The hyped price of the plots in and around chennai which reminds me the Greater Fool Theory....

Very difficult to conclude the current situation...

Any comments pls friends...
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  • In Chennai typically RE pricing are quoting 10 years ahead on the premise of super optimism. Long negotiations, multiple options, playing low balls, legal reviews etc...can get better deals. But any RE deals beyond Rs 0.8 - 1.2 C may be bit too far for common man.
  • True, Agree with you...

    The NEEDS should drive the RE market, NOT price. When a buyer or tenant has a need for space (here Plot/Flat), they will find the right property; it just takes some time to figure out. It doesn’t take a magic wand or a magic broker to sell a property, but it does take time for that Greater Fool to come along. When they do, make sure the property looks better than the next one by all means...

    Otherwise this line of thinking manias which in due course lead to busts and paranoias in certain stage.

  • needs driving a market = socialism
    wants and greed driving market = capitalism

    where you want to be

    until you buy a plot -- buyer - socialist
    once you are a owner turn to a capitalist

    another word comes to my mind

    sorry not being rude but being real ......
  • Sraj001

    You may right but No REAL Investors wanted to be in hyprocritical mode/acts. May be speculators....

  • All Investors are speculators. You do not make investment decisions if you do not think the investment vehicle does not go up.
    All speculators are investors too, without investing money how do you speculate.
    They are all one and the same.

    End users and Investor/speculators could be different.
    End users can be investors too, but not always.

    Investors try to get ahead of end users in betting something will go up and end users will buy it from them at some point in time.
    But mostly in many cases, investors buy from other investors, end users will never get into picture as areas never get developed.

    Who is a greater fool is a open ended question.
    To each, his own perspective.
  • That's true..
  • I think 'NEEDS do drive the market', you will see many areas which have stagnant plot/flat prices.

    If the price is high for the area and there are no end users, there will be no takers for the flat too. There is no reason why a flat developer will not have sold out his inventory if there are actual NEEDS. Same goes with barren layouts with sky high prices.

    Stagnation affects the seller too, the seller loses valuable interest money (opportunity cost) and potential buyer saves money by parking it in other investment vehicles.

    In RE market there are many people who do not care about returns, so sellers do not do fire sale and get rid of inventory.
    Similarly, there are impatient buyers who do not care about value of money and bet big time buying an overpriced asset. Blame has be on buyer to not get good returns as they paid too much, not the otherway.
  • All investors are speculators
    All speculators are investors
    End users are investors
    but not all end users are investors
    All investors are not end users
    All speculators are heck not end users
    Investor now can be end user later
    Speculator now can be investor tomorrow and then end user day after tomorrow
    But all end users are noble and care less what happens to the market if the prices goes up or down
    they actually dont care,
    All buyers are need based
    All sellers are greed based

    But the RE market has to be need based, then build and approve units only what the population warrants why build up so much inventory ?

    thalai suthuthaa appa , thats what i want