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Builders & RE Bulls Theory Proved Right !!!

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Builders & RE Bulls Theory Proved Right !!!

Last updated: June 15 2016
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  • #31

    #31

    Re : Builders & RE Bulls Theory Proved Right !!!

    Not sure from where this news u got

    This is the response from their salesperson after enquiry

    Topaz park sold out
    2900 ..heheh it was 4K+


    Originally posted by pawarnilesh View Post
    Pune Real Estate Market Slow Down Started ---


    1. Vilas Javdekar and Associates was the first builder who brought down the rate or "cut the rate" from Rs.3,200 to Rs.2,900 per sq.ft. in Wakad, Aundh annex.

    2. Now, Topaz Park, (Park Street phase 3?) by Pride Purple is ready to charge Rs.2,900 if you give an advance disbursement of loan or if you make 100 % down payment.

    Should it be new thread ?

    Comment

    • #32

      #32

      Re : Builders & RE Bulls Theory Proved Right !!!

      Originally posted by manu1981 View Post
      Not sure from where this news u got

      This is the response from their salesperson after enquiry

      Topaz park sold out
      2900 ..heheh it was 4K+
      it was from here
      http://.blogspot.com/2008/08/now-top...hase-3-at.html

      put before .blog, dont know why it deletes ""
      old post

      Comment

      • #33

        #33

        Re : Builders & RE Bulls Theory Proved Right !!!

        Originally posted by gandalf View Post
        it was from here
        http://.blogspot.com/2008/08/now-top...hase-3-at.html

        put before .blog, dont know why it deletes ""
        old post
        hehe...it keeps deleting ravi karandkars name...

        Comment

        • #34

          #34

          Re : Builders & RE Bulls Theory Proved Right !!!

          may be someone found old blog of last recession where rates went down to 2700-2900
          I called them half an hr back only..

          No reduction in prices in any of the Park stree projects all are 4K+..In topaz no availabilty.


          Originally posted by gandalf View Post
          hehe...it keeps deleting ravi karandkars name...

          Comment

          • #35

            #35

            Re : Builders & RE Bulls Theory Proved Right !!!

            Originally posted by gandalf View Post
            it was from here
            http://.blogspot.com/2008/08/now-top...hase-3-at.html

            put before .blog, dont know why it deletes ""
            old post
            Gandalf, you are posting a link from 2008!!!!!
            Venky (Please read watch a or before posting)

            Comment

            • #36

              #36

              Re : Builders & RE Bulls Theory Proved Right !!!

              Originally posted by Venkytalks View Post
              Gandalf, you are posting a link from 2008!!!!!
              yes, it was a reply to earlier post saying drop in rates...

              Comment

              • #37

                #37

                Re : Builders & RE Bulls Theory Proved Right !!!

                guys i wont see the date but there was some replies on same post which was posted by R.K.'s Blog.

                You can search on google for "ravi karandeekar may 2011" which opens up his recent article 'Property Rates in Pune Real Estate Market Going Down'

                Originally posted by gandalf View Post
                yes, it was a reply to earlier post saying drop in rates...

                Comment

                • #38

                  #38

                  Re : Builders & RE Bulls Theory Proved Right !!!

                  Originally posted by Venkytalks View Post
                  India is a structural bull market for both stocks and RE for next 50 years.

                  Every bull market gets cyclical corrections of 30-50% also - and currently we are going through one such.

                  They are buying opportunities. RE is a more smooth but relentless rise than stocks and so will give you great returns without crazy volatility

                  Something I posted a some 1 1/2 or 2 years ago on RE bulls thread: Reading it again, I find not much has changed - (reproduced below)


                  Some RE, including at least the roof over your own head, is a total must to guard against inflation.

                  There are 3 causes of inflation. First, the most basic is supply demand mismatch. If a thing is scarce, it costs more and as scarcity continues, price keeps rising. Scarcity can be genuine or because of hoarding/black marketing.

                  Second is monetary policy - an increase in money supply.

                  Third is competitive disadvantage - which is what results in currency devaluation.

                  As regards RE, increase in price of RE is in fact nothing but inflation. It affects everybody including you and me. RE price inflation has been traditional in India because of scarcity factor due to misgovernance reasons.

                  There is 700 million acres of land in India, around 1 acre for every 2 people. Around 250 million acres of this is cultivable.

                  People cannot build homes in this land because there are no roads - you need a helicopter (or walk/bullock cart as actually practiced) to reach 90% of this land.

                  Cost of land in countryside reflects acricultural output. Average is 50,000 per acre (price of 1 laptop). Highest possible yield of agriculture, as practiced in India is 2 tons of cereal per acre = 40,000 Rs at 20 Rs per kilo. Not counting input costs. Usual agricultural yield without irrigation is around 10,000 Rs per acre. Which is peanuts. So the value of land is determined entirely by means of roads - if there is road, price is in crores. If there is no road, price is in peanuts.

