Announcement

Collapse
No announcement yet.

HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

Collapse
X
Collapse

HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

Last updated: February 8 2012
48 | Posts
  • Time
  • Show
Clear All
new posts
  • #31

    #31

    Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

    Hi Shree, I am sure very few people got good options at 2300/2400. I am sure you have got a very good deal 2700 Rs psf also.

    Now 2nd part of my question is if you have invested 2700 (which will turn out eventually 3200 appx. with other expenses) considering you have got a very good deal would you like to sell your property at 2400 if you get to know the builders are selling at that rate in the same area anytime in future? I am assuming the answer to that will be no (yes in exceptional situations only).

    Considering this, how can you expect the price correction of property areas in the same location to 2400 Rs? I am referring to the original post from your side where you have mentioned that 2400 will be an opportunity if comes.

    My opinion: In real estate deals, any time can be treated as opportunity provided your reason to buy and ability to hold complement each other. No one can predict future so stay invested.

    Comment

    • #32

      #32

      Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

      Need , Opportunity and Apetite

      Hi Amty_gr ,

      Entry decision is based on the opportunity (need , apetite & rate).

      I have no knowledge/experience about Exit decision.

      For Wakad area, I would consider Rs. 2400 - 2700 is another investment opportunity for others....as i don't have need/apetite.
      (Wakad is just an example ; it can be rahatni/PS.... )

      it is hard to predict the bottom/pick as they are timebound but one can do calculation based on certain parameters and vision.
      It also based on the individual's thinking.

      in early 2009 , few of us thought market is corrected and used that opportunity to enter ; others thought it's just begnning of collapse....let us wait for some more time...and rates shoots up in 2010.

      I am not a property trader ; so i consider 5 years is a minimum period to understand ROI on 40 L investment. and i belive ROI would be fair after 5 years.

      its true, one can not predict when correction will come...but you can take advantage when it happens ; as it won't stay forever.

      As Anil has mention there are 3 parts in market cycle ( consolidation, pick and fall....). which gets repeat...for Wakad with 20-25% correction can bring back the 2400 - 2700 rate....considering current phase as PICK.

      Bottom line : Calculated patience and grab the opportunity.

      Comment

      • #33

        #33

        Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

        There a book called "The Chaos Theory" whenever there is too much of chaos the chaos creators have a hidden agenda.

        Now in absolute pessimism those who can find a good deal no matter how - by grace of god or sheer luck. they shine.

        Thus have an objective view always - define your boundries - know your finances and above all - "invest" not "buy" what you can afford to loose.

        The primary housing is a different ball game which is dependent of one's personal requirement and beyond the scope of this thread, so if making money in real estate is what you are looking for - keep a hawks eye and have the capability or cash to strike the deal when it comes up.

        I have a formula about the appreciation of real estate and till date it has worked just right. I may share that if I find some one suitable for that.

        rohit

        Comment

        • #34

          #34

          Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

          Hi Rohit,

          We all will be thankful if you share that formula with us.

          TIA

          Comment

          • #35

            #35

            Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

            Mr. rohit ,
            Its true that there are many variables of a recession and a boom and long term prediction may not be perfect; as in chaos theory, but would definitely like to share your formula of appreciation in real estate.


            To predict a boom or recession we should be able to predict variables like population rise, Income rise, Inflation, Prosperity, Demand, Supply, Stability of govt… etc the answer becomes easier. It would be optimistic to sit liquid and hope for a bargain hunt always, a good deal could be anything from its fair price to downwards.


            ANIL DC

            Comment

            • #36

              #36

              Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

              This Chinese industry can spell trouble for the global economy!

              Though not directly related to indian RE market, just thought of sharing informative article...

              This may sound counter-intuitive to most Indians, but there was a time in China when most people there didn't think they would ever own a home. Then something changed radically in 1998. The Communist government decided to privatise most of its urban residential housing stock. Rest all is now history. The Chinese real estate and construction industry has grown at a very furious pace over the last decade.

              The country has now launched a massive drive to keep the boom in the construction industry going and to also address issues of growing income disparities. The Chinese government has ambitious plans to build about 36 m subsidised housing units in the next 5 years. Meaning, people who cannot afford to buy or rent houses in cities will be offered the same at significant discounts.

              But why is the world so worried about the Chinese property market? Let us explain a bit and you will agree that it is definitely a matter of concern.
              The growth model of Mainland China is heavily dependent on the real estate and housing construction sector. This sector, in turn, is a crucial determinant of commodity demand. If certain estimates are to be believed, the Chinese dragon devours up to 50% of important global commodities and materials like steel, iron ore, coal and cement. For instance, about 40% of China's steel demand comes from direct construction activity. But if you account for property-related and property-dependent steel demand, it would account for more than 65% of China's total steel consumption.

              So it's clear how important a player China is in the global commodity and materials market. It is no wonder then that any slowdown in the Chinese property market will have major global repercussions. If you look at the economic data of recent months, it is evident that manufacturing activity has slowed down on the back of monetary tightening. Though it is difficult to predict the fate of the Chinese property market, whenever the tide turns, the tremors will rock the entire globe.

              Comment

              • #37

                #37

                Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

                Don't sell your old house in a hurry!

                Don't sell your old house in a hurry! - ET Slide Shows - Features - The Economic Times

                Unfold the value that lies in your existing properties.

                Comment

                • #38

                  #38

                  Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

                  I have been toying with the idea for long to float a pvt ltd co. of like minded people to invest in preleased properties. Equity of min 10 lacs there on in multiples of 10 lacs can be bought by investors. The money will be invested only in Preleased properties (no land, no shares etc) with good rate of returns, the rent accrued will be distributed among share holders(aka REIT). Coming together will help increase our buying power, pooling of our market knowledge and dilute the risk if any. Your inputs are invited.
                  Last edited December 10 2011, 12:02 AM.

                  Comment

                  • #39

                    #39

                    Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

                    Real estate is a long term investment

                    Real estate is a long term investment| ET Slide Shows

                    Comment

                    • #40

                      #40

                      Re : HOW TO INVEST AND MAKE MONEY IN REAL ESTATE

                      A good thread ..... Thanks to all.

                      Comment

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