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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  • i will be very surprised if 125000 people lose their jobs.
    in india everybody tries to overanalyse and dramatise things.

    govt will interfere and there is already some talk / request of takeover by a big company.
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  • Originally Posted by yeskrish
    i will be very surprised if 125000 people lose their jobs.
    in india everybody tries to overanalyse and dramatise things.



    food for tought.
    we will know very soon
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  • You are correct ...

    Originally Posted by yeskrish
    i will be very surprised if 125000 people lose their jobs.
    in india everybody tries to overanalyse and dramatise things.

    govt will interfere and there is already some talk / request of takeover by a big company.



    Yeskrish, you are correct.

    There is a difference between net jobs lost and gross jobs lost. Example, some Satyam employees may lose job but find another in IBM - so thats not a job lost. Some will become consultants and hopefully earn as much which is also not a job lost. Some will lost job and will not find another for a significant amount of time, which is a job lost.

    Then there are sub-contractors who supply people to Satyam. When there is a permanent job loss in Saytam it will be double counting. Satyam will show one job lost and the sub-contractor will show another job lost - 2 jobs lost for every contractor permanently getting jobless.

    Also, when one employee loses a job, there is a partial reduction in work for support people like the food supplier, taxi driver, etc. Since, when 10000 people go off the rolls you will need fewer cooks, servers, drivers and cleaners. You can't really count this number and so we make reasonable approximations.

    And the bulk of the affected will be people who rely on the wage earners for their livelihood. The grandparents, retired parents, family (wife, kids), car driver they can no longer afford, house servants. This is what raises the affected ratio to as high as 10:1 where the 1 is the Satyam employee permanently losing his job.

    The effect will be diffused, but it will certainly be there.
    cheers
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  • Dear Wiseman! Keep It Up!

    who knows infosys may also follow suit . more such satyam like episodes will unfold? so investigators shold start investigations in all companies of dubious management. people have lost money in ULIPS as LIC has invested heavily in satyam? people should not be very greeedy?
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  • Friends, I just come across the following post from another forum;

    Quote:
    Folks,
    I don't know if anybody heard about the Hirandani upscale project's price reduction. My friend's friend has recently booked an apartment from them. Here's the deal he got. The price of the apt is 75 lacs. He will apply for the loan for 80% of the 75 lacs. However, Hirandani will pay the EMI for the 1st two years. 24 months of EMI roughly comes to around 14 lacs. So it sounds like the apt is going to cost him about 61 lacs.
    The reason I was told for Hira following this way is they didn't want to bring down the price tag of apartment there by causing panic to the previous bookers and to avoid cancellations.

    Unquote:

    Does anyone in this forum heard about such a thing, if this is true then hiranandani is has in effect giving discount of about 20%.
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  • Originally Posted by ajithpkl
    Friends, I just come across the following post from another forum;

    Quote:
    Folks,
    I don't know if anybody heard about the Hirandani upscale project's price reduction. My friend's friend has recently booked an apartment from them. Here's the deal he got. The price of the apt is 75 lacs. He will apply for the loan for 80% of the 75 lacs. However, Hirandani will pay the EMI for the 1st two years. 24 months of EMI roughly comes to around 14 lacs. So it sounds like the apt is going to cost him about 61 lacs.
    The reason I was told for Hira following this way is they didn't want to bring down the price tag of apartment there by causing panic to the previous bookers and to avoid cancellations.

    Unquote:

    Does anyone in this forum heard about such a thing, if this is true then hiranandani is has in effect giving discount of about 20%.



    the project is singaperumalkoil/orgadam,hirnandani has one there.
    you should travel to that place, it is so far off ,no neighbourhood it is a jungle out there.no autorikhsaws or taxis .it is self contained project.even the ones on OMR will reduce by atleast 30%.
    I have been saying this i repeat
    PRICES WILL CRASH WHERE LAND IS AVAILABLE IN ACRES,WILL CORRECT BY 20 %(MAX) WHERE LAND IS AVAILABLE ' BETWEEN BUILDINGS'
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  • No sales in RE in Chennai

    Dear friends

    I used to see Free Ads paper to know the price quotings in RE section.
    In june 2008 one person has quoted price for 2200 sq.ft land with 1800 sq.ft building with all amenities Rs.85 lacs. This house is not sold for the last 7 months.In january 2009 1st week he quoted Rs.82 lacs. This week he has quoted Rs.80 lacs.

