I do not remember if any builder in last 5 year has given possesion of any project in gurgaon.In last three year there is no appreciation in property prices,rental is always very low in percentages terms, i feel real estate for investment going to be worst kind of investment in next 5 years.What could be next best avenue
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  • Originally Posted by anurag75
    I do not remember if any builder in last 5 year has given possesion of any project in gurgaon.In last three year there is no appreciation in property prices,rental is always very low in percentages terms, i feel real estate for investment going to be worst kind of investment in next 5 years.What could be next best avenue


    Good to read your out of the box thinking.
    Please post some examples tooo.....which ever may suit you.
    By the way, neither my GF nor my Mother in-Law are in line with your view.
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  • Originally Posted by anurag75
    I do not remember if any builder in last 5 year has given possesion of any project in gurgaon.In last three year there is no appreciation in property prices,rental is always very low in percentages terms, i feel real estate for investment going to be worst kind of investment in next 5 years.What could be next best avenue


    Laws of RE investing (Minimum 5 year holding period)
    :
    1) Buy when no one is buying and you will get good deal.
    2) Sell when everyone is buying and you see euphoria all around as buyers will buy overpriced properties.

    Rinse and repeat :D
    Now, if you are in panic mode, you will end up selling your property at lower price to someone who is adhering to rule 1.
    On the contrary, if you are a buyer and have been patient, then it is the right time to act on rule 1.
    Good luck!
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  • GF and mom in law thinking if you invest now you are going to get good return in future,good luck to them
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  • Is it for real ?

    Originally Posted by planner
    GF + my Mother in-Law .
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  • Originally Posted by ggnkaaadmi


    Laws of RE investing (Minimum 5 year holding period):
    1) Buy when no one is buying and you will get good deal.
    2) Sell when everyone is buying and you see euphoria all around as buyers will buy overpriced properties.

    Rinse and repeat :D
    Now, if you are in panic mode, you will end up selling your property at lower price to someone who is adhering to rule 1.
    On the contrary, if you are a buyer and have been patient, then it is the right time to act on rule 1.
    Good luck!


    true but it is more true for stocks , in 2009 prices were low and all wisemen bought then
    around 3000-3200 psf in main gurgaon ,now same is hovering around 7500 for last three years,still good return from any yardstick.But now people are not geting any return for last two years and paying huge interest to banks but not selling as there is no buyer in market.Everyday geting emails for Deway property for booking price two year ago.
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  • I think not only investing in RE but also holding RE is a losing proposition now.

    I bought a property in New Gurgaon in Jun 2012 fresh booking 5585 (Resale price was Rs. 5350). Disposed off the same 10 days back 5300. Rationale is that atleast FD 9% will cover my losses in 10 months and I am 100% sure that this property will still be available at Rs. 5300 - Rs. 5500 even after 2 years.
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  • I wonder who is buying now in fresh booking as builders are quoting these bloody expensive rates....

    In my view this is not the worst time...worst is still to come when inventory will rise up(for end users) more with market captured by 90% investors...
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  • Originally Posted by rushilarora
    Is it for real ?


    If she is a lady then yep, this holds true.
    Haven't seen too many guys openly admitting their affairs :bab (59):
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  • Originally Posted by dhruv007
    I wonder who is buying now in fresh booking as builders are quoting these bloody expensive rates....

    In my view this is not the worst time...worst is still to come when inventory will rise up(for end users) more with market captured by 90% investors...


    totally agree that worst is yet to come, worst hit will be those who have taken loan and paying huge interest,forget about those who bought by paying entire sum or in subvention schemes.
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  • Originally Posted by anurag75
    true but it is more true for stocks , in 2009 prices were low and all wisemen bought then
    around 3000-3200 psf in main gurgaon ,now same is hovering around 7500 for last three years,still good return from any yardstick.But now people are not geting any return for last two years and paying huge interest to banks but not selling as there is no buyer in market.Everyday geting emails for Deway property for booking price two year ago.


