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Tricks for investors

Last updated: March 10 2013
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  • Tricks for investors

    hi,
    I am a software engineer and owns a 6 cr property. Can anyone can guide me , how can i be a good investor and earn good out of this money.

    Ideas till now:
    1. Pickup 54 cr flats from 6cr in prelaunch and earn 9 times more than inflation.
    2. Lets become builder and take land from authority at 1/10 prices.
    Last edited July 4 2012, 03:27 PM.
  • #2

    #2

    Re : Tricks for investors

    Hi rohit, please be more specific. Are you planning to sell the 6cr property and then thinking to invest that money elsewhere?

    Comment

    • #3

      #3

      Re : Tricks for investors

      Yes, thinking of it. Will it be wise decision?
      I had seen people investing in prelaunch projects... is that a good option???

      Nowadays, with 10 lakh amount, we can book a flat of 90lakhs...
      so, basically i will have a potencial to buy, 54cr property with this amount.
      You think, i am flying too much???

      Originally posted by vipuljain48 View Post
      Hi rohit, please be more specific. Are you planning to sell the 6cr property and then thinking to invest that money elsewhere?

      Comment

      • #4

        #4

        Re : Tricks for investors

        Originally posted by rohitsharma1 View Post
        Yes, thinking of it. Will it be wise decision?
        I had seen people investing in prelaunch projects... is that a good option???

        Nowadays, with 10 lakh amount, we can book a flat of 90lakhs...
        so, basically i will have a potencial to buy, 54cr property with this amount.
        You think, i am flying too much???
        Yes, I think you are "flying too much" indeed.

        The guy who books a 90 lakh flat with 10 lakh has to pay the remaining 80 Lakh eventually. Either out of cash he already has or with the help of a home loan.

        Similarly, if you buy a property worth 54 cr, you will have to arrange for the remaining 54-6=48 cr eventually. Are you confident you will be able to arrange this kind of financing? If yes, by all means fly high.

        Comment

        • #5

          #5

          Re : Tricks for investors

          Thanks for the reply friend.

          If i am buying a properties of 54 cr assuming that i need to pay rest of the installments after 6 months. Assuming i sell half of my flats after 6 months and investing same money as installment in the remaining half projects.

          Advantage of such approach is that I am taking advantage of inflation 9 times more. ie if inflation if 9%, i will be making money of 45% for first six months. I can reinvest much money in some other prelauch and hence keep rolling the cycle and hence end up earning 90% yearly earnings...

          I know sounds very very optimistic. If half of it is feasible , even then i will end up earning 45% on my investments... nothing can be better than that.

          Guys help me out here.. I trust a lot on this group and wants to openly discuss the problems and solutions for startups like me....

          Originally posted by rovingeye View Post
          Yes, I think you are "flying too much" indeed.

          The guy who books a 90 lakh flat with 10 lakh has to pay the remaining 80 Lakh eventually. Either out of cash he already has or with the help of a home loan.

          Similarly, if you buy a property worth 54 cr, you will have to arrange for the remaining 54-6=48 cr eventually. Are you confident you will be able to arrange this kind of financing? If yes, by all means fly high.
          Last edited July 3 2012, 08:48 PM.

          Comment

          • #6

            #6

            Re : Tricks for investors

            Originally posted by rohitsharma1 View Post
            Yes, thinking of it. Will it be wise decision?
            I had seen people investing in prelaunch projects... is that a good option???

            Nowadays, with 10 lakh amount, we can book a flat of 90lakhs...
            so, basically i will have a potencial to buy, 54cr property with this amount.
            You think, i am flying too much???
            Whether its a wise decision to sell the land right now or not is highly subjective. It all depends on ones needs and preference. However, if you decide to sell it, the wise thing will be get informed and invest in a way which may yield you a higher percentage of return on the investment compared to the previous asset.
            And since its a 6cr property, a major chunk of the proceeds from sale will be in black. You might be able to get a little above circle rates in white. So you will need to plan for that.
            Soft launches mein risk sabse zyada hota hai but kamai bhi sabse zyada hoti hai, provided you knoow what you are doing. Best of luck on whatever you decide but dont around booking 54cr flat, lol, book wohi karana jiske paise de sako.

