Prices doubled from 2009...enough said....
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  • Dear Venky bhai,

    You bought RP 1900, if RP allows market discovery of resale price it will not be more than 3000 in any case, even thats on a higher side.

    So practically it is a rise of 57%. 90% of the projects have not appreciated by more than 50-55% maximum in 2 years

    Originally Posted by Venkytalks
    I have quoted another new launch price in same

    area - but specifications were better, area was bigger, so not strictly comparable - but that is the best I can do.

    Prices in other areas of Gurgaon have tripled in 2 years. Average return over Gurgaon in last 2 years is about 100%.

    Even assuming 50% return in 2 years, that is more than three times FD return.

    Stocks of course doubled from 2009 to 2010 but static now. So for both stocks and RE< 2009 was the best time to buy.

    Regardless, the price increase in any property bubble is 3-400%. We are nowhere near the bubble territory yet - that will come 3-4 years down the line.
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  • Originally Posted by amit001
    Dear Venky bhai,

    You bought RP 1900, if RP allows market discovery of resale price it will not be more than 3000 in any case, even thats on a higher side.

    So practically it is a rise of 57%. 90% of the projects have not appreciated by more than 50-55% maximum in 2 years


    Ami Bhai, Most of the projects may have given 50-60% rise in bsp, but if you calculate the return on the money one has invested in CLP plan, % gain will be much high. That's the best thing of RE investment, though this is only possible if you buy a new lauch and go for CLP plan.

    On the contrary, there are couple of projects in Gurgaon, where BSP itself has increased by 80% or more. Unitech Residency, Emaar palm terraces, Uniworld Garden-2 are few examples. But I agree, most of the projects have appreciated within the range of 50-60% .
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  • Uniworld gardens 2 price in 2009 was 2200, project sold out at launch, currently prices 4400. Thats double.

    Tulip orange 2009 price 1900, currently 4000, thats more than double.

    The 50-60% return you are talking about is actually 1 year return - not 2 year return. Prices from mid 2010 are up by 50-60% in most of the Emaar, M3M, Unitech projects.

    Most people in 2010 got handsome booking returns of 500% on their booking amount of 2-3 lakhs
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  • another rate hike by the RBI. banks are likely to raise their interest rates. this will affect the enthusiasm of buyers. no, real estate prices are not going up any more. i see some correction. stay away for now.
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  • Originally Posted by Venkytalks
    Uniworld gardens 2 price in 2009 was 2200, project sold out at launch, currently prices 4400. Thats double.


    sold out in 2009 and current price 4400 ... are these resale prices?
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  • interesting article...

    http://www.marketoracle.co.uk/Article29471.html




    All of this is further regurgitated at length by the BlogosFear, a phrase that I coined some years ago as a consequence of the perma-doom mindset regardless of the reality of a situation. However, the media and the BlogosFear being ignorant of the facts is nothing new, for it is the human condition for those that seek to exert power over others to nearly always be pessimistic of the future which has its roots in Religion Driven Fear of what God will do to you if you do not obey those that purport to have a direct line to him, so we are talking about something ingrained in our genes that goes back hundreds of thousands of years. Everything is driven by FEAR, Preachers use it (of all faiths), Politicians definitely use it, the mainstream media cannot get enough of it with 9 out of 10 stories being bad news, and off course there are the FEAR driven insane fanatics hell bent on killing as many innocents as they possibly can such as the Norwegian Nazi, though the real secret behind his craziness is probably more to do with him never having been able to get a girl friend and hence needed to find others to blame for his own inadequacies which over time resulted in mental illness and finally evil deeds.
    The reality of the real state of the world is that of continuing global economic growth coupled with exponential innovation and technological advancement, 20 years ago few could foresee how the Internet would change the way we work and learn resulting in huge gains in productivity, as will technologies such as BioTech, Artificial Intelligence and Robotics change our world enormously over the next 20 years, resulting in a many fold increase in worker productivity, these good news mega-trends will rarely make it into your gloom and doom mainstream press that only knows how to sell fear, which is why most investors will miss these mega-trends.
    The Eurozone Debt Crisis Reality
    The bond vigilantes are heavily short illiquid debt markets i.e. Ireland, Greece and Portugal, which goes a long way to explain why Italy has been targeted as shorts are cashing out of illiquid markets and opening positions in Europe's biggest most liquid bond market, Italy!
    This is reflected in recent bond market price action as yields for Italian debt are on the rise whilst yields in the likes of Greece have fallen a little, that is the reason for current price action, and NOT the noise you are hearing in the mainstream press about x,y,z - none of which reflects reality of bond markets price action.
    The mainstream press focuses in on just one or two elements without comprehending the reality of the actual situation in that:
    a. The PIIGS are NOT the whole they are one small part of the Euro-zone economy that is NOT contracting but growing with Germany literally booming as a weak Euro gives it a great comparative advantage both internally in the euro-zone and externally to the whole world that far out weighs the actual net costs of bailouts.
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  • Originally Posted by Vinod Gupte
    another rate hike by the RBI. banks are likely to raise their interest rates. this will affect the enthusiasm of buyers. no, real estate prices are not going up any more. i see some correction. stay away for now.


