Hi,

I heard through my friends that property price is chennai is going down drastically. Does any one have an idea about this. I am a NRI. I recently bought a flat in Velacherry. Will the price go down more?

Thanks.
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  • Resale flats

    Originally Posted by abk
    Something thats been bothering me is purchasing at 3000 Rs/sqft when the guideline value is only 1500 Rs/sqft.How is the high premium over the guideline justified and protected?Is there any other reasons apart from citing FSI and demand?What protects the asset against devalution back to the guideline value when the demand/affordability diminishes?


    Guideline value is highly misleading someplaces it is very low compared to the market price eg indra gandhi road,pallavaram ,chennai the guideline value is 1000/sqft whereas people are in queue(i am one) to buy at 5000/sqft. 2) i purchased a plot 60 km from chennai at 1.5 lacs/ground and the guideline value is 7.2 lacs /gnd(300/sqft) i had no other choice but to take an power of attorney only.

    As far as "price crash debate" is concerned there is no doubt that there is a correction.but it will not be @ same rate across geographies.i put it in a simple sentence (chennai specific). where land is available in acres(OMR,sripermbendur,oragadam) it will be 30% or more
    and where land is avaiable only in grounds 'between buildings'(established localities like kknagar,chromepet,velachery etc) it would be 10-15%at the most. the higher end properties >1 C will face resistance in the short term and a subsequent fall too.
    "if all the experts and there theories were right we would'nt be discussing this"

    Thanks for your response, abk

    Of late we see lots of resale flats on block.They have been quoting more or less the same rate as new flats in the locality.

    I have read somewhere that when a flat is first registered, it is the UDS that is registered and when it is a resale the whole area of your flat is registered.

    Does it mean a 1500 sqft builtup apartment with UDS 1000 sqft registered initially for a value of 20,00,000 have to be registed at a value of 30,00,000?.I am assuming the guideline value is the stable at 2000 Rs/sqft.Is it true?

    Doing so?isnt it inflating the guideline value automatically by 50% in that location?from 2000 Rs/sqft to 3000 Rs/sqft.

    Is there any measure to estimate the price of a resale flat/land using current market price and years of construction.What are the parameters to be checked?where is depreciation taken into account?what are the precautions to take before buying a property thats mortgaged with a bank?

    Please throw more light on this segment and also on the right way to evaluate a property.Thanks in advance.
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  • Resale flats

    Originally Posted by nabishek
    Thanks for your response, abk

    Of late we see lots of resale flats on block.They have been quoting more or less the same rate as new flats in the locality.

    I have read somewhere that when a flat is first registered, it is the UDS that is registered and when it is a resale the whole area of your flat is registered.

    Does it mean a 1500 sqft builtup apartment with UDS 1000 sqft registered initially for a value of 20,00,000 have to be registed at a value of 30,00,000?.I am assuming the guideline value is the stable at 2000 Rs/sqft.Is it true?

    Doing so?isnt it inflating the guideline value automatically by 50% in that location?from 2000 Rs/sqft to 3000 Rs/sqft.

    Is there any measure to estimate the price of a resale flat/land using current market price and years of construction.What are the parameters to be checked?where is depreciation taken into account?what are the precautions to take before buying a property thats mortgaged with a bank?

    Please throw more light on this segment and also on the right way to evaluate a property.Thanks in advance.


    As far as I gather, for resale flats, the saleable area is taken as the base and the regn. charges are calculated taking into account the Govt. indicated rate at the time of registraion. This is irrespective of what price or rate the buyer has settled with the seller for the resale. However the UDS originally registeted will remain and only the ownership will get transferred to the new buyer. By this, the Govt. gets higher charges but the buyer is the loser. Someone may please correct if I am wrong on this view gathered.

    ks2071746
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  • Originally Posted by ks2071746
    As long as there is huge black money in this country, the RE at places like Chennai may not come down appreciably. Some corrections here and there may be there. Projects would be delayed, even the lower prices being quoted will not be attrtactive in case the projects are delayed. One should go for good no-water logging areas nearer to Railway stations if the flats are in advanced stage of construction or ready to occupy from good builders. Whaterver rate comes down may go up in the next few years and in the matter of few years none would have lost in RE, but their rate of return may be reasonable than very high. None looses in RE in Chennai, especially in good construction flats in the long run.
    :D ks2071746

    Well written KS. However, dont write positively on this board too often...ushhhh that foolish guy Wiseman will reprimand you for telling the truth. LOL.
    Anyway whatever you said was very apt. The truth is NRIs dont drive Chennai market as assumed by Wise Idiot and his coterie. Those guys are hoping market will come down for them to invest. The truth however is that NRIs are already packing their bags having lost their underwear in the US recession. Now they want more than a Komanam in Chennai. Well when these NRIs return as refugees they will increase the demand in Chennai and with Dollar becoming weaker day by day what with almost 0% interest the realestate market in Chennai with black and white will be running only one way...UPWARD.
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  • Originally Posted by ks2071746
    As far as I gather, for resale flats, the saleable area is taken as the base and the regn. charges are calculated taking into account the Govt. indicated rate at the time of registraion. This is irrespective of what price or rate the buyer has settled with the seller for the resale. However the UDS originally registeted will remain and only the ownership will get transferred to the new buyer. By this, the Govt. gets higher charges but the buyer is the loser. Someone may please correct if I am wrong on this view gathered.

    ks2071746

    Thanks ks2071746, Hoping to hear more about resale properties from other Forum members.
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  • With buyers not having money and WISHING that prices fall, market will certainly fall and in Chennai that is what is happening.

    Anyway I will let these bulls keep screaming. However if you have land in Chennai,pl sell it, otherwise even God cant save you. Prices of land have another 50% to go down in the next couple of years.