            Comment

            • #7

              #7

              Re : Tricks for investors

              Originally posted by rohitsharma1 View Post
              Thanks for the reply friend.

              If i am buying a properties of 54 cr assuming that i need to pay rest of the installments after 6 months. Assuming i sell half of my flats after 6 months and investing same money as installment in the remaining half projects.

              Advantage of such approach is that I am taking advantage of inflation 9 times more. ie if inflation if 9%, i will be making money of 45% for first six months. I can reinvest much money in some other prelauch and hence keep rolling the cycle and hence end up earning 90% yearly earnings...

              I know sounds very very optimistic. If half of it is feasible , even then i will end up earning 45% on my investments... nothing can be better than that.

              Guys help me out here.. I trust a lot on this group and wants to openly discuss the problems and solutions for startups like me....
              Your approach looks very profitable but very risky at the same time. Its a high risk game. Higher the risk greater the profits... or losses. Suppose, economy enters in a more sluggish mode and home sales drop, builders wont stop the contructions. They will demand payment. Now your units may sell as you expected and at the same time you have to make payments, much more than you have in your kitty. What will do in such a sticky situation?

              Comment

              • #8

                #8

                Re : Tricks for investors

                Originally posted by rohitsharma1 View Post
                Thanks for the reply friend.

                If i am buying a properties of 54 cr assuming that i need to pay rest of the installments after 6 months. Assuming i sell half of my flats after 6 months and investing same money as installment in the remaining half projects.

                Advantage of such approach is that I am taking advantage of inflation 9 times more. ie if inflation if 9%, i will be making money of 45% for first six months. I can reinvest much money in some other prelauch and hence keep rolling the cycle and hence end up earning 90% yearly earnings...

                I know sounds very very optimistic. If half of it is feasible , even then i will end up earning 45% on my investments... nothing can be better than that.

                Guys help me out here.. I trust a lot on this group and wants to openly discuss the problems and solutions for startups like me....
                Dude - consider for a minute that the properties worth 54 CR you cant sell after 6 months (downturn or whatever) - then if you consider you brought in a safe CLP option where you pay 10% every 6 months (unlikely - but for the sake of argument) - then the interest alone of defaulting at 18% PA (as no one will give you loan) will be 8 Lacs Per Month and every 6 months another 8 Lacs Per Month will keep on adding

                Now either consider going to Jail, or selling at a Loss

                This kind of leveraging isn't suggested for even the most seasoned Punters

                Infact you shouldn't even consider a property of more capital than you have - its just not the market.

                Consider a good few properties within 2-3 CRs and the rest on a mix of debt, equity and other instruments - plan on how you can reach financial independence

                Though you should ask a financial expert for a 'Proper' opinion

                Comment

                • #9

                  #9

                  Re : Tricks for investors

                  no offence to anyone, but this thread reminds me of a saying "Ramchandra keh gay siya se, aisa kalyug aayega, hans chugega dana-dunka,kauwa moti khayega"

                  Comment

                  • #10

                    #10

                    Re : Tricks for investors

                    Originally posted by rohitsharma1 View Post
                    Thanks for the reply friend.

                    If i am buying a properties of 54 cr assuming that i need to pay rest of the installments after 6 months. Assuming i sell half of my flats after 6 months and investing same money as installment in the remaining half projects.

                    Advantage of such approach is that I am taking advantage of inflation 9 times more. ie if inflation if 9%, i will be making money of 45% for first six months. I can reinvest much money in some other prelauch and hence keep rolling the cycle and hence end up earning 90% yearly earnings...

                    I know sounds very very optimistic. If half of it is feasible , even then i will end up earning 45% on my investments... nothing can be better than that.

                    Guys help me out here.. I trust a lot on this group and wants to openly discuss the problems and solutions for startups like me....
                    Probably you are trying to play on margin money and i assume you are aware about the risk side also.

                    What if prices depreciate or doesn't increase?

                    Probably instead of this post you can try to measure the market sentiments with a poll like "What would be the property price rise in 6 months: -10% 0% 10% 20%..."
                    Last edited July 3 2012, 11:30 PM.

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