demand increased to over 130 per cent (from 50 per cent) in the last quarter, increasing the average vacancy across major cities in India to 17 per cent from the previous quarter's 13-18," the report said.
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  • Originally Posted by wiseman
    Don't wait. Call you friendly neiborhood builder now!!!:D


    haha, that was truely epic!! cant stop laughing :)


    (wonder what spiderman would say to that)
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  • Once (2 years back) i heard 880 sqft house was 1.25 cr in annanagar

    Once (2 years back) 880 sqft house was 1.25 cr in annanagar .

    How a comman man buy this house ?. the person should have 25 lacs 20% as per bank norms and he should take 95 lacs loan for purchasing that property. he has to pay 1 lac per month as emi for at least 15 years. So, he should atleast have a monthly income of 1.75 lacs per month to purchase 880 sqft house ( because home expense and tax etc., ).

    I doubt the person who earns approx 2 lacs per annum buy 880 sqft house with two bed rooms ?.

    How many earns this salary in chennai ?. So, The cost of house and price rise should be reasonable.
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  • If someone with 1.75L starts buying a 1.25cr property that is called harakari. Years ago, I would not have tried buying a 50L property with that salary! Well the reality is that classification of society has been and will be. So the 880sft in Annanagar is for a class of society and not for everyone.
    Finally think of it. I dont find one reason why one pays 20K psft for flat in Boat club. I feel it is on the adayar river which is almost like a cooum at that point. And it is on the point of crowd near Park Sheraton. However people pay a fortune there. Why?
    Simple, just snob value. My neighbour is big shit so am I if I live there! So the logic is not buying capacity of the SILLY IT folk. It is the special folks to buy special flats. So you can as well go to a small town and buy a big house and live there. Why wont you? If you answer the question you will know why they buy at Annanagar for 1.25cr or whatever you say.
    Remember RE is not Katharikai vyaparam as Wiseman seems to have made many uncanny readers here feel. It is like buying a S class Benz when I will feel happy with a 118NE. Cheers.
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  • Originally Posted by chennai_2004
    Once (2 years back) 880 sqft house was 1.25 cr in annanagar .

    How a comman man buy this house ?. the person should have 25 lacs 20% as per bank norms and he should take 95 lacs loan for purchasing that property. he has to pay 1 lac per month as emi for at least 15 years. So, he should atleast have a monthly income of 1.75 lacs per month to purchase 880 sqft house ( because home expense and tax etc., ).

    I doubt the person who earns approx 2 lacs per annum buy 880 sqft house with two bed rooms ?.

    How many earns this salary in chennai ?. So, The cost of house and price rise should be reasonable.


    We talked about these things so many times in this forum for the past two years. People are still buying and builders are still increasing their price every month. I realized it after 2-3 years.

    Nothing is affecting Chennai RE market. Thats the truth. No recession, inflation. There is no point in comparing Chennai RE with ROW market.

    I was expecting Chennai RE to crash just like RE market in western countries. It never happened and i don't think it will ever happen in India.
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  • Originally Posted by strongsville
    We talked about these things so many times in this forum for the past two years. People are still buying and builders are still increasing their price every month.

    Nothing is affecting Chennai RE market. Thats the truth. No recession, inflation. There is no point in comparing Chennai RE with ROW market.

    I was expecting Chennai RE to crash just like RE market in western countries. It never happened and i don't think it will ever happen in India.

    Oops Strong has become a bull! This is becoming dangerous. Second bullish post from strong! Wise are you listening? Strong was one of your violent weapons against me and he seems to have deserted you?
    PS. But Wise is a honourable man! ROTFL
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  • Et Tu Strong?

    Originally Posted by strongsville
    We talked about these things so many times in this forum for the past two years. People are still buying and builders are still increasing their price every month. I realized it after 2-3 years.

    Nothing is affecting Chennai RE market. Thats the truth. No recession, inflation. There is no point in comparing Chennai RE with ROW market.

    I was expecting Chennai RE to crash just like RE market in western countries. It never happened and i don't think it will ever happen in India.



    When tested by time, even the Strong become weak and impatient!:D Just kidding, strong!

    cheers
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