Senior Members/All Members,

Investing in a project at the right time/price & exiting the same at the most opportune moment r the most important factors, for a investor, especially so for a short term investor.

I am wondering as to how,members perceive , as the best time to sell/exit for an short term investment.

Comments please.
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  • Best time

    The best time to enter is when the prices are lowest (i.e. at the pre-launch).
    The best time to exit is when you know that you cannot pay any further demands of the builder.

    The best place to buy is not necessarily that place which is already developed & has high prices. The best place to invest is that place which has hidden potential, and some new development is expected which will immediately raise the prices.

    Two such places come to my mind:
    1. Yamuna Expressway plots (next to Greater Noida)
    2. New Gurgaon sectors next to existing 2 airports (on proposed NPR Expressway)

    They hold maxi potential for both long and short term
    CommentQuote
  • Originally Posted by MANOJa
    Senior Members/All Members,

    Investing in a project at the right time/price & exiting the same at the most opportune moment r the most important factors, for a investor, especially so for a short term investor.

    I am wondering as to how,members perceive , as the best time to sell/exit for an short term investment.

    Comments please.


    Comments please
    CommentQuote
  • Originally Posted by raumybhan

    The best time to exit is when you know that you cannot pay any further demands of the builder.



    Agreed

    And also when you have made a hefty profit and want to book the profit

    Or you have made a loss and want to cut it before demand from builder starts
    CommentQuote
  • Which one is better ?
    1. Hold on to your investement which is growing
    2. Exit and re invest it (money from 1st) into 2 diff projects

    Can any one suggest a graph of price rise of projects over time ...May be steep in pre-launch, launch, 1st inst, 2nd inst, 3rd inst, then slow till construction then raising further ...

    If we make a graph like this of many projects then we can judge better.

    This graph may show curves differently for different areas (like Gurgaon and Noida/G.Noida/Faridabad) and may vary in Time (flat in 2008, increasing in 2009/10) ..May further vary in curves if different areas like Gurgaon sectors < 60, >60-77, >80 and <100 , >100

    It will help us in judging the time based on past experience....

    What is your projection ? on this graph ?
    CommentQuote
  • Originally Posted by raumybhan
    The best time to enter is when the prices are lowest (i.e. at the pre-launch).

    The best time may be at pre-launch, but there r many risks associated in investing in a prelaunch, especially with a new builder. I feel, until the builder has real good repute, one should invest only at the launch stage or maybe a bit later than that, after seeing the market response. I could be wrong, but thats my thinking.


    The best time to exit is when you know that you cannot pay any further demands of the builder.


    I thought if the project is appreciating real well, will not it be better to take a bank loan at the stage when u cannot afford to pay to the builder, since probably the maximum appreciation comes, when the construction of the project starts or when its nearing completion.



    The best place to buy is not necessarily that place which is already developed & has high prices. The best place to invest is that place which has hidden potential, and some new development is expected which will immediately raise the prices.

    Two such places come to my mind:
    1. Yamuna Expressway plots (next to Greater Noida)
    2. New Gurgaon sectors next to existing 2 airports (on proposed NPR Expressway)

    They hold maxi potential for both long and short term


    The max. potential areas u r talking about have potential in the next 8 to 10 years. I do not think they r good short term investments. Thats my opinion & i could be totally wrong.

    What kind of risk, one should take. Is it better to invest in areas, which r developed(at higher prices) & take minimal risk & gain less of appreciation or is it sane to invest in areas like Dwarka eway, where the future, as for now is not clear.


    I would request Members to comment
    CommentQuote
  • The max. potential areas u r talking about have potential in the next 8 to 10 years. I do not think they r good short term investments. Thats my opinion & i could be totally wrong.

    Regarding short term appreciation,the facts speak for themselves:

    The Yamuna Expressway Plots: Launched in Aug 2009, you could buy a 300 sq. m. plot at Rs. 500 per sq. m to 700 per sq. m. premium. Within three months, the rates touched 3,500 to 4,000 premium. The rates have been increasing ever since. The present premium is around 7,000 per sq. m. This is when not a brick has been laid, and the Taj expressway hasn't started.

    Rates of Mahindra Aura (sector 110) were 2,200 per sq. ft. on Dec. 20, 2009 at launch. In 6 months, the resale rates reached 2,700 per. sq. mt. (Thus appreciation is Rs. 500 per sq. mt. x 1350 sq. ft = Rs. 6,75,000)

    That's why I said these 2 areas have maxi potential.:o
    CommentQuote
  • Originally Posted by raumybhan
    The max. potential areas u r talking about have potential in the next 8 to 10 years. I do not think they r good short term investments. Thats my opinion & i could be totally wrong.

