:) Dear friends

In the last few days I am seeing many "auction" advertisements in Times of india.

These ads are published on behalf of Indian Bank. During this slow down period many business men are not able to run their businesses. Because of slow down, they dont get enough orders.

More over, they are not getting payment in time. In many cases they do not get payment for their completed work.

All these problems have led them into non payment for their loan which they got mortgaging their properties.

Final result: AUCTION OF THEIR MORTGAGED PROERTIES.

Dear friends these days you can see many auction sale advts in all the newspapers invariably.

On 2-3-09 Times of India newspaper Page number 9 (If possible go through epaper of TOI), you can see Auction sale advt of Indian bank. In this advt some 29 properties are for sale.

I believe in the ensuing months We can see lot of Advts like this in all newspapers.

This will "INCREASE THE PRICE FURTHER IN CHENNAI REAL ESTATE" (aS Mr. Nataraj believes). :D:D:D

In addition to this I like to reiterate my point that In most of chennai plots are lying unsold.

Sellers are not able to find buyers.

Even though it is slump time, in many cases they are not digesting the present situation.

In my previous thread I quoted freeads paper advt in which one particular property (in virugambakkam Natesan nagar) is lying unsold for nearly one year.

For the last one year, now and then he is repeating the same advt quoting same rate. IN Last sunday edition also his advt has appeared.

Suppose that gentleman had sold his property for some 20 lakhs lesser than what he is quoting, he could have collected that amount through bank interest itself.

But it is not happening in that way. He is hanging with his property for the last one year without knowing the future.

Let us hope this kind of chennai RE owners will awake ASAP.

Thanks

chataara
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  • Originally Posted by Natarajg007
    As I told u before KS, ing property from banks will be such fun and you will be left with lesser money and worthless property! Beware!


    MF nats, Other than your property, everything else is worthless? You CROOK.
    CommentQuote
  • Originally Posted by strongsville
    MF nats, Other than your property, everything else is worthless? You CROOK.



    Dear Strong

    Dont disturb Mr. Nat while he is daydreaming and boasting of his dream land in Saligramam. Let him do it peacefully.

    Thanks

    chataara
    CommentQuote
  • where is Saligramam ?

    Originally Posted by chataara
    Dear Strong

    Dont disturb Mr. Nat while he is daydreaming and boasting of his dream land in Saligramam. Let him do it peacefully.

    Thanks

    chataara


    Sorry for my ignorance. Where is Saligraman ? Is it near Adyar, RA Puram, T Nagar, Nungambakkam, Kodambakkam ? Why are we talking too much about Sali Gramam (Village) ?
    CommentQuote
  • Originally Posted by Rajesh1974
    Sorry for my ignorance. Where is Saligraman ? Is it near Adyar, RA Puram, T Nagar, Nungambakkam, Kodambakkam ? Why are we talking too much about Sali Gramam (Village) ?


    Saligramam is one of the affordable developing suburbs on the west side of chennai.Its also famous for film studio's and film actor's residences.

    If Today, a middle class salaried person wants to purchase a house with a stretched budget of 50-75 lakhs, its only possible in these areas with name such as "gramam", "cheri", "vakkam", "pakkam", "karnai", "varam", "thangal", "pettai" etc.

    All the "nagar", "puram", "garden", "colony", "avenue" are strictly No entry.
    CommentQuote
  • Astute observation :)

    Originally Posted by nabishek
    Saligramam is one of the affordable developing suburbs on the west side of chennai.Its also famous for film studio's and film actor's residences.

    If Today, a middle class salaried person wants to purchase a house with a stretched budget of 50-75 lakhs, its only possible in these areas with name such as "gramam", "cheri", "vakkam", "pakkam", "karnai", "varam", "thangal", "pettai" etc.

    All the "nagar", "puram", "garden", "colony", "avenue" are strictly No entry.



    Interesting observation.

    And it is quite unfortunate that, having struck upon some luck ing some land in 2004 in Saligramam, one believes (or convinces himself) that, somehow, he has got expertise in all matter pertaining to Real Estate.

