Welcome to 2010, to Chennai and see how the RE market revs up in a one way ticket to the moon. That is also true of Stock market in India though one sharp dip to wipe out scared folks will happen in the early part. So as Nifty creates a new high later the new year you will realise why if you missed buying in 2009 your favourite land or flat in Chennai you never are going to get it and certainly for nothing less than 50% upwards.
Welcome to the bull in RE in 2010. Happy new year.
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  • Originally Posted by REUser
    Thanks for adding a different flavour.

    RBI is a failed agency.
    It has lost its direction.

    Inflation has to be half of GDP at the max, for smooth running of economy.

    Lets see what is in store in April during Policy Review.



    Can you suggest something that RBI could have done better?
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  • subramaniansubbiah ,



    Keep up the good work.
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  • read the whole 11 pages of this thread... Whoaa... :D

    All the ppl in the house... plz get in BULLISH moods for this yr... RE price hikes, salary increments, jobs, onsites, perks are here to stay... Bling Bling $$ :D
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  • Originally Posted by m_square
    read the whole 11 pages of this thread... Whoaa... :D

    All the ppl in the house... plz get in BULLISH moods for this yr... RE price hikes, salary increments, jobs, onsites, perks are here to stay... Bling Bling $$ :D


    Ideally speaking, unless one is looking RE as an Investment tool, one should not bothered about Bullish or Bearish outlook in RE, like in stock market.

    If you got cash or able to get loan from Bank (40% of Gross at Max), found an affordable flat at the desired location, then one should go for it
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  • Originally Posted by sridhga
    Can you suggest something that RBI could have done better?


    1. RBI failed to strengthen INR value;You cannot keep devaluing INR just to favour export sector. Exports should have more quality and standard rather than show volume just because of devalued INR.( similar to China's currency devalution).Hence, INR and the common man are losing their pruchasing power day by day.

    2. RBI failed to curb inflation, interest & other rates should have been raised at least 3 - 4 month ago, after seeing huge gap between WPI & CPI.

    3. RBI favoured the RE Developers and Builders in the last 3 4 years, than the common man. Hence, the more money diverted to Builders and RE became a bubble.
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  • I feel RBI has done a good job so far compared to China.
    We will be less vulnerable to global crisis than china.

    Now everyone understands domestic consumption and more focus will be on that.

    1.Japan - 10 years of growth and deflation

    2. China - Copy cat Japan model and 10 years of growth and it wont lead to deflation however some normalization due to high population

    3.India - Better than China and Japan and high population so long term better growth.

    So growth will be there in India and it will be old Indian (4-5%) rate of growth and no steroid going forward like rupee devaluation by forex accumulation.

    RBI should be appreciated that we are in a better position because we have huge savings that is forex. Confidence is key in the markets

    The whole world has confidence in India and that is why INR will appreciate going forward.

    Rupee is between 39-52 last 2 years.

    Yesterday's volatility
    Today's flexibility
    Tommorrow's reality


    One more thing:

    India GDP: 1.2 Trillion - 100 Crore population produces this output.
    US GDP: 14 Trillion - 30 Crore Population produces this output.
    China GDP 5 Trillion - 100 Crore population produces this output.

    A long way to go till we become rich.

    India shining growth story remains intact and INR appreciation hence salary adjustment for export sectors.

    Key thing for dollar trade is oil and oil means energy.
    Thanks to our honorable Manmohan, Government keenly expanding on growth of Solar Energy
    (we are rich in it.) We will be successful in implementing it in next 10-15 years by mass installation.

    Slowly dollar will fade out and we will become a developed nation.
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  • Just one thing ...

    Originally Posted by subramaniansubbiah
    I feel RBI has done a good job so far compared to China.
    We will be less vulnerable to global crisis than china.

    Now everyone understands domestic consumption and more focus will be on that.

    1.Japan - 10 years of growth and deflation

    2. China - Copy cat Japan model and 10 years of growth and it wont lead to deflation however some normalization due to high population

    3.India - Better than China and Japan and high population so long term better growth.

    So growth will be there in India and it will be Hindu rate of growth and no steroid going forward like rupee devaluation by forex accumulation.

    RBI should be appreciated that we are in a better position because we have huge savings that is forex. Confidence is key in the markets

    The whole world has confidence in India and that is why INR will appreciate going forward.

    Rupee is between 39-52 last 2 years.

    Yesterday's volatility
    Today's flexibility
    Tommorrow's reality


    One more thing:

    India GDP: 1.2 Trillion - 100 Crore population produces this output.
    US GDP: 14 Trillion - 30 Crore Population produces this output.
    China GDP 5 Trillion - 100 Crore population produces this output.

    A long way to go till we become rich.

    India shining growth story remains intact and INR appreciation hence salary adjustment for export sectors.

    Key thing for dollar trade is oil and oil means energy.
    Thanks to our honorable Manmohan, Government keenly expanding on growth of Solar Energy
    (we are rich in it.) We will be successful in implementing it in next 10-15 years by mass installation.

