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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  • I had roughly calculated and had came to conclusion that if I take a loan and pay EMIs and calculate the expected premium over time, I set to gain more.
    The only problem which I forsee is if it will be difficult to sell an apartment which is taken on loan as compared to without loan.

    No one have given their opinion on when the appreciation increases ? May be I ask it in another language :

    As per your opinion , per square foot rate increases

    1. After Pre Launch
    2. Between Launch and till all apartments are sold (by Builder)
    gradually depending on the demand
    3. At the time of launch of new Phase (New Building)
    4. At the time of start of construction
    5. Then over the time
    6. Nearing to Delivery

    Many other factors, like rate in nearby areas, status of Govt. projects like road, flyover, e-way, commercial areas, launch of entertainment projects nearby, Metro, etc. also influence the price :bab (30):

    A classic example is in Sector 69, Sector 70, Tuip Purple, Tulip White, and other tulip projects..
    Tulip purple is expected to raise the price from 3500 to 4000 in few weeks.. They have already increased twice from 2750 to 3500 in last 3 months.
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  • May be members could provide their details of when they have sold out their investment in a property to better understand market dynamics and in response to RBBR

    Kindly provide details as:
    Time of selling(holding period)/Difference of psf rate between selling point and buying price/location

    For example, if one has sold out his booking after launch then s/he is requested to provide input as

    Time of launch(3 months)/200 points/Sohna road


    TIMELINE of Selling:
    1. After Pre Launch
    2. Between Launch and till all apartments are sold (by Builder)
    gradually depending on the demand
    3. At the time of launch of new Phase (New Building)
    4. At the time of start of construction
    5. Then over the time
    6. Nearing to Delivery
    7. After taking possession
    8. After 2 years of taking possession
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  • Good point, if members respond to it & give info.

    We would get much closer to the answer, we r seeking.
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  • Originally Posted by MANOJa
    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 ?



    Manoj,
    Entering into RE with limited money is itself overleveraging. whether it is intentional or not is another issue:) . Most of us do it and this is so common in young generation who want to own a house before getting married:) maybe they want to gift it to their future spouse.
    Underlying factor is greed as you mentioned yourself in your post.
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  • One thing seems very evident, you will find it doubly difficult to sell in the short term as everybody wants to buy in prelaunch and hardly in resale. There are very little re-sale buyers right now due to an over supply situation for next 2 yrs.
    Am anyway finding it tough to sell my flat in resale (for last 3 months of trying) hence an evidence for you all:)
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  • MM,

    I tend to differ. One of my old friends into RE has disposed 2 of his investments{one on Sohna rd.(after holding it for 9-10 months) & the other i am not very sure about, but i think it was in one of the Bestech's near Palam Vihar residential projects (after holding it for about 14 months)} in the last one month & at very decent premiums.

    If u r stuck up with yr. apartment & r not being able to sell, there could be other reasons to it - maybe wrong investment/builder issues, asking price is not as per market etc. etc..

    Regarding over leveraging, i think this is the most abused or should i say, misused , word around.

    Defining limited resources is not possible, since no amount of money is sufficient in RE investments & if u have the resources & have inclination towards RE, u tend to invest (some people call it greed) & i believe, if one is able to turn/revolve the limited financial resources at one's disposal well & as per plan, the so called over leveraging will not occur , but if u r overcautious, u tend to under utilize your resources.



    Comments please.
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  • i am a new member and is my first post(infact taken some advice of a few senior members). pardon my ignorance of a lot of threads and shared info.

    If you have the time (read full time RE consultant/broker), invest with a 3-6 months horizon, keep a beeline for all new prelaunch and invest. after 1 or 2 payments, exit. there wd be decent returns and this is a time a cautious investor/end user will come into play (100-200 inr psft profit). better to time and target the retail market (atm shops, ground floor retail shop, food court in decending order) and exit early.

    After 12-14 months- when the return increases to some 800-1200 psft, the chaces of a buyer are either in end user segment or another investor who has exited with payment capacity of 12-15 lacs "coloured" money and pay 40-50% of installments. this is best only with the top builders, location

    24-36 months- near possession- best time as the buyers are end users or real "lazy" and skeptical investor who wd thrive initially on rent and the slow timebound appreciation. This is best for part time investors which form a majority on this forum so that they can have a good sleep and not overly worried.

    Risk takers- just like stock market, who can predict govt policy, new development, new project, new announcement and a buzz, non-established developer but solid plan and money flow. this is the max gain, either short term or long term.

    Exit in my knowledge is dependent on whic bracket one wants to be in of the above. In any case exit wd be a profitable venure for most of members of this forum, with a lot of buzz being created by themselves :).

    next 3 yrs india grows ~9% GDP, NCR remains hub, jobs market in buzz, so you will find more willing buyer at every exit stage in next 12-18 months.
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  • Why real estate?

    Manoj,

    RE and diamonds are similar when it comes to selling after a short term.

    When you are buying, its very liquid. When you want to sell, there is always a significant discount.

