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What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

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What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

Last updated: January 11 2009
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  • #11

    #11

    Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

    No one can drive sense into this idiots brains! Land appreciates, Plant machinery and building depreciate. When the buyer of Carborundum land builds a flat he will be throwing the old building away, and there is a resale value for old debris. Only the mad sucker Wiseman will buy that for Rs 2000 per sqft! LOL!

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    • #12

      #12

      Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

      So you admit you dont have first class info. Then why the heck are you writing here...or is it you want to say what the heck, I (Wiseman) will write here with ignorance! U really are the HEIGHT OF IGNORANCE.

      Comment

      • #13

        #13

        Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

        Since when do plant and machinery depreciate to negative amounts?

        Originally posted by Natarajg007 View Post
        No one can drive sense into this idiots brains! Land appreciates, Plant machinery and building depreciate. When the buyer of Carborundum land builds a flat he will be throwing the old building away, and there is a resale value for old debris. Only the mad sucker Wiseman will buy that for Rs 2000 per sqft! LOL!

        You idiot, Nats! Where exactly have you seen Plant & Machinery depreciate to a negative amount. By your calculation if the profit made on sale is 50 crores and approx price 20 years ago should at most be Rs 10 per SFt (thats the figure you gave on your 11k land in 1989, I'm assuming its for 1200 SFt), which gives total price of sale at Rs 50.3 crores.

        So, to achieve the sale price of 58 crores, land fetched 50.3 crores and Carborundum should have given away another 7.7 crores to the buyer to take the machinery away? Grow up and watch how you open that mouth of yours lest the whole world laugh at you, ROTFL!!!

        If you had some patience and read the post thoroughly, you would have realised that the P&M would be worth - written down - at least a few crores, thus reducing land price at which it was sold, by that much.

        You should check with good CAs about that! But which CA would put up with you?

        Besides, exactly what is the authentic source (published by Carborundum itself or re-published by a competent authority?) that you are quoting to validate the 58 crores? The Hindu reporter? Seriously?

        At least I was honest in trotting out the exact amount published by Carborundum and making an educated guess about the written-down value of P&M based on the replacement value of an equivalent plant put up by Carborundum before selling this one.

        I did that much research which most people would not have done even. You did nothing. Except blabber whatever nonsense came to your frothing mouth as soon as you saw my post.

        Learn to read before frothing at the mouth like a madman

        cheers

        PS - By the way, I use exactly the same language you do. Only difference is, I use it on you after you have used it so that you get exactly the same treatment as you meted out.

        Eye for an Eye?

        Comment

        • #14

          #14

          Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

          Buddy, think carefully. If the price was not 58C and was 53C, does it reduce the price of land by any big way. So if I said one ground is worth 1.1cr, it now becomes 1cr. My original post highlighted the fact that price of land is not falling chennai as IMAGINED by you. Since you agree to that, I have no qualms.
          So stop writing your bear pogroms here.

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          • #15

            #15

            Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

            Hi Nataraj,

            This forum would really appreciate if you can keep your posts toned down a bit like the above post. I understand that you are bullish and wiseman is a bear. This forum is for *healthy* participation from both sides.

            Respect for each other should not be compromised at any cost. Please do not launch verbal abuse.

            Comment

            • #16

              #16

              Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

              Now that we are all polite, I will be too!

              Originally posted by Natarajg007 View Post
              Buddy, think carefully. If the price was not 58C and was 53C, does it reduce the price of land by any big way. So if I said one ground is worth 1.1cr, it now becomes 1cr. My original post highlighted the fact that price of land is not falling chennai as IMAGINED by you. Since you agree to that, I have no qualms.
              So stop writing your bear pogroms here.

              Nats,

              Please understand carefully the things I say:

              1. I said that RE is in medium term downward move (I did not say prices will fall altogether in one single day!)

              2. I said that in the last 4-5 years prices have become completely unaffordable (I did not say land is not a good investment! In fact, I clearly said, this is the order of attractiveness - Stocks, Land/Property, Gold, then other instruments - over the long term and I have long-term analysis to prove it)

              3. A decline of 12% to 17% (depending in which way you take the figures) is still a BIG decline! This is because, unlike any other investment vehicle, RE is bought with a 5:1 upto a 10:1 leverage. This means, if there is a 1% up move you get a 10% ROI. If there is a 10% downmove, you get wiped out since your equity and the decline are equal. Can you imagine? A 10% decline can wipe out new buyers. A 20% down move can wipe out most buyers who have bought in last 2-3 years.

              This decline in Carborundum we are talking about is in that range. So, most buyers will be in technical default with this kind of decline. Lets not pussyfoot around on that count!!!

              It is definitely a dangerous situation for them. They put in all their life savings. Price declines by 20% (we are nearly there). Buyer loses job. Goes into default for 3 months. Bank reposseses. With zero equity, buyer loses life savings. According to Corporation Bank in Bangalore, around 10% loan takers are in default in Bangalore. Also Deccan Herald in Bangalore reports market is telling them that in some cases earlier quotes for Rs 85 lakhs is now being quoted for Rs 50 - 55 Lakhs (for the record these are all uncorroborated reports in newspapers, just like the Hindu report). This is a 35% to 40% drop.

