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Will Gurgaon Property Rates go down by 30-40%?

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Will Gurgaon Property Rates go down by 30-40%?

Last updated: July 9 2013
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  • Re : Will Gurgaon Property Rates go down by 30-40%?

    Look for options within your budget

    Hi
    Greetings

    Buying a house is a necessity for most and luxury/investment for some. Both view/expect the situation differently. Charmed by Lucrative returns RE has attracted many investors causing flaring up of prices.

    Its unlikely that prices would drop by 40% given highly inflationary scenario and economic indicators like increase of gold prices by 6X in 10 years, Major indices up 3-4 times globally, Oil prices up from $45 to $110 barrel (likely to go up further), Food stuffs/consumables/travel at least 300-1000% over 10 years. Barring Communication all have shown triple digit growth over the past 10 years.

    Let us not ignore growth in salaries and I have few examples of performing employees, having grown 500-2000% over last 10 years across various industries. Assets accumulated by salary earners have also appreciated similarly unless put only in liquid FDs, PPF, Post office, low yield stocks/properties.

    For the first time home seekers the prices are high but one cannot view his situation in isolation of the real facts of the economy.. It will boil down to just one singular decision "what fits my budget?". The sooner one decides the better it would be. Sir per chat hona jaroori hai brother chahe suki roti kha lo. Rent is helpful only to the extent of the utility of living in a house for a given time period.. also tenant has no control on rent and finally you cant call it YOUR HOME.


    If Gurgaon is costly look at other options within 1hr travel time. Those living in Delhi some times travel more than an hour to reach office. Imagine the plight of those who live in Delhi but offices have moved to Noida or Gurgaon. Due to cheap space and connectivity now available with Faridabad, who knows offices at Okhla, Mohan cooperative, South Delhi, Gurgaon to Faridabad.


    Cheers
    Last edited March 30 2012, 01:38 PM.

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    • Re : Will Gurgaon Property Rates go down by 30-40%?

      Originally posted by shkhan View Post
      galat jawab...it will be 60% not 40. This prediction is straight from the horses's mouth - deepau* bhai has told me after discussing with every builder and all the politicians.

      Hi
      Greetings

      Even if prices fall by 40%, firstly it will not happen overnight, secondly, if prices start reducing at that rate, it would increase bad debts of banks and financial institutions drastically-causing panic. Thirdly, the moment prices fall below 10-15 %, many would start expecting a steeper fall and wait for the bottom.

      My friend, Finally this never happens, as no one can time the market and RE in India is not ill-liquid asset class and not like Stocks. For now, its important to slog and work to get.. guess what?? secret hai deepaul ka jugaad hai isme bhi.. (Faisabad wali Neelam dekho kya layi hai-tumhare hone wale ghar ki chabi)






      Ek baat aur batai thi usne.. apni naukriaan bacha ke rakho sabse pehle

      Cheers
      Last edited March 30 2012, 02:27 PM.

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      • Re : Will Gurgaon Property Rates go down by 30-40%?

        Why you should not buy that dream house you can't afford

        The stories are dark. The narrators are starkly different from each other. The only common thread that runs through these poignant stories is the 'obsession' to own a home and finances that are stretched beyond repair. After listening to the stories - told by the victims as well as financial advisors - you ask yourself: Is the desire to own a home at any cost causing irreparable damage to individual lives and finances?

        Consider these two stories. The first couple, barely making Rs 35,000 a month, bought a house in a far-off place in Navi Mumbai. They bought the house only for sentimental reasons, knowing very well that they can't stay there. "When I met them for the first time, the wife started crying and said that they can barely afford even a meal at a restaurant because they were paying EMI plus rent and the EMI has shot up because of higher interest rates," says a financial planner, who doesn't want to be named.

        Another young couple in their thirties also bought a house in a posh locality in a happening suburb in Mumbai. They almost overshot their budget by 75%, and paid around 1.5 crore for it. Then came the interest rate shock and the extra EMI, plus living in a posh apartment also meant shelling out more for services, and opting for bigger cars and brands. "The husband took a foreign assignment to earn some extra bucks. The wife has some health issues, but can't quit her job because of their financial commitments. It is a real sad case," says another financial planner.

        "These days, it is not uncommon to come across people who have exhausted their home loan eligibility and taken personal loans and used all their savings to own a house," says Suresh Sadagopan, principal financial planner at Ladder7 Financial Advisories. "Naturally, there is tremendous pressure on their finances because of EMIs. Since most of them have a floating rate loan, they also have to bear the brunt of higher interest rates," he adds.

        "Many people are struggling with their home loan EMIs because of the higher real estate prices and interest rates. They also have to face uncertainties on the job front, and also their incomes are not keeping pace with inflation and expenses," says D Sundararajan, investment consultant at Trendy Investments. "Some of them resort to distress sale as the last option, but some still go on carrying the burden," he adds.

        His advice to his clients:

        It just doesn't make sense to be aggressive when it comes to buying a house now because of the higher real estate prices and interest rates. "You can pay very little - around 2-3% of the capital value - as rent and stay in the same place," he says. Sadagopan also advocates rental accommodation. Mukund Seshadri, proprietor, MSVentures Financial Planners, says people should realise that they have multiple goals to take care of in life and house is just one of them. "If you pay a huge EMI for next 20 years and left with just five years for retirement, you would be in real trouble," he says.

        However, for most people buying a house is an emotional decision and it is not easy to reason with them. "Buy a house if you can really afford it, but don't become obsessive and give up all financial prudence," says Sadagopan. Sundararjan also advises individuals to limit all their EMIs to 50% of their income. "If you exceed this limit, you could be in trouble," he says.

