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Property Price Trends in Chennai

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  • #71

    #71

    Re : Property Price Trends in Chennai

    Originally posted by Natarajg007 View Post
    Nabhishek, It looks like you are very biassed. You seem to find a reason for WHY RE SHOULD FALL? Just take an hour, think RE SHOULD NOT FALL and see if it will fall.
    My argument on this board is never about what is right about RE going up? It is WHETHER IT WILL GO UP?
    In other words if you tell me Indian RE is not justified in going up, I will add that INdian salaries in the past 5 years are abyssmally high. However if that falters then RE MIGHT? Again it is might not will!
    Reason is one way things are being kept in place is Rupee depreciation. What many on this board dont even seem to understand even fundamentally is that Indian finance is different from US. US like to keep a strong dollar. India/China prefer a weak currecy. Until the past few years Rupee was just let to fall. If you have lived the life of travelling abroad in the late 80s and 90s and early 00s you will know what I mean.
    So just try to think about the rising sales of Autos and THINK CAREFULLY. If there are folks to Cars, wont they a more durable and long term oriented asset called as RE. One will always a flat than a Benz! Cheers.
    I have no second thoughts that RE would grow over long term.If one can hold it for 1-2 RE Cycles then when one enters doesnt make any difference.

    The current scenario in chennai is that prices are stagnating.Though builders are quoting X Lakhs/Crores.They are willing to offer at 2007 price(30% lesser than the quoted price)

    Even at this price, the attainability is beyond the majority's capacity.

    When the price is not appreciating like it did 2-3 years back and when there's a likelihood of correction upto 2005/2006 levels and even further.Many are adopting wait and watch like me.

    This year in my profession there is no pay hike.Many are taking salary cuts and losing jobs.

    In an uncertain situation like this, I choose to hold back and not risk and over exert myself.

    The land and flats at far off places, which currently fits my budget, is not even worth attempting to purchase.

    I would rather keep my savings to myself, concentrate on earning and saving more and attempt to at better localities at a later time when it gets affordable to me.

    I also would advise people not to sell their property, unless its of dire need and only if they have to pay off huge debt and want to exit to cut down on greater loss.To sell just because RE may not give the expected returns for some years now is not a good idea.one may not be lucky to get back a similar property in the desired location at a later time.

    I feel that correction in prices to saner level is very necessary and critical to revive demand and the economy.My view may be biased because of my will to see what i want to happen.India coming out Stronger.

    Affordable housing such as reducing size of apartments/specification is not going to work.

    I am no economist and may be totally wrong.In my opinion, The sooner the correction happens the sooner our economy will revive and evade a sub-prime mortgage like crisis.

    Instead of anouncing stimulus package to infuse more liquidity into the economy and bailout packages to builders and banks, the government's focus should be to instigate fair pricing and absorb the bad mortgages arising of the devaluation.

    Coupled with low interest rates, People would realize more Value for money and show more confidence investing in RE.

    We need lots of reforms and regulation in this sector, and fast.

    Despite the cues if RE still appreciated, I will not be surprised.There are lots of prospective takers in the market.All that was needed to trigger the boom in sriperambathur was anouncement of an airport whose work hasnt even started yet.

    Nonetheless, I see this as a treasurable learning experience which i can put to better use sometime later in my life when the moment is right for me.
    Last edited March 5 2009, 02:26 AM.

    Comment

    • #72

      #72

      Re : Property Price Trends in Chennai

      Originally posted by nabishek View Post
      I have no second thoughts that RE would grow over long term.If one can hold it for 1-2 RE Cycles then when one enters doesnt make any difference.

      The current scenario in chennai is that prices are stagnating.Though builders are quoting X Lakhs/Crores.They are willing to offer at 2007 price(30% lesser than the quoted price)

      Even at this price, the attainability is beyond the majority's capacity.

      When the price is not appreciating like it did 2-3 years back and when there's a likelihood of correction upto 2005/2006 levels and even further.Many are adopting wait and watch like me.

      This year in my profession there is no pay hike.Many are taking salary cuts and losing jobs.

      In an uncertain situation like this, I choose to hold back and not risk and over exert myself.

