Announcement

Collapse
No announcement yet.

Nandan Prospera?? Should I go for it?

Collapse
X
Collapse

Nandan Prospera?? Should I go for it?

Last updated: August 25 2013
165 | Posts
  • Time
  • Show
Clear All
new posts
  • #71

    #71

    Re : Nandan Prospera?? Should I go for it?

    Originally posted by pcpune View Post
    Ash,
    if the average IT/other salary (READ: SALARIED CLASS OR MIDDLE CLASS)was 3 lacs in 2004 - apts were priced 5-7 times of that...
    today its about 6 lacs - apts are priced 5-7 times of that...

    For SENTIMENT -- reversal - Look in history for what has happened to Japan,UK,EU,USA and China recently - India is no different !
    Real, your assessment of 5-7 times in 2004 seems correct for Pune city area and Mumbai suburb (I bought then).
    In fact one could buy decent 2BHK at 2 times avg salary (3L) in Pune outskirts like Hadapsar.
    Last edited by hitmady; August 15 2010, 12:22 AM.

    Comment

    • #72

      #72

      Re : Nandan Prospera?? Should I go for it?

      [QUOTE=pcpune;99478]Ash,

      Also, for SENTIMENT -- reversal - Look in history for what has happened to Japan,UK,EU,USA and China recently - India is no different !


      PCPune,

      I respect you, as you have very good knowledge of finance, Stocks & seems about RE as well...But I must tell man INDIA is very different to US,UK,EU & China & mark my word India womt ever see subprime like situation ever, forget about in 2013-14...

      Hare are my Reasons (you may not agree with some of these though):
      1. Truck loads of Black money in India & its increasing.
      2. Emotional attachment to Home in India.
      3. Indian Banks are more conservative for loan than US,UK & other countries banks.
      4. India has lots of NRI population outside India & almost 50% of those work only to buy property in India
      5. Indian job scene is much better than other countries (Like No hire & Fire policy)...some s/w companies do some lay offs, but I still feel that S/W ppls contribute less than 20% market share in India's RE market!!!
      Can you post same graph for India, like 100 years RE prices graph & lets try to get some sense out of that:
      Last edited by ash7979; August 15 2010, 09:03 PM.
      Cheers,
      -Ashish

      Comment

      • #73

        #73

        Re : Nandan Prospera?? Should I go for it?

        Originally posted by newone View Post
        hi guys, thanks again for your time.... would like to share what i could gather....

        1) PMC water connection is available.
        2) the area marked on wikimapia as dehoused development project did exist. however, the builder claims that he has bought the land and shifted the rehab project elsewhere to another plot in the vicinity but not so close to the project.
        also, the builder is ready to give these details in writing along with the paper work.
        3) regarding infra, i guess just like everything else is expanding, it wouldnt take time for shops and other basic amenities to mushroom in the area. D - mart is already up n running.

        Chinmay, i really didnt get ur point abt rates of 2700 psf or 2000 psf.... where do they exist??
        I wanted to confirm on point 2. The dehoused project adjacent to the plot has been bought by the builder and he plans to start booking on that project after Diwali. I haven't seen any official document on this but he is ready to give this in writing.

        Disclaimer: I have purchased a flat in NP last year Rs.4000 psf. Love the place as it checks all the right boxes for me and my family.

        Comment

        • #74

          #74

          Re : Nandan Prospera?? Should I go for it?

          There are two situations:
          1. Builder is ready to give in writing
          2. Builder has already given in writing

          These two situations are as different as heaven and hell. I suggest you call the builder's bluff and actually take in writing. Then you will come to know his "readiness".

          Apart from that, I think Megacity in Paud Phata was a very bad example of slum rehab. Let us hope future projects are better.

          You have already bought in NP, enjoy the flat with your family, it is a lovely project by itself. I really like the 8th floor layout, if someone is rich enuf to buy both 3 BHKs on the 8th floor, he can have the entire floor + podium garden for the family.

          Comment

          • #75

            #75

            Re : Nandan Prospera?? Should I go for it?

            Originally posted by ash7979 View Post
            Hey Real this was not expected at least from you...It seems that you are running out of all your weapons to defend price reduction,so now you are giving reason of Black & white money...Does it matter to builder or say to us whether somebody is buying with Black of white money...untill we have demand in RE market (be it due to Black or white money) I dont see rate coming down...
            I said this only for Lavasa...rest of the projects bought by investors from 2007 onwards have burnt their hands completely. Don't mix Lavasa with rest as no one is buying in Lavasa (in majority cases) to sell it later. It is either 2nd home or parking b-money. Infact I also know businessmen who in place of paying Pawar & Co. kickbacks for their work are being asked to buy something at Lavasa. This way Pawar can come clean with no corruption tag & bizman also says that it is good that I too am getting something than nothing...it is like lobby + get something at Lavasa free. Even Sharda Centre, Karve road was sold on similar lines.