    Moreover, i can see many advertisement repeating for the last 7 months. From this we can know that property sales has come to standstill. And there is considerable price correction. Even though sellers are reducing the price slowly there are not any takers.

    Thanks
    chataara
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  • Price and Font(d)

    Originally Posted by abk
    if it is the project is at singaperumalkoil/orgadam,hirnandani has one there.
    i see no surprise in this. you should travel to that place, it is so far off ,no neighbourhood it is a jungle out there.no autorikhsaws or taxis .it is self contained project.I have been saying this i repeat
    PRICES WILL CRASH WHERE LAND IS AVAILABLE IN ACRES,WILL CORRECT BY 15 %(MAX) WHERE LAND IS AVAILABLE ' BETWEEN BUILDINGS'


    Everyone feels that land/apartment prices are inflated as same as your fonts here.

    Every company is trying to do the same business cutting down 20-25 percent of the existing employees now.

    Every company is trying to reduce the cost by minimum of 25 percent now.

    Rs 100 available today, will be reduced to Rs 56.25( (100 -25 ) * 0.75) when all the cost/job cuttings are in effect..may be 2-3 months down the line(Not taking into big collapses in which job losses to the tune of 50-60 % and more scrutiny on balance sheets after last week's confession likely to unearth more scandals).

    Let us get into the savings/dispossable amount...

    While Rs 100 is available ,our expense will be around Rs 50 and savings will be Rs 50(approx) .

    While Rs 56.25 is available tomorrow , few will bring down the expense from Rs 50 to Rs 40 and tend to save Rs 16.25

    Disposable/Saving amount has been reduced to Rs 16.25 from Rs 50 (drop by approx 67 percent).

    No need to mention that this dire situation will drive people into the safety mode than investment mode.

    If we consider a person whose expense is around 80 % & savings 20 %, we may get very bad picture . (and definitely we have certain percent of people whose expenses exceeds the income and accumulate deficits due to high EMIs and unwanted spending/habits).

    Lands between buildings and lands inside buildings are sure bound to fall down DRASTICALLY (pls read with FONT size 20 or more) and if anyone predicts the approximate percentage of drop , his/her service is urgently needed by many now ... All the apex banks of the countries & many investment/brokerage houses are looking for that geniuss and may be offered in billions ... (countries have apportioned hundreds of billions for bailout)...

    RE Prices are bound to faaaaaaaaaaaaaaaaaaaaaaaaaaaaaaall..
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  • Originally Posted by sethugm
    Everyone feels that land/apartment prices are inflated as same as your fonts here.


    While Rs 100 is available ,our expense will be around Rs 50 and savings will be Rs 50(approx) .

    While Rs 56.25 is available tomorrow , few will bring down the expense from Rs 50 to Rs 40 and tend to save Rs 16.25

    Disposable/Saving amount has been reduced to Rs 16.25 from Rs 50 (drop by approx 67 percent).

    RE Prices are bound to faaaaaaaaaaaaaaaaaaaaaaaaaaaaaaall..


    according to you many will not reduce expenses, by this statement you have concluded that the prices of everything included in "expenses"
    would not reduce.
    going by this premise when expenses remain same and the prices of everything (other than RE) remains same,the economy(US govt is trying to boost spending) should be doing good. and that in my or rather 'your' opinion will prevent a drastic faaaaaaaaaaaaaaaaaaaaaaaaaaall in RE among buildings
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  • Nope !

