Friends,

The peak time for Chennai Real estate in chennai is over.

If chennai RE is at peak anyone can sell their property in no time.
In 2007 everyone was running after land. It was like getting 'sundal' at vinayagar temple.
Banks also gave loan like giving 'sundal' at temples. Now banks are not able to get back the loan amount.
They dont know for sure the amount of non performing loans.
Banks are in denial mode in giving loans. Not only that. people also are not in loan buying mood.
They have lost their confidence about repaying the loans.
Those who have accumulated black money dont want to invest in 'non performing' properties.
Because of various reasons like these, peak time for Real estate in chennai is over.

Everywhere owners are telling rate at their will. Its like telling "Ayiram... rendayiram... naalayiram....".
Those who realised the facts are gradually reducing the price. But in most of the cases, plots are lying unsold.

If one is willing to sell a plot, and if there are many buyers we can say there is demand.
If there is demand from many sides, there will be price escalation.
But no demand... No increment in price. But rebate sale has started without buyers.
thanks
chataara

chataara
Read more
Reply
277 Replies
Sort by :Filter by :
  • contra good luck with your value buying
    CommentQuote
  • Originally Posted by sethugm
    Contra,

    You please take any industry or your favourate RE industry and let us know anyone who has posted profit or has the decent outlook for the next 1 year looking rosy.Any RE company which has retained 40 % of its peak Jan 2008 prices ?

    Please let us know what your fundamental analysis says on the Indian RE Companies . Whats the most favored company to invest in ?


    Real estate is a long term investment it is not for traders. One must have patience and foresight. Tell me how can I invest money just by taking next 1 year outlook.

    You and few others argued that since IT professionals stopped buying as they are scared crows now due to US recession, Indian Real estate will start falling.

    I argued that some domestic industries such as indian media have crossed a threshold and already become global leaders.....just take the IPL even now people are crazy watching them driving Ad revenue for Max.

    My views may be very difficult to understand...I would say that since rice prices have increased from Rs.19 a kilo to Rs.42 a kilo, Indian farmers will benefit. I would go one step furthur and say that agriculture will be in bull run for next 20 years and our humble indian farmer is the next IT professional with pocket full of cash to drive Indian real estate for next 20 years.

    Regarding the most favoured RE company to invest in, I would say Apollo Hospitals ( again my unconventional view it is not even a RE company) as they need to build more hospitals and hence will acquire more land no matter what the price. As lifestyles increase in Asia, people will eat, smoke & booze more and then come to India for treatement as we have the Asia's best Healthcare.
    CommentQuote
  • Originally Posted by contra
    Failed companies like Pyramid Saimira are there in every industry, this should not be used to call the entire indian media sector as rubbish. Even Enron, which was a power and energy company failed, but the most valuable industry in the world in energy, power and their utilities. Will you call entire energy sector as rubbish?

    Before making narrow judgements do a complete fundamental analysis and you will realize that underneath all this negative sentiment floating around there is value.

    A real investor, a long term investor will buy when everyone is thinking negatively and making negative interpretations like now. There are not enough buyers now as people are scared to take loans. If you are a cash buyer like I am, this is the time to get a location and property of your choice.

    This is value buying, bye for now.

    What is value investing

    As per Benjamin Graham regarded by many to be the father of value investing it is buying stocks at less than their intrinsic or book value.
    How will you know the intrinsic value in RE especially when the price has increased 300% in last 3 years and there is no transparent index to measure the price.

    So value investing is not about buying something today because it was 20% high few months back.It is about not losing money by knowing the real value of what you buy.I agree best time to buy is during negative times but for that price has to decrease considerably to maintain the margin of safety.

    If you had bought stocks at BSE around 15000 level thinking as value investment you would have easily lost 50% when it touched 8000.
    CommentQuote
  • I never try to time the market, nobody can and nobody has done so in history.

    Fundamentals for Real Estate in India is very good and I like to buy now.

    On the other hand I am a big bear myself on US and UK Real estate, don't buy there it will sink furthur.
    CommentQuote
  • Dear friends,

    Very interesting and healthy arguments and counter arguments. Please contiue.

    ks2071746:p
    CommentQuote
  • Sacred becomes Scared

    Originally Posted by contra
    Real estate is a long term investment it is not for traders. One must have patience and foresight. Tell me how can I invest money just by taking next 1 year outlook.

    You and few others argued that since IT professionals stopped buying as they are scared crows now due to US recession, Indian Real estate will start falling.

    I argued that some domestic industries such as indian media have crossed a threshold and already become global leaders.....just take the IPL even now people are crazy watching them driving Ad revenue for Max.

    My views may be very difficult to understand...I would say that since rice prices have increased from Rs.19 a kilo to Rs.42 a kilo, Indian farmers will benefit. I would go one step furthur and say that agriculture will be in bull run for next 20 years and our humble indian farmer is the next IT professional with pocket full of cash to drive Indian real estate for next 20 years.