    Unfortunate? Or Stupid? Leave it to readers to come to own conclusions :D

    cheers
    CommentQuote
  • Indian Inflation Adjusted House Price From 1998

    Quoting Paul calculation below the RE price may stabilise + or - 10% of the value of estimation given below for a perticular place depends on the impact of recession and will eliminate speculators and speculative salaries by this time. The calculation gives the2008/9 mean price rise by about 60% from the 1998 levels for a given place and a error of around 10%
    Let me know your thoughts
    Can


    For calculating the value of the property in 2008, i also take into account the increase in house prices (thanks to nabishek) and not just assume that prices rise just inline with inflation rate.
    I am basing this increase in house price to be equal to the per capita income in india. Why do i assume that on a long term basis house price increasee on inflation adjusted basis is equal to per capita income growth?
    “As house prices tends to increase at an inflation adjusted rate equivalent to the per capita income - According to Karl Case, an economics professor at Wellesley College whose name adorns the S&P Case-Shiller home-price indexes, has studied U.S. house prices going back to the 1890s. He thinks that long-run pattern is likely to continue, despite the recent choppiness.”
    So you can see that this assumption that house price increase is inline with per capita income has historical data going back to 1890 to back it up. So i will go with this assumption.
    Now the question becomes what is the per capita income of India in 1998. According to the Atlas calculation method of World Bank. India had a per-capita income of $430, unadjusted for purchasing power parity (PPP). In 1998 Rs/USD exchange rate was 35. So $430 x 35 = Rs. 15,050 was the per capita income.
    National per capita income is expected to stand at 38,084 rupees (784 U.S. dollars) in 2008-2009, 14.4 percent or 4,801 rupees (99 U.S. dollars) over the previous fiscal year, said the release of the Central Statistical Organization. Source:Central Statistics Organization. The 2008-2009 fiscal year started on April 1, 2008 and ends on March 31, 2009.
    So for my Compound Annual Growth Rate (CAGR) calculation i used the following value.
    ending value is Rs. 38, 084
    beginning value is Rs. 15,050
    No. of years 11 years (1998-2008)
    38084/15050 = 2.53 raised to 1/11 power (2.53^0.09)
    CAGR = 8.81%
    So a house costing Rs. 1,00,000 Lakh in 1998 would cost cost 2.58 Lakhs in 2008 assuming that house prices increase at an inflation adjusted equivalent to the per capita income
    According to the IMF India’s Inflation rate over the years is given below
    Year Inflation, average consumer prices Percent Change
    Year Inflation, average consumer prices Percent Change 1980 11.365
    1981 13.115 15.40 % 1982 7.887 -39.86 % 1983 11.869 50.49 % 1984 8.322 -29.88 % 1985 5.556 -33.24 % 1986 8.731 57.15 % 1987 8.799 0.78 % 1988 9.385 6.66 % 1989 6.159 -34.37 % 1990 8.971 45.66 % 1991 13.87 54.61 % 1992 11.788 -15.01 % 1993 6.362 -46.03 % 1994 10.212 60.52 % 1995 10.225 0.13 % 1996 8.977 -12.21 % 1997 7.164 -20.20 % 1998 13.231 84.69 % 1999 4.67 -64.70 % 2000 4.009 -14.15 % 2001 3.779 -5.74 % 2002 4.297 13.71 % 2003 3.806 -11.43 % 2004 3.767 -1.02 % 2005 4.246 12.72 % 2006 6.177 45.48 % 2007 6.372 3.16 % 2008 5.18 -18.71 %
    CommentQuote
  • Originally Posted by nabishek
    Saligramam is one of the affordable developing suburbs on the west side of chennai.Its also famous for film studio's and film actor's residences.

    If Today, a middle class salaried person wants to purchase a house with a stretched budget of 50-75 lakhs, its only possible in these areas with name such as "gramam", "cheri", "vakkam", "pakkam", "karnai", "varam", "thangal", "pettai" etc.

    All the "nagar", "puram", "garden", "colony", "avenue" are strictly No entry.