    Wiseman is right & to try his best to educate people here
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  • Originally Posted by Nataraajg007
    With buyers not having money and WISHING that prices fall, market will certainly fall and in Chennai that is what is happening.

    Anyway I will let these bulls keep screaming. However if you have land in Chennai,pl sell it, otherwise even God cant save you. Prices of land have another 50% to go down in the next couple of years.

    Wiseman is right & to try his best to educate people here



    Please for the benefit of this forum, change you blog id. Your identity is conflicting with one of the active member whose writing has been commendable and helps understand the opposing views of RE market.

    If you are the same Nataraj who were challenging all along with wiseman and now frustrated due to resistance from other members, please do not give up and write in your own style. Though you tone was not appealing others, your aggressiveness and challenging spirit has been energetic and keeping this forum active.
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  • Chennai RE

    Originally Posted by Nataraajg007
    With buyers not having money and WISHING that prices fall, market will certainly fall and in Chennai that is what is happening.

    Anyway I will let these bulls keep screaming. However if you have land in Chennai,pl sell it, otherwise even God cant save you. Prices of land have another 50% to go down in the next couple of years.

    Wiseman is right & to try his best to educate people here


    Oh! we have now (1) old natarajg007 and (2) a new nataraajg007 ? Two different guys guys with opposite views/orguments? I get confused now with 2 opposite comments on the same subject if I do not very carefully see who is the sender?

    ks2071746
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  • Chennai RE

    Originally Posted by ks2071746
    Oh! we have now (1) old natarajg007 and (2) a new nataraajg007 ? Two different guys with opposite views/orguments? I get confused now with 2 opposite comments on the same subject if I do not very carefully see who is the sender?

    ks2071746


    Who knows? There can be another "wiseman" with new id - wiseeman- or wisemaan or- wisemann -or wisemman etc. to confuse us till we identify the new member.

    ks2071746
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  • Hi All,

    Lof of replies shows like the market level is getting down. How can I monitor the rate values day by day? How can I make sure the values are getting down?

    Any body can reply?
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  • Price Indicator

    SenthilMurugan,

    If we have an indicator , we should have witnessed 30-40 percent reduction now.(Say 50 L Plot would have gone to 35 Lacs)

    And happily waiting another 30-40 percent from the current level.(The 35 L to further reduce to 25 L)

    Cheers..
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  • Rest assured. There is only one wiseman :)

    Originally Posted by ks2071746
    Who knows? There can be another "wiseman" with new id - wiseeman- or wisemaan or- wisemann -or wisemman etc. to confuse us till we identify the new member.

    ks2071746



    No time for such googlies!

    Isn't one Natraj (the idiot) enough?

    cheers
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  • Originally Posted by wiseman
    No time for such googlies!

    Isn't one Natraj (the idiot) enough?

    cheers


    Dear wiseman,

    I did not mean that the original wiseman will take further avatars. I only meant that there can be other people getting into the forums as new members with so many "wiseman" like names. I do not think either the origianl - wiseman or original - natarajg007, both senior members of the forum with a good experience and knowledge in the RE field, will get into the forum with new and similar names.

    ks2071746
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  • Calling the toss!

    Right now, investing in RE market is like calling a toss having the knowledge of the previous outcome.

    People are debating all over whether to call heads or tails.One believes that since the previous outcome was heads it should be tails this time, and the other since it was already head it should still remain the same.

    The debate should help people make a educated and informed decision.

    Everyone seems to agree that this is the boom period for RE.

    The truth is let it take 1, 2 or 10 years, the boom has to end someday.

    If one makes an entry now, they have to exit as soon as they sense that the market is beginning to crash sharply or have to have the holding power to wait till the next boom to reap the benefits.

    The alternative is to wait till the price stabilizes, meanwhile saving enough cash and accumalating wealth by investing in other profitable portfolios.

    People who make maximum gains are those who buy when the prices are low and who sell during the next boom.

    Everyone reserves the right to their own opinion and make a choice that they feel best suits to them.
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  • I have been one of those who fell that real estate prices in Chennai are unjustifiably very high. At BSE index 15000, I felt it was absurdly high but it reached 20000 in very short time although it fallen down to below 10000 now. The problem now is not whether the value is worth or not but whether it will still go up another 50% in 2 years or not. Now it may be. Like foreign fund flow was responsible for BSE index jump rather than fundamentals, RE prices may go up for some reasons.
    First, Chidhamabaram hell bent on propping up real estate prices and extending privileges and tax exemptions to IT companies. It is ridiculous that he doesn't even tax the profits on the other hand all over the world petrol prices are half that in India and he deosn't have the decency to reduce the prices to the levels it was when Crude prices were at US$36/barrel. And good for nothing opposition parties (bigger theievs) do not raise a voice.

    Anyway, the government has to reduce petrol prices slowly and inflation will keep coming down and so the interest rates. Interest rates can come down to the level of year 2003 when bank interest will no longer be attractive and domestic funds also may target real estate once again.
    So there is a danger of RE price increase before the ultimate crash below the current level may be in 2 to 4 years. We have no other way but o play along this speculative life with the government itself being responsible for letting speculators and cartels play with the lives and savings of common public.
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  • Chennai real estate

    Originally Posted by vens

    Anyway, the government has to reduce petrol prices slowly and inflation will keep coming down and so also the interest rates. Interest rates can come down to the level of year 2003 when bank interest will no longer be attractive and domestic funds also may target real estate once again.
    So there is a danger of RE price increase before the ultimate crash below the current level may be in 2 to 4 years. We have no other way but to play along this speculative life with the government itself being responsible for letting speculators and cartels play with the lives and savings of common public.


    Dear vens,

    I agree with you and liked your above views.

    ks2071746;)
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