              So, as per your own statement, since Chennai lags behind Bangalore, Chennai should be in for this treatment soon???

              4. I will continue to be a bear and you will continue to be a bull. I do not need your permission to be a bear on this forum. I have not asked you not to be a bull! So, why are you asking me not to be a bear? Unless you have an ulterior motive to supress bearish talk in this forum !!!

              5. Going by the Price to Salary (affordability index) either salaries have to catch up with price by going up 5 times from today's level, or prices have to come down by around 40% average and in some extreme cases all the way to 80% down.

              I stand by this from the beginning unwaveringly. And I also have the timeframe of 2010 - 2012 for this drop to happen (I may be surprised by this happening earlier). So, this is a long-drawn story.

              I still don't understand one thing. Normally a bullish person will exort others to buy telling them that he too is buying and what a profit he is making.

              Isn't it strange that you, a seemingly very bullish person, is asking everyone to buy, but in the same breath is selling your property to them; so you are a seller in this market. This is the only time I have seen a bullish seller in the market!!!

              Is there a rational explanation to this?

              thanks for being such a sport and being nice to me for once!

              cheers
              Last edited December 21 2008, 08:44 PM.

              Comment

              • #17

                #17

                Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

                Originally posted by wiseman View Post
                Nats,

                Please understand carefully the things I say:

                1. I said that RE is in medium term downward move (I did not say prices will fall altogether in one single day!)

                2. I said that in the last 4-5 years prices have become completely unaffordable (I did not say land is not a good investment! In fact, I clearly said, this is the order of attractiveness - Stocks, Land/Property, Gold, then other instruments - over the long term and I have long-term analysis to prove it)

                3. A decline of 12% to 17% (depending in which way you take the figures) is still a BIG decline! This is because, unlike any other investment vehicle, RE is bought with a 5:1 upto a 10:1 leverage. This means, if there is a 1% up move you get a 10% ROI. If there is a 10% downmove, you get wiped out since your equity and the decline are equal. Can you imagine? A 10% decline can wipe out new buyers. A 20% down move can wipe out most buyers who have bought in last 2-3 years.

                This decline in Carborundum we are talking about is in that range. So, most buyers will be in technical default with this kind of decline. Lets not pussyfoot around on that count!!!

                It is definitely a dangerous situation for them. They put in all their life savings. Price declines by 20% (we are nearly there). Buyer loses job. Goes into default for 3 months. Bank reposseses. With zero equity, buyer loses life savings. According to Corporation Bank in Bangalore, around 10% loan takers are in default in Bangalore. Also Deccan Herald in Bangalore reports market is telling them that in some cases earlier quotes for Rs 85 lakhs is now being quoted for Rs 50 - 55 Lakhs (for the record these are all uncorroborated reports in newspapers, just like the Hindu report). This is a 35% to 40% drop.

                So, as per your own statement, since Chennai lags behind Bangalore, Chennai should be in for this treatment soon???

                4. I will continue to be a bear and you will continue to be a bull. I do not need your permission to be a bear on this forum. I have not asked you not to be a bull! So, why are you asking me not to be a bear? Unless you have an ulterior motive to supress bearish talk in this forum !!!

                5. Going by the Price to Salary (affordability index) either salaries have to catch up with price by going up 5 times from today's level, or prices have to come down by around 40% average and in some extreme cases all the way to 80% down.

                I stand by this from the beginning unwaveringly. And I also have the timeframe of 2010 - 2012 for this drop to happen (I may be surprised by this happening earlier). So, this is a long-drawn story.

                I still don't understand one thing. Normally a bullish person will exort others to buy telling them that he too is buying and what a profit he is making.

                Isn't it strange that you, a seemingly very bullish person, is asking everyone to buy, but in the same breath is selling your property to them; so you are a seller in this market. This is the only time I have seen a bullish seller in the market!!!

                Is there a rational explanation to this?

                thanks for being such a sport and being nice to me for once!

