Request to the to-be buyers & consumers - its festival time again for the next 3 months and builders/developers are hoping to clear their inventories at HIGH PRICES - this means the price will remain high for the next year to come - as even if they sell 25% in a project - they recover their costs....

So, my humble advice - to all - PLEASE DONT get sucked in by :

1. New offers such as agreement,car,parking FREE etc
2. New launches and pre-EMI by builers etc
3. Some Festive discount valid for first 20 buyers and for 15 days etc

All of these - AND similar are marketting GIMMICKS - if the BUYERS stay put now - for the next 3 months - they might get the SAME property at 10-20% less than whats available now ...

So, PLEASE DONT GET SUCKED IN --- AND GO AHEAD AND RENT !
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  • Originally Posted by Murtaza_t
    realacres, the only thing that is forcing buyers in current times is the fear that if they don't buy now - they will not be able to afford tomorrow - prices will be beyond their reach!!!.......
    who will gurantee that pricess will remain steady? Who gurantees that they will increase only 5-10% a year??


    You yourself can gurantee this! Do not listen to others, just keep your eyes and ear open. Look around for average salary of people. Their affordability.

    Remember its not just IT/Black money people who need to buy, all the school teachers, postman, LIC etc all need house. Look for their salary too.

    For prices to rise tomorrow, no body is going to put money in their pocket magically. Every one can pay what their pocket can. There is no magic in this world, only in Harry Potter movies.

    Its a calculated risk you need to take. For me chances of prices to rise is 10% and to fall is 90% looking at average salary of people around me.
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  • Originally Posted by gery128
    And think, today you get 2BHK for 40 Lacs,in 2015, it could be 60 Lacs :bab (6):, even it has no growth as per experts considering inflations, people fear how they would shell out even Down Payment :D


    There you go! You know the answer yourself. What do you think people will do when they cannot even do down payment? Call some magician to generate money in their pockets?
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  • Originally Posted by hemanshu
    No one discussing major reason salaried people invest in RE

    That is saving taxes. Working couples can save Tax on interest up to 3L p.a.

    With Additional saving on principal payments up to 2L
    :bab (38):



    Oops, to save some money, spend more No buyer buys unless he feels prices are going to rise tomorrow and can never fall from current levels.
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  • Originally Posted by RAJESHP
    Oops, to save some money, spend more No buyer buys unless he feels prices are going to rise tomorrow and can never fall from current levels.


    In 2004 the 6-8 lacs salary person can think to buy. Now it’s not possible. :bab (38):
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  • As murtaza posted, one of the main reasons people suck into it is because of the family pressure. They think that if you buy a house you have achieved everything. Let me quote my own example. My brother in law bought a flat recently. (Its in the middle of nowhere. Way way far from the city. And they leveraged 85% from the bank. Even for the down payment they bought money from others). My FIL, asks me, they bought, when are you buying?. I tell them, i will buy when my net worth is at least 3 or 4 times the property price and moreover I should be convinced from all aspects with no compromise on location etc. Obviously they don't like me. But I don't care. Today i live in a rented 2400 sqst independent house in a very posh location. The rent i am paying is peanuts compared to the claimed value of the house. The owner is very nice person. I see no reason why i should buy now.
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  • I agree. One should only buy, when he/she is comfortable buying & one should not have a herd mentality on this issue. After all , this is one of the most important decisions in yr. life.

    I do not agree to the theory of upcoming bubble burst or prices of RE going down(it will certainly happen in some pockets) etc. etc. Has anybody seen prices of any commodity going down, in the last few years.( except the value of yr. money)


    Originally Posted by kaatesha
    As murtaza posted, one of the main reasons people suck into it is because of the family pressure. They think that if you buy a house you have achieved everything. Let me quote my own example. My brother in law bought a flat recently. (Its in the middle of nowhere. Way way far from the city. And they leveraged 85% from the bank. Even for the down payment they bought money from others). My FIL, asks me, they bought, when are you buying?. I tell them, i will buy when my net worth is at least 3 or 4 times the property price and moreover I should be convinced from all aspects with no compromise on location etc. Obviously they don't like me. But I don't care. Today i live in a rented 2400 sqst independent house in a very posh location. The rent i am paying is peanuts compared to the claimed value of the house. The owner is very nice person. I see no reason why i should buy now.
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  • Originally Posted by kaatesha
    As murtaza posted, one of the main reasons people suck into it is because of the family pressure. They think that if you buy a house you have achieved everything. Let me quote my own example. My brother in law bought a flat recently. (Its in the middle of nowhere. Way way far from the city. And they leveraged 85% from the bank. Even for the down payment they bought money from others). My FIL, asks me, they bought, when are you buying?. I tell them, i will buy when my net worth is at least 3 or 4 times the property price and moreover I should be convinced from all aspects with no compromise on location etc. Obviously they don't like me. But I don't care. Today i live in a rented 2400 sqst independent house in a very posh location. The rent i am paying is peanuts compared to the claimed value of the house. The owner is very nice person. I see no reason why i should buy now.