      The land and flats at far off places, which currently fits my budget, is not even worth attempting to purchase.

      I would rather keep my savings to myself, concentrate on earning and saving more and attempt to at better localities at a later time when it gets affordable to me.

      I also would advise people not to sell their property, unless its of dire need and only if they have to pay off huge debt and want to exit to cut down on greater loss.To sell just because RE may not give the expected returns for some years now is not a good idea.one may not be lucky to get back a similar property in the desired location at a later time.

      I feel that correction in prices to saner level is very necessary and critical to revive demand and the economy.My view may be biased because of my will to see what i want to happen.India coming out Stronger.

      Affordable housing such as reducing size of apartments/specification is not going to work.

      I am no economist and may be totally wrong.In my opinion, The sooner the correction happens the sooner our economy will revive and evade a sub-prime mortgage like crisis.

      Instead of anouncing stimulus package to infuse more liquidity into the economy and bailout packages to builders and banks, the government's focus should be to instigate fair pricing and absorb the bad mortgages arising of the devaluation.

      Coupled with low interest rates, People would realize more Value for money and show more confidence investing in RE.

      We need lots of reforms and regulation in this sector, and fast.

      Despite the cues if RE still appreciated, I will not be surprised.There are lots of prospective takers in the market.All that was needed to trigger the boom in sriperambathur was anouncement of an airport whose work hasnt even started yet.

      Nonetheless, I see this as a treasurable learning experience which i can put to better use sometime later in my life when the moment is right for me.
      Dear friend,

      I liked your matured way of looking and views expressed here. I agree with your comments here.

      ks2071746

      Comment

      • #73

        #73

        Re : Property Price Trends in Chennai

        Originally posted by nabishek View Post
        I have no second thoughts that RE would grow over long term.If one can hold it for 1-2 RE Cycles then when one enters doesnt make any difference.

        The current scenario in chennai is that prices are stagnating.Though builders are quoting X Lakhs/Crores.They are willing to offer at 2007 price(30% lesser than the quoted price)

        Even at this price, the attainability is beyond the majority's capacity.

        When the price is not appreciating like it did 2-3 years back and when there's a likelihood of correction upto 2005/2006 levels and even further.Many are adopting wait and watch like me.

        This year in my profession there is no pay hike.Many are taking salary cuts and losing jobs.

        In an uncertain situation like this, I choose to hold back and not risk and over exert myself.

        The land and flats at far off places, which currently fits my budget, is not even worth attempting to purchase.

        I would rather keep my savings to myself, concentrate on earning and saving more and attempt to at better localities at a later time when it gets affordable to me.

        I also would advise people not to sell their property, unless its of dire need and only if they have to pay off huge debt and want to exit to cut down on greater loss.To sell just because RE may not give the expected returns for some years now is not a good idea.one may not be lucky to get back a similar property in the desired location at a later time.

        I feel that correction in prices to saner level is very necessary and critical to revive demand and the economy.My view may be biased because of my will to see what i want to happen.India coming out Stronger.

        Affordable housing such as reducing size of apartments/specification is not going to work.

        I am no economist and may be totally wrong.In my opinion, The sooner the correction happens the sooner our economy will revive and evade a sub-prime mortgage like crisis.

        Instead of anouncing stimulus package to infuse more liquidity into the economy and bailout packages to builders and banks, the government's focus should be to instigate fair pricing and absorb the bad mortgages arising of the devaluation.

        Coupled with low interest rates, People would realize more Value for money and show more confidence investing in RE.

        We need lots of reforms and regulation in this sector, and fast.

        Despite the cues if RE still appreciated, I will not be surprised.There are lots of prospective takers in the market.All that was needed to trigger the boom in sriperambathur was anouncement of an airport whose work hasnt even started yet.

        Nonetheless, I see this as a treasurable learning experience which i can put to better use sometime later in my life when the moment is right for me.
        its a very sensible thinking. i was about to a flat and dropped my idea with same mentality, as i felt the property is over priced.

        there is a story about the stock market, it hink it will aptly suit the RE market at current situation.

