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
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  • Originally Posted by Nataraajg007
    Black money will be generated only when business is there. If there is no business, no income and no need of evasion of income tax and hence no black money.

    So investment in RE will also come down


    when you said 'no business' thats it '
    you dont have to say no invstmnt in RE
    its also business.redundancy is your forte natraaj as redundant as the aa's in your name natraaaaaaj
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  • Originally Posted by abk
    when you said 'no business' thats it '
    you dont have to say no invstmnt in RE
    its also business.redundancy is your forte natraaj as redundant as the aa's in your name natraaaaaaj

    Looks like RE forum will become BM (Black Money) forum. Incidentally the white portion is much higher in Bangalore. Even then not much fall in RE prices really except when huge numbers are involved say in Brigade at Rajaji Nagar. Incidentally this fellow was using the same trick, call Rajaji Nagar as Malleswaram (like calling Mogappair as Anna Nagar).
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  • Originally Posted by sethugm
    Posted by Mr sekard in Vikatan/Business Edition.

    "புக் செய்த ஐ.டி. துறையைச் சேர்ந்த சிலருக்கு இப்போது வேலை இழப்பு ஏற்பட்டிருக்கிறது. அப்படிப்பட்டவர்களுக்கு சம்பந்தப்பட்ட நிறுவனத்தின் மனிதவளத்துறையுடன் தொடர்பு கொண்டு உறுதிப்படுத்திக்கொண்டு, அட்வான்ஸைத் திரும்பக் கொடுக்கிறார்களாம்"

    'டி.எல்.எஃப். ஹோம்ஸ் டெவலப்பர்ஸ்' நிறுவனத்தின் தமிழகப் பிரிவு பொறுப்பாளர் கே.கே.ராமன்.

    The above statement by Mr.K.K.Raman,DLF Tamilnadu Director states that IT/ITES guys those lost the job are allowed to cancel their booking on confirmation from HR of the company concerned.

    With IT/ITES job losses and salary reduction , we can see more EMI Defaults and will see all the 'appreciation' will be going to Banks when they liquidate the property.When banks see the value of the 'property' going down the outstanding lent amount , banks will start faltering...


    Dear friends,

    Last two years more than 30 percent of the RE transactions

    have bene executed in favour of IT guys who are around 30 years of age.

    We cannot deny this fact in the escalation of RE price.

    Now if their jobs are in jeopardy how can they buy properties at their will.

    They are afraid of their future.

    thanks

    chataara
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  • Originally Posted by chataara
    Dear friends,

    Last two years more than 30 percent of the RE transactions

    have bene executed in favour of IT guys who are around 30 years of age.

    We cannot deny this fact in the escalation of RE price.

    Now if their jobs are in jeopardy how can they buy properties at their will.

    They are afraid of their future.

    thanks

    chataara


    Dear friend,

    IT guys are afraid of buying flats now as their jobs ae in jeopardy and salaries are coming down. Only guys with their parents supporting them can continue with their EMI on house loan already taken. Now a days, the IT guys seldom go to big hotels for party or even for normal food. They start cooking themsleves or go to medium class hotels for their food. Even in their Food Courts in their companies, they opt for medium or low priced food items. Some guys who have been going in for I class railway season ticket are switching to II class season ticket. They are now realising the need and necessity of saving for future which they were not doing earlier when their jobs were not that much in danger. (Incidentally, my son is a software engineer in a reputed IT company- not in Satyam))

    ks2071746

    :)
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  • Originally Posted by ks2071746
    Dear friend,

    IT guys are afraid of buying flats now as their jobs ae in jeopardy and salaries are coming down. Only guys with their parents supporting them can continue with their EMI on house loan already taken. Now a days, the IT guys seldom go to big hotels for party or even for normal food. They start cooking themsleves or go to medium class hotels for their food. Even in their Food Courts in their companies, they opt for medium or low priced food items. Some guys who have been going in for I class railway season ticket are switching to II class season ticket. They are now realising the need and necessity of saving for future which they were not doing earlier when their jobs were not that much in danger. (Incidentally, my son is a software engineer in a reputed IT company- not in Satyam))

    ks2071746

    :)


    Dear friend

    this fear will bring down the sales in RE sector.

    Everyone wants to hold their money for future.

    thanks

    chataara
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  • It is true that many guys in IT sector are loosing job or increment or promotion some even life.

    It started now affecting all other sectors as well.

    2009 is predicted as the worst.

    RE business is naturally collapsing in chennai also
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  • GDP/Export growth rate for 2009 has been rederived(Am sure this will undergo changes in negative atleast 5 times in 2009).

    Overall Job prospects/Salary trends are going downwards.

    IT spending by global majors has reduced and the IT/ITES salary will be subjected to normalization . People in non-IT industry & Govt sector will be happy to see this decline (to some extent...)

    Automobile sector is running in patchy roads.

    Textiles & Apparels exports have declined.

    Gems & Precious stone export has reduced.(save gold)

    Stocks have underwent dramatic changes which reflects the industry growth for the next 9-12 months.Majority of the retail investors have lost 60-70 percent of the money and not in a position to exit now.

    The RE Project completion dates have seen indefinite corrections.

    The margin (buyer component /loan be approved by banks) have seen changes.

    As stated by many here ,the real realty fall will be seen in few weeks.
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  • Originally Posted by Nataraajg007
    Black money will be generated only when business is there. If there is no business, no income and no need of evasion of income tax and hence no black money.

