10 reasons why RE price will not fall

1.India has a booming job market where there is no layoffs and everyone is getting 100% hike in salaries.

2.Prices are very low and anyone can afford to buy.

3.Huge amount of easy credit is available where banks are ready to give 110% of the property value at very low interest of 1%.

4.Transactions are very transparent and brokers guide buyers to get the best deal and they will not be cheated.

5.Indian politicians are the best in the world and they have created world class infrastructure.

6.Stock market is booming and touching new highs daily.

7.RE gives CAGR of 100% for next 100 years.

8.There is huge shortage of land and no new land available to build houses.

9.RE is very liquid asset and can be sold the next day you like.

10.You get good rental income.(About 10% yearly rental yield).

Just thought of helping bulls with some reasons why RE price will not fall as they are running out of ideas.
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  • Dear friends,

    Coming back to the original subject of this post, there are prices falls, in some areas to the tune of 30% or so in outskirts mostly dominated so far by IT chaps, in some very high cost areas like Mylapore, Adyar, T.Nagar etc. to the exent of even 20 %, there are areas in city like Saidapet KK Nagar, Ashok Nagar etc. where there are some reductions or even stagnant but not any appreciable reductions. Still the flats are booked at the high rates of around Rs. 4500 range especially in Saidapet area for new projects and mostly the builders now offer 2 bed flats rather than 3 bed flats.

    ks2071746
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  • Originally Posted by ks2071746
    Dear friends,

    Coming back to the original subject of this post, there are prices falls, in some areas to the tune of 30% or so in outskirts mostly dominated so far by IT chaps, in some very high cost areas like Mylapore, Adyar, T.Nagar etc. to the exent of even 20 %, there are areas in city like Saidapet KK Nagar, Ashok Nagar etc. where there are some reductions or even stagnant but not any appreciable reductions. Still the flats are booked at the high rates of around Rs. 4500 range especially in Saidapet area for new projects and mostly the builders now offer 2 bed flats rather than 3 bed flats.

    ks2071746

    If it is 4200 in Siruseri; 4500 in Saidapet is a STEAL. I would believe 16000 is the apt price.
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  • And in Saligramam?

    Originally Posted by Natarajg007
    If it is 4200 in Siruseri; 4500 in Saidapet is a STEAL. I would believe 16000 is the apt price.



    I'm sure you will get a steal at Rs.100000 in Saligramam? It must be a steal for Nats when you buy it from him, I'm sure! :D

    cheers
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  • Thanks, you are the one to get disappointed

    Originally Posted by surla
    I am sorry to disappoint you but if dollar goes down, the first country to feel the pinch will be China...no more cheap exports and all their 1+ trillion $ bonds vanish. Hope you know what you are talking about


    Zhou Xiaochuan, Governor of the People's Bank of China recently commented in a essay he wrote that having US dollar as the world's reserve currency is a pain and he wanted IMF's special drawing rights (SDRs) to be used as world's reserve currency. If you read The Hindu this week, China's ambassador to India who had visited Chennai also commented that having a single reserve currency is a pain (indirectly he meant having the US dollar as reserve currency of the world was big pain in the b utt).

    If you have a habit of reading financial newspapers, China has announced 100 billion dollars of Currency swaps with 5 -6 countries like Korea, Argentina, Venezuala, Singapore, Belarus. Henceforth these countries can directly buy or sell to China in Yuan eliminating the need to have dollars.

    Hugo Chavez, who heads world's second largest oil exporter Venezuala on a visit to Beijing this week said China is a great power and declared a large currency swap with China, henceforth most trade between China and Venezuala will happen in Yuan.

    During the recent G20 summit in London, IMF which is has large amounts of Gold, declared that they will sell all of their Gold off market to raise cash to provide stimulus to effected countries during this downturn. Chinese had a huge relief, Why? China is the first buyer who is buying most of this IMF gold that too off market, which means there will be no sudden impact in Gold prices. China is spending its dollar reserves in purchasing most of the Gold from IMF off market and in stimulating its own domestic consumption as they know they can't depend on US consumer anymore. In next few years after China has steadily shifted all its dollar reserves into Gold off market and into its own economy by lending to its people, the US Dollar will depreciate like melting ice cream when exposed to sudden heat.