            In India more then 50% black money invested in RE & & this is not new phenomenon,this was there from ages & in fact now Sarkari babus & politician making big black money (you have seen in CWG, more than 90% of total money has been eaten by these VULTURES), so where they will keep this money???
            Even if B-money is there, it is rotated from one project to another. It is not like you have B-money & therefore forget about it. I know financiers who too are worried of now. Man, white or black, money is money.

            Now tell me honestly, after knowing all this black money game in RE, do you still think RE rate will come down very soon...As you urself said that most of the flat has not on loan, so I dont see the subprime like crisis in India either, so what will trigger this "So called" Price reduction in RE...Do we ever see a rate of like 2000/sq ft in aundh?? if not then price reduction by 200 rs/sq ft in ravet or wagholi doesn't matter for me
            Yes, the rates will definitely come down as they did & are doing elsewhere. Even if the investment is in black, at the end of the day, the investor wants returns on it. Man, do you think that people having B-money are doing charity?? The recent data of 50% drop in sales in Pune & builders being back at the table of nego is an indication to this. I see & watch RE closely, & it is not just from outside but through the people inside & hence with full confidence I can say that the RE growth momentum has already been lost.

            * 2000 rates at Aundh...no-one said that man, are you kiddin'?? These were rates around 2005-FY 06. Don't over hype the issue.
            If you are happy, you are successful.

            Comment

            • #76

              #76

              Re : Nandan Prospera?? Should I go for it?

              [QUOTE=ash7979;99611]
              Originally posted by pcpune View Post
              Ash,

              Also, for SENTIMENT -- reversal - Look in history for what has happened to Japan,UK,EU,USA and China recently - India is no different !


              PCPune,

              I respect you, as you have very good knowledge of finance, Stocks & seems about RE as well...But I must tell man INDIA is very different to US,UK,EU & China & mark my word India womt ever see subprime like situation ever, forget about in 2013-14...

              Hare are my Reasons (you may not agree with some of these though):
              1. Truck loads of Black money in India & its increasing.
              2. Emotional attachment to Home in India.
              3. Indian Banks are more conservative for loan than US,UK & other countries banks.
              4. India has lots of NRI population outside India & almost 50% of those work only to buy property in India
              5. Indian job scene is much better than other countries (Like No hire & Fire policy)...some s/w companies do some lay offs, but I still feel that S/W ppls contribute less than 20% market share in India's RE market!!!
              Can you post same graph for India, like 100 years RE prices graph & lets try to get some sense out of that:
              Ash,

              Every country thinks they are different, and we could have other issues - like builders promises falling flat, wrong permissions provided by municipalities, bad elections, fall in GDP etc but I truely believe in one thing - Real Estate - IN ANY MARKET cannot rise 2-3 times and again rise another 2-3 times in a span of 3 years...

              All I am saying is, once it has risen for 2-3 times, say average rate is 3000 per sq feet, it will stay around that for years to come,maybe 3 or 5 or even 10, but 3000 CANNOT become 10000.

              So, its important you PLAY out the RE cycle, and wait out for 3-5 more years so that you are approx 7-10 years away from the peak.....ie 2007.

              My logic is simple, if I have 50 lacs today - I would try to make that 50 into 1 crore or 5 crores, and then maybe invest a 10-20% of that into Real Estate...

              Most people - have only 10 or 20 lacs and are LEVERAGING 30-40 lacs into RE --- this way they would be only left with MATTI and PATTHAR -- for their lifetime...and paying back all of their earnings NOW and in FUTURE to banks and builders !!!!!!!

              So, I would like to take a LOAN on a 50 lac kind of a house when I have 5 crores in my pocket - and then try to make that 5 into 15, and maybe then OWN a house...

              For me PRIDE of OWNING a house is MUCH SMALLER -- OR EGO is much LESS -- than BEING RICH - FINANCIALLY VERY STABLE AND FREE FROM ANY TROUBLES IN FUTURE !!!!!

              Till then - I dont mind renting a really lavish apartment, having 2-3 good cars+vehciles for family,holidaying many times a year,lavish marriages and festivals - I know I am maintaining my standard of living and I know I am working towards the future -- TO BE RICH...
              This - "MY OWN HOUSE" ya " GHAR KHARIDNA BADI BAAT HAIN" - is just a statement made to EMOTIONALLY FOOL US INDIANS
              Last edited by pcpune; August 16 2010, 02:03 PM.