    So investment in RE will also come down


    Dear friend,

    The BM in India is so large in trillions and no need to add further billions to what are there now unaccounted. Some one has told in this forum, if all the black money comes out from the Indians holding them i so many ways and places, India will be the richest country in the world. So even if there is no business to generate BM further, the position will not undergo much change.

    ks2071746
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  • Originally Posted by ks2071746
    Dear friend,

    The BM in India is so large in trillions and no need to add further billions to what are there now unaccounted. Some one has told in this forum, if all the black money comes out from the Indians holding them i so many ways and places, India will be the richest country in the world. So even if there is no business to generate BM further, the position will not undergo much change.

    ks2071746


    Wont the black money also get eroded in the recession?

    Though majority portion of the money would be still in cash,under benami account/trust or in some swiss bank.

    A huge chunk of black money is routed out through Hawala and brought back using means such as participatory notes etc.

    Most of these investments were done in stock markets and Real estate.

    Was just wondering how much black money would go into thin air when the scotland banks go bankrupt???when RE and Stock market crashes.
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  • Originally Posted by nabishek
    Wont the black money also get eroded in the recession?

    Though majority portion of the money would be still in cash,under benami account/trust or in some swiss bank.

    A huge chunk of black money is routed out through Hawala and brought back using means such as participatory notes etc.

    Most of these investments were done in stock markets and Real estate.

    Was just wondering how much black money would go into thin air when the scotland banks go bankrupt???when RE and Stock market crashes.


    true some would erode.
    but huge BM is generated while i type this.
    the recent example of 3G mobile licences awarded on first come first served basis is a loss of 60000 cr to the exchequer(estimated).
    this amount is nearly the amount the CRR reduction pumped into the market.
    this is just one of them among thousands.see the picture?
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  • Originally Posted by abk
    true some would erode.
    but huge BM is generated while i type this.
    the recent example of 3G mobile licences awarded on first come first served basis is a loss of 60000 cr to the exchequer(estimated).
    this amount is nearly the amount the CRR reduction pumped into the market.
    this is just one of them among thousands.see the picture?


    This 60000 Cr is not Black/Corrupt Money suddenly pumped into the RE market .Its the possible loss for the Govt and this figure is an exaggerated figure by the opposition.

    Few crores would have been transferred as a bribe to get the contract.Given the volatile nature of the political power & threat that next Govt will initiate legal action as revenge (not for the benefit for the Govt), the corrupt beneficiary would not park these money into RE.

    The businessmen have the power to get back the money back when the underlying business does not fair well from these politicians.

    Am sure that the entire bribe will not be transacted as hot cash & major portion of it will be share in the business or that will be paid in future.

    When the future of the business itself is seen as bleak due to recession neither Black nor Corrupt Money can save the RE.

    We could understand the desperation to hold up the RE prices. But
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  • Originally Posted by sethugm
    This 60000 Cr is not Black/Corrupt Money suddenly pumped into the RE market .Its the possible loss for the Govt and this figure is an exaggerated figure by the opposition.

    Few crores would have been transferred as a bribe to get the contract.Given the volatile nature of the political power & threat that next Govt will initiate legal action as revenge (not for the benefit for the Govt), the corrupt beneficiary would not park these money into RE.

    The businessmen have the power to get back the money back when the underlying business does not fair well from these politicians.

    Am sure that the entire bribe will not be transacted as hot cash & major portion of it will be share in the business or that will be paid in future.

    When the future of the business itself is seen as bleak due to recession neither Black nor Corrupt Money can save the RE.

    We could understand the desperation to hold up the RE prices. But


    a few crores??? the deal is always 50 % of the amount saved.the few crores would be only for an as per rule auction.have you ever dealt with ministers sethugm.i have recently got an engg college started for my friend,and was party to considerations given,they tell you your profits and ask for proportionate cut.
    and there is a thread for the best place to park BM,pls contribute .

    as per your 'understanding the desperation to hold up the RE prices' is appreciated, nobody can hold or break the prices,the mkt dynamics decides that. you and i are just trying to be 'smart'.chennai has withstood the onslaugth till now,may be it is deaf and is unable to hear the chanting
    "prices are falling".
    wake up chennai, wake up.
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  • Originally Posted by abk
    a few crores??? the deal is always 50 % of the amount saved.the few crores would be only for an as per rule auction.have you ever dealt with ministers sethugm.i have recently got an engg college started for my friend,and was party to considerations given,they tell you your profits and ask for proportionate cut.
    and there is a thread for the best place to park BM,pls contribute .

    as per your 'understanding the desperation to hold up the RE prices' is appreciated, nobody can hold or break the prices,the mkt dynamics decides that. you and i are just trying to be 'smart'.chennai has withstood the onslaugth till now,may be it is deaf and is unable to hear the chanting
    "prices are falling".
    wake up chennai, wake up.


    yes chennai is in a diff orbit
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  • read somewhere that the Marans are in the RE business too (land transacting). Not sure about the authenticity of the news, but the tough Chennai RE market despite the global / national slowdown makes me to wonder if that could be true as well
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  • Originally Posted by gone_mad
    read somewhere that the Marans are in the RE business too (land transacting). Not sure about the authenticity of the news, but the tough Chennai RE market despite the global / national slowdown makes me to wonder if that could be true as well


    Dear friend,

    It may be true. There is a proverb in Tamil- there won't be any smoke without fire- English translation. If it is true, they are investing their chunks of money in the RE at the current downtrend.

    ks2071746

    ks2071746
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