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Are Property Price Going Down Drastically in Chennai?

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Are Property Price Going Down Drastically in Chennai?

Last updated: December 1 2010
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  • Re : Are Property Price Going Down Drastically in Chennai?

    or he is just passing time by making a few comments. If everyone knows that this is going then people can easily hit jackpot r might be true he took a gamble which paid off...

    So, could u tell me which is the next bank to go BURST? so that i can take my savings UT frm that bank... iam sure it would be diffcult... may be we can only guess and if that works out then our gamble paid off but, most of the times we give up our facts because of the emotions...

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    • Re : Are Property Price Going Down Drastically in Chennai?

      Facts are Facts !

      First let me start with Shares

      Some of the transactions I made.

      Reliance Natural bought 500 shares at Rs 57 -65 sold at Rs 185 now 45-55
      RPL bought 500 shares at Rs 100 - 115 sold at Rs 240s now 75 - 85
      IFCI bought 300 shares Rs 25 sold at Rs 75 now trading at 20s

      (Moslty I bought shares during aug 2006 - feb 2007 and sold them during oct 2007 - may 2008)

      I booked a flat in 2005 and sold it in early 2007 on completion when it was in peak for 40+ (location chennai's heart). So I'm waiting for prices to crash in the next 6 to 1 year period, which is my educated guess..........

      If the prices are going to fall by 30%,

      Cash in hand =40L, I sold,
      30% of 40L = 12L
      Cost of one flat 40L - 12L = 28L;
      For two flats :28L* 2 = 56L.
      Cash needed : 56L-40L = 16L (loan+ extra cash) required, If I go
      blindly and buy them

      would it not be possbile for me buy as I said previuosly, if the prices come down by even 30% and rest with loan, people always go to the extreme,
      I never said it would fall by 50%, thats the difference between educated guess and blind guess.......

      Moreover,
      Once the prices start falling, I can bargin with the builder or seller and get additional price cuts, for ex, If I can bargain for Rs 100 per sqft for a 1000 sqft flat, it will save me 1L per flat. Also if I'm buying two flats from the same builder I can press him more sops. By watever amount the I can force the builder, I will reduce my loan amont.

      "Remember prices are yet to fall in Chennai"

      Other places prices have come down, I came across in one place in Mumbai or Noida I'm not sure, where builder is offering buy one get one offer.

      Its not that I have always made gain/ profit, I sold my land in 1996 for a every cheap rate, now its gone nealry 20 folds even in shares got nasty hits, these were lessons to me.

      Always do some research and take an calculated risk, dont decide becoz somebody is saying its going to fall or its going to rise. Do some basic math.

      During the boom period the prices used change on a hourly basis. I can still remember the shock I got in 2007. We were looking for a property to buy, morning we spoke with owner he said 18L when we went in evening to pay advance he said its 21L now, within 5 hours difference.

      My honest belief is Chennai is over inflated or over heated, from 2003 to 2007/8 the prices went high nearly by 200%- 300% or more, I dont think anyone will contradict this. Does any one has seen or have doubled their salary during this period, except for people in IT who often jump, govt sector in the Sixth pay commission (and the auto drivers, just kidding)?

      My question is
      Whats the belief/ cause why one would think that prices are going to sustain and hold on or be optimistic that prices will go up?
      If the prices go up against my belief then it should be a lesson for me !

      With IT sector in deep trouble, spending is going to get cut and job loss or pay cuts will drive IT people to keep off spending as they did in that last few years, like going out to hotels for lunch everyday, spending for auto/cab, planning for vacation every quarter,which I myself did with my team. Which will impact other sectors too.

      FIIs pulling out, people in Gulf too are facing job cuts, which I'm hearing for the first time, finally banks are also not willing to extend loan to RE sector that too if you are from IT who were the most buyers for the past years, from where the money is going to flow into RE.

      Latest :

      Recently the some banks have asked some the IT people to whom they have lent loan,to provide their Dec month payslip and have enquired their HR to confirm if they are in job.

      I would like to hear the facts from others too.Anyways thank for views keepp posted.

      Comment


      • Re : Are Property Price Going Down Drastically in Chennai?

        More clear evidence of how Chennai is inflated.

        One of my friend planned to buy a second hand flat, he approached some brokers. Found one 700sqft 2BHK apartment second floor for 21 Lakhs which was five years old as communicated. Finally settled for 18.5 Lakhs with 5 Lakhs advance and owner wanted 10 in white and rest in black.

        We paid 1001 for token advance and got the papers after getting the papers we were in a great shock.

        No approval for the second floor. The flat was more that 12 years old.
        More shocking was the said owner is not the real owner he has just got Power of Attorney. When searched for the details, we found through another broker whom we know for years said that he only finalized the deal 4 months ago, the current owner has finalised for 10 lakhs and took power of attorney and did not even register the flat in his name, which is common nowadays.

        When we contacted the owner for approval he said he has applied for it and demanded 5L advance with 2 3 days else he may sell it to another person. We gave back the papers.

        10L to 18.5L in 4 months time thats the true condition of the real estate in Chennai, which happened in 2007 end.

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        • Re : Are Property Price Going Down Drastically in Chennai?

          check this out
          http://in.news.yahoo.com/43/20090118...get-a-job.html

          job cuts????????

          Comment


          • Re : Are Property Price Going Down Drastically in Chennai?