              Comment

              • #77

                #77

                Re : Nandan Prospera?? Should I go for it?

                In fact you are spending on excesses on a livestyle where the value of everything tends to zero in time. I'm not saying buy property but justifying the savings of EMI by spending on a lifestyle is also wrong

                Comment

                • #78

                  #78

                  Re : Nandan Prospera?? Should I go for it?

                  Originally posted by rameshyahoo View Post
                  In fact you are spending on excesses on a livestyle where the value of everything tends to zero in time. I'm not saying buy property but justifying the savings of EMI by spending on a lifestyle is also wrong
                  Infact, if I dont spend on EMI, in my case it will be about 70,000 per month, I am spending 15K on rent, another 20K on MFs & other invest, 15K on households, and still left with 20-30K to ENJOY my lifestyle (and buy some stocks as well) --- I know many people dont believe in these extra kharchas - but for me - living a good life-eating good food,socializing--- IS the MOST important thing !!!!!!

                  From my elders advices, large network among good & powerful people ALWAYS helps you out in some way or the other - NOT a matti patthar house !

                  To build that good network, you need to SOCIALIZE and MAINTAIN that standard of living & lifestyle!

                  But, I have seen, in cities, specially in Pune - people like to live secluded life - not even the neigbors care whether you are living or dead ! --- Really life 30 years back was much better in this regard !
                  Last edited by pcpune; August 16 2010, 03:38 PM.

                  Comment

                  • #79

                    #79

                    Re : Nandan Prospera?? Should I go for it?

                    Originally posted by pcpune View Post
                    Infact, if I dont spend on EMI, in my case it will be about 70,000 per month, I am spending 15K on rent, another 20K on MFs & other invest, 15K on households, and still left with 20-30K to ENJOY my lifestyle (and buy some stocks as well) --- I know many people dont believe in these extra kharchas - but for me - living a good life-eating good food,socializing--- IS the MOST important thing !!!!!!

                    From my elders advices, large network among good & powerful people ALWAYS helps you out in some way or the other - NOT a matti patthar house !
                    Originally posted by pcpune View Post


                    To build that good network, you need to SOCIALIZE and MAINTAIN that standard of living & lifestyle!


                    But, I have seen, in cities, specially in Pune - people like to live secluded life - not even the neigbors care whether you are living or dead ! --- Really life 30 years back was much better in this regard !
                    The issue is that 90% people (Pcpune - you are an exception!) will not invest in mutual funds/ stocks (in a big way) before "investing" in a house to stay.

                    Buying a house "today" becomes priority since the perception is - "if you don't buy today buying in future becomes very difficult since salaries seldom increase at the same rate as RE prices". (Which is true I guess).

                    This "buy today" feeling drives people to take huge loans & get stuck with large EMIs for 20+ years! I did the exact same thing in 2004 - Only was fortunate that when I bought a house - I unwittingly timed the RE market correctly! (since it zoomed up after 2005)

                    Thanks,
                    Ajoshi

                    Comment

                    • #80

                      #80

                      Re : Nandan Prospera?? Should I go for it?

                      Not possible if more investors are there in market already

                      Originally posted by pcpune View Post
                      Every country thinks they are different, and we could have other issues - like builders promises falling flat, wrong permissions provided by municipalities, bad elections, fall in GDP etc but I truely believe in one thing - Real Estate - IN ANY MARKET cannot rise 2-3 times and again rise another 2-3 times in a span of 3 years...

                      All I am saying is, once it has risen for 2-3 times, say average rate is 3000 per sq feet, it will stay around that for years to come,maybe 3 or 5 or even 10, but 3000 CANNOT become 10000.
                      I agree that India is no different. People across the world have same sentiments for buying home, rather I would say that even in India, any buyer buying today is buying because he feels prices are going to increase tomorrow or even if they decrease they recover in 6-10 months. Emotions have no role when investment is mutiple lakhs.

                      I slightly disagree on price stagnation after sudden rise in prices. If there are many investors in Pune, prices are bound to fall tomorrow after long stagnation in prices.

                      Poor rental yield and no capital gain, Investor will put the property on sale, increasing supply. When buyers see prices falling, more buyers will stay out, putting further pressure on demand. There will be buyers at all levels
                      since no one will know the actual bottom.

                      High number of resales in Pune and rent stagnation is evidence of high number of investors in Pune.

                      There are ~4600 properties on sale in Kharadi itself for budget <50L

                      Comment

                      Have any questions or thoughts about this?
                      Working...
                      X