                cheers
                Wiseman, For once you spoke sort of logically. I appreciate it. First regarding whether I am a seller. I am an investor of yore. As I mentioned earlier, at best I am trying to transfer property from Chennai to Bangalore, not exiting the market or entering it. Since you have been sane and toned to low arrogance level, for once, let me answer you in a simple way.
                1. Everybody knows that RE prices wont fall in a day.
                2. Unaffordable is again a relative statement. To whom is the question. In 2005 when it went up many thought it was the top, but in 2008 they have been made to feel bad, especially those who sold out in 2005. Markets are not based on Fundamentals as most MBAs are ingrained to think. Technicals manage the market, fundamentals let you take a good view but not time the market any bit. So I wont agree to unaffordable. Now you have a tendency to argue about 3Cr or 2Cr property. There are many who are buying Porche, Audi and Bentleys in India leave alone that Rolce Royce is round the corner. So if you think that the Mami in Mylapore will continue to decide the price of land there, it is unlikely. She might one day sell out and move to Pallikaranai and the Rolcey will step in.
                3. This wiped out funda of yours is where I terribly disagree with you. On one side you are talking about fundamentals (as in 2 above) but now you are talking like a stock market trader. If I bought RE for 1cr and pay an EMI of 1L or whatever, I am not really speculating. U r talking about the loanwn money ratio, but that is not speculation. I own the RE that is why I buy it. U might compare with I own RIL or MS but they are different. In RE I enjoy the flat, land whatever. There is a physical benefit in RE not a paper (as in those days) or demat feeling. Many buy RE to live, not to speculate. Why am I kicking up NRIs? Because to them Indian RE is a market to trade. I dont think they control much of Chennai RE any bit. The Chennaite buys a flat to live. Now dont confuse this with job losses. Infact job loss is one thing that Indians have no idea about and they are learning it just now. So that has nothing to do with leveraging. One thing is for sure. In 2002, even if I took a loan of 2 years salary I would have bought the best house (not flat) in Mylapore or T.Nagar. I did not believe in loans. I dont ask others to take loans either, but well those who take loans play by their rules. SO are u telling dont take loans, OR are u telling that they are wrong to take loans now. THe latter is your own ad hoc conclusion based on RE will fall. So dont use the wrong word LEVERAGING. That is absolutely incorrect statement.
                All I wanted to highlight in Carborondum case is that RE prices in a place as off track as Pallikaranai is around 1C a ground and so RE is really not fallen one bit in Chennai. To me if a builder quoted 3200psft in Oct for a new construction and then changed it to 2900psft it means that the particular builder is interested in losing some profit (read...he is in NO LOSS whatsoever as I have explained a million times on this board!) as he wants to rollover his money. This is due to tighter financial markets which I dont disagree. What I disagree is your bear call that prices are falling and will fall. Will fall can change any minute that liquidity improves even a bit as the buider will suddenly jack it to 3500psft. So u may actually be preveting a guy from entering the market when he could rather than when he cant, and I am talking about a genuine Chennaite buyer, not some silly NRI Speculator who can go to hell!
                4. Frankly I am not asking you to stop writing. I am trying to hit on your head that your bear views are wrong. On the other hand it looks like you writing bear and I writing bull keeps this forum doing well and I aint sure I want to keep writing here for long as it serves no purpose to me. Infact that is why I question you and whether you are paid to write here. Incidentally some fellow did throw a private message to me some 3 months back on this forum asking me if I wanted to be a paid writer. So I think such stuff does exist. I am so far not paid to write here!!!
                5. I dont agree one bit with your affordability index. U must be using an American index. In India as I have written before, people buy realestate as an investment. So they pawn jewellery, put their dad's retirement savings, borrow from pawn brokers to anyone and buy! THis is not today, it existed from 60s and 70s.
                Finally your being bearish is not of much concern to me. Ur being bearish without logic hurts and that is what I question. I appreciate your message above for leading into a healthy argument, however I dont think your logical reasoning is up to the mark. I am not questioning your logical abilities, rather I feel you are either too biased or you are having to write that way for other pecuniary reasons. I for one have no gains by the rise or fall as I dont use my RE to gain or lose from. As I have mentioned the last property I bought is where I reside and unusually it is an apartment. This was in 1996. Rest are all lands and they are all pre 1996. So any change in price either way will mean very little to me except book keeping. Remember, if I sell a property for 3Cr, the worst problem in Chennai is that I will get 2Cr is black and I cant even enjoy it. And the typical Chennai registrar wont let even the most honest buyer to register at 3Cr since the neighbours in that locality will kick his arse to be precise. If you dont know this then check it out.
                Finally Wiseman, atleast tell us where u reside. If you reside in US and are speculating in Chennai then let us know it. Dont try to hide this fact as u did with the postgraduate degree college info. It does not talk highly of you, since u r claiming to know all but dont even want to tell us where u live and where u studied. And u mentioned somewhere that u want to meet me the next time u r in Chennai. I live in Bangalore and I will have to come and meet u in Chennai if I so choose to! GOTCHA?

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                • #18

                  #18

                  Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

                  good change

                  Goooood.

                  Lots of change in both these mens writings

                  Keep it up friends.

                  Thanks

                  Chataara

                  Comment

                  • #19

                    #19

                    Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

                    Hope u also change and give ur comments to people impartially! GO and write to What the heck. Dont expect me to write to him with P and S! LOL!

                    Comment

                    • #20

                      #20

                      Re : What are the Land Prices in Sholinganallur & Pallikaranai, Chennai?

                      Originally posted by Natarajg007 View Post
                      Hope u also change and give ur comments to people impartially! GO and write to What the heck. Dont expect me to write to him with P and S! LOL!
                      I am always impartial.

                      Infact i had appreciated you telling "one man army" in another thread.

                      You should not doubt everybody if they tell something against your view.

                      Since this forum is turning into chaos, I told in general "Dont shout". I told this to everyone who made unnecessary comments.

                      If this comment is irritating you, its not my mistake.

                      thanks

                      chataara

                      Comment

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