Friends,

Pl discuss how much down fall is expected in IT sector and its impact on real estate.

2008 saw about 20 to 30" downfall. How much will be in 2009?
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  • Originally Posted by rajjelo2000
    Hi,

    This is Raj, very new to the forum and I would like to make a comment on my experience (very recent) on the Downfall market of RE. I was in a search of a land or an good apartment (I mean to say with better landscape) but was finally not Convinced to go for an apartment in and around Velachery. 2 months back we saw a piece of land very close to the Velachery By-pass as well as to the Vijaya nagar bus stand which was over priced as 110 Lakhs for a 3950 Sqft land (3 of us were planning to share the land and construct in it) but then we realized that we are in the verge to enter into the recessionary period and the idea has just stepped out of our mind in the whole thinking about the financial difficulties. Now after more than 2 Months we got a call from broker with an asking price of about 75Lakhs who roughly said it more than 1.5 grounds near to 1.75 Ground and gave a different address (brokers address). So we again had a thought of visiting their which made us to get surprised that we were visiting the same place which we visited before 2 months(To exactly say it was on October 18th or 19th) because the broker gave us his address we didn’t have any clue that we are heading towards the same land. We are again considering the purchase :) but seems like we are officially going to enter the recessionary period only after the second Quarter of 2009 .


    This really shows the downtrend of the RE and the brokers boost up value in the RE. I have myself witnessed at least of 32% down trend :D:D:D towards the plot cost.


    My kind advice for some of the well wishers here would be, please wait for a year or so and then think of buying an asset let it be house or an appartment or an Plot. From a reliable source of mine I have got an information that the Flat promoters (Big ones) have plans to increase 100rs/sqft just to fakely cook up the notebooks so that they can falsely and even if it takes a Little more time to sell the apartments this extra 100/sqft will help them in paying their excess Interest towards the bank loans caused towards the delayed sales. So They think they will get the same amount on money what they were planning to get earlier as well as the excess interest will be pushed on to the heads of the Buyer.

    Only if there is a No Buyers Sign to this cooked up price for a handsome period (Say for about a year) can bring the cost down to earth, until then there will be many buyers loosing their hard earned money to the Greedy RE or Brokers.

    Dear Rajello,Please let me know where exactly is this 3950 sqft of land available at 75lakhs in Velachery. I would love to grab it. Now dont take me to pallikaranai or madipakkam and call it Velachery. So if this place is really close to Vijaya Nagar bus stand, please let us know where exactly it is and I can think of GRABBING IT.
    Now if you dont respond it shows you are lying!
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  • Besant nagar,chennai

    What is the price of 17 year old flat in this area...its 760sqft....And what is the price i shouls quote for this??
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  • Originally Posted by deepika
    What is the price of 17 year old flat in this area...its 760sqft....And what is the price i shouls quote for this??

    is it really worth buying such an old apt ?
    CommentQuote
  • location, location, location

    Originally Posted by abk
    this thread is about how much downfall in RE from peak prices(obviously).
    everybody can calculate "if it falls by 20% it has to gain 25%".
    my point is if you want to buy a house(for living) you should buy if your preferred location has corrected by about 15%. living is not about the price alone it includes your preferences,fancies,your dear ones near,temples,schools,entertainment,established neighbourhood,security etc.
    a diff of 10-15% is overlooked for places of preference.
    you should look for 3 things when buying a house

    1)location 2)location and 3)location


    Dear abk,

    I fully agree with you. If it is for living by self, please go in for a location best suited, In addition to what -abk- has added in the above quoted message, please see the water logging aspect as well as water availability aspect as well connecting to Railway Station and Bus stand, preferably a Bus & Rail terminus. The recent rains and water logging has given us a clear picture on the water logging aspect. It should not matter much if one considers paying 10 to 15% more for the locational advantages. Regards.

    ks2071746
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  • Originally Posted by rajjelo2000
    Hi,

    after more than 2 Months we got a call from broker with an asking price of about 75Lakhs who roughly said it more than 1.5 grounds near to 1.75 Ground and gave a different address (brokers address). So we again had a
    .


