Dear readers,
there are two kinds of real estate investors-those who have the money to invest and those who don't. Considering the latter, does Noida present good investment opportunities, considering that such a person would raise all/majority of the investment capital through loans? The present real estate market in Noida is being viewed as a stable one owing to the supply largely meeting the demand and even surpassing it at times. This would cause the rate of appreciation in property prices to be low over the coming few years-an obvious loss-making-scenario for a small investor.I would like members to comment on this analysis of mine.

Another point of concern for an average 'small' investor in the real estate market is the 'rental return' on residential property. What, according to the members, is the standing of Noida in the house-rent market? Is it likely to become more attractive; if yes, then in which sectors of Noida and in which type of residential property.
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  • Originally Posted by bharat204301
    people tend to cut down their expenditure which otherwise would have been spent in luxury needs.In the end u have some tangible item on which u can rely on for a lifetime.


    Agree totally. Very good point. EMI for home loan is the best way to invest (after a PF contribution by cutting your salary).

    Otherwise people blow the money up on cars, s, holidays and junk clothes which they dont even wear and gadgets which are never used.

    Flat and Jewelry are the only appreciating expenditures.

    Everything else is close to junk immediately after it leaves the shop.

    So if you have a good salary and buy a flat rather than blow it up, its a good investment.

    If you have an average salary and overleverage for buying a flat you cannot afford, its a poor investment.

    By the way, the NOIDA land bank is nowhere close to exhaustion. There is superabundant land on both sides of the expressway. All that is needed is a small modification in master plan which is done all the time. Just change from industrial to housing and voila, some thousands of acres available.

    Drive along the expressway and you will get some idea of how huge the land bank is. Minimum 15 years before its exhausted - assuming projects get launched as rapidly as in 2010.
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  • Originally Posted by Venkytalks
    Agree totally. Very good point. EMI for home loan is the best way to invest (after a PF contribution by cutting your salary).

    Otherwise people blow the money up on cars, s, holidays and junk clothes which they dont even wear and gadgets which are never used.

    Flat and Jewelry are the only appreciating expenditures.

    Everything else is close to junk immediately after it leaves the shop.

    So if you have a good salary and buy a flat rather than blow it up, its a good investment.

    If you have an average salary and overleverage for buying a flat you cannot afford, its a poor investment.

    By the way, the NOIDA land bank is nowhere close to exhaustion. There is superabundant land on both sides of the expressway. All that is needed is a small modification in master plan which is done all the time. Just change from industrial to housing and voila, some thousands of acres available.

    Drive along the expressway and you will get some idea of how huge the land bank is. Minimum 15 years before its exhausted - assuming projects get launched as rapidly as in 2010.



    I totally agree with Venky.. Noida has a huge land bank and they are opening it up left and right...

    After Noida's success, they have opened up Noida Ex (part of GN).. then GN has so many sectors... Land on both sides of Noida-GN expressway and lately YEA..

    I can not comment after how many years all these places will exhaust and price will start to go up but right now it seems to be a huge supply over limited demand.

    Even, I was also interested in buying an Authority plot in GN but lately looking at the appreciation in last 2 years and huge over-supply, GGN seems to be a better place to invest.

    I could be wrong as I am new to RE but this is what I can think looking at the current scenario.

    Thanks,
    Gagan
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  • quite a healthy discuss with varied point of views.

    1) Its very difficult to identify the "good" project right now as so much supply has come within no time. Also, there is very little credibility on the builder right now.

    2) Everyone is still hoping that Noida RE would be able to give the same return that it has given in last 10 years. Thats not at all possible now. It has to reach a plateau.

    3) Once the property price reaches more than 70L, middle class buyers (even with 1L per month income) psychologically get nervous fearing massive EMI. There is always a fear of recession coming back like 2008 risking their job and salary.

    4) Even in bombay there now an abundance of properties worth 1Cr since buyers are moving to suburban areas rather than buying such expensive property. Same condition would arrive in noida also.

    I remember time in 2006 when broker were trying to sell property in noida with no les than rs3800 psft and saying that the rate would rise every month. Come 2008/9, we easily got Rs3000 and less rate back in good sectors like 61, 50.
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  • Originally Posted by nicks
    quite a healthy discuss with varied point of views.

    1) Its very difficult to identify the "good" project right now as so much supply has come within no time. Also, there is very little credibility on the builder right now.

    2) Everyone is still hoping that Noida RE would be able to give the same return that it has given in last 10 years. Thats not at all possible now. It has to reach a plateau.

    3) Once the property price reaches more than 70L, middle class buyers (even with 1L per month income) psychologically get nervous fearing massive EMI. There is always a fear of recession coming back like 2008 risking their job and salary.

    4) Even in bombay there now an abundance of properties worth 1Cr since buyers are moving to suburban areas rather than buying such expensive property. Same condition would arrive in noida also.

    I remember time in 2006 when broker were trying to sell property in noida with no les than rs3800 psft and saying that the rate would rise every month. Come 2008/9, we easily got Rs3000 and less rate back in good sectors like 61, 50.


    the biggest bargain of NOIDA in 2008/9 was Amrapali sapphire in sector 45 that was available for rs 2500 bsp.
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