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- FD in SBICommentQuote2Flag
- Vandalur - Orangaddam is a nice place to invest in. Good projects with considerable budget. Crescent Lake Homes is a project with good apartments and nice amenities.
Puravankara, Alliance, Praveen are some other builders you can consider.CommentQuote1Flag
- Based on reviews and popularity, the Old Mahabalipuram Road (OMR) region in Chennai is one of the best bets when it comes to real estate investment.CommentQuote0Flag
oh is it? I bought a flat in OMR for 2700 PSF in 2009 through home loan 8% interest. I can't sell it even for 3800 now. what is the ROI?
I accept it is good for end use, not for investment.CommentQuote0Flag
- I too had bought a flat in OMR and was able to sell it at a substantially higher price. While I do not know the reasons for your lower ROI, I would have to disagree with it not being a good investment opportunity. Current rates and trend prices in the area too indicate that it is one of the sought after regions in Chennai.CommentQuote0Flag
- Your location of investment depends primarily on your budget. If your budget is few crores, you can opt for a property in city and if it is above 50 lakhs, immediate suburbs and if it is less than 5 lakhs, at a distant location from Chennai.CommentQuote0Flag
- People are not buying resale flats now, lot of new flats available, anyway what is your budget for investment.CommentQuote0Flag
Timing is THE thing is RE investment, isnt it.
You already seem to have made a killing, while you claim to be a RE newbee on another thread. ;-)CommentQuote0Flag
- Originally Posted by GlobeSonTiming is THE thing is RE investment, isnt it.
You already seem to have made a killing, while you claim to be a RE newbee on another thread. ;-)
Haha yes I agree! I was lucky to have a very good property advisor (a friend of mine) at the time who was able to guide me. I guess I made the most of the opportune moment with some help.CommentQuote1Flag
- Between 2006 and now (last 10 years) land has appreciated in Chennai around 4.5times that is a CAGR of about 17%. Apartments should have appreciated at best 8%. So buying flats for appreciation is a mistake but nobody seems to understand. Going by the example above 2700--->3800 in 7 years it is 5%.
Between 2003 and 2012 land appreciated at 24% and at times even 38%. These are personal data for specific properties. So the question is will RE shoot up again as it has to catch up for lost time OR will it go down further. One person above says FD in SBI. I wont laugh at him, but I can state the following. I will yet invest in land followed by USD and then in FDs. Infact tax saving bonds are best for the earning community. In summary land appreciates, building depreciates and builders profit and buyers enjoy the stay and renters pay peanuts to rent and finally investors in buildings are fools.CommentQuote2Flag
You are lucky, then you should say only Specific areas in OMR is good for investment. :).CommentQuote0Flag
- Just to add to my above argument mathematically. Let us assume that the price of land in a place X is 6000psft today and assuming we are in great demand like 2006-7. So the builder builds at 2500psft with an FSI of 3. That means 1sqft of building cost him 2500 to build and 6000/3=2000 for land. On this 4500 cost he adds a marketing cost of 500 and a first margin of 500 making it 5500 psft. Now comes the game. If the area has demand like in 2006-7 he gets initial bookings at 5500 and after selling say 20% he starts quoting 7000psft as he knows he will not have much of a trouble completing the project. This in an upward mobile market goes to 8000psft. That is when the typical "foolish" aam buyer enters. He is thinking that like 7000 went to 8000 so will 8000 go to 9k and so on. Even there in an upward trending market he realises his dream. Only that if he is partly smart he exits at a profit. However being thick skinned and greedy he expects the price to go to 15K. He holds on for 5 years and 7 years like our friend above and then expects 12-15% or even more return. Think of it. That means the flat he bought at 8000 should go to 18K-20K psft. Does it happen? Well almost never. Old flats in adayar dont go up so much! Alas he is disappointed.
Worse still the rental value is stagnant and returns atbest 3% in Chennai. So his dream is shattered. However he notices that a new builder in a so called not so well rated neighbourhood according to him (as that place developed in 5years) is costing 12Kpsft in 5 years (in our example say in 2021). So he yet assumes to get his flat sold at 14K and it wont work. Moral of the story is what I wrote earlier...investors in buildings are fools. If you wanna live buy a flat. You want to invest then it is land. Most of the money in a flat is lost in the marketing, topup and then first buyer second buyer topups that after 2 years the flat is so prohibitively costly that you cant get any profit more. Why will I buy for 9K the above flat if I can buy land at 6500 and build it all for 4500psft. Only that lazy Chennaities and I am not saying other city folks are better, want to have the cake and eat it too.
I want all documents, building everything at my table top and I will go to work...is the motto. So the builder says, SAAR THANKS, You can have it all and I take (8000-4500)/4500 as profit, JUST 70% or so....no more SAAAAAAAAR!
Now the buddy who buys it at 8K thinks he can tell a bigger fool take it at 12K or (12000-4500)/4500 just 200% more than worth. Strangely such fools do exist. I have seen an Adarsh apartment a friend booked in 2005 for 40L escalating to 80L by 2009 which was delivered in only 2013 now supposedly cost 3C. Ofcourse my friend shifts to that flat and thinks it is great. It is unfortunately just 2 times or more than his existing flat and is in a remote area, just that has a pool for 1000 families who all dont swim..etc and the story continues till one day the economy slides and it gets back to the level of 60L(at current worth). Well that story we can talk another day...but now one feels he is on a 3C flat and a cool 2C profit. Unfortunately this price does not move up.
An independant villa in another Adarsh moves from 40L in 2004 to 4C in 2009 and then stays at around 5-6C for next 7 years. So the 40L buyer if he lived enjoyed the life and then sold it. What about the 6C buyer in 2009? That is whom we are discussing about!CommentQuote2Flag
- Dear friends,
I am looking for 2BHK flat or villa in Chennai. Looking around the skirts of Chennai. I am not very sure about the areas in Chennai. Would like to hear from you all for the suggestions for the area and the good area to invest. And most importantly like to hear about the things to look out for especially about the developers.
Share your experiences here and will everyone can help each other in a way
- Office space take up jumps most in 2015, can homes be far behind?
By Kailash Babar, ET Bureau|
Read more at:
Office space take up jumps most in 2015, can homes be far behind? - The Economic Times
According to CBRE, prominent micromarkets with good demand included Gurgaon in NCR; Powai, Vikhroli, Kanjurmarg, Thane and Navi Mumbai in the Mumbai Metropolitan Region; the Outer Ring Road in Bangalore; the IT Corridor in Hyderabad; the Old Mahabalipuram Road stretch along Perungudi in Chennai;CommentQuote0Flag
- Best place to invest in plot in chennai
Which place can we bet for investing in plots for long term having future prospects and ROICommentQuote0Flag