        The story
        Once upon a time in a village, a man appeared and announced to the villagers that he would monkeys for Rs 10 each. The villagers seeing that there were many monkeys around, went out to the forest, and started catching them. The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even
        further and people started going back to their farms.

        The offer increased to Rs 25 each and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it! The man now announced that he would monkeys at Rs 50 ! However, since he had to go to the city on some business, his assistant would now on behalf of him.

        In the absence of the man, the assistant told the villagers. "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell them to him for Rs 50 each."

        The villagers rounded up with all their savings and bought all the monkeys. Then they never saw neither the man nor his assistant, only monkeys everywhere!. ......... .....

        have a nice day.

        magesh

        Comment

        • #74

          #74

          Re : Property Price Trends in Chennai

          It seems from the chennai home fair 2009, the prices of flats in chennai are coming down. However, the prices indicated by the various builders are not attractive for the normal income peoples.

          The Indian builders always should keep in mind that we are the developing country not a developed country. Dont look to earn more profit in a single project.
          Last edited March 5 2009, 10:28 PM.

          Comment

          • #75

            #75

            Re : Property Price Trends in Chennai

            " INDIA is a Developed Country with underdeveloped/developing Infrastructure "

            Comment

            • #76

              #76

              Re : Property Price Trends in Chennai

              Originally posted by rmagesh75 View Post
              its a very sensible thinking. i was about to a flat and dropped my idea with same mentality, as i felt the property is over priced.

              there is a story about the stock market, it hink it will aptly suit the RE market at current situation.

              The story
              Once upon a time in a village, a man appeared and announced to the villagers that he would monkeys for Rs 10 each. The villagers seeing that there were many monkeys around, went out to the forest, and started catching them. The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even
              further and people started going back to their farms.

              The offer increased to Rs 25 each and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it! The man now announced that he would monkeys at Rs 50 ! However, since he had to go to the city on some business, his assistant would now on behalf of him.

              In the absence of the man, the assistant told the villagers. "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell them to him for Rs 50 each."

              The villagers rounded up with all their savings and bought all the monkeys. Then they never saw neither the man nor his assistant, only monkeys everywhere!. ......... .....

              have a nice day.

              magesh

              Dear friend

              Nice story which suits current RE market

              thanks

              chataara

              Comment

              • #77

                #77

                Re : Property Price Trends in Chennai

                Originally posted by rmagesh75 View Post
                its a very sensible thinking. i was about to a flat and dropped my idea with same mentality, as i felt the property is over priced.

                there is a story about the stock market, it hink it will aptly suit the RE market at current situation.

                The story
                Once upon a time in a village, a man appeared and announced to the villagers that he would monkeys for Rs 10 each. The villagers seeing that there were many monkeys around, went out to the forest, and started catching them. The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even
                further and people started going back to their farms.

                The offer increased to Rs 25 each and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it! The man now announced that he would monkeys at Rs 50 ! However, since he had to go to the city on some business, his assistant would now on behalf of him.

                In the absence of the man, the assistant told the villagers. "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell them to him for Rs 50 each."

                The villagers rounded up with all their savings and bought all the monkeys. Then they never saw neither the man nor his assistant, only monkeys everywhere!. ......... .....

                have a nice day.

                magesh
                Dear friend,

                Nice story reflecting the players mind in the current RE scenario.

                ks2071746

                Comment

                • #78

                  #78

                  Re : Property Price Trends in Chennai

                  Originally posted by nabishek View Post
                  I have no second thoughts that RE would grow over long term.If one can hold it for 1-2 RE Cycles then when one enters doesnt make any difference.

                  The current scenario in chennai is that prices are stagnating.Though builders are quoting X Lakhs/Crores.They are willing to offer at 2007 price(30% lesser than the quoted price)

                  Even at this price, the attainability is beyond the majority's capacity.

                  When the price is not appreciating like it did 2-3 years back and when there's a likelihood of correction upto 2005/2006 levels and even further.Many are adopting wait and watch like me.

                  This year in my profession there is no pay hike.Many are taking salary cuts and losing jobs.

                  In an uncertain situation like this, I choose to hold back and not risk and over exert myself.