    Russia is another buyer of IMF's gold.

    I still believe betting against the US dollar is the trade of this century and am buying gold, gold is real currency. I also love India's real estate especially Chennai, as Chennai is closer to Asian centers like Singapore, China.
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  • I just read in The Hindu today that China has become for the first time, India's largest trading partner with 51.8 Billion dollars trade between both nations in 2008. Trade between these two asian gaints will cross 100 Billion dollars in 2 years. So won't those industries like Chemicals, Pharmaceuticals, and agricultural producers of vegetables, fruits benefit from increased trade with China.

    Won't these farmers selling vegetables and fruits to largely populated China invest in real estate in Andhra Pradesh or Punjab due to increasing disposable income.
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  • hi everyone,
    i am a new member. could anyone confirm if there are any basic requirements such as minimum posts required to send a pm message?
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  • Originally Posted by sam_22_in
    hi everyone,
    i am a new member. could anyone confirm if there are any basic requirements such as minimum posts required to send a pm message?


    Yes, You need a minimum of 10 posts to be eligible for sending PM
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  • Oh those bears

    Just an old altercation between Wise and me. Leaving aside his personal taunts at me, you can distinctly see he was bearish and this was in 2009. Just imagine if he had sold his land then and not in 2012 at 12500 psft! So much for the wise men on this board who predict the future.
    In a similar vein I had come across folks talking about buying stocks and if you ask them how much they trade they will say 2 lots of Nifty options almost like fellas who trade with less than 10000 bucks talking about market rising or falling. Just my advice, listen to others but dont buy their views unless you are convinced and that includes my views too!!
    PS. Strangely my bullish views have held right on and that is the only thing I can say. Does not guarantee that my views will always be right, though I am personally sure that I dont fail on my long term views! LOL!

    Originally Posted by wiseman
    Nats,

    You were saying you are going away for ever and rolling out buckets of croc tears about how the bears are beating the hell out of bulls and getting all the sympathy from the general public?

    What happened? Back so soon? :D So was all that lamenting only fake like you?

    Anyway, till 2007 the brains seemed to be there when bulls made gains in a credit-fueled bull market. After all, as the old saying goes, any fool can make money in a rising market buying any asset. Its only the guys making money in a bear market who have the brains. And to make money in a bear market, you need to be a bear. So, the brains seem to be on the side of the bears around now! :D

    cheers
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  • Originally Posted by ZeeEnn
    Just an old altercation between Wise and me. Leaving aside his personal taunts at me, you can distinctly see he was bearish and this was in 2009. Just imagine if he had sold his land then and not in 2012 at 12500 psft! So much for the wise men on this board who predict the future.
    In a similar vein I had come across folks talking about buying stocks and if you ask them how much they trade they will say 2 lots of Nifty options almost like fellas who trade with less than 10000 bucks talking about market rising or falling. Just my advice, listen to others but dont buy their views unless you are convinced and that includes my views too!!
    PS. Strangely my bullish views have held right on and that is the only thing I can say. Does not guarantee that my views will always be right, though I am personally sure that I dont fail on my long term views! LOL!


    Last time builders were bailed out by Govt. through Banks.
    World witnessed a massive injection of liquidity not seen since the last World War.
    It is like giving steroids to a weak body.In short term;it might appears to be working but the pain would be that much severe when ill effects surface up.
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  • That's good steroid. One need to be drugged to get cured. Don't you know antidote ingredient is from venom itself. Liquidity creates inflation which is better than crunch that creates deflation.
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  • Originally Posted by sunr2i
    That's good steroid. One need to be drugged to get cured. Don't you know antidote ingredient is from venom itself. Liquidity creates inflation which is better than crunch that creates deflation.


    Injection of Liquidity whenever the market tries to correct itself will only delay the inevitable. When the fall comes it will be so big that lot of wealth would be wiped out. The most conservative financial policy coupled with non-interference in market economy is the best and lead to stable wealth creation.
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