    Can you get me a HOUSE (not flat) to in a stretched budget of Rs 75L in Saligramam or for that matter anywhere between Vadapalani to Valasaravakkam? And a house should have a minimum land of 1200sqft and built up area of 1000sqft and above all it should be an approved land. Not some peromboke land!
    Nabhishek I hope you have an answer?
    CommentQuote
  • Originally Posted by can
    Quoting Paul calculation below the RE price may stabilise + or - 10% of the value of estimation given below for a perticular place depends on the impact of recession and will eliminate speculators and speculative salaries by this time. The calculation gives the2008/9 mean price rise by about 60% from the 1998 levels for a given place and a error of around 10%
    Let me know your thoughts
    Can


    For calculating the value of the property in 2008, i also take into account the increase in house prices (thanks to nabishek) and not just assume that prices rise just inline with inflation rate.
    I am basing this increase in house price to be equal to the per capita income in india. Why do i assume that on a long term basis house price increasee on inflation adjusted basis is equal to per capita income growth?
    “As house prices tends to increase at an inflation adjusted rate equivalent to the per capita income - According to Karl Case, an economics professor at Wellesley College whose name adorns the S&P Case-Shiller home-price indexes, has studied U.S. house prices going back to the 1890s. He thinks that long-run pattern is likely to continue, despite the recent choppiness.”
    So you can see that this assumption that house price increase is inline with per capita income has historical data going back to 1890 to back it up. So i will go with this assumption.
    Now the question becomes what is the per capita income of India in 1998. According to the Atlas calculation method of World Bank. India had a per-capita income of $430, unadjusted for purchasing power parity (PPP). In 1998 Rs/USD exchange rate was 35. So $430 x 35 = Rs. 15,050 was the per capita income.
    National per capita income is expected to stand at 38,084 rupees (784 U.S. dollars) in 2008-2009, 14.4 percent or 4,801 rupees (99 U.S. dollars) over the previous fiscal year, said the release of the Central Statistical Organization. Source:Central Statistics Organization. The 2008-2009 fiscal year started on April 1, 2008 and ends on March 31, 2009.
    So for my Compound Annual Growth Rate (CAGR) calculation i used the following value.
    ending value is Rs. 38, 084
    beginning value is Rs. 15,050
    No. of years 11 years (1998-2008)
    38084/15050 = 2.53 raised to 1/11 power (2.53^0.09)
    CAGR = 8.81%
    So a house costing Rs. 1,00,000 Lakh in 1998 would cost cost 2.58 Lakhs in 2008 assuming that house prices increase at an inflation adjusted equivalent to the per capita income
    According to the IMF India’s Inflation rate over the years is given below
    Year Inflation, average consumer prices Percent Change
    Year Inflation, average consumer prices Percent Change 1980 11.365
    1981 13.115 15.40 % 1982 7.887 -39.86 % 1983 11.869 50.49 % 1984 8.322 -29.88 % 1985 5.556 -33.24 % 1986 8.731 57.15 % 1987 8.799 0.78 % 1988 9.385 6.66 % 1989 6.159 -34.37 % 1990 8.971 45.66 % 1991 13.87 54.61 % 1992 11.788 -15.01 % 1993 6.362 -46.03 % 1994 10.212 60.52 % 1995 10.225 0.13 % 1996 8.977 -12.21 % 1997 7.164 -20.20 % 1998 13.231 84.69 % 1999 4.67 -64.70 % 2000 4.009 -14.15 % 2001 3.779 -5.74 % 2002 4.297 13.71 % 2003 3.806 -11.43 % 2004 3.767 -1.02 % 2005 4.246 12.72 % 2006 6.177 45.48 % 2007 6.372 3.16 % 2008 5.18 -18.71 %

    There is something that IMF and all those Macro Eco guys forget. India is not a country (in reality) it is a subcontinent with diverse cultures, languages and idealogies; though with a common army and currency.
    So this per capita income itself is highly incorrect and its growth rate is horrendously incorrect. For example in the cities of Bangalore and Chennai PerCapita has grown up terribly more than that 2.5 times you said. In some Bihar village it might be much lesser than 2.5. Also availability of facilities is highly skewed in India. So where facilities exist the growth has been very high.
    So trying to fit an n-th degree curve with 2 points shows the accuracy of your argument!
    CommentQuote
  • Originally Posted by Rajesh1974
    Sorry for my ignorance. Where is Saligraman ? Is it near Adyar, RA Puram, T Nagar, Nungambakkam, Kodambakkam ? Why are we talking too much about Sali Gramam (Village) ?