    You may wish to see some correction but you cant be seeing any correction as yet...
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  • Originally Posted by punerebuyer
    sold out in 2009 and current price 4400 ... are these resale prices?


    Yes, these are resale prices.
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  • Originally Posted by stoxxx
    You may wish to see some correction but you cant be seeing any correction as yet...


    correction will never be advertized in RE... when the first ad for reduced price comes, market will collapse and builders know it very well.. right now they are (on paper) holding up well using borrowed funding and black money background...

    but serious buyers are able to do the negotiations... same thing happened in 2009. There were no advertizements about rate reductions but everyone just knew... it was word of mouth.. E.g. Pethkar also on paper never came below 4500 but deals happened much below that price... Kumar Karishma suddenly offered 4.3% discount for 43rd year anniversary (who celebrates 43 years milestone? - i had asked this question to the baffled sales person).

    there is possibly a reason why such things are only spread in limited circles.. here are a few (from person experiences of friends/relatives)

    1. Builder offers a good deal but flat is near possession. Builder says that this is only for you... so the buyer keeps quite since the possession is not complete yet or some paperwork is remaining.
    2. Builder says, we are making this exception only for you since you are doing XX downpayment. Again people keep quite not to disclose the money they have paid in one shot.
    3. Some people are just honest and keep their word when builder requests them not to tell anyone else... they sincerely believe that builder had good intentions and reduced the rates only for them considering their budget etc etc.
    4. Most of the cases, even after registration, buyer needs to be dependent on builder for some or the other reason for a while. So they prefer keeping quite and not advertizing the deal they got.
    5. Lastly, human mind tries to justify the cost once it is paid. So once anyone pays some money s/he believes that the deal was good. It is very difficult to convince oneself that one has been cheated. Once we spend, we try to justify the spending. Some people convince themselves that this is what i wanted and this is what i can afford hence this is a good deal. That's just human behavior.....

    Lastly...

    If RE is a bullish sector why investment firms (banks) are running away from them and why RBI is increasing the risks on this sector?

    Rates will reduce when the awareness and value for money (and also value for human life) increases. Educate people and spread the word instead of just giving up in front of the builder-political cartel
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  • Originally Posted by punerebuyer
    correction will never be advertized in RE... when the first ad for reduced price comes, market will collapse and builders know it very well.. right now they are (on paper) holding up well using borrowed funding and black money background...

    but serious buyers are able to do the negotiations... same thing happened in 2009. There were no advertizements about rate reductions but everyone just knew... it was word of mouth.. E.g. Pethkar also on paper never came below 4500 but deals happened much below that price... Kumar Karishma suddenly offered 4.3% discount for 43rd year anniversary (who celebrates 43 years milestone? - i had asked this question to the baffled sales person).

    there is possibly a reason why such things are only spread in limited circles.. here are a few (from person experiences of friends/relatives)