    dear rajjelo pls give me the brokers number.
    as you have seen it is it near mgr nagar which has slums with people sitting in the middle of the street and children shitting on the streets,i saw a few places there behind vijaynagar bus stand which brougth an "oh shit!" from my friend.
    if the location is decent enough pls let me know of the details,i would be gratefull.
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  • True as Rajello said prices in velacher area also has come down dueto eceonomic situation and also due to water logging problem
    CommentQuote
  • Originally Posted by abk
    this thread is about how much downfall in RE from peak prices(obviously).
    everybody can calculate "if it falls by 20% it has to gain 25%".
    my point is if you want to buy a house(for living) you should buy if your preferred location has corrected by about 15%. living is not about the price alone it includes your preferences,fancies,your dear ones near,temples,schools,entertainment,established neighbourhood,security etc.
    a diff of 10-15% is overlooked for places of preference.
    you should look for 3 things when buying a house

    1)location 2)location and 3)location


    abk,

    Its nice to see the seller/builders point of view.

    Location can make fraction of people to overlook the price.

    From a buyers view point, Value for money and the ability to repay will take precedence than any other factor.

    Think of the people who buy land/apartment which had been already inflated to sky-high price(300 to 400 % in 2-3 years). Will they be able to pay the EMIs for decades where there is no security for jobs/salary . It will only inflate the EMIs .

    Probably those who have taken house loans during the peak days ,will throw some light on the EMI/repayability . What was their perception when they have taken the loan and how do they feel now ?. Growing family/medical/educational expenses and interest rate really affect the ability to repay ?

    BTW , All those high-end projects and Plots in OMR have the location advantage ?

    Do they have our dear ones near, temples,schools, entertainment, established neighbourhood,security etc.

    Do you think they are correctly priced based on Location ? If not what they are worth of ?

    Cheers..
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  • natraaj i have been speaking with advtsrs of velachery this saturday,the rates coming out for flats are 4300/- for selva nagar 4800/- for rajalksmi nagar and there are few advtsing at 4100 and 3900 they either are fully deviated or the location is not good but on the whole nobody is willing to negotiate for a discount of more than 5%(max)
    rejello i am interested to look at the 1.5 grounds at 75 L pls give me the address or phone no.
    thanks
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  • brokers

    Originally Posted by Nataraajg007
    True as Rajello said prices in velacher area also has come down dueto eceonomic situation and also due to water logging problem


    Please remember, today's brokers are tomorrow's promoters & builders. Unlike the marriage brokers who do not make big money, but for their living. I know of brokers who have become crorepathis as well as some staff of some builders like TLV Builders who were famous in Perambur area about 8 years back who are middle class now. Some of hose who were working with them then are crorepathis now dealing with plots and projects.

    ks2071746
    CommentQuote
  • Originally Posted by rajjelo2000
    Hi,

    This is Raj, very new to the forum and I would like to make a comment on my experience (very recent) on the Downfall market of RE. I was in a search of a land or an good apartment (I mean to say with better landscape) but was finally not Convinced to go for an apartment in and around Velachery. 2 months back we saw a piece of land very close to the Velachery By-pass as well as to the Vijaya nagar bus stand which was over priced as 110 Lakhs for a 3950 Sqft land (3 of us were planning to share the land and construct in it) but then we realized that we are in the verge to enter into the recessionary period and the idea has just stepped out of our mind in the whole thinking about the financial difficulties. Now after more than 2 Months we got a call from broker with an asking price of about 75Lakhs who roughly said it more than 1.5 grounds near to 1.75 Ground and gave a different address (brokers address). So we again had a thought of visiting their which made us to get surprised that we were visiting the same place which we visited before 2 months(To exactly say it was on October 18th or 19th) because the broker gave us his address we didn’t have any clue that we are heading towards the same land. We are again considering the purchase :) but seems like we are officially going to enter the recessionary period only after the second Quarter of 2009 .


    This really shows the downtrend of the RE and the brokers boost up value in the RE. I have myself witnessed at least of 32% down trend :D:D:D towards the plot cost.


    My kind advice for some of the well wishers here would be, please wait for a year or so and then think of buying an asset let it be house or an appartment or an Plot. From a reliable source of mine I have got an information that the Flat promoters (Big ones) have plans to increase 100rs/sqft just to fakely cook up the notebooks so that they can falsely and even if it takes a Little more time to sell the apartments this extra 100/sqft will help them in paying their excess Interest towards the bank loans caused towards the delayed sales. So They think they will get the same amount on money what they were planning to get earlier as well as the excess interest will be pushed on to the heads of the Buyer.