            Originally posted by abk View Post
            you seem to have the answer to my question.
            pls specify when was the peak of the boom,month & year i.e when you sold your house. and it would help if you can tell me what rate you sold,location and what rate it is available now,i have not come across any 50% discount in chennai.
            Test is a joker. I think he had other crap to write before. I bet he wont answer you question of when and where. Now Wiseman is not an individual, he is just a senior person of a gang of vested interest bears who are accumulating realestate and talking about a fall. Infact Wiseman is conspicous by his absence, so maybe there are now almost completed their accumulation.
            Be careful. While the choice of having to buy is yours, the situation is not in anyway pessimistic to sell and worse still imagine that you can get a buy at low prices. IT JUST AINT HAPPENING? I mentioned the Sobha prices in another message. In Bangalore near Devanahalli airport (similar to Sriperumbudur in Chennai in terms of distance from City) Sobha is selling 5000sqft land and 3200sqft building for 3.2 Crores. So much for imaginary fall in RE.

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            • Re : Are Property Price Going Down Drastically in Chennai?

              Good one Nats. But no luck

              Originally posted by Natarajg007 View Post
              Test is a joker. I think he had other crap to write before. I bet he wont answer you question of when and where. Now Wiseman is not an individual, he is just a senior person of a gang of vested interest bears who are accumulating realestate and talking about a fall. Infact Wiseman is conspicous by his absence, so maybe there are now almost completed their accumulation.
              Be careful. While the choice of having to buy is yours, the situation is not in anyway pessimistic to sell and worse still imagine that you can get a buy at low prices. IT JUST AINT HAPPENING? I mentioned the Sobha prices in another message. In Bangalore near Devanahalli airport (similar to Sriperumbudur in Chennai in terms of distance from City) Sobha is selling 5000sqft land and 3200sqft building for 3.2 Crores. So much for imaginary fall in RE.

              Natraj, you really must see a shrink .

              Can anyone make sense of this phrase: "senior person of a gang of vested interest bears who are accumulating realestate" ?

              How is a bear (who sells with a view of buying cheaper later on) accumulate land now?

              Even assuming this is true, how is it I'm trying to sell prime land in the heart of town? You still have not come back to me on whether you have the 9C for land on Dr. Radhakrishnan Salai!!!

              Nice try. But no luck.

              cheers

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              • Re : Are Property Price Going Down Drastically in Chennai?

                My posts are not shown. Moderator has delibrately deleted, becoz of my facts, it seems or due to technical issues.

                Let us c who is going to be a joker at last.

                I sold the my at chennai's heart for 40L
                If chennai RE comes down by 30% : 30%40L = 12L
                so total cost : 40L - 12L = 28L
                For 2 flats : 28L*2 = 56L

                56L-40L = 16L If I buy blindly.

                I can negotiate with the builder/seller as the prices are going down.
                Ex get sqft rate by 100 that would save 1L for a 1000sqft.
                Similarly I can force him, if I'm buying two flats.

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                • Re : Are Property Price Going Down Drastically in Chennai?

                  Bulls losing patience & becoming Jokers by denying facts !

                  I have reached some of the builders in chennai for flats and have got 10% reduction in price with free car park. So 6 months to 1 year down the line,
                  I will be able to achive my target.

                  NO FREE LUNCH. If you want to buy or get the real price spend some time in the market.

                  I have posted the facts, you can check with the moderator if you want.

                  Nats fear is getting visible by each post. Nats its for you

                  The banking system’s plan to bail out cash-strapped housebuilders by restructuring loans to help them survive a market slump is under strain, as builders have gone back on their promise to sell properties at reduced rates, according to senior bankers. Some bankers have complained to the central bank that after making use of the relaxed rules, which permit banks not to classify loans to real estate firms as bad loans the moment they are restructured, builders continue to hold on to artificially-inflated prices.
                  Last December, the Reserve Bank of India (RBI) relaxed a key rule on restructuring bank loans to the real estate sector as a one-time measure to help developers cope with falling demand and a credit crunch. The relaxation was to end in June this year. During a meeting with the RBI’s deputy governor Rakesh Mohan on Thursday to discuss monetary policy issues, a senior banker pointed out that the RBI’s relaxation had provided builders with an opportunity to hold on to high property rates that were quoted before the market slump. “There is a feeling among bankers that builders are choosing to retain assets on their balance sheets rather than reducing prices and getting rid of assets,” said one banker, who asked not to be named. “In other words, to overcome the liquidity crisis, builders are pushing for restructuring of loans rather than selling off assets or reducing property prices.”
                  Several developers such as DLF, Unitech, Sobha, Omaxe, Parsvnath Developers and Housing Development and Infrastructure have approached banks to restructure their loans. In the past too, bankers have pointed out to the RBI and the finance ministry that real estate companies are reluctant to reduce rates. Builders, in turn, blame banks for causing the market slump and lower sales volumes by charging high rates on home loans. Under pressure from the government to boost home sales and shore up the economy, several public sector banks recently cut rates charged on loans for affordable housing. Many of them now charge a fixed rate of 8.5% for loans up to Rs 5 lakh and 9.25% for loans up to Rs 20 lakh.

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                  • Re : Are Property Price Going Down Drastically in Chennai?

                    My post are not getting displayed

                    Is somebody deleting it.....................
                    moderator wat happened to my post?

                    Does anybody having idea about the law suit against Metrozone (Ozone Group) got over?

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                    • Re : Are Property Price Going Down Drastically in Chennai?

                      Originally posted by test1234 View Post
                      Is somebody deleting it.....................
                      moderator wat happened to my post?

                      Does anybody having idea about the law suit against Metrozone (Ozone Group) got over?
                      what happened to my question regd when and where about the peak of the boom and the place you sold and what rate its available now.

                      I see a pattern regarding replies. test says his post is missing and rajello says so too.are you evading a reply.
                      (type it in a new window cut it and paste it immediately)
                      my question remains WHEN and WHERE regarding prices halved at the place you sold.

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