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What is the Impact of IT Sector Downfall on Real Estate?

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What is the Impact of IT Sector Downfall on Real Estate?

Last updated: February 25 2009
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  • #21

    #21

    Re : What is the Impact of IT Sector Downfall on Real Estate?

    Certifiable

    Originally posted by Natarajg007 View Post
    Wiseman, I wont shamelessly create an account called as Wiseeman. So better reign in your silly coterie.

    When someone randomly picks up unrelated issues and ties them together, he is clinically certifiable!

    And the fact that, in every post Nats feels a need to pick at me shows that, deep down he is getting affected by wiseman (maybe having nightmares about price crashes).

    There is only one wiseman despite your wild aspersions, Nats! And that is certainly not you!!!!

    cheers

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    • #22

      #22

      Re : What is the Impact of IT Sector Downfall on Real Estate?

      wiseman real re prophet

      people will realise after re price crash, that WISEMAN is real RE PROPHET.
      I fully endorse views of WISEMAN. KEEP IT UP YOUR GOOD WORK WISEMAN.CONTINUE TO EDUCATE PEOPLE

      Comment

      • #23

        #23

        Re : What is the Impact of IT Sector Downfall on Real Estate?

        [quote=badrig;10923]people will realise after re price crash, that WISEMAN is real RE PROPHET.

        badrig,
        you are trying to be the prophet

        Comment

        • #24

          #24

          Re : What is the Impact of IT Sector Downfall on Real Estate?

          Before anyone gets the idea ...

          [quote=abk;10939]
          Originally posted by badrig View Post
          people will realise after re price crash, that WISEMAN is real RE PROPHET.

          badrig,
          you are trying to be the prophet

          Good one abk!

          Btw, I'm not Badrig, just in case certain people get some ideas about coteries, etc.

          In any case Badrig, have you heard of the quote? ...

          "I appear tall because I stand on the shoulders of really tall people"

          I only reflect the thoughts of some really astute people who are in the business of figuring out where we are headed. So, praise them, not me!

          Nouriel Roubini, Mike Shedlock, Elaine Supkis, Catherine Fitts and so many, many more ...

          Check them out

          cheers

          Comment

          • #25

            #25

            Re : What is the Impact of IT Sector Downfall on Real Estate?

            [QUOTE=wiseman;10952]
            Originally posted by abk View Post
            Nouriel Roubini, Mike Shedlock, Elaine Supkis, Catherine Fitts and so many, many more ...
            Woh wow awesome!

            Just found something interesting from "Nouriel Roubini" (Source Wiki)

            Current predictions
            As of January, 2009, he remains pessimistic about the US and global economy. He says "we have a subprime financial system, not a subprime mortgage market". And while he does not believe that the United States is at risk of another Great Depression, he expects it to be the worst recession since the 1930s. Looking at the global picture, he writes, "As the U.S. economy shrinks, the entire global economy will go into recession. In Europe, Canada, Japan, and the other advanced economies, it will be severe. Nor will emerging market economies—linked to the developed world by trade in goods, finance, and currency—escape real pain."[7]
            His pessimism is focused on the short-run rather than the medium or long-run.[3] In Foreign Policy (Jan/Feb 2009), he writes, "Last year’s worst-case scenarios came true. The global financial pandemic that I and others had warned about is now upon us. But we are still only in the early stages of this crisis. My predictions for the coming year, unfortunately, are even more dire: The bubbles, and there were many, have only begun to burst" In conclusion, he adds, "This will be a painful year. Only very aggressive, coordinated, and effective action by policymakers will ensure that 2010 will not be even worse than 2009 is likely to be." [7]

            Real estate predictions
            Roubini's predictions are generally based on historic fundamentals. In September of 2006, he clearly saw the end of the real estate bubble: "When supply increases, prices fall: That’s been the trend for 110 years, since 1890. But since 1997, real home prices have increased by about 90 percent. There is no economic fundamental—real income, migration, interest rates, demographics—that can explain this. It means there was a speculative bubble. And now that bubble is bursting." When asked whether the real estate ride was over, he said, "Not only is it over, it’s going to be a nasty fall." [8]

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            • #26

              #26

              Re : What is the Impact of IT Sector Downfall on Real Estate?

              Originally posted by whatheheck
              With Satyam corporations fraud, its just a tip of an iceberg for corporate india especially for Indian IT industry down turn. As predicted before, this will lead to huge crash in indian RE Industry. Lets sit and watch how it develops this year. This will wipe out the false growth and false RE appreciation and bring the price to original value.

              Even after so many hurdles, last week satyams net worth was valued at 3 to 4 billion dollars. Today Satyams worth is just 600 million.
              satyam was valued by some 'expert' on the info which was a lie.samething applies in reverse all predictions are not true.I am not saying RE will not fall, I am saying there will be a correction 20% max in chennai(i am not aware of others)

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              • #27

                #27

                Re : What is the Impact of IT Sector Downfall on Real Estate?

                20% fall from the current market price would mean that, it has to move up again by 25% if it has to reach current market price again. If the prices were to fall by 30% from current price, then it has to move by 43% again to reach the current price. So, if someone is buying at current prices has to wait for it to move by 25% again (or 43% - if it falls by 30%) to recoup his initial investement, leave alone any profit!!!!!!

                Comment

                • #28

                  #28

                  Re : What is the Impact of IT Sector Downfall on Real Estate?

                  location,location and location

                  Originally posted by ajithpkl View Post
                  20% fall from the current market price would mean that, it has to move up again by 25% if it has to reach current market price again. If the prices were to fall by 30% from current price, then it has to move by 43% again to reach the current price. So, if someone is buying at current prices has to wait for it to move by 25% again (or 43% - if it falls by 30%) to recoup his initial investement, leave alone any profit!!!!!!
                  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

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                  • #29

                    #29

                    Re : What is the Impact of IT Sector Downfall on Real Estate?

                    I have put in this for the benefit of those who are investing only for investment purpose, specifically in plots at far away places where the fall will be much more than a good locations in the city. I agree that anybody with basic schooling can calculate the above but practically lot of people miss this point when they consider returns from investment.

                    I agree with your point that 10-15% does not matter when somebody buy a property for living.

                    Comment

                    • #30

                      #30

                      Re : What is the Impact of IT Sector Downfall on Real Estate?

                      Originally posted by ajithpkl View Post
                      I have put in this for the benefit of those who are investing only for investment purpose, specifically in plots at far away places where the fall will be much more than a good locations in the city. I agree that anybody with basic schooling can calculate the above but practically lot of people miss this point when they consider returns from investment.

                      I agree with your point that 10-15% does not matter when somebody buy a property for living.
                      and i agree with your point of fear about 'far away places' from city

                      Comment

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