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HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

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HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

Last updated: February 8 2012
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  • #11

    #11

    Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

    Forget financial calculations man, simply one needs to do this:-

    Lobby to get some reserved plot released by Govt. Buy that at 80% less than market rate, develop it & sell it at market rates !! What one just requires is right strings.

    Another way is becoming a part in a land under litigation by buying a stake of one of the litigants. Later, use different policies & settle the issue out of court. And whoa, you get land which is CLEAR TITLE, at half the price!! Develop it & sell it with atleast 200-250% profit !

    In RE, only such measures will fetch you money irrespective of market conditions, else wait endless for 25 yrs so that the next generation reaps the benefit of your wise investments....for them .
    If you are happy, you are successful.

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    • #12

      #12

      Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

      Mr.Warren and Venky I have committed a folly to generalize and summarize 25 years experience on one page.I have been watching market since 1984 when a flat at Bund garden use to sell at Rs225 per sq.ft.

      As I have mentioned earlier nature of market is cyclical there was a boom in 1985,1989, 1995 and 2004.when we plot a graph of rate increase against time a rising wave pattern is seen, a ideal point of entry and exit is what I have generalized . Every boom and recession has its own specific reasons; we missed a boom in year 2000 in spite of good rainfall for successive years, dollars pouring in due Y2K reprogramming, product BPOs transformed into service BPOs only because we had BJP govt in centre. 2008 recession has not been deep because cash rich builders have lobbied to hold land banks and not launch too many projects. I yet have to meet a person who perfected the art of selling and buying at the right time though i have acquaintances who are 80% right.

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      • #13

        #13

        Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

        Dear Mr realacres depending upon your risk appetite there are many things that can be done i am sure you must of heard of land grabbing.

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        • #14

          #14

          Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

          Balance Approach and rationalize thinking

          I agree with what Anil is saying .....

          We need to have balance approach ( +ve/-ves ) deciding the entry and exit point. For most of us exit point may not be applicable.

          One can not enter into RE investment if start drawing -ve line infront of every opportunity.

          * Doing market analysis for several years without any active participatiion and doing the investment at right time are 2 different things.


          I am not expert, but i would apply common sense for deciding entry point.
          e.g. if i want invest in Wakad , where rate is Rs. 3400 - 4000........
          if there is 25-30% correction happens ...rate reduces to 2600 - 2800 ....i would consider that as an opportunity.

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          • #15

            #15

            Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

            Shree the same thing happened in 2009 when the Wakad new launches were 2300-2400 psf. Did you use that opportunity?

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            • #16

              #16

              Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

              Originally posted by anildc View Post
              Mr.Warren and Venky I have committed a folly to generalize and summarize 25 years experience on one page.I have been watching market since 1984 when a flat at Bund garden use to sell at Rs225 per sq.ft.

              As I have mentioned earlier nature of market is cyclical there was a boom in 1985,1989, 1995 and 2004.when we plot a graph of rate increase against time a rising wave pattern is seen, a ideal point of entry and exit is what I have generalized . Every boom and recession has its own specific reasons; we missed a boom in year 2000 in spite of good rainfall for successive years, dollars pouring in due Y2K reprogramming, product BPOs transformed into service BPOs only because we had BJP govt in centre. 2008 recession has not been deep because cash rich builders have lobbied to hold land banks and not launch too many projects. I yet have to meet a person who perfected the art of selling and buying at the right time though i have acquaintances who are 80% right.
              Thanks anil for posting such valuable info.

              Goalkeeper is always remembered for the goal which he couldn't save but ppl will never talk about how many goals he has saved

              same with your post.
              cheers.

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              • #17

                #17

                Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

                Hi Anil,

                Good to have such experienced people on this forum.

                What are your predictions about Pune RE market in coming days? What areas you believe are good for investment purpopse.

                Regards,

                Comment

                • #18

                  #18

                  Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

                  Since the economic libralisation in India many things have changed.

                  The increased job opportunity with never before seen salary in last decade has given a breakout to the property prices.

                  The oldies who were trying to make money on pump and dump till 2000 got crushed badly in the breakout and were forced to cover their (short) positions which otherwise they thought will come down as it used to do in last 20 years.

                  Thanks to the better education, lightening fast and cheap communication tools (internet included) the exposure to real estate spread to neo riches of new economy like wildfire - this time too the oldies who were stuck in their old areas failed badly - they were happy with their possession of old areas which did not offer the facilities desired by the new generation who were looking for more fulfilling, fun loving, private life.

                  The 2008-09 crash was just the correction in small way for another major breakout which is to last for another 3 to 4 years till rbi panics and badly and puts a halt to all the loans by tightening the crr like the chinese central bank did.

                  2013-14 is the year I am looking at to filp some of my real estate holdings and I understand that it would be the year when due to inflation the rbi would be in panic mode - however since that too would be general election year then there is fair chance that due to political reasons the rbi may not resort to extreme measures - if that happens then there would be a huge rush of buyers which may push the property prices to all time high levels - then expect correction by 2016

                  Thus if you have bought a right property (by right is meant if you have the possession or will get the possession in reasonable time frame) then you should hold for at least 2013-14 and watch the moves of rbi in terms of crr hikes (if only repo rates are hiked and crr etc is not touched then the liquidity remains in the system which would only push the re prices higher)

                  The moment rbi starts hiking crr then it would be a clear signal that govt want the loans to stop and that would be time to book profits and put your money in fd till the crr comes back to present levels.

                  making money in real estate is easy - if one knows where he is putting his money.

                  btw for last so many decades the property prices have only moved up so anyone who bought and held for a while has made some money.

                  This may not be true after coming general elections

                  as it is said on ***** st

                  teji mai sabka bol bala - mandi mai muh kala.

                  rohit

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                  • #19

                    #19

                    Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

                    An industry can grow and sustain growth only when both buyer and seller are getting benefited. Just for an example Telecom: In 90's was considered as a luxury item. If the prices were not brought down by telecom companies they might have not grown the way they did last decade.

                    Not to forget that goverment policies also play a vital role in growth of an industry.

                    Real estate lacks these fundamentals. Builders are greedy and try to maximse the profits in boom time. So as a wise buyer get in RE at right time and stay away when required. I dont agree with people who says that investment in a house is always a wise decision over a long period. Better refine the statement that invest in a house at right time is a wise decision.
                    Last edited May 24 2011, 02:36 PM.

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                    • #20

                      #20

                      Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

                      Originally posted by anildc View Post
                      I would like to share my knowledge and experience of real estate investing of 25 years and also invite your comments, judgments, and experiences of the same.

                      .... I have committed a folly to generalize and summarize 25 years experience on one page.
                      anildc: Excellent post. Please don't be discouraged by people who are making fun of you. For every 1 person who made fun of you I am sure that there will be a thousand who would have appreciated your post (Including me). Just ignore them completely. There are some posts which are completely senseless. This is certainly not one of them. Not even close. It actually has some very good points. So I am a bit surprised by how some people are reacting. In any case I think we should not react in a way which discourages people from coming ahead and sharing knowledge. This beats the very purpose of this forum. There are more dignified ways to disagree for sure.

                      Thanks for sharing and keep it coming.

                      Comment

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