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Property Price Trends in Chennai

Last updated: 4 weeks ago
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  • Re : Property Price Trends in Chennai

    Precisely where I was coming from!

    Originally posted by contra View Post
    This scenario would work only if

    (1) Rs.80 lakh property today falls to Rs.40 lakhs after 3 years.

    (2) Rs.80 lakh propety today is worth only Rs.1.5 crores after 20 years.

    If the above 2 points were to happen, than it would make sense to wait and buy after 3 years with Rs.40 lakhs full cash without taking any home loan.

    Let's continue this discussion after 3 years.

    Contra,

    This has always been my argument. So, from my pov, the 2 points are merely a matter of time - 3 years is only a number I picked. I'm prepared to wait for the right price for any amount of time!!!

    Yes, we will return to this point in 3 years - or maybe even much sooner, if things turn around the way I think they will!

    cheers

    Comment


    • Re : Property Price Trends in Chennai

      Yes. At high prices, property goes from awesome to aweful!

      Originally posted by amit_2009 View Post
      This is plain awsomeness!! The only thing that can protect investments is to buy very very low... + not buy from bulls in a bear market
      + the monthly rent cost incurred.. if you are not staying in the same property
      + the 30% tax on rental income if you are renting it out
      + the capital gains tax when you sell it at 1.5cr
      + the maintainence costs incurred on the property throughout the period

      Amit,

      Feeling too lazy to do a spreadsheet on the cummulative effects of deficit rentals post taxes, maintenance & repair costs, loss of rent at times, and the many other costs associated with owning property.

      But it is a must to show people the real deal with property and I will attempt it sometime soon.

      cheers

      Comment


      • Re : Property Price Trends in Chennai

        Originally posted by wiseman View Post
        Not so soon, Nats!

        First the bears will rule the roost - as they already are now. And by this I mean volumes as well as value declines.

        When the price is right (and it will be right sooner or later), I will become a bull and buy. Because, from times immemorial buying major assets at the right price was always the surest and quickest way to building a fortune and staying positive in our wealth position - and anyone who says that buying a house is only about staying in it and not in it's building wealth for them and their 7 generations following is fooling himself and no one else!

        Ultimately, a property bought at 40 lakhs with cash after 3 years instead of now at 80 lakhs will reach 1.5 crores sometime in the next decade or two.

        At that point, I will have profited by 1.1C. While the person who took a 70 lakh loan will have just broken even, having paid 80L for the house and another 70L to the banker!!!

        Spending 20 years to shell out 1.5C to the builder and broker after paying 30% tax on your salary and then having no added value on your house does seem a rather silly way to throw / gift your money to the builder and banker, don't you think?!

        cheers
        Simple. All I can tell u is you are timing the market incorrectly and u should go back and see ur year old predictions which have been wrong.

        Comment


        • Re : Property Price Trends in Chennai

          Originally posted by contra View Post
          This scenario would work only if

          (1) Rs.80 lakh property today falls to Rs.40 lakhs after 3 years.

          (2) Rs.80 lakh propety today is worth only Rs.1.5 crores after 20 years.

          If the above 2 points were to happen, than it would make sense to wait and buy after 3 years with Rs.40 lakhs full cash without taking any home loan.

          Let's continue this discussion after 3 years.
          Actually Contra, I had the same type of response to Wiseman almost an year ago. And prices have not fallen and Wiseman says the same thing. Other than battles arguments using pseudo ids and the rest, the topic between Wiseman and me is simple. Wiseman predicts continously against the tide and he yet continues to predict. So dont worry, you may not have the energy to last 3 years to fight Wiseman and even then Wiseman will tell whatever is against the tide then. In other words, he is capable of hiding a pumpkin inside curd rice! LOL!

          Comment


          • Re : Property Price Trends in Chennai

            Originally posted by nabishek View Post
            Thanks nataraj, I shall keep your advice in mind.Your method of using technical analysis and observing human psychology is unique.Thanks for the tip, I want to learn it and put it to use someday.

            I have great faith in RE, and is a sure shot wealth creator in my opinion.

            Frankly, I was thinking and expecting the top to occur somewhere around 2010 and it would take another couple of years to bottom out.

            I had stopped searching for property during 2006-2008 When price rose beyond my affordability.The haughtiness displayed by the builders during the time and preference given to people who took loans,crazy meaningless escalation price defying logic and locations that dont even feature in chennai map being sold at exorbitant prices convinced me that a huge bubble is building up which was bound to burst someday.

            I chose to stay away and was planning my entry around 2015 by when I should be personally, professionally and financially better placed.

            I was pleasantly surprised to see prices have stagnated since late 2007 and have started to dip downwards and got interested again.The top got pre-empted due to various reasons that i didnt anticipate then, including global economic slowdown.

            Contrary to the general belief, that market looking up and with more liquidity will lead to increase in price, I expect to see further correction and better deals coming soon at realistic prices.

