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Property Price Trends in Chennai

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  • Re : Property Price Trends in Chennai

    Good one!

    Originally posted by sethugm View Post
    Yes there are lot factors which determine the price.

    One should also know the treatment when he alights from a Maruti-800 but to have paid Merced price.

    Good one, Sethu!

    But, it is even more complicated than that. Slowly over time, all the Merceds disappeared and the only ones left were now being quoted like Rolls Royces.

    Then the salespeople started telling prospective buyers who thronged the fairs, "This is the new (outrageous) price for Marutis. Hurry up and buy or else even these will get sold out because there are no new Marutis being made anymore"!

    So, today, people are stuck with Marutis bought at yesterdays Merced prices. It is very depressing, because, yesterday, at least all people pretended the Marutis were Merceds. Now that the Emperor's clothes has been identified for what it is, it is doubly painful when people point to a Maruti and then to the buyer, saying, "he bought that lemon at Merced prices".

    But the cruelest part of it is, when the owner now takes the Maruti (seemingly Merceds) for repairs the repairman charges as if it is a Merced!!!

    cheers

    Comment


    • Re : Property Price Trends in Chennai

      Originally posted by sethugm View Post
      Yes there are lot factors which determine the price.

      One should also know the treatment when he alights from a Maruti-800 but to have paid Merced price.
      the treatment obviously would be at kilpauk

      and the people who shout "maruti maruti" on seeing a merc would get the same.

      i hope all here know and can distinguish a maruti and a merc and if he has paid the merc price for a maruti god help him.

      well for the others the point i was making was to impress the point of the 'abstracts' involved in owning a house versus renting one.
      well i am not asking to over leverage and get caught in a debt trap.
      if you can afford a maruti 800 then buy a 800 dont think about mercs.

      but dont ever think mercs will be available at 800 prices. may be they will give you insurance or maintainance free but sell at 50% discount,they wont.
      they will file rather file for bankruptcy.

      Comment


      • Re : Property Price Trends in Chennai

        Originally posted by wiseman View Post
        Good one, Sethu!

        But, it is even more complicated than that. Slowly over time, all the Merceds disappeared and the only ones left were now being quoted like Rolls Royces.

        Then the salespeople started telling prospective buyers who thronged the fairs, "This is the new (outrageous) price for Marutis. Hurry up and buy or else even these will get sold out because there are no new Marutis being made anymore"!

        So, today, people are stuck with Marutis bought at yesterdays Merced prices. It is very depressing, because, yesterday, at least all people pretended the Marutis were Merceds. Now that the Emperor's clothes has been identified for what it is, it is doubly painful when people point to a Maruti and then to the buyer, saying, "he bought that lemon at Merced prices".

        But the cruelest part of it is, when the owner now takes the Maruti (seemingly Merceds) for repairs the repairman charges as if it is a Merced!!!

        cheers
        well people who couldnt discern between a 800 and merc who bought marutis(far away places) at merc prices(city proper) will definitely be a tragic scene.

        but pity the people who still see mercs(t.nagar,alwarpet,annanagar,velachery beasent nagar etc) and shout 'not worth the 800 price'

        and pity the people who believe the salesperson's claim of "no more marutis"

        the difference between the merc and maruti is the difference between
        khader nawaz khan road and chinglepet. if that is not obvious then god help us all
        Last edited July 9 2009, 08:10 PM.

        Comment


        • Re : Property Price Trends in Chennai

          Originally posted by abk View Post
          the value of a 'object' is what someone is ready to pay .

          let me compare the owning of a car
          if you calculate the cost of renting a car versus
          buying a car
          the interest
          the depreciation
          the driver salary
          the garage rent
          the maintenance

          then none should buy a car

          on second toughts your point is right the taxi is cheaper


          but the pride,status and satisfaction of your 'own' beats all these calculations. our lives are driven by many compulsions arising out of many factors be passion,peer pressure,status,idiosyncracies etc.

          the article shows the value based on rent but it discounts the joy of owning a house the sense of accomplishment, the sense of pride which comes with it.
          well said ABK

          Comment


          • Re : Property Price Trends in Chennai

            Originally posted by nabishek View Post
            The price/sqft in adyar in 2003 was around 2000-2500/sqft and rental for 2bhk arnd 5k-6k/month.
            thanks for providing me 2003 figures.

            Let me do a simple thumb rule on what to do in 2009:-

            Consider a 1200 Sq.ft 2 bed flat at good location in Adyar for calculation

            in 2003, rent is Rs7000/- monthly and property price is Rs.2500/sft

            in 2009, rent is Rs18,000/- monthly and property price is Rs.9000/sft

            after 6 years....rents have increased 2.57 times while property prices have increased 3.6 times.

            property prices have increased faster then rentals......so in 2009 best choice is rent a 2 bedroom flat in Adyar.

