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Property Price Trends in Chennai

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  • Re : Property Price Trends in Chennai

    If supply-demand is fundamental to you, that should be your entry/exit criteria for buying or selling decision, right?

    If it is not measurable or quantifiable, how will you make decisions? Care to share how someone using this demand-supply can make decisions? If you are not in the profession of RE, how do you know if the stock is not moving at a certain price point? More importantly, you know this after the fact. Is that how the investment decisions are made?
    Last edited September 6 2014, 09:43 AM.

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    • Re : Property Price Trends in Chennai

      Originally posted by maverick007 View Post
      If supply-demand is fundamental to you, that should be your entry/exit criteria for buying or selling decision, right?

      If it is not measurable or quantifiable, how will you make decisions? Care to share how someone using this demand-supply can make decisions? If you are not in the profession of RE, how do you know if the stock is not moving at a certain price point? More importantly, you know this after the fact. Is that how the investment decisions are made?
      It is key to my decisions.

      If there is a project X is launched and there is no sales (no demand).
      Why would I go to book it and give up my money.

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      • Re : Property Price Trends in Chennai

        Originally posted by k11
        It is key to my decisions.

        If there is a project X is launched and there is no sales (no demand).
        Why would I go to book it and give up my money.
        Glad you shared. Your views are far disconnected from anything that can be approached as 'investment'.

        Let me take you to the investment fundamentals. Please say Agree/Disagree on below and no other explanations needed:

        1. Investment is not about what is the demand at the time you buy.

        2. Voting machine influenced by various other factors can slacken the interest. Lower demand at the entry rarely points to the investment potential of what it can be in future.

        3. What really matters is what you realize at the time of selling. Price at which you bought helps to realize more.

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        • Re : Property Price Trends in Chennai

          @Maverick, I agree with point 2. I have in general seen that plots or apartments selling at premium rates usually appreciate more than the ones selling at lower rates.

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          • Re : Property Price Trends in Chennai

            Originally posted by maverick007 View Post

            1. Investment is not about what is the demand at the time you buy.

            2. Voting machine influenced by various other factors can slacken the interest. Lower demand at the entry rarely points to the investment potential of what it can be in future.

            3. What really matters is what you realize at the time of selling. Price at which you bought helps to realize more.
            #1- Not right. Momentum investors look for any interest from other buyers for the same asset class before plunging it.

            #2- Most of them know the theory and no point in beating around same old thoughts. History is only for guidance and should ready to adopt to changing environment for successful investing. Lower demand at the entry tends to be poor most of the time. they have less Probability of becoming successful investment. Again learn basics first then you can debate here

            #3- It look like a kid reiterating that milk is always white. But he does not know there are different milks with various colors. There are people who buy RE just for pleasure never worry about selling it. Some others buys RE to avoid renting and have pride of owning it. The list goes on.
            You are confused with RE investment by mixing it with equity investment.
            Last edited September 6 2014, 07:23 PM.

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            • Re : Property Price Trends in Chennai

              Originally posted by manojb23 View Post
              I have in general seen that plots or apartments selling at premium rates usually appreciate more than the ones selling at lower rates.
              I did not preclude the above. My contention was the opposite: If there is no demand and price reflects that, it means nothing to what it can do in future as an investment.

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              • Re : Property Price Trends in Chennai

                Originally posted by maverick007 View Post
                Let me take you to the investment fundamentals. Please say Agree/Disagree on below and no other explanations needed:

                1. Investment is not about what is the demand at the time you buy.
                Wrong. Investment is about demand when I am buying.
                My buying decision and pricing are based on demand.

                RE is a commodity, no value without demand.


                Originally posted by maverick007 View Post
                2. Voting machine influenced by various other factors can slacken the interest. Lower demand at the entry rarely points to the investment potential of what it can be in future.
                Wrong.
                If the project in the middle of nowhere has lower demand and you are the only one seeing potential, I see a problem.

                What do you know that market does not know.
                Why would it have less demand if there is lot of potential.

                Remember, market is smarter than you. I will side with market than my personal views.

                I totally agree with @manojb23. Higher priced projects, assuming means project with higher demand, it is common to see them outperform as the demand keeps increasing.

                Originally posted by maverick007 View Post
                3. What really matters is what you realize at the time of selling. Price at which you bought helps to realize more.
                @sun2ri is right.
                Most people do not think of selling while buying, people make RE decisions for long term.
                This is not like stocks - not sure why you always pick that for comparison.

                It is all about paper value, rents, etc - that will make you comfortable knowing your asset has a good value on market, that's it.
                Last edited September 6 2014, 08:08 PM.

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                • Re : Property Price Trends in Chennai

                  Originally posted by maverick007 View Post
                  If there is no demand and price reflects that, it means nothing to what it can do in future as an investment.
                  This my friends is called 'Speculation'.
                  Throwing the dice to see if the demand increases in future.

                  No demand means he is the only one seeing value.
                  There is the problem here if you assume you are a 'Guru' and have a third eye to see what others cannot see.

                  Market collectively is smarter than you, remember that.
                  Last edited September 6 2014, 08:14 PM.

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                  • Re : Property Price Trends in Chennai

                    This is public forum. If you want to take on particular person then do it with private msg.

                    You keep posting your rants with half baked knowledge. Better complete your home work and your teacher may be asking that on Monday.

                    This is forum meant for grown ups and you play around some where else relevant to your age group.

                    Originally posted by maverick007
                    sunr2i:

                    That was posed to k11.
                    Last edited September 6 2014, 09:35 PM.

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                    • Re : Property Price Trends in Chennai

                      Originally posted by k11
                      Wrong. Investment is about demand when I am buying.
                      I asked whether you agree or disagree. Not right or wrong. Context of the topic is on RE as investment. sunr2i is taking the route of buying RE for pleasure and you claim he is right. Focus on the topic - RE as investment. I asked about investment fundamentals as the context of what we are discussing is relevant.

                      For any investment, ultimate goal is return. So, bringing the topic of people who do not think about selling at buying or it is not like stocks blah...blah, is pure nonsense and has no relevance to the topic. We are talking of RE as investment and hence stay with the topic.

                      If investment is about returns, it is buy-low and sell-high. If you don't get this, I have to keep drilling in. Between buy-low and sell-high, there is something known as 'time'. Demand is a sum total of emotions driving the 'current price'. With 'time', there is no guarantee that the sum total will remain the same and there is a scope for change and that's what translates in to a 'return'. If you see, there is no correlation between the 'price' it command in future and what the 'demand' perceives now.

                      To think that what Market prices in today is a function of its 'pricing' in future is the most ridiculous statement I have ever heard in the realm of anything to do with investment. Other wise, there is no multi-baggers or returns. Mis-pricing is what translates in to returns and superior returns.

                      Your claim that 'Market is smarter than you' takes the cake because it shows that you have no clue on what you are talking about and you are missing the aspect called time. If Market is that smart, pricing in 2009 should not have been ridiculously low. Market is smart but it is often short sighted - it is the time, stupid, that allows you to see over the hump. If you don't get this, no amount of drilling can help.

                      Coming to chasing demand: While it is your style, it is nothing to do with investment. Why? You could never quantify what is demand when I asked you to show in measurable term. When investment is about long term, you choosing an ingredient called 'demand' which is a function of short term sentiment is completely misplaced. What you are doing is momentum chasing - chase where there is a demand. When there is a demand - you pay higher price. You are taking the support of 'Market being smarter than you' as a stupid rationale and missing the point of what the Market is telling you - short term or long term.

                      If you have substance, respond to the points raised by abishek which you evaded avoiding the crux and making up other idiotic rants.

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