hi everyone,

I am planning to buy a property in Chennai, somewhere in a posh area location. But seeing the discussion in other threads, I am unable to decide whether this is the right time to act

Hailing from a middle class family, I consider buying a property is a major investment, which one should take judiciously. To gather more information, I have tried speaking to friends, searched in the net to get some professional advice from real estate consultants but still undecided.

Because of the global economic recession, everyone seems to sing a different tune, which just confuses me on the question of the exact real estate scenario in Chennai.

I need serious advice friends!!!!!

Thanks in advance!!:)
Read more
Reply
30 Replies
Sort by :Filter by :
  • I will try to answer in few lines.


      If you think this a LONG term investment - Ups or Downs - dont bother
      If you think this is NOT a LONG term investment - Wait and watch
    CommentQuote
  • Dear friend,

    If it is for own use and not for purely for investment purpose, no time is bad to buy. Of course, hard negotiations would be necessary. Assuming that it is for your own use, and you will also be going in for a house loan, they give only to the tune of 70 or 75% now, the balance being your own money to be put as margin money, look for a flat almost ready and getting ready in a couple of months, with due approvals, in a locality best suited to your with all basic requirements like shops, schools, bus stand, railway station, doctor, hotel etc. In addition one should also look into the area's vulnarabilty to water logging in rainy days, ground water source/availability etc. You also should decide what size of flat you would like to live in for long, if it is a 2 bed flat, go for atleast 900 sq. ft and for a 3 bed flat go for 1200+ sq. ft. Should have service area for kitchen and balcony for the bed as well as for living or dining hall. Better to have reserved car parking facility. Please feel free to visit the site and get in touch with other buyers in the project about the builder, construction quality, the prices and other considerations which made them select the project. Enquiries nearby also will help regarding the water availabilty, water logging, general informations/issues about the area etc.

    If it is for pure investment or investment now and later for own living, better to wait for atleast another 12 months or so to get better prices and select appropriate area satisfying most of your various requirements.

    ks2071746 :)
    CommentQuote
  • Prices are going down every month and will continue to do so for another 1 or 2 years.

    More job losses, freeze on increment,bonus,recruitment.

    So wait for 1 year atleast
    CommentQuote
  • Originally Posted by jostul
    I will try to answer in few lines.


      If you think this a LONG term investment - Ups or Downs - dont bother
      If you think this is NOT a LONG term investment - Wait and watch

      Well written in a crisp way.
      Well written in a crisp way.
      Well written in a crisp way.
      Well written in a crisp way.
      Well written in a crisp way.
      Well written in a crisp way.
      Well written in a crisp way.
      Well written in a crisp way.
    CommentQuote
  • Originally Posted by Hareom
    hi everyone,

    I am planning to buy a property in Chennai, somewhere in a posh area location. But seeing the discussion in other threads, I am unable to decide whether this is the right time to act

    Hailing from a middle class family, I consider buying a property is a major investment, which one should take judiciously. To gather more information, I have tried speaking to friends, searched in the net to get some professional advice from real estate consultants but still undecided.

    Because of the global economic recession, everyone seems to sing a different tune, which just confuses me on the question of the exact real estate scenario in Chennai.

    I need serious advice friends!!!!!

    Thanks in advance!!:)


    Why you want to buy a over hyped and over priced RE now.Wait for some more time you will get it atleast 30-40% cheap.
    CommentQuote
  • Originally Posted by Hareom
    hi everyone,

    I am planning to buy a property in Chennai, somewhere in a posh area location. But seeing the discussion in other threads, I am unable to decide whether this is the right time to act

    Hailing from a middle class family, I consider buying a property is a major investment, which one should take judiciously. To gather more information, I have tried speaking to friends, searched in the net to get some professional advice from real estate consultants but still undecided.

    Because of the global economic recession, everyone seems to sing a different tune, which just confuses me on the question of the exact real estate scenario in Chennai.

    I need serious advice friends!!!!!

    Thanks in advance!!:)

    Dear friend Hareom,

    You say you are from a middle class, and also say you want property in a posh area in Chennai. These do not go together ( buying a property in a posh area by a middle class person )

    ks2071746
    CommentQuote
  • Originally Posted by BigBear
    Why you want to buy a over hyped and over priced RE now.Wait for some more time you will get it atleast 30-40% cheap.

    Now another case study. One of my relatives an NRI with hard cash in hand, wanted to buy a house in MaxWorth Nagar, Kovilambakkam. For 2200sqft plot with 800sqft house the seller quoted 55L and my relative was asking for 35L. If I am not mistaken the price here was slightly lesser than 55L even a few months ago for similar houses. So while many are crying bear stories the truth is a seller is not willing to even negotiate price with a potential CASH RICH buyer. Infact my relative would have settled for even 40L or slightly more.
    So much for the MISCONCEPTION that RE WILL FALL. These cursed bears are really making ordinary buyers CONFUSED.
    CommentQuote
  • All good things take time, Nats :)

    Originally Posted by Natarajg007
    Now another case study. One of my relatives an NRI with hard cash in hand, wanted to buy a house in MaxWorth Nagar, Kovilambakkam. For 2200sqft plot with 800sqft house the seller quoted 55L and my relative was asking for 35L. If I am not mistaken the price here was slightly lesser than 55L even a few months ago for similar houses. So while many are crying bear stories the truth is a seller is not willing to even negotiate price with a potential CASH RICH buyer. Infact my relative would have settled for even 40L or slightly more.
    So much for the MISCONCEPTION that RE WILL FALL. These cursed bears are really making ordinary buyers CONFUSED.