            All the unsold inventory that were kept under the wraps by builders and owners because of less demand and lull in the market would make it back with better discounts.As for demand, there are scores of people waiting to buy at the right price.

            Builders and sellers cannot afford a price increase and risk scaring away people who have cash and are interested buying now.

            Its a buyers market till the existing inventory is completely absorbed.

            My contention has always been a rise and a new top greater than the last one is surely possible, but not before we see another phase of correction that provides value for money.Thats when demand will be sustained leading to gradual appreciation of assets.

            I feel it would be a healthy development, and is vital for the economy to keep moving.

            Keeping my fingers crossed.
            I suspect u r missing the momentum. Beyond that your arguments sound fundamentally interesting and I do understand them. Unfortunately markets either stock or realestate or anything dont work on fundamentals. That is about all I can say.
            As for 2015 and ur earning capacity, et.al. U r the best judge.
            Remember, if u r talking about flats then the ONLY REASON should be to live. And if u r talking of investment, even today land is cheap. Also I am sure the FSI will get revised once the big hands have eaten most of the land! That will make Chennai a worser jungle and Landowners super kings (CSK???!! LOL!).
            All the best.

            Comment


            • Re : Property Price Trends in Chennai

              Quite the contrary!!!

              Originally posted by Natarajg007 View Post
              Actually Contra, I had the same type of response to Wiseman almost an year ago. And prices have not fallen and Wiseman says the same thing. Other than battles arguments using pseudo ids and the rest, the topic between Wiseman and me is simple. Wiseman predicts continously against the tide and he yet continues to predict. So dont worry, you may not have the energy to last 3 years to fight Wiseman and even then Wiseman will tell whatever is against the tide then. In other words, he is capable of hiding a pumpkin inside curd rice! LOL!

              Actually Contra in the last 1 year there has been a decline of between 10% to 30% in prices as it is widely known and therefore the so-called contrarian predictions were quite on the ball!

              On the contrary, Nats predictions that prices will shoot up do not seem to have materialised over the last 1 year and so it is he who so far seems to have got the timing wrong!!!

              Just wanted to clear up some misunderstanding Nats has in his mind that somehow he has been right last one year! Mind can really play tricks on you, right?!

              cheers

              Comment


              • Re : Property Price Trends in Chennai

                Originally posted by Natarajg007 View Post
                This is what these funny US based jokers talk! First they start with US is dying and then they pity India. As if India is the 51st state of USA. I suspect these sort of folks have to be banned from this board for showing disrespect to India!
                Nataraj,

                What you said is partially true by having a PM who acts a World Bank rep which is totally controlled by US. Otherwise why should we get loans from world bank and invest in US T-Bonds at a lower rate?

                Also all our policies are to replicate western corporate culture including the new pension scheme, which is same as 401k in US. In US, everyone's 401k became 4k during the burst. Even after that experience, if our idiot politicians want to implement it in India, we are considered a 51st state of US.

                Also till today there are no proper regulations to check who owns P-Notes which are used by FIIs to invest in India. I seriously doubt that its all Sonia's (+other politicians') swiss money.

                Comment


                • Re : Property Price Trends in Chennai

                  In the last one year technically the Chennai real estate has stagnated with neither a rise nor a crash. Hence the game is still open between the bulls and the bears.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Hi Friends,

                    Appreciation of RE investment depends solely on whether the chosen location was right or not.

                    Its always better to place the bet on locations were infrastructure development, amenities, connectivity is planned.

                    Today Townships are being planned and being executed at large scale both by government and private realty players.

                    I firmly believe, its important we are aware and follow the government announcements.They act as very good indicators to whats in store in future.It can help in making well informed decisions.

                    Following are some of the development activities planned

                    Proposed New Corporations

                    1.Chennai corporation
                    2.South Chennai corporation
                    3.North Chennai corporation

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                    New satellite townships

                    To be developed at multiple places along the Outer ring Road stretch and adjacent Tiruvallur and Kancheepuram revenue districts.

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                    Connectivity

                    Road connectivity

                    1.Radial Elevated Expressways/Bus Rapid Transit System.

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                    2.Outer and Inner Ring Road

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                    3.New Bus routes and connectivity

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                    Last edited June 1 2009, 08:51 AM.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Rail Connectivity

                      1.Metro Rail Project

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                      2.Mass Rapid Transit System(overhead train)

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                      planned to extend and connect all parts of the city.

                      3.Suburban Railway line till cuddalore via ECR/OMR

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                      Air Connectivity

                      1.Airport expansion plan

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                      2.Greenfield airport at sriperambathur

                      Sea Connectivity

                      1.Chennai port and harbour Renovation and expansion.
                      2.Ferry service to coastal areas of Tamilnadu.

                      and so many lots more.

                      Welcome members to share the other development plans they are aware of.

                      The authorities have come up with lots of visionary plans, at world class level.If things happen as planned, we can expect Chennai to become one of the most sought after cosmopolitan/metropolitan cities.
                      Last edited June 1 2009, 08:53 AM.

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