    Why would you want to buy-n-sell RE in a short-term manner. There are much better, more liquid and better rergulated investment instruments which can give you similar or even better returns (after all how much return can you expect in RE in the short term?)

    Stocks, Commodities, Derivatives, etc are much better speculative instruments to trade with in short/medium term.

    Any reason I missed about why sell RE in the short term? Other than emergency compulsions?

    cheers
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  • Single Biggest reason is unaccounted transactions. A 10 lacs profit in RE is equal to 13.33 lacs in accounted investments.

    With no audit trails of these cash transactions, RE remains the biggest generator and consumer of bulk colored money in India.



    Originally Posted by wiseman
    Manoj,

    RE and diamonds are similar when it comes to selling after a short term.

    When you are buying, its very liquid. When you want to sell, there is always a significant discount.

    Why would you want to buy-n-sell RE in a short-term manner. There are much better, more liquid and better rergulated investment instruments which can give you similar or even better returns (after all how much return can you expect in RE in the short term?)

    Stocks, Commodities, Derivatives, etc are much better speculative instruments to trade with in short/medium term.

    Any reason I missed about why sell RE in the short term? Other than emergency compulsions?

    cheers
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  • wiseman ,

    I strongly feel that if u make the right investments in RE & enter & exit at the proper time, RE investment in short term can give u much better returns in comparison to the most commodities, u mentioned .

    I could be wrong on the above .

    My experience on RE is quite short & so could be my vision .



    Originally Posted by wiseman
    Manoj,

    RE and diamonds are similar when it comes to selling after a short term.

    When you are buying, its very liquid. When you want to sell, there is always a significant discount.

    Why would you want to buy-n-sell RE in a short-term manner. There are much better, more liquid and better rergulated investment instruments which can give you similar or even better returns (after all how much return can you expect in RE in the short term?)

    Stocks, Commodities, Derivatives, etc are much better speculative instruments to trade with in short/medium term.

    Any reason I missed about why sell RE in the short term? Other than emergency compulsions?

    cheers
    CommentQuote
  • The exit and entry into any investment vary from place to place , project to project and time to time . There is and can never be a fixed formula to define entry or exit in general terms . One has to be proactive and vary ones moves from project to project and time to time.
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  • Yes. I agree, the exit and entry into any investment vary from place to place , project to project and time to time . But for generating maximum ROI, optimum timing of entry & exit is very necessary . For that, as u said, one needs to proactive .

    Originally Posted by ISHANb
    The exit and entry into any investment vary from place to place , project to project and time to time . There is and can never be a fixed formula to define entry or exit in general terms . One has to be proactive and vary ones moves from project to project and time to time.
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  • Basis?

    Originally Posted by MANOJa
    wiseman ,

    I strongly feel that if u make the right investments in RE & enter & exit at the proper time, RE investment in short term can give u much better returns in comparison to the most commodities, u mentioned .

    I could be wrong on the above .

    My experience on RE is quite short & so could be my vision .



    Manoj,

    You could very well be right. But to be doubly sure, you may want to check around to see actual experience of anyone you know in terms of risks and returns. That will add to the strength of your belief!

    One risk could be getting stuck with investment because of various reasons and not getting the price you want.

    The one advantage of the other investments I mentioned is the incredible liquidity, safety and quickness of payment. You can sell literally in seconds and get the money in few days.

    Of course, saving tax due to black is a big advantage of RE trading.

    cheers
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  • I am looking to exit within a cycle of six to 9 months & i do have a back up plan, when i am stuck . I really won't be desperate to sell, if i can't in my planned exit period .

    I do agree on the advantage of the other investments in incredible liquidity, safety and quickness of payment. But in terms of ROI, i feel RE would be better .

    All my investments in RE r cheque payments, no colored money element . Would like to sell in a similar manner, if i am able to find a customer, who can make full white payment
    .:)


    Originally Posted by wiseman
    Manoj,

    You could very well be right. But to be doubly sure, you may want to check around to see actual experience of anyone you know in terms of risks and returns. That will add to the strength of your belief!

    One risk could be getting stuck with investment because of various reasons and not getting the price you want.

    The one advantage of the other investments I mentioned is the incredible liquidity, safety and quickness of payment. You can sell literally in seconds and get the money in few days.

    Of course, saving tax due to black is a big advantage of RE trading.

    cheers
    CommentQuote
  • Originally Posted by MANOJa
    I am looking to exit within a cycle of six to 9 months & i do have a back up plan, when i am stuck . I really won't be desperate to sell, if i can't in my planned exit period .

    I do agree on the advantage of the other investments in incredible liquidity, safety and quickness of payment. But in terms of ROI, i feel RE would be better .

    All my investments in RE r cheque payments, no colored money element . Would like to sell in a similar manner, if i am able to find a customer, who can make full white payment
    .:)



    dont worry one can find buyers in appartments with full white . Its the plots , builder floors and commercial segment that the buyer market is very dry when it comes to max cheque deals .
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