    Nats,

    This time I will be straight and argue only your point ;)

    The Bears are not confused, as you think. They know that what took several years to become excessively priced will not come down in a jiffy - if only things were so simple! :D

    Given the overwhelming evidence of the credit contraction and wealth destruction going on around the world - ask Alan! - we know for sure that property prices will revert to the mean. And given the huge distance between today's prices and the mean, this means a significant decline (somewhere between 50% - 80% based on the data provided a few days ago) from 2008 peak / current prices to revert to 2004 prices.

    We know for a fact that this decline will happen in waves of down moves and flat markets over next few years.

    So we wait, since we are told that patience is well rewarded in these kinds of situations!!! :D

    So, to each of us, our respective beliefs. I have never told you to not talk about price rise. So, why do you specifically ask the bears to shut up? Unless, somewhere deep down you have a niggling fear that maybe that decline is really coming?

    So, I'm not asking you to sell today since you believe prices will rise. But, just in case the declines arrive, what are your defensive steps?!!!

    cheers
    CommentQuote
  • good analysis by wiseman

    thanks for your good analysis wiseman
    i fully endorse the views of this genius wiseman
    CommentQuote
  • Badri, don't use bad language :)

    Originally Posted by badrig
    thanks for your good analysis wiseman
    i fully endorse the views of this genius wiseman


    Please don't use bad language against me Badri! :D

    Thanks for the compliment. But such things are generally over the top and excessive!!! Real credit goes to the genius analysts whose views we assimilate and re-phrase since we believe they are true!

    cheers
    CommentQuote
  • From Business Line:
    Chennai, March 23 DLF Homes is committed to refunding the advance payments to those buyers who wish to exit the Gardencity residential project, according to Mr K.K. Raman, Executive Vice-President and Zonal Head, DLF Home Developers Ltd.
    Addressing over 75 buyers who had gathered in the company’s office on Monday demanding this commitment in writing, Mr Raman said that the process of reimbursement had started last week. The company does not want to deny any one their payment, but a system has to be followed, he said.
    Mr Raman said that the company has in place all the statutory approvals for the township project as of March 9 and the buyers were bound by the existing agreement between the buyers and DLF. However, DLF was willing to refund the advance in line with the buyers’ demand through a process of ‘re-trading.’
    Re-trading process

    As and when the apartments are sold to other buyers through DLF’s direct selling agents, the buyers who wish to exit the project would be paid off in full, a process that could take place over the next two weeks to four months. However, he would consult with the corporate headquarters before communicating this to the buyers by the week-end, he said.
    The buyers were part of an online group, which claims a membership of nearly 1,000 who have come together online expressing dissatisfaction over the progress of the project, and a range of issues including the quality of the approach road and a 5-acre patch of land within the project site that they said was yet to be acquired by DLF.
    According to the members coordinating the group, at least 600 of the buyers have written to DLF wanting to exit the project. At the meeting with DLF on Monday, over 100 members have handed over a letter to this effect.
    DLF officials said that the issues were being addressed. DLF also has a written agreement with the owner of the 5-acre parcel of land within the project to buy the land. The legal process was on and the deal would be finalised soon.
    According to DLF, the number of buyers wanting to exit the project was less than 200. The company has sold over 1,800 apartments in the project where over 2,100 units are to come up in the first phase. Bookings were happening on a daily basis. The downturn in the market was the primary reason for some of the buyers wanting to exit the project. Among them were over 50 buyers who had lost their jobs and DLF was considering their refund on a priority basis, Mr Raman said.
    The DLF Gardencity, DLF’s first residential project in Chennai, is a 53-acre township with 3,493 apartments coming up about 20 km south of Chennai, and 3 km off the Old Mahabalipuram Road (OMR). In February DLF brought down the prices for its existing customers to Rs 2,500 to Rs 2,600 a sq.ft against last year’s launch price of Rs 2,800 to Rs 3,200. For new customers, it has announced a basic price of Rs 2,750.
    CommentQuote
  • Originally Posted by Natarajg007
    Now another case study. One of my relatives an NRI with hard cash in hand, wanted to buy a house in MaxWorth Nagar, Kovilambakkam. For 2200sqft plot with 800sqft house the seller quoted 55L and my relative was asking for 35L. If I am not mistaken the price here was slightly lesser than 55L even a few months ago for similar houses. So while many are crying bear stories the truth is a seller is not willing to even negotiate price with a potential CASH RICH buyer. Infact my relative would have settled for even 40L or slightly more.
    So much for the MISCONCEPTION that RE WILL FALL. These cursed bears are really making ordinary buyers CONFUSED.



    Sellers in Chennai are under illusion. It is a question of lakhs of rupees, no body would yield so easily . But the sellers will learn their lesson in a hard way. Bangaloreans have learned it fast. The price of flats in Bangalore for similar loclity is 30% less than what is being quoted in Chennai. Right now there are no transactions in Chennai. It is a question of time before we start seeing a fall.
    CommentQuote
  • Chennai has just began to feel heat....there is enough time left to get roasted and toasted !
    CommentQuote
  • Originally Posted by REGuru
    Chennai has just began to feel heat....there is enough time left to get roasted and toasted !


    summer is really very hot in chennai.use sunscreen SPF > 25 :D
    CommentQuote
  • Dear friend,

    Like the detailed writing given above on DLF project, it will be really useful if those who have updated informations with them about the various big name projects in and around Chennai to share the details periodically for the benefit of the readers.

    ks2071746
    CommentQuote