    Regarding the most favoured RE company to invest in, I would say Apollo Hospitals ( again my unconventional view it is not even a RE company) as they need to build more hospitals and hence will acquire more land no matter what the price. As lifestyles increase in Asia, people will eat, smoke & booze more and then come to India for treatement as we have the Asia's best Healthcare.


    Yes the sacred becomes scared now ? And they foolishly caused the > 50 % of the inflated RE pricees fuelled by easy credit and mad rush/drive by builders and buyers.Its good indication that they become scared and thats enough to bring down the prices to realistic levels ... Pls remember once it reaches the realistic levels ... am sure every bear here will become bullish and they are bearish as they dont want to pay irrational prices and cant be easily carried away by the mad rush.

    Your views are very easy to understand and the entire world has accepted the RE slowdown & possible corrections which must take place from the prevailing prices especially the big builders & they are correcting themselves.

    Thanks
    CommentQuote
  • Originally Posted by contra
    Real estate is a long term investment it is not for traders. One must have patience and foresight. Tell me how can I invest money just by taking next 1 year outlook.

    You and few others argued that since IT professionals stopped buying as they are scared crows now due to US recession, Indian Real estate will start falling.



    What do you mean by long term? 600% ROI in 3 years?
    CommentQuote
  • ]http://www.business-standard.com/india/news/office-rentals-crash-in-delhi-mumbaiexcess-supply/58987/on
    CommentQuote
  • Originally Posted by strongsville
    What do you mean by long term? 600% ROI in 3 years?


    1000% ROI in 10-12 years that is long term.

    What was the cost of 1 acre of land in Perugudi in 1999......What it is now in 2009? Humble farmers who owned acres of land in Perungudi-Velachary are now Crorepatis......I know a government servant who sold some ancestral land in OMR and now travels in a BMW. That is what I meant by Long term.

    Similary now if I buy 1 Ground for 95 lacs, in 2024 it could be 10 Crores. That is long term investment. I am 30 now, with that amount and some other investments I can retire at 45.

    I have patience. During the journey there could be downs & ups but I won't bother because I will sell only in 2024.

    Some people are trying to time the market by making statements like exactly by 2012 RE will correct by 50% ...by 2015 by 80% then they will buy. That is foolish nobody absolutely nobody can time the market...If they can then they should be Bernard Madoff's cousin brother.

    Those who invested in 2007 expecting 600% return in 2010 are jokers...I am not talking about them and neither am I interested in such blokes.
    CommentQuote
  • Dear friend,

    Yes. RE investment is to be seen in a long term perspective. In any case, no one will get any lower return than a bank FD.

    ks2071746
    CommentQuote
  • Originally Posted by contra
    1000% ROI in 10-12 years that is long term.

    What was the cost of 1 acre of land in Perugudi in 1999......What it is now in 2009? Humble farmers who owned acres of land in Perungudi-Velachary are now Crorepatis......I know a government servant who sold some ancestral land in OMR and now travels in a BMW. That is what I meant by Long term.

    Similary now if I buy 1 Ground for 95 lacs, in 2024 it could be 10 Crores. That is long term investment. I am 30 now, with that amount and some other investments I can retire at 45.

    I have patience. During the journey there could be downs & ups but I won't bother because I will sell only in 2024.

    Some people are trying to time the market by making statements like exactly by 2012 RE will correct by 50% ...by 2015 by 80% then they will buy. That is foolish nobody absolutely nobody can time the market...If they can then they should be Bernard Madoff's cousin brother.

    Those who invested in 2007 expecting 600% return in 2010 are jokers...I am not talking about them and neither am I interested in such blokes.


    If no one can time the market then no one can predict the returns also.
    How come you are predicting in 2024 it could be 10 Crores.
    Are you Warren Buffet's son?

    Famous economist Keynes once said
    "In the Long Run, We Are All Dead"
    CommentQuote
  • Originally Posted by BigBear
    If no one can time the market then no one can predict the returns also.
    How come you are predicting in 2024 it could be 10 Crores.
    Are you Warren Buffet's son?

    Famous economist Keynes once said
    "In the Long Run, We Are All Dead"


    V.Well Said.People really think money making is so simple.If one buys some property for X and then sell the property in 2024 it will be 10 X.As if it is a linear equation in a mathematical problem.

    WHO KNOWS BY 2024 CHENNAI WILL BE UNDER WATER DUE TO GLOBAL WARMING.
    CommentQuote
  • Dear friend,

    In the long run, every one will be dead but their investments will live for the sons & daughters to fight and share. If they choose to go to court for resolution, the advocates will the ones to enjoy the properties.

    ks2071746:D
    CommentQuote
  • no one can time the real estate or else everyone would have bought a piece of land in 2003 itself if they knew it will go to this height
    CommentQuote
  • Originally Posted by ks2071746
    Dear friend,

    In the long run, every one will be dead but their investments will live for the sons & daughters to fight and share. If they choose to go to court for resolution, the advocates will the ones to enjoy the properties.

    ks2071746:D


    yes KS like the udayam property with 58 hiers and deter any prospective buyer and become the staple of bears:D
    CommentQuote