    Regarding short term appreciation,the facts speak for themselves:

    The Yamuna Expressway Plots: Launched in Aug 2009, you could buy a 300 sq. m. plot at Rs. 500 per sq. m to 700 per sq. m. premium. Within three months, the rates touched 3,500 to 4,000 premium. The rates have been increasing ever since. The present premium is around 7,000 per sq. m. This is when not a brick has been laid, and the Taj expressway hasn't started.

    Rates of Mahindra Aura (sector 110) were 2,200 per sq. ft. on Dec. 20, 2009 at launch. In 6 months, the resale rates reached 2,700 per. sq. mt. (Thus appreciation is Rs. 500 per sq. mt. x 1350 sq. ft = Rs. 6,75,000)

    That's why I said these 2 areas have maxi potential.:o


    The risk is that if Dwarka e way gets indefinitely delayed ( is a strong possibility because of ongoing court cases), rates of the projects there would fall down drastically , maybe lower than the pre-launch levels or the investor money gets stuck for very long periods, without giving any yields. Cannot really comment on the Yamuna e way plots, since not much aware of that area .
    CommentQuote
  • Originally Posted by raumybhan
    The max. potential areas u r talking about have potential in the next 8 to 10 years. I do not think they r good short term investments. Thats my opinion & i could be totally wrong.

    Regarding short term appreciation,the facts speak for themselves:

    The Yamuna Expressway Plots: Launched in Aug 2009, you could buy a 300 sq. m. plot at Rs. 500 per sq. m to 700 per sq. m. premium. Within three months, the rates touched 3,500 to 4,000 premium. The rates have been increasing ever since. The present premium is around 7,000 per sq. m. This is when not a brick has been laid, and the Taj expressway hasn't started.

    Rates of Mahindra Aura (sector 110) were 2,200 per sq. ft. on Dec. 20, 2009 at launch. In 6 months, the resale rates reached 2,700 per. sq. mt. (Thus appreciation is Rs. 500 per sq. mt. x 1350 sq. ft = Rs. 6,75,000)

    That's why I said these 2 areas have maxi potential.:o

    can some one explain when the demand from the end user increases max during the life cycle of construction activity?
    CommentQuote
  • The best time to enter is when the prices are lowest (i.e. at the pre-launch).

    The best time may be at pre-launch, but there r many risks associated in investing in a prelaunch, especially with a new builder. I feel, until the builder has real good repute, one should invest only at the launch stage or maybe a bit later than that, after seeing the market response. I could be wrong, but thats my thinking.

    We cannot time the market.

    Best Time to Enter (combination of the below factors):
    1. When you have a lump sum to invest.
    2. When you want to diversify your portfolio of investment.
    3. When the market conditions (Real Estate, Interest rate scenario, Government policies incl tax regime) works in your favours.
    4. When there is not much euphoria around and more sellers are there than buyers.

    Better price at prelaunch might not necessarily means better returns going forward. External economic and political factors and market conditions might play a role in future price determination.


    The best time to exit is when you know that you cannot pay any further demands of the builder.


    I thought if the project is appreciating real well, will not it be better to take a bank loan at the stage when u cannot afford to pay to the builder, since probably the maximum appreciation comes, when the construction of the project starts or when its nearing completion.

    Best Time to EXIT (combination of the below factors):
    1. When there are more buyers than sellers.
    2. When you need money for other exigencies
    3. When you think that the price would not appreciate much because of external logical factors.
    4. When you have found other avenues for better price appreciation over current investment.

    When you cannot afford to pay the builder then you would be in a situation of distress sell. You have to sell since you have no other option. So do not sit too late, sell a step before.





    The best place to buy is not necessarily that place which is already developed & has high prices. The best place to invest is that place which has hidden potential, and some new development is expected which will immediately raise the prices.

    Two such places come to my mind:
    1. Yamuna Expressway plots (next to Greater Noida)
    2. New Gurgaon sectors next to existing 2 airports (on proposed NPR Expressway)

    They hold maxi potential for both long and short term
    The max. potential areas u r talking about have potential in the next 8 to 10 years. I do not think they r good short term investments. Thats my opinion & i could be totally wrong.

    What kind of risk, one should take. Is it better to invest in areas, which r developed(at higher prices) & take minimal risk & gain less of appreciation or is it sane to invest in areas like Dwarka eway, where the future, as for now is not clear.

    Investment in New areas: Attraction is there to invest in new areas for two things: smaller entry point (Rs.1800 to Rs.2500 psf) and huge scope of development (we see the slate as clean, so lot of construction activity is anticipated keeping in mind the final Manhattan picture).
    CommentQuote
  • Originally Posted by sharmhg
    can some one explain when the demand from the end user increases max during the life cycle of construction activity?


    Good Question!!!!

    We all know that maximum rush is there at the pre-launch because of marketing activities by the builder and broker community.