    1. Builder offers a good deal but flat is near possession. Builder says that this is only for you... so the buyer keeps quite since the possession is not complete yet or some paperwork is remaining.
    2. Builder says, we are making this exception only for you since you are doing XX downpayment. Again people keep quite not to disclose the money they have paid in one shot.
    3. Some people are just honest and keep their word when builder requests them not to tell anyone else... they sincerely believe that builder had good intentions and reduced the rates only for them considering their budget etc etc.
    4. Most of the cases, even after registration, buyer needs to be dependent on builder for some or the other reason for a while. So they prefer keeping quite and not advertizing the deal they got.
    5. Lastly, human mind tries to justify the cost once it is paid. So once anyone pays some money s/he believes that the deal was good. It is very difficult to convince oneself that one has been cheated. Once we spend, we try to justify the spending. Some people convince themselves that this is what i wanted and this is what i can afford hence this is a good deal. That's just human behavior.....

    Lastly...

    If RE is a bullish sector why investment firms (banks) are running away from them and why RBI is increasing the risks on this sector?

    Rates will reduce when the awareness and value for money (and also value for human life) increases. Educate people and spread the word instead of just giving up in front of the builder-political cartel

    +1
    "human mind tries to justify the cost once it is paid. So once anyone pays some money s/he believes that the deal was good. It is very difficult to convince oneself that one has been cheated. Once we spend, we try to justify the spending. Some people convince themselves that this is what i wanted and this is what i can afford hence this is a good deal. That's just human behavior....."

    this is biggest point which is valid. If we buy something at Rs. 100 and if there are good chances that we could have bought it at Rs. 70 that someone else proves it we still try to justify how the price we have paid is right.

    And there are (builder)people like Jitu_Sir who are giving *precious* advice that sell out all other asset like Fixed Deposit, Gold, Savings, Equity, Existing property, Kidney(?):bab (59): and buy a house with Pethkar builders.
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  • Originally Posted by amolsw
    +1
    "human mind tries to justify the cost once it is paid. So once anyone pays some money s/he believes that the deal was good. It is very difficult to convince oneself that one has been cheated. Once we spend, we try to justify the spending. Some people convince themselves that this is what i wanted and this is what i can afford hence this is a good deal. That's just human behavior....."

    this is biggest point which is valid. If we buy something at Rs. 100 and if there are good chances that we could have bought it at Rs. 70 that someone else proves it we still try to justify how the price we have paid is right.

    And there are (builder)people like Jitu_Sir who are giving *precious* advice that use sell out all other asset like Fixed Deposit, Gold, Savings, Equity, Existing property, Kidney(?):bab (59): and buy a house with Pethkar builders.


    Let us not get personal here. Jitu has been graceful in his comments here and should be countered on merit / points. Don't like his price, move over - simple enough, isn't it? There are scores of options in an open market.

    I don't know what axe you have to grind against Jitu, but if we keep posting such responses, this forum will be reduced to a street-fight. I am also aware that you may just start responding to my post in a similar fashion, but thought it would be prudent to point it out.

    Mods, please take note.
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  • Originally Posted by sunnybynight
    Let us not get personal here. Jitu has been graceful in his comments here and should be countered on merit / points. Don't like his price, move over - simple enough, isn't it? There are scores of options in an open market.

    I don't know what axe you have to grind against Jitu, but if we keep posting such responses, this forum will be reduced to a street-fight. I am also aware that you may just start responding to my post in a similar fashion, but thought it would be prudent to point it out.

    Mods, please take note.

    I think, what is important here is the reality. No offenses need to be made against Jitu or anyone but the truth is that people have lot of anger against the builder lobby who make non-sense comments to promote their product.

    Just because Jitu starts every reply with "Dear..." does not mean he is right.
    I will also start my post with "Dear and all..." but will that help me ?

    Also, move over is NOT advisable. Our such moves only makes this builder lobby strong and we are facing the issues now.
    From last couple of years people are only moving on with whatever rates they are charging and result is that we are seeing the bad picture today.

    I think amolsw is right or atleast not wrong with his comment.
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  • Originally Posted by sunnybynight
    Let us not get personal here. Jitu has been graceful in his comments here and should be countered on merit / points. Don't like his price, move over - simple enough, isn't it? There are scores of options in an open market.

    I don't know what axe you have to grind against Jitu, but if we keep posting such responses, this forum will be reduced to a street-fight. I am also aware that you may just start responding to my post in a similar fashion, but thought it would be prudent to point it out.