    Originally Posted by abk
    according to you many will not reduce expenses, by this statement you have concluded that the prices of everything included in "expenses"
    would not reduce.
    going by this premise when expenses remain same and the prices of everything (other than RE) remains same,the economy(US govt is trying to boost spending) should be doing good. and that in my or rather 'your' opinion will prevent a drastic fall in RE among buildings



    Not so simple.

    Unemployment will rise dramatically and will reach Great Depression proportions eventually, in the US.

    Prices of commodities will continue to rise - and this has little to do with Demand and Supply in the short term. For example, this is grape season and grapes still remain in the Rs 60-70 range which is preposterous.

    Yes, spendable surplus will fall significantly and eventually spending will gradually fall by significant amounts. Initially though, people will be in denial and continue to fight this cutting phenomenon. But eventually when you don't have any cash in pocket and CCs are maxed out, people will come down to having thairsadam (for the non-Tamils, its curdrice - a sure sign that you have hit rocky times :D. The voyage from scotch to thairsadam will be a very painful one for the ones in denial. Switch to thairdsadam NOW! :D

    Land available today in acres will become practically free (buying in those far off places just to "invest" will have people wondering in future why they lost their senses and did something so dangerous! Land in between buildings will come down from 50% to 80% - remember these figure originally came from wiseman :D (copyright pending :)).

    While most people still do not believe it as they cannot "see" how it will happen, that is a minor issue since, when prices went up, the same people were clueless about why it went up! Come down, it will.

    This bear market will last till 2012. Obviously there will be rallies in between and some will be quite big upward. But rest assured, the market is overall bearish and each fall will only bring more supply to market and prices lower. Till all the bullishness is wiped out and total pessimism prevails.

    There is also talk in some knowledgeable circles that this bear will make an up rally from 2012 to 2014/2015 (look like a bull rally) and will stage a final dramatic fall in the 2015 - 2018 period bringing down popular stock indices down by as much as 80% to 90%. To my mind, this is a distinct possibility as the amount of debt that is going to get wiped out in the coming decade can easily bring indices down to 1980s to early 1990s levels. This has happened many times in the past so do not be surprised!!!

    Keeping this overall structure in mind, plan your plays. Do not be wildly bullish as it will only keep you poorer for longer and on the losing side every time.

    If you are prudent, you will still make a lot of money!

    cheers
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  • Originally Posted by wiseman
    Not so simple.

    Unemployment will rise dramatically and will reach Great Depression proportions eventually, in the US.

    cheers


    US maybe but indian economy is not dependant on exports alone the prime mover is domestic that is why the GDP is still pegged at 6+. the IIP has improved to 2+ which was -ve last month,it may not be a bed of roses but it is not definitely a bed of thorns
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  • Originally Posted by wiseman
    Not so simple.


    Land available today in acres will become practically free (buying in those far off places just to "invest" will have people wondering in future why they lost their senses and did something so dangerous! Land in between buildings will come down from 50% to 80% - remember these figure originally came from wiseman :D (copyright pending :)).

    While most people still do not believe it as they cannot "see" how it will happen, that is a minor issue since, when prices went up, the same people were clueless about why it went up! Come down, it will.



    If you are prudent, you will still make a lot of money!

    cheers


    you mean to say i would be able to buy a ground in Tnagar at 50L (now 2c-4c) i do hope it happens and my dream comes true.how long do you think it will take for that to happen wiseman.
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  • Whether you are buying land at T.Nagar for Rs 50 L or Rs 20 L, it also depends on availability. If land is not there, where you will buy.

    If suddenly war starts with Pak, and few missiles hit Chennai, prices even in Annasalai near LIC will go down like any thing.

    During II world war, when japan bombed Chennai, land of about Rs 13 acres near saidapet was sold for few thousands
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  • Elections and New Govt a factor

    We are in election seasons with elections bound in April - May as per Election Commission, which is also a big factor.