                  The land and flats at far off places, which currently fits my budget, is not even worth attempting to purchase.

                  I would rather keep my savings to myself, concentrate on earning and saving more and attempt to at better localities at a later time when it gets affordable to me.

                  I also would advise people not to sell their property, unless its of dire need and only if they have to pay off huge debt and want to exit to cut down on greater loss.To sell just because RE may not give the expected returns for some years now is not a good idea.one may not be lucky to get back a similar property in the desired location at a later time.

                  I feel that correction in prices to saner level is very necessary and critical to revive demand and the economy.My view may be biased because of my will to see what i want to happen.India coming out Stronger.

                  Affordable housing such as reducing size of apartments/specification is not going to work.

                  I am no economist and may be totally wrong.In my opinion, The sooner the correction happens the sooner our economy will revive and evade a sub-prime mortgage like crisis.

                  Instead of anouncing stimulus package to infuse more liquidity into the economy and bailout packages to builders and banks, the government's focus should be to instigate fair pricing and absorb the bad mortgages arising of the devaluation.

                  Coupled with low interest rates, People would realize more Value for money and show more confidence investing in RE.

                  We need lots of reforms and regulation in this sector, and fast.

                  Despite the cues if RE still appreciated, I will not be surprised.There are lots of prospective takers in the market.All that was needed to trigger the boom in sriperambathur was anouncement of an airport whose work hasnt even started yet.

                  Nonetheless, I see this as a treasurable learning experience which i can put to better use sometime later in my life when the moment is right for me.
                  Dear Nabhishek. You spoke sense for n and oneth time and I continue to see you as a rare commodity on this board where many write without any sense.
                  I agree with you fully on
                  a. RE appreciates over a few RE cycles. I had explained this clearly in the example of a plot I got in Tirunindravur in 1980s which for 5 years did not give bank return, and for 10 years hardly gave more than bank return. However in the next few years it gave the 20+% CAGR.
                  b. You are on the *** in explaining that one should not sell his land unless there is some desperation.
                  In summary you cant be called a bear, you are just speculating that MAYBE PRICE will fall for the next few years and so you dont want to invest.
                  Now how correct were you in the past about predicting RE prices in the next 2 years? Did you anticipate a super run in 2003-4? I did and I made sure my dear ones bought houses in 2004. If they did not do it then, they wont have managed to a house today with their retirement benefits.
                  All I want to tell you is that even in the short run, RE does not seem to be going down.
                  Anyway, U & I are in sync on the basics of RE as I explained in a and b above. High time Wiseman and his FOOLISH BEAR COTERIE takes a look at atleast your posts and gains some sense instead of eating diarrhea which is Wiseman's favourite food.

                  Comment

                  • #79

                    #79

                    Re : Property Price Trends in Chennai

                    Last year, my brother was very interested to a flat in chennai for a budget of around 35L in Pallikaranai(Outskirt of chennai), i told my brother 2 things:

                    1 The Price of Flat in Melbourne in Australia comes around 50-60 lakhs in the decent area, where all hi-tech facilities are there.

                    2. Investing in a outskirt of chennai in a budget for 35L will give returns maximum 7000Rs rent per month.

                    3.For the same amount investing in Fixed depost in a Nationalised bakn will give 30,000 Rs/month which is 4times the returns of above. The amont invested will double in the next 10 years.

                    4. Wait and see for next 2 years.

                    He listened my words and invested in FD. He is very happy now with his savings and not bothering for the present situation with his savings.

                    I request everyone (particullay engineers), you are all genius in studies but don't be fool while investing in the RE, your job is not secure like other peoples, try to save when lakshmi knocks and invest in a proper way. Just imagine, the total price money of the ICC world cup is 5 Crores....is it worth to 2 grounds in Mylapore...or 5 flats in Purvankara in Kelambakkam????)
                    Last edited March 6 2009, 11:42 PM.

                    Comment

                    • #80

                      #80

                      Re : Property Price Trends in Chennai

                      That's my current thought too. I put all money i have into SBI term deposits...no tension and during these times 7.5% growth would be great when many people have lost 50% of net worth.

                      Comment

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