    Thats true Man.
    I was also asked this question by several people.
    And when during the bridesearch timeperiod, my parents thought that it was my weakpoint that I do not own a flat. :)

    However I got married without owning a flat. :bab (6):

    I purchased a flat later though.... :D
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  • Good decision. A very close kin of mine had same exp when searching for a bride. His parental flat was 20yr old, not so well maintained. The parents of some good brides rejected. After few months he got someone. Her parents were understanding the fact that a man is worth more than a house. Now he is happy that he got in-laws who have better thought process and a bride who naturally inherited the wisdom of her parents.

    Originally Posted by kaatesha
    I tell them, i will buy when my net worth is at least 3 or 4 times the property price and moreover I should be convinced from all aspects with no compromise on location etc. Obviously they don't like me.
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  • Son, father & a donkey

    Originally Posted by Murtaza_t
    realacres, the only thing that is forcing buyers in current times is the fear that if they don't buy now - they will not be able to afford tomorrow - prices will be beyond their reach!!! Else it could be peer or family pressure in IT circle!!

    Murtaza,
    I am copy pasting what I had already written in RE bulls thread:-

    1.) Buy today, houses always increase in value in the long run.

    WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
    Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
    To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
    Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.


    As far as peer pressure is concerned, atleast for me, it is me who needs to take care of the life...if tomorrow I take wrong financial decision, these peers are not going to come & help me. So, buy based on your strength & wisdom, don't fall to what people say. Infact, I use multiple cell-fones, one of which is Nok_ia 1110, which I bought at INR 1499/- 2 years ago. Some people laugh when I speak on this fone, but I don't care about that, it's upto you to decide whether you want to spend 30k on 2 black-berries/SE Xperia or you can have one premium fone & other base model one.

    That is THE FEAR that is seeing buying even if it is too less. Nobody wants to miss the buss.

    Which bus man?? Volvo from outside & PMPML from inside:D or PMPML from outside & Volvo/Merc from inside:)?? Decide.

    Another thing is you can take a loan, lock a property at current price and repay loan it in 3-4 years time if you have good savings. You cannot afford to wait till 5 years when prices could be more than double.

    Man, if this is your capacity, be least bothered about the prices if you find VFM & like the property. Issue kicks in because of the 2 reasons of over-leveraging & peer pressure as you correctly mentioned above.

    Remember than son,father & a donkey story?? Same is the case here.

    * PS:- If some/all members don't know & are interested in this story, please inform, I will post the story here.
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  • Originally Posted by kaatesha
    My FIL, asks me, they bought, when are you buying?. I tell them, i will buy when my net worth is at least 3 or 4 times the property price and moreover I should be convinced from all aspects with no compromise on location etc. Obviously they don't like me. But I don't care. Today i live in a rented 2400 sqst independent house in a very posh location. The rent i am paying is peanuts compared to the claimed value of the house. The owner is very nice person. I see no reason why i should buy now.

    Originally Posted by aditi sharma
    Good decision. A very close kin of mine had same exp when searching for a bride. His parental flat was 20yr old, not so well maintained. The parents of some good brides rejected. After few months he got someone. Her parents were understanding the fact that a man is worth more than a house. Now he is happy that he got in-laws who have better thought process and a bride who naturally inherited the wisdom of her parents.

    +1 to this, continue this thought, it will take you places man:). No point in having acrylic paint outside & chuna paint from inside:D. Infact, I also find it very cheap when people buy Pulsar & try to modify it to make it look like Honda CBR or Hayabusa:o. Same is the case here, people look at the body without looking at the engine, at the end of the day, it's the engine which drives the body & not the other way round ;).

