Just An Observation:

As we could see decent decrease (percentage may vary from location to location) in RE, I am wondering why still the house rent (even for residential purpose) is keep increasing (especially within chennai). I don't see any down trend / stabilization in terms of house rent.

Is there any other factors (school, college, hospital, etc) plays major role which OVERRIDES present RE trend ? Do we need to consider "HOUSE RENT" as different scenario ?

Suggestion are welcome :)
Read more
Reply
35 Replies
Sort by :Filter by :
  • Dear friend

    In perambur 1/2 km from bus depot, a promoter is constructing 4 flats in ground area. Few months back all the flats were booked.

    But, due to the downward trend all those who have given advance have got back their advance amount telling different reason. Now that builder is in embarassing situation not able to complete his project


    thanks

    Chataara
    CommentQuote
  • Dear friends,

    It looks like the new nataraaj should be 'strongsville' who were sending posts few weeks back.

    No offence

    thanks

    chataara
    CommentQuote
  • advance back

    Originally Posted by chataara
    Dear friend

    In perambur 1/2 km from bus depot, a promoter is constructing 4 flats in ground area. Few months back all the flats were booked.

    But, due to the downward trend all those who have given advance have got back their advance amount telling different reason. Now that builder is in embarassing situation not able to complete his project


    thanks

    Chataara


    Dear Chataara,

    Those who got back their advancs should be the lucky ones and the builder also should be a good and reasonable guy. As we have seen in some other posts, even reputed builders like Doshi are not giving the advances back even to the genuine clients who have lost their jobs in the present IT downtrend, without deducting cancellation charges like 10% Rs. 1 lakh etc.

    ks2071746
    CommentQuote
  • Originally Posted by ks2071746
    It is true in certain areas. May not be true in all areas.
    I have a practical case here. There is a project at Saidapet West with 12 flats, constructed about 10 years back, good construction. You will not believe, the rent being paid by the tenants for a 1 bed, 2 bed and 3 room flats are in the same range of Rs. 3500 to Rs. 3800 PM. The main reason has been that none of the flat owners did talk wih each other to find out what rent they have been getting in the last 2 or 3 years. Now the 2 bed and 3 room owners are increasing their rent to Rs. 6000 and 8000 and there are good responses.

    ks2071746


    I used to pay 3650Rs per month for a decent flat in west mambalam (5 minute walk from tnagar bus depot) from 2005 to start of 2007, which was raised to 4500Rs later.

    Now, 1BHK in the same apartments are being rented out for 6000.
    CommentQuote
  • Originally Posted by gone_mad
    I used to pay 3650Rs per month for a decent flat in west mambalam (5 minute walk from tnagar bus depot) from 2005 to start of 2007, which was raised to 4500Rs later.

    Now, 1BHK in the same apartments are being rented out for 6000.


    These increases were long due.

    But the ones which were increased due to IT boom are facing decreases. Check Last week HINDU on " Rents decreasing" topic

    Now brokers are telling demands for rental houses having more than Rs 5000 per month have become less
    CommentQuote
  • Originally Posted by Nataraajg007
    These increases were long due.


    Not getting you... does that mean I was paying less rent?
    CommentQuote
  • rent

    Originally Posted by gone_mad
    I used to pay 3650Rs per month for a decent flat in west mambalam (5 minute walk from tnagar bus depot) from 2005 to start of 2007, which was raised to 4500Rs later.

    Now, 1BHK in the same apartments are being rented out for 6000.


    Dear gone_mad,

    It is but natural that with such rent inceases one cannot avoid going mad. Possibly this may be the reason, your id is so? Not to hurt you but just to make this forum a litle more lively.

    ks2071746:D
    CommentQuote
  • Originally Posted by ks2071746
    Dear gone_mad,

    It is but natural that with such rent inceases one cannot avoid going mad. Possibly this may be the reason, your id is so? Not to hurt you but just to make this forum a litle more lively.

    ks2071746:D


    Ya, that was the inspiration :D
    I really went mad with the prices quoted by brokers for flats / lands in and around Chennai and hence the name.
    CommentQuote
  • Originally Posted by gone_mad
    Ya, that was the inspiration :D
    I really went mad with the prices quoted by brokers for flats / lands in and around Chennai and hence the name.


    But now you should change the name as prices are dropping
    CommentQuote
  • Naturally!

    Originally Posted by Nataraajg007
    But now you should change the name as prices are dropping


    Just a bit of pun-ning, so don't take it to heart!

    If rents go down, would you change it to "Gone-sane"? Or will you make it "In-sane"? :D

    Just kidding. No offence!

    cheers
    CommentQuote
  • Originally Posted by wiseman
    Just a bit of pun-ning, so don't take it to heart!

    If rents go down, would you change it to "Gone-sane"? Or will you make it "In-sane"? :D

    Just kidding. No offence!

    cheers


    lol, I'd rather prefer to keep it as 'back-to-sane' ;) because I used to be normal :D

    BTW, 'Pun' in English and Tamil mean the same or what? I remember some kinda poem or wit with words in tamil is also called as 'pun'
    CommentQuote
  • Originally Posted by gone_mad
    I used to pay 3650Rs per month for a decent flat in west mambalam (5 minute walk from tnagar bus depot) from 2005 to start of 2007, which was raised to 4500Rs later.

    Now, 1BHK in the same apartments are being rented out for 6000.


    Dear gone_md,

    See. It is more of a supply and demand in the particular area and of course the project. What choice the tenant has got on the rent demanded by the owners? If one does not take it, there are others taking it. Most owners increase the rent every year and whenever the new tenant comes in even at shorter intervels. That's why, one should go in for a flat of his own whatever be the size depending on his financial capabilty, let the size be, single or double room etc.

    ks2071746
    CommentQuote
  • Originally Posted by ks2071746
    Dear gone_md,

    See. It is more of a supply and demand in the particular area and of course the project. What choice the tenant has got on the rent demanded by the owners? If one does not take it, there are others taking it. Most owners increase the rent every year and whenever the new tenant comes in even at shorter intervels. That's why, one should go in for a flat of his own whatever be the size depending on his financial capabilty, let the size be, single or double room etc.

    ks2071746



    Could you please explain me the funda behind going for a flat paying EMI every month against renting out a flat for years together?
    CommentQuote
  • Originally Posted by gone_mad
    Could you please explain me the funda behind going for a flat paying EMI every month against renting out a flat for years together?

    One of the crazy sales pitch of builders especially when prices are down like in 1996 is EMI a flat instead of paying RENT. That is incorrect. EMIs are a permanent trouble and no way to renegotiate! (Dont talk about interest falls...they dont take care of price fall in flats!). Rent also means you can change the place. EMI is like marriage, RENT is like affair.
    THe benefit in the marriage is you cant be thrown out easily and that is exactly the one and only reason to buy a property.
    CommentQuote
  • Ofcourse you can buy also for speculative and growth reasons but then flats are not the asset class for investments. Land is for investment. Land appreciates, Building depreciates. Cheers.
    CommentQuote