    Sir, this is true for nearly all investment classes where investor emotion is at work. When people panic, there is mass exodus. When people start seeing recovery, majority jumps too late on the bandwagon.
    Price is quite subjective when it comes to comparison and depends on an individual's perspective as a lot of factors are at work. See in 2009, maybe 3000 was as pricey as 7500 now ?
    I remember when I had seen properties in gc road at around 6000 rs psft and I used to consider them as pricey. Now prices are hovering at 13000-14000 psft and deals are still happening (albeit lesser than earlier because of RE recession).
    For end use, I can understand investment on bank loan. For holding period of 5 years or more, I can understand investment on bank loan.
    But what I don't understand is why would someone invest on bank loan if holding period is only of about 2 years ? One is purely risking too much money on speculation and needs insanely high returns in 2 years to be in profit.
    Such price corrections play themselves out eventually if your holding period is longer (as is true for other high risk high reward investment classes like EQ, MF etc.) and one need not worry if one has holding ability.
    For risk averse guys, debt funds, FDs, liquid funds etc are the way to go.
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  • I would say, play safe, keep all money in FD take deep breath and sleep..& grow your money at inflation rate



    Originally Posted by anurag75
    I do not remember if any builder in last 5 year has given possesion of any project in gurgaon.In last three year there is no appreciation in property prices,rental is always very low in percentages terms, i feel real estate for investment going to be worst kind of investment in next 5 years.What could be next best avenue
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  • Buy Low and Sell high is the mantra of successful investors.
    And this involves rotation among different asset classes.

    Nothing is forever good or forever bad.
    Relative price is the main indicator.

    People who don't time the market; don't make money.
    We can not exactly time the market but can atleast do this job approximately.

    The phrase "No one can time the market" has been made popular by useless fund managers who don't want to be held accountable for their actions.
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  • Originally Posted by hemant434
    Buy Low and Sell high is the mantra of successful investors.
    And this involves rotation among different asset classes.

    Nothing is forever good or forever bad.
    Relative price is the main indicator.

    People who don't time the market; don't make money.
    We can not exactly time the market but can atleast do this job approximately.

    The phrase "No one can time the market" has been made popular by useless fund managers who don't want to be held accountable for their actions.


    Sir how to buy low now ...all the stuff are being sold at break even prices...and those prices will hardly see any appreciation....
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  • Originally Posted by ggnkaaadmi
    Sir, this is true for nearly all investment classes where investor emotion is at work. When people panic, there is mass exodus. When people start seeing recovery, majority jumps too late on the bandwagon.
    Price is quite subjective when it comes to comparison and depends on an individual's perspective as a lot of factors are at work. See in 2009, maybe 3000 was as pricey as 7500 now ?
    I remember when I had seen properties in gc road at around 6000 rs psft and I used to consider them as pricey. Now prices are hovering at 13000-14000 psft and deals are still happening (albeit lesser than earlier because of RE recession).
    For end use, I can understand investment on bank loan. For holding period of 5 years or more, I can understand investment on bank loan.
    But what I don't understand is why would someone invest on bank loan if holding period is only of about 2 years ? One is purely risking too much money on speculation and needs insanely high returns in 2 years to be in profit.
    Such price corrections play themselves out eventually if your holding period is longer (as is true for other high risk high reward investment classes like EQ, MF etc.) and one need not worry if one has holding ability.
    For risk averse guys, debt funds, FDs, liquid funds etc are the way to go.


    Sir
    totally agree with you that prices at that point of time were looking high,Past is past now
    Discussion is with respect to investment avenues viv a vis state of realty today.No builder is ready to give possesion ,even in 8 years.Total cheat class they are not even honouring penality clause and will increse super area to extent to cover penality and will extract some more.Many are not starting construction,many will stop after taking 70-80 % money, if you delay they will charge 18 % interest, there is no rise in prices,there is no exit for buyers,only litigations,in this senerio safety of principal is paramount
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  • Originally Posted by anurag75
    Sir
    totally agree with you that prices at that point of time were looking high,Past is past now
    Discussion is with respect to investment avenues viv a vis state of realty today.No builder is ready to give possesion ,even in 8 years.Total cheat class they are not even honouring penality clause and will increse super area to extent to cover penality and will extract some more.Many are not starting construction,many will stop after taking 70-80 % money, if you delay they will charge 18 % interest, there is no rise in prices,there is no exit for buyers,only litigations,in this senerio safety of principal is paramount


    Exactly...between booking and possession ...buyers are taken for a ride by the builder...some people fight and some surrender...but in both cases they lose their sleep.
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