    What stage next after pre-launch is the demand reasonably high for investment?
    CommentQuote
  • Good comments,amit2222

    I wonder, why nobody has talked about human instinct yet.

    Originally Posted by amit2222
    The best time to enter is when the prices are lowest (i.e. at the pre-launch).

    The best time may be at pre-launch, but there r many risks associated in investing in a prelaunch, especially with a new builder. I feel, until the builder has real good repute, one should invest only at the launch stage or maybe a bit later than that, after seeing the market response. I could be wrong, but thats my thinking.

    We cannot time the market.

    Best Time to Enter (combination of the below factors):
    1. When you have a lump sum to invest.
    2. When you want to diversify your portfolio of investment.
    3. When the market conditions (Real Estate, Interest rate scenario, Government policies incl tax regime) works in your favours.
    4. When there is not much euphoria around and more sellers are there than buyers.

    Better price at prelaunch might not necessarily means better returns going forward. External economic and political factors and market conditions might play a role in future price determination.


    The best time to exit is when you know that you cannot pay any further demands of the builder.


    I thought if the project is appreciating real well, will not it be better to take a bank loan at the stage when u cannot afford to pay to the builder, since probably the maximum appreciation comes, when the construction of the project starts or when its nearing completion.

    Best Time to EXIT (combination of the below factors):
    1. When there are more buyers than sellers.
    2. When you need money for other exigencies
    3. When you think that the price would not appreciate much because of external logical factors.
    4. When you have found other avenues for better price appreciation over current investment.

    When you cannot afford to pay the builder then you would be in a situation of distress sell. You have to sell since you have no other option. So do not sit too late, sell a step before.





    The best place to buy is not necessarily that place which is already developed & has high prices. The best place to invest is that place which has hidden potential, and some new development is expected which will immediately raise the prices.

    Two such places come to my mind:
    1. Yamuna Expressway plots (next to Greater Noida)
    2. New Gurgaon sectors next to existing 2 airports (on proposed NPR Expressway)

    They hold maxi potential for both long and short term
    The max. potential areas u r talking about have potential in the next 8 to 10 years. I do not think they r good short term investments. Thats my opinion & i could be totally wrong.

    What kind of risk, one should take. Is it better to invest in areas, which r developed(at higher prices) & take minimal risk & gain less of appreciation or is it sane to invest in areas like Dwarka eway, where the future, as for now is not clear.

    Investment in New areas: Attraction is there to invest in new areas for two things: smaller entry point (Rs.1800 to Rs.2500 psf) and huge scope of development (we see the slate as clean, so lot of construction activity is anticipated keeping in mind the final Manhattan picture).
    CommentQuote
  • My personal opinion is that short term RE investment is less worthwhile and too risky. Yes if u are a broker or related to a builder then makes sense.

    Issues like WHEN TO BUY and WHEN TO SELL can never be perfectly timed. They are based on luck, perception, gut feel, self confidence and whole lot of external factors which are commercial in nature.

    I would never sell a property before 5-7 yrs come what may:)
    CommentQuote
  • Originally Posted by Munish Malhautra
    My personal opinion is that short term RE investment is less worthwhile and too risky. Yes if u are a broker or related to a builder then makes sense.

    Issues like WHEN TO BUY and WHEN TO SELL can never be perfectly timed. They are based on luck, perception, gut feel, self confidence and whole lot of external factors which are commercial in nature.

    I would never sell a property before 5-7 yrs come what may:)


    but MM , if u do not have the money to hold for 5 to 7 years & the property is appreciating, than what would u do?
    CommentQuote
  • yes mate thats a problem people find themselves into. If they dont have money then they over leverage and thats why i said its too risky.if u are related to a builder or are a dealer then it still makes sense as u are aware of the pros and cons. There are better ways of making money with limited money. In property u need to have a strong heart and some additional money:)
    CommentQuote
  • MM/Other Members

    Nobody intentionally over leverages. Most people invest with a plan , but u sometimes do get stuck up because of the circumstances ( maybe a bad investment, builder not delivering in time, changes due to govt. policies , all properties u have booked really appreciating & u do not want to exit any of them at this time (but u r short on money) , yr. gut feeling wants u to hold on & not exit at this point of time etc. etc. ).

    In such circumstances, what is the best way out.

    Would u suggest to -

    a) exit from one or more projects , as required.

    OR

    b) take a bank loan to finance the future installments.

    OR , maybe something else ?

    Originally Posted by Munish Malhautra
    yes mate thats a problem people find themselves into. If they dont have money then they over leverage and thats why i said its too risky.if u are related to a builder or are a dealer then it still makes sense as u are aware of the pros and cons. There are better ways of making money with limited money. In property u need to have a strong heart and some additional money:)
    CommentQuote