    Only if there is a No Buyers Sign to this cooked up price for a handsome period (Say for about a year) can bring the cost down to earth, until then there will be many buyers loosing their hard earned money to the Greedy RE or Brokers.


    I guess you are talking about the lands in Ram Nagar North/South Madipakkam.
    Velachery bypass, Vijayanagar bus depot, Velachery Metro, 80 feet road connecting GST road are the attractions of that area and I think I have written about 'em all in one of my posts.

    If you are talking about that area, the prices have been over quoted to you when you first saw them. Everybody in that area knows that 2400 sq.ft land was being sold for 55L flat rate last year.
    Now that they seem to have come up with their usual price to you guys. AFAIK the brokers are now willing to make a bargain, but not so huge as 20% or more. depends on how serious the buyer is... and there are plenty of lands around.

    I visited the place thrice during the end-november and start-december weeks just to see how the area looks like during that heavy rain. And believe me, It was damn ugly and I will never buy a land in that area even if they sell it for 30L per ground.
    Just google 'madipakkam ram nagar flood' and check out the first result - It showcases a rainy day with beautiful pictures.

    If it is Ram Nagar South, sorry I can't comment it, you need 24X7 room freshners, repellents and dust blockers to avoid the garbage burning smell and associated dusts and diseases of course.

    Have fun!
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  • Why are my replies not getting posted ?????


    I typed some 3 paragraph full of contents and submitted earlier and nothing comes into the discussion .

    This is my 4th Try
    CommentQuote
  • Originally Posted by rajjelo2000
    Why are my replies not getting posted ?????


    I typed some 3 paragraph full of contents and submitted earlier and nothing comes into the discussion .

    This is my 4th Try


    dear friend

    Dont take long time to post your message

    You may type it in note pad and after reading it copy and paste it into this forum's column.

    I believe this way without fail you can post your replies.
    thanks

    chataara
    CommentQuote
  • Originally Posted by rajjelo2000
    Why are my replies not getting posted ?????


    I typed some 3 paragraph full of contents and submitted earlier and nothing comes into the discussion .

    This is my 4th Try


    i was waiting for the brokers number too, rajello pls post it
    CommentQuote
  • Originally Posted by abk
    this thread is about how much downfall in RE from peak prices(obviously).
    everybody can calculate "if it falls by 20% it has to gain 25%".
    my point is if you want to buy a house(for living) you should buy if your preferred location has corrected by about 15%. living is not about the price alone it includes your preferences,fancies,your dear ones near,temples,schools,entertainment,established neighbourhood,security etc.
    a diff of 10-15% is overlooked for places of preference.
    you should look for 3 things when buying a house

    1)location 2)location and 3)location


    Thanks for giving the promoters/buyers perspective.
    Location can make fraction of people to overlook the price.

    From a buyers view point, Value for money and the ability to repay will take precedence than any other factor.

    Think of the people who buy land/apartment which had been already inflated to sky-high price(300 to 400 % in 2-3 years). Will they be able to pay the EMIs for decades where there is no security for jobs/salary . It will only inflate the EMIs . Only good thing what will happen is that the damage is restricted to only the buyer unlike Satyams case where lacs of investors have been shattered .

    BTW , All those high-end projects in OMR have the location advantage ?

    Do they have our dear ones near, temples,schools, entertainment, established neighbourhood,security etc.

    Do you think they are correctly priced based on Location ? If not what they are worth of ?

    What majority of the buyers are bothered about are

    1) Value for money.
    2) Infrastructure (Good Roads/Electricity/Water and Boats )
    3) Security
    4) Ability to repay etc...
    CommentQuote
  • Originally Posted by chataara
    dear friend

    Dont take long time to post your message

    You may type it in note pad and after reading it copy and paste it into this forum's column.

    I believe this way without fail you can post your replies.
    thanks

    chataara


    I do the same, but sometimes it go for admin's approval and never shows up.
    For instance, I wrote something really big replying Raajello about the area and so in the same thread before a week, and it is yet to appear. I will write a new thread probably.
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