    Slowly dollar will fade out and we will become a developed nation.



    Nice ... But for a few inconvenient bottlenecks ...

    If India and China try to emulate the "developed" countries in the way they use up resources, Humankind itself will be in peril of extinction long before we become "developed".

    Already, with this "very low" level of GDP (in relation to our population ...

    Originally Posted by subramaniansubbiah
    India GDP: 1.2 Trillion - 100 Crore population produces this output.


    India is in a precarious position in relation to water, like China which has a very high and widespread level of polution in all of their water resources.

    And in order to build that infrastructure for alternative energy generation you will need to burn enormous amounts of oil which we don't have - and even if we did, we will bankrupt ourselves in order to buy all that oil to create the alternative energy infrastructure (we are nearly bankrupting ourselves even at this level of oil consumption and all this extra oil will be coming at much higher prices as "peak oil" ensures progressively lesser oil for all of us!)

    So, really a catch-22 situation. I believe that the world will lurch from crisis to bigger crisis till we finally figure out that living within our means (in terms of rersource utilization) and living in moderation is the only way to go!:( Its all going to be about "sustainable" living so that we don't screw ourselves ot of existence!

    Please also remember that, while we are having near-crisis situation in Water at this level of population itself, the population is expected to rise to a peak of 9 billion worldwide before peaking out!

    So we are not about to be getting rich (except for a few at the top who are always getting rich). Even today, India Shining is only the veranda (which has a bright light) while the rest of a very big house is still lighting itself with 20 watt bulbs or even candles. And I suspect we will remain at this level for quite some time to come simply because we do not have the resources to become like the "western" nations - which, incidentally bankrupted themselves trying to become rich in the last 30 years!!!

    cheers
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  • Originally Posted by subramaniansubbiah

    So growth will be there in India and it will be Hindu rate of growth and no steroid going forward like rupee devaluation by forex accumulation.

    RBI should be appreciated that we are in a better position because we have huge savings that is forex. Confidence is key in the markets

    The whole world has confidence in India and that is why INR will appreciate going forward.

    Rupee is between 39-52 last 2 years.

    Yesterday's volatility
    Today's flexibility
    Tommorrow's reality



    One more thing:

    India GDP: 1.2 Trillion - 100 Crore population produces this output.
    US GDP: 14 Trillion - 30 Crore Population produces this output.
    China GDP 5 Trillion - 100 Crore population produces this output.

    A long way to go till we become rich.

    India shining growth story remains intact and INR appreciation hence salary adjustment for export sectors.

    Key thing for dollar trade is oil and oil means energy.
    Thanks to our honorable Manmohan, Government keenly expanding on growth of Solar Energy
    (we are rich in it.) We will be successful in implementing it in next 10-15 years by mass installation.

    Slowly dollar will fade out and we will become a developed nation.



    it will be Hindu rate of growth

    What's the Hindu rate of growth? Never heard of that..........


    Yesterday's volatility
    Today's flexibility
    Tommorrow's reality


    It's not reality.
    You get your mind adjusted to it, because your are helpless and hapless.

    we will become a developed nation
    India was developed nation, which is inching towards under-developed nation and sooner to undeveloped nation.

    India lacks good infrastructure, development in Infrastructure or getting rich does not mean "DEVELOPED".
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  • I mean old indian rate of growth 4-5%
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  • RE Chennai facts

    Chennai RE raise is much higher than what other cities experienced. Reasons for RE prices raised in the past 5 years:
    1) NRI people invested in lands and flats, IT people were able to pay whatever raise by builders,
    2) IT/ITES companies were buying lands and they were paying more to get the area they wanted,
    3) Auto industry targeted Chennai.
    4) Some other sectors got growth and financial industry had growth.
    5) Some businesses like auto, etc got very good growth from the above.

    Based on the demand and supply, the demand was more in the past few years, and the builders and land promoters were targeting the above 5 category only, builders simply rip off the above 5 category. The price growth and current price ranges are not at all affordable by anyone else other the above, except people came from film industry or other types of higher earning business.

    It almost reached the supply is more than the demand level there will not be price raises like last 5 years. However there will be gradual raise for next 2 or 3 years RE people need to sell the current and future project for the targeted profit. They may frighten people by saying 95% sold and have few flats only, and all sort of selling techniques. They will get buyers close the price range they are trying to set.

    It will settle down in few years, after that the people who own the flats may not be able to sell it for not more than 10% profit over their purchase price. Simple, the buyers who can afford more than 80 lacs to buy a flat will try to buy new one not old one. I believe most of the flat owners who bought after 2007 needs to keep for next 10 years to get price raises or to find a buyer. It all depends on the above sectors growth and how centralized the developments are only happening in Chennai within TN.

    It is certainly not good for the younger generation.
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  • Well Said Srinig.
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