    Btw, aditi, your kin is indeed a lucky chap, good ILs+bride as well:). Convey my greetings to him:).
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  • Originally Posted by kaatesha
    My FIL, asks me, they bought, when are you buying?. I tell them, i will buy when my net worth is at least 3 or 4 times the property price and moreover I should be convinced from all aspects with no compromise on location etc. Obviously they don't like me. But I don't care. Today i live in a rented 2400 sqst independent house in a very posh location. The rent i am paying is peanuts compared to the claimed value of the house. The owner is very nice person. I see no reason why i should buy now.


    Disclaimer. I am nowhere trying to be bullish & encourage people on this forum to buy. I too have same view as that of most members on this forum that buying a property should be done without overlevaraging.

    But with regards to this particular post, it can be a personal view upon ones income & family standard, not to buy a home unless your net worth is 3-4 times the property price.

    This will not be applicable to everyone. e.g for purchasing a 2 BHK in fairly good locality requires ~40L today. So in short you should have your net worth min 1.2 Cr to purchase this property. Most of the ITGs earning in range of 6-12L PA, how much time it will take for them to take their net worth to this level? Also this is assuming that property prices will remain constant till that time. Hence this case seems to be not realistic for most of the 'Mango Men' on this forum.

    Instead following formulae like having 30-40% down payment ready, not having EMI more than 40% of your monthly take home, waiting patiently for right time (time correction / price correction) to enter. Seem to be more logical.
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  • Yeah I agree to this kind of formula. For me, this is 50% down payment, Max EMI = 30% of take home

    Originally Posted by rsatitkar

    Instead following formulae like having 30-40% down payment ready, not having EMI more than 40% of your monthly take home, waiting patiently for right time (time correction / price correction) to enter. Seem to be more logical.
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  • Originally Posted by realacres
    +1 to this, continue this thought, it will take you places man:). No point in having acrylic paint outside & chuna paint from inside:D. Infact, I also find it very cheap when people buy Pulsar & try to modify it to make it look like Honda CBR or Hayabusa:o. Same is the case here, people look at the body without looking at the engine, at the end of the day, it's the engine which drives the body & not the other way round ;).

    Btw, aditi, your kin is indeed a lucky chap, good ILs+bride as well:). Convey my greetings to him:).


    pcpune - I would be interested in the donkey and son story!!

    Murtaza
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  • The Miller, His Son, and Their Donkey

    Originally Posted by Murtaza_t
    pcpune - I would be interested in the donkey and son story!!

    Murtaza

    Here is the story man:-

    "I shall have to sell that donkey of ours," said a miller to his son. "I can not afford to keep him through the winter. I will take him to town this very morning to see if I can find a buyer. You may go with me." In a little while the miller, his son, and the donkey were on their way to town.

    They had not gone far when they met some girls going to a party. They were talking and laughing as they went along. One of them said, "Look at that man and boy driving a donkey. One of them surely might ride."

    The miller heard what they said, and quickly made his you mount the donkey, while he walked along at its side.

    After a while they came to a group of old men who were talking very earnestly. "There," said one, "I was just saying that boys and girls have no respect for the aged. You see it is true in this case. See that boy riding while his old father has to walk."

    "Get down, my son," said his father, "and I will ride." So they went on.

    They next met some women coming from town. "Why!" they cried, "your poor little boy is nearly tired out. How can you ride and make him walk?" So the miller made his son ride on the donkey behind him.

    They were now in town. A man coming down the street called to the miller, "Why do you make your donkey carry such a load? You can carry him better than he can carry you."

    At this the miller and his son got off the donkey. They tied the donkey's legs together, turned him over on his back; and began to carry him.

    A crowd soon gathered to see the strange sight. As they were crossing a bridge the donkey became frightened at the hooting of the crowd. He broke loose, fell into the river, and was drowned.

    The miller was angry and ashamed. He said, "There! I have tried to please everybody and have only made a fool of myself. After this I shall do as I think best and let people say what they will."


    (from Fifty Famous Fables , by Lida Brown McMurry)
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  • Originally Posted by RAJESHP
    There you go! You know the answer yourself. What do you think people will do when they cannot even do down payment? Call some magician to generate money in their pockets?


    RAJESHP: I was talking about IT people. They are ready to pay because for them the rates are still "affordable"!! In pune I did not notice any PostMan,LIC,Teachers etc. buying luxurious flat, because mostly this schemes are for upper-middle class (working couples) with average salaries over 6-7L p.a.

    You are saying there are 90% of chances prices will go down, I agree. But what about rest 10% man ? No one can guarantee about that.
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