        Financial experts say most of the arguments in favour of buying a house such as inconvenience of staying on rent, the wastage of money, 'you won't be able to buy a house if you don't buy one now' and so on, just don't hold water. "Sure, property prices have gone up phenomenally in the past five-six years and the prices have once again gone up after a small correction, but prices can't go up by 30% every year. It has to be in single-digit, may be on the higher side, in the long term," says Sadagopan. "If you stay on rent, then you will be paying only a fraction of the amount and you will also save a lot."

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        • Re : Will Gurgaon Property Rates go down by 30-40%?

          Maruti is shutting down its GGN plant........it covers around 30000 staff

          This could be a reason behind rate reduction(whatever % you are saying)......

          Comment


          • Re : Will Gurgaon Property Rates go down by 30-40%?

            All those who are postponing their purchase awaiting prices falling please keep waiting mark my words "PRICES WON'T FALL"

            Logic is simple-

            1. Either go ahead and buy property of your choice (location) and price today.

            or let the money rot in bank and depriciate.

            2. Wait for another 6 months and buy same property at almost same rate but no guarantee on loc and unit.

            In RE prices just don't fall like pyaaz and aaloo.........they will just stabalize for say 1 year (which is minium 10% inflation related depriciation neways)....add to it if things would have been good prices would have increased 20%....so there you have it net 30% fall in property rate provided rates stabalize.

            RE hai sir halwa nahi.........also in RE minimum investment tenure is 8-10 years with CAGR 15% annual returns give or take 1%.

            my 2 cents........

            End Users-- don't wait, if you have money take the plunge after due diligence its worth all the effort.

            Comment


            • Re : Will Gurgaon Property Rates go down by 30-40%?

              Originally posted by Ram.bharose View Post
              All those who are postponing their purchase awaiting prices falling please keep waiting mark my words "PRICES WON'T FALL"

              Logic is simple-

              1. Either go ahead and buy property of your choice (location) and price today.

              or let the money rot in bank and depriciate.

              2. Wait for another 6 months and buy same property at almost same rate but no guarantee on loc and unit.

              In RE prices just don't fall like pyaaz and aaloo.........they will just stabalize for say 1 year (which is minium 10% inflation related depriciation neways)....add to it if things would have been good prices would have increased 20%....so there you have it net 30% fall in property rate provided rates stabalize.

              RE hai sir halwa nahi.........also in RE minimum investment tenure is 8-10 years with CAGR 15% annual returns give or take 1%.

              my 2 cents........

              End Users-- don't wait, if you have money take the plunge after due diligence its worth all the effort.


              But prices should be realistic. Here people want to buy but can not buy because price are so much high and unrealistic which not possible with white money even for Senior manager level person. How any one can purchase?

              Please tell us how?

              If you have black money then everything is possible at any time.

              Comment


              • Re : Will Gurgaon Property Rates go down by 30-40%?

                People who are searching home in gurgaon also required anna help to stop black money

                Noida homebuyers join Anna brigade - Times Of India


                If black money stop then 50% problems of real estate sector will be resolved.

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                • Re : Will Gurgaon Property Rates go down by 30-40%?

                  Gurgaon has Indian HQ for almost all top global fortune 500-1000 companies. With limited supply and companies and their top management planning to stay near workplace and airport.....prices in gurgaon will be unrealisitically higher than neighborhood even though infra and rest of the faciliites are non existent( less said better.) Rich people don't complain coz

                  1. They drink bottled mineral water
                  2. Buy groceries without checking their prices
                  3. Even though no sewage system is there in Ggn....builders get private companies to do the same and charge these sr manager/top management guys/rich guys
                  4. Same thing for 24 hr power backups.


                  So ggn RE is driven by abolutely no logic for pricing but still these prices won't fall coz investors will come in to buy and rent out later or sell to other investors.

                  So if you can't affors unrealistic ggn RE go to Noida, Fbd, or some areas in Delhi.

                  my 2 cents
                  Originally posted by KB_may2010 View Post
                  But prices should be realistic. Here people want to buy but can not buy because price are so much high and unrealistic which not possible with white money even for Senior manager level person. How any one can purchase?

                  Please tell us how?

                  If you have black money then everything is possible at any time.

                  Comment


                  • Re : Will Gurgaon Property Rates go down by 30-40%?

                    RIL

                    RIL to revisit low-cost housing plans - Home - livemint.com


                    What happened to real estate prices in gurgaon if RIL will offer 2 BHK flat in 25 lakhs?

                    Comment


                    • Re : Will Gurgaon Property Rates go down by 30-40%?

                      Originally posted by Ram.bharose View Post
                      Gurgaon has Indian HQ for almost all top global fortune 500-1000 companies. With limited supply and companies and their top management planning to stay near workplace and airport.....prices in gurgaon will be unrealisitically higher than neighborhood even though infra and rest of the faciliites are non existent( less said better.) Rich people don't complain coz

                      1. They drink bottled mineral water
                      2. Buy groceries without checking their prices
                      3. Even though no sewage system is there in Ggn....builders get private companies to do the same and charge these sr manager/top management guys/rich guys
                      4. Same thing for 24 hr power backups.

                      So ggn RE is driven by abolutely no logic for pricing but still these prices won't fall coz investors will come in to buy and rent out later or sell to other investors.

                      So if you can't affors unrealistic ggn RE go to Noida, Fbd, or some areas in Delhi.

                      my 2 cents

                      I know 3 to 4 senior managers from IT company who are searching 3/4 BHK flat from last 6 months but they are not able to purchase due to very high price in gurgaon.

                      Comment

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