    Hi Rajesh, Where is Meen ambakkam? Is it a fish?
    CommentQuote
  • Originally Posted by Natarajg007
    Can you get me a HOUSE (not flat) to in a stretched budget of Rs 75L in Saligramam or for that matter anywhere between Vadapalani to Valasaravakkam? And a house should have a minimum land of 1200sqft and built up area of 1000sqft and above all it should be an approved land. Not some peromboke land!
    Nabhishek I hope you have an answer?


    I dont know of any house in saligramam at that rate, but flats are available in plenty in the vicinity.

    There are many newly built ready to occupy independant house available in the following areas.

    ashtalakshmi nagar, valasaravakkam
    krishna nagar, ayapakkam
    elango nagar,sridevi nagar virugambakkam
    kothari nagar, nesapakkam

    Most of them are 1200 sqft land and 1900 built up, house on 1 ground plot is also available.

    The average rate/sqft on built up for the house/flat is between 3000-4500/sqft.

    The ground rate is between 50 lakhs-75 lakhs.

    Though, I personally dont like the narrow roads, The locality is not bad for decent living.
    CommentQuote
  • See, I told you!

    Originally Posted by Natarajg007
    Hi Rajesh, Where is Meen ambakkam? Is it a fish?


    This guy was born with a particularly bitter Pavakkai in his mouth - which has never left since!!! :D

    No wonder his posts are so fetid and foul!!! ;)

    cheers
    CommentQuote
  • Originally Posted by wiseman
    This guy was born with a particularly bitter Pavakkai in his mouth - which has never left since!!! :D

    No wonder his posts are so fetid and foul!!! ;)

    cheers


    Dear wise...

    Pavakkai Is good for health...

    Dont insult pavakkai.

    Mr. Nats words are bad for mind.

    Thanks

    chataara
    CommentQuote
  • Originally Posted by nabishek
    I dont know of any house in saligramam at that rate, but flats are available in plenty in the vicinity.

    There are many newly built ready to occupy independant house available in the following areas.

    ashtalakshmi nagar, valasaravakkam
    krishna nagar, ayapakkam
    elango nagar,sridevi nagar virugambakkam
    kothari nagar, nesapakkam

    Most of them are 1200 sqft land and 1900 built up, house on 1 ground plot is also available.

    The average rate/sqft on built up for the house/flat is between 3000-4500/sqft.

    The ground rate is between 50 lakhs-75 lakhs.

    Though, I personally dont like the narrow roads, The locality is not bad for decent living.

    I dont think the rate you are providing are for any decent road with an approved plot which is liveable. In this locality land price is not below 1cr if the plot is approved by DTCP or CMDA and it the road is liveable.
    I agree that in this area the lanes are small in general but that is true about most places in Madras. In Mylapore or Alwarpet every adjacent road is a Cheri.
    Flats ofcourse are available at around 50-70L.
    CommentQuote
  • Originally Posted by Rajesh1974
    Sorry for my ignorance. Where is Saligraman ? Is it near Adyar, RA Puram, T Nagar, Nungambakkam, Kodambakkam ? Why are we talking too much about Sali Gramam (Village) ?


    Dear friend

    If you ask the person who's dwelling is in Kilpauk mental hospital, and who is daydreaming like owning a very decent plot in saligramam, he will equate this with boatclub road, Poes Road, Adyar properties.

    Btw, in reality Saligramam is near vadapalani. a developing area because of its proximity to cinema studios.

    Thanks

    chataara
    CommentQuote
  • What is sali gramam?

    Sali means wife's sister.

    People who are keeping wife's sisters are mostly located.

    In general, this area is famous for cini-junior artists' immoral activities as it is next to kodambakkam.

    Hence this area's vaule has not gone up much like alwarpet or beasant nagar
    CommentQuote