            Comment


            • Re : Property Price Trends in Chennai

              Originally posted by abk View Post
              the value of a 'object' is what someone is ready to pay and RE has so many abstracts involved value like status,passion,megalomania etc involved as somebody said the Udayam theatre was purchased bcoz of 'PRESTIGE"
              exactly there are so many abstracts involved that you cannot put a value
              on a place for the rent it fetches.
              give me reason for the price of art by famous artists,
              the reason for christies auctioning 'useless' artefacts for millions.can you justify the price.

              but the pride,status and satisfaction of your 'own' beats all these calculations. our lives are driven by many compulsions arising out of many factors be passion,peer pressure,status,idiosyncracies etc.

              it is like you know the treatment you get when you alight from a merc versus alighting from a maruti 800
              I agree with you that "Self-Prestige" is the culprit.

              people try to measure each other by how much property they have. They try to use their property price to calculate their self-worth .....like

              that girl's father owns a house in T nagar, marry her....T nagar means all together atleast Rs.1.5C for that property....3 chlidren..so this girl will definately get minimum Rs.50 lakhs.

              This is how a typical Chennai person in age group of 25-65 lives their life by estimating each other's social worth just based on property worth.

              I don't call these people smart....but idiots....a canny capitalist can easily use their weakness called "self-prestige" to create a bubble and makes tons of money for himself from that bubble.
              Last edited July 9 2009, 10:01 PM.

              Comment


              • Re : Property Price Trends in Chennai

                Originally posted by contra View Post
                I agree with you that "Self-Prestige" is the culprit.

                people try to measure each other by how much property they have. They try to use their property price to calculate their self-worth .....like

                that girl's father owns a house in T nagar, marry her....T nagar means all together atleast Rs.1.5C for that property....3 chlidren..so this girl will definately get minimum Rs.50 lakhs.

                This is how a typical Chennai person in age group of 25-65 lives their life by estimating each other's social worth just based on property worth.

                I don't call these people smart....but idiots....a canny capitalist can easily use their weakness called "self-prestige" to create a bubble and makes tons of money for himself from that bubble.
                Thats nice. Not only in Chennai. Its every where I believe,
                Property = Money = Prestige = Wealth
                Here comes the Vitamin M effect
                Either land or AIR and FOOD. Choice is yours.

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by abk View Post
                  the treatment obviously would be at kilpauk

                  and the people who shout "maruti maruti" on seeing a merc would get the same.

                  i hope all here know and can distinguish a maruti and a merc and if he has paid the merc price for a maruti god help him.

                  well for the others the point i was making was to impress the point of the 'abstracts' involved in owning a house versus renting one.
                  well i am not asking to over leverage and get caught in a debt trap.
                  if you can afford a maruti 800 then buy a 800 dont think about mercs.

                  but dont ever think mercs will be available at 800 prices. may be they will give you insurance or maintainance free but sell at 50% discount,they wont.
                  they will file rather file for bankruptcy.
                  You know abk ,I have never seen a poster who wants to pay Maruti price for Mercedes but seeing few guys want Merceds price for Maruti.All the so-called bearish posters are willing to pay 2004 Inflation-Adjusted-Prices with positive tolerence. But am seeing people shouting 'Merce Merce' showing Maruti and even God can't help you.. and claim that Madras is full of Mercedes and no Maruti...
                  Last edited July 11 2009, 10:05 PM.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Originally posted by unlikely View Post
                    Hi friends,

                    The rental value of RS 12,000 in Adyar seems to be less.
                    As far as i know ,one cannot find a two-bedroom apartment in
                    adyar for less than Rs 18,000 rental.Please correct me if iam wrong friends.

                    regards
                    unlikely
                    U bet you are wrong but not as wrong as the others! Even a 2bedroom in Adayar will cost 25K not 18K. Maybe an old delapidated flat might be available for that price!

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by abk View Post
                      the value of a 'object' is what someone is ready to pay and RE has so many abstracts involved value like status,passion,megalomania etc involved as somebody said the Udayam theatre was purchased bcoz of 'PRESTIGE"
                      exactly there are so many abstracts involved that you cannot put a value
                      on a place for the rent it fetches.
                      give me reason for the price of art by famous artists,
                      the reason for christies auctioning 'useless' artefacts for millions.can you justify the price.

                      let me compare the owning of a car
                      if you calculate the cost of renting a car versus
                      buying a car
                      the interest
                      the depreciation
                      the driver salary
                      the garage rent
                      the maintenance

                      then none should buy a car
                      but the pride,status and satisfaction of your 'own' beats all these calculations. our lives are driven by many compulsions arising out of many factors be passion,peer pressure,status,idiosyncracies etc.

                      the article shows the value based on rent but it discounts the joy of owning a house the sense of accomplishment, the sense of pride which comes with it.

                      it is like you know the treatment you get when you alight from a merc versus alighting from a maruti 800
                      Actually your write up was the RIGHT thinking but well our friends dont understand Demand and Supply though they talk about ECO101 course. I bet they flunked it!
                      You missed one stuff ABK. A house or a car for ownership gives you easy access and rights to enjoy. That is the main reason. A rental car may not be what you asked for, while your own car will be what it is. I drove my 20 year old bike all the way to Madras two weeks ago to get it re-registered. Some of the jokers on this board who like to assume I am an oldie, can take the challenge of driving a bike between the two places and I am not talking about the 150kmph racers. I have done numerous car trips for the past 15 years but this was the bike experience. Why do I do it? Since I enjoy the bike! That is what is ownership all about.
                      Our friends probably dont own anything so they can talk differently!

                      Comment

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