    Only after the elections we may see how inflated/ heated our economy is.......
    Most of the people will be/are pushing to saving mode esp the IT Sector after the Satyam fraud. Latest news the medical insurance is in stake for its employees. So the spending from the IT sector people is fast drying out, which will have a big impact ,as IT was the major driving force from 2003 -2008, during the boom period.

    BPO jobs are in high risks, most of the US/UK companies are planning to bring the BPO jobs back to US/UK as it may easily provide the job for the people there. BPO is at more risk that IT.

    With spending drying out and people moving to saving mode and even the construction material cost like steel, cement are down 40%.

    The RE prices is bound to fall esp flat prices........by the time elections are over (heading for hung parliament) bear is going to party & dance all the thro next couple of years.....does not surprise me even if goes to 2014-2015.

    Real Estate is as inflated as Satyam, which Raju was successfully doing for the past 5-6 Years. More foul play / scam can be uncovered than Satyam, if somebody starts investigating the land deals starting from 2002.

    Every action has a equal and opposite reaction.
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  • Originally Posted by wiseman
    Not so simple.

    Unemployment will rise dramatically and will reach Great Depression proportions eventually, in the US.

    Prices of commodities will continue to rise - and this has little to do with Demand and Supply in the short term. For example, this is grape season and grapes still remain in the Rs 60-70 range which is preposterous.

    Yes, spendable surplus will fall significantly and eventually spending will gradually fall by significant amounts. Initially though, people will be in denial and continue to fight this cutting phenomenon. But eventually when you don't have any cash in pocket and CCs are maxed out, people will come down to having thairsadam (for the non-Tamils, its curdrice - a sure sign that you have hit rocky times :D. The voyage from scotch to thairsadam will be a very painful one for the ones in denial. Switch to thairdsadam NOW! :D

    Land available today in acres will become practically free (buying in those far off places just to "invest" will have people wondering in future why they lost their senses and did something so dangerous! Land in between buildings will come down from 50% to 80% - remember these figure originally came from wiseman :D (copyright pending :)).

    While most people still do not believe it as they cannot "see" how it will happen, that is a minor issue since, when prices went up, the same people were clueless about why it went up! Come down, it will.

    This bear market will last till 2012. Obviously there will be rallies in between and some will be quite big upward. But rest assured, the market is overall bearish and each fall will only bring more supply to market and prices lower. Till all the bullishness is wiped out and total pessimism prevails.

    There is also talk in some knowledgeable circles that this bear will make an up rally from 2012 to 2014/2015 (look like a bull rally) and will stage a final dramatic fall in the 2015 - 2018 period bringing down popular stock indices down by as much as 80% to 90%. To my mind, this is a distinct possibility as the amount of debt that is going to get wiped out in the coming decade can easily bring indices down to 1980s to early 1990s levels. This has happened many times in the past so do not be surprised!!!

    Keeping this overall structure in mind, plan your plays. Do not be wildly bullish as it will only keep you poorer for longer and on the losing side every time.

    If you are prudent, you will still make a lot of money!

    cheers

    Ha we have something in commonality. We like Grapes! LOL! As for the remaining message, it looks like you are slowly feeling that it is not falling really now, so you are saying it will fall next year or the next. So you talk of 2012 and then predict till 2020.
    Tell me simple stuff. How much probability is there that you or me or anyone on this board will live to seem 2014 leave alone 2020. You are predicting like you are nostradamus and folks here are astrology fans. You should have seen that neeya naana on Vijay TV. Ultimately folks like you win as the guy concluded that for even 10 rationalists there are 90 who believe in Astrology and predictions. Do you know those who said world will be gone before 2000, in 1998 or so?
    Comeon buddy try to think about the thayirsadam today? Dont predict for others about the next decade and more. You did not get it right about any fall now, why would anyone care about next decade. And did you see someone tell you that US did not matter for Indian economy. Time that you get your company in Heuristics and AI running or you will be flocking with Rajus. Take care buddy.
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