    Mods, please take note.


    Jitu is an engineer by educational qualifications and a promoter/salesman from his profession and also a teacher from his part time profession (or hobby)...

    the mix you get is a well mannered, educated presence with correct, honey sprinkled language and calm attitude... one is very pleased to talk or meet such personalities...

    but what we need to understand is... in all the good and professional manners, Jitu will never compromise on his interests :bab (34):

    we as buyers, should always remember that... and need to see through his words to check for the correct message/answer. For some critical questions, Jitu only has sweet talks but no real information or justification.

    A simple question which I had asked on Samrajya thread was never answered to satisfaction in spite of several posts from either side... giving the question below just for the sake of it...

    "During booking, builder quotes the prices for all the flat and all the amenities in the building. So when buyer pays 100% money, everything should be ready possession. But we see that none of the amenities are complete even today (26-July-2011) for L6 but the full payment was received more than 1 year back, so why buyers are forced to pay full amount while builder dont deliver what was promised? why buyers are not allowed to pay some amount (5% for example) later when all the amenities are complete and ready for use?

    Some people in L6 may still be paying extra for Gym, swimming pool, garden etc etc without realizing that Jitu has taken money from them for all these 1 year back itself for all these amenities."
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  • Originally Posted by amolsw
    +1
    "human mind tries to justify the cost once it is paid. So once anyone pays some money s/he believes that the deal was good. It is very difficult to convince oneself that one has been cheated. Once we spend, we try to justify the spending. Some people convince themselves that this is what i wanted and this is what i can afford hence this is a good deal. That's just human behavior....."

    this is biggest point which is valid. If we buy something at Rs. 100 and if there are good chances that we could have bought it at Rs. 70 that someone else proves it we still try to justify how the price we have paid is right.


    Equally those who missed the boat keep forever justifying how their decision not to buy was good.....their language is mostly 'should'

    this should happen....that should happen......name calling etc...
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  • Originally Posted by punerebuyer
    correction will never be advertized in RE... when the first ad for reduced price comes, market will collapse and builders know it very well.. right now they are (on paper) holding up well using borrowed funding and black money background...

    but serious buyers are able to do the negotiations... same thing happened in 2009. There were no advertizements about rate reductions but everyone just knew... it was word of mouth.. E.g. Pethkar also on paper never came below 4500 but deals happened much below that price... Kumar Karishma suddenly offered 4.3% discount for 43rd year anniversary (who celebrates 43 years milestone? - i had asked this question to the baffled sales person).

    there is possibly a reason why such things are only spread in limited circles.. here are a few (from person experiences of friends/relatives)

    1. Builder offers a good deal but flat is near possession. Builder says that this is only for you... so the buyer keeps quite since the possession is not complete yet or some paperwork is remaining.
    2. Builder says, we are making this exception only for you since you are doing XX downpayment. Again people keep quite not to disclose the money they have paid in one shot.
    3. Some people are just honest and keep their word when builder requests them not to tell anyone else... they sincerely believe that builder had good intentions and reduced the rates only for them considering their budget etc etc.
    4. Most of the cases, even after registration, buyer needs to be dependent on builder for some or the other reason for a while. So they prefer keeping quite and not advertizing the deal they got.
    5. Lastly, human mind tries to justify the cost once it is paid. So once anyone pays some money s/he believes that the deal was good. It is very difficult to convince oneself that one has been cheated. Once we spend, we try to justify the spending. Some people convince themselves that this is what i wanted and this is what i can afford hence this is a good deal. That's just human behavior.....

    Lastly...

    If RE is a bullish sector why investment firms (banks) are running away from them and why RBI is increasing the risks on this sector?

    Rates will reduce when the awareness and value for money (and also value for human life) increases. Educate people and spread the word instead of just giving up in front of the builder-political cartel



    So there is invisible correction that no one but a select and lucky few would notice.....


    it is naive to say that the rates will reduce with people awareness and education.......it is a function of demand and supply period.....if these people did not have money or willingness there would not be demand and market would correct.....but as long as they have accessiveble money and there is a need there would be demand......price is a function of demand and supply.....
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