                  Second we have bad laws. There are laws in every state which restrict building on agricutural land. There are urban land cieling acts which prevent easy manufacturing of large scale apartments. Tenancy laws are tilted against landlords, who prefer to lock up the flat than rent it (more in Delhi). All of these create a scarcity of housing, which has the effect of making housing expensive.

                  Tenency laws paradoxically prevent people from getting cheap rental houses. Otherwise massive tenaments can be erected by companies and rent out 1000 sf flats at 1000 Rs per month (thats all it actually costs). But our govt is wretched and perverse and prevents this from happening by keeping archaic tenancy laws. As a result, people pay the same 1000Rs rent for living in a slum in Dharavi. Actually much more.

                  Govt gains in multiple ways from this scarcity. Politicians finance and are financed by crooked builders. High value RE is a good hiding place for black money as well as corruption money. Congress traditionally has juggi jhopri vote bank - so they try to keep people poor. Their modus operandi is - you have to vote for me otherwise you lose even your juggi!!!!! Nobody publicises the fact that Congress laws are what created the juggi in the first place.

                  In any case, after 60 years of mismanagement, the scarcity of flats remains. At the pace in which govt is creating roads, there is going to be flat scarcity for my lifetime at least.

                  But my fear for the near future is that multiple factors are converging to cause inflation all together.

                  First, the RE scarcity has been magnified by recent prosperity - salaries are up and a lot of people are looking to buy. People in their 50s, 40s, 30s, and even 20s are all entering the RE market at the same time. Last time this happened in 2004-2007, we had RE hyperinflation. Flat prices tripled in 3 years. As long as our economy does well, this trend will continue.

                  Second, there has been good monetary action by RBI but exceptionally incompetent fiscal policy by the finance ministry. This includes NREGA, 6th pay commission and loan waivers. We have overspent govt funds crazily and this has caused an increase in money supply which makes inflation inevitable. This will be reflected in RE price. The govt servants and puclic sector undertakings have all got salary rise and arrears which will inevitably go to RE. It will also stoke inflation of food - where also poor govt policy has caused scarcity by destroying agriculture (17% of GDP last I heard).

                  Third, monetary policy of the whole world is loose and over 5 years is bound to increase raw material prices for oil and base metals, both will impact RE constructin cost.

                  Finally, currency movements in both directions will cause RE price inflation. If Rupee strengthens, then it means our economy is doing well and there will be more people quieing up for flats. If Rupee weakens, raw material costs will go up making flats more expensive to build. At the same time s o f t w a r e outsourcers will get a competitive advantage and will see pay rises - increasing demand for RE.

                  There is one other thing - which many people who talk demand and supply do not understand at all.

                  In USA there are 18 million more dwelling units than there are households. 18 million vacant homes. But year on year the number of households is increasing because of immigration and more children by christian rightwingers.

                  In Europe, number of dwelling units equals number of households, with a mild excess which varies from country to country. There is a decline in number of households year on year due to declining population.

                  In Japan, number of dwelling units equals number of households. But number of households is dropping precipitously due to massive aging and population decline.

                  In China, number of dwelling units which in India will be called "pucca" exeeds number of households (YES!!!!!!). Everybody has a home, a TV, a cycle, a washing machine. Most current dwelling units are more than adequate by Indian standards. New housing is aspiratinal i.e. a luxury, as people earn more and want to better their lifestyle. Population is plateauing and is likely to face a 50 year slow decline followed by a precipitous drop much worse than Japan.

                  Now you all know what India is. The vaaaaaaaaaaast majority live in tents/juggi/footpath/village huts without electricity.

                  A small percentage of this mass moves out of poverty every year. This will create a demand supply mismatch for the next 100 years.

                  If India shows even 5% growth sustained for the next 20 years, there will probably be a 50% mismatch over this period i.e. there will be only half as many dwelling units as compared to households with income enough to buy/rent a flat.Shortages and RE price inflation is inevitable.

                  Better buy now. RE price has only one way to go and that is up.

                  Current flattening is a buying opportunity, before the relentless RE inflation continues. I do not anticipate good road building by Indian governments for at least 15 years. The only thing which can prevent RE inflation is road building. If govt builds roads, then it will dull the RE price inflation somewhat.

                  Since political parties are the main beneficiaries of RE price inflation, including election funding, it is in their self interest to misgovern India.
                  Sir Learning Article
                  Garg

                  Comment

                  • #39

                    #39

                    Re : Builders & RE Bulls Theory Proved Right !!!

                    That would be wonderful.

                    Originally posted by rajtjrll View Post
                    why do u think you need 4L incremental growth every year in loan requirement.....the prices are steady since feb-2011....almost 6 months...
                    who knows it may remain steady for next 1 year and even come down.....
                    you can add up 1 years savings...in down payment and end up paying less....

                    Comment

                    • #40

                      #40

                      Re : Builders & RE Bulls Theory Proved Right !!!

                      Originally posted by pawarnilesh View Post
                      Pune Real Estate Market Slow Down Started ---


                      1. Vilas Javdekar and Associates was the first builder who brought down the rate or "cut the rate" from Rs.3,200 to Rs.2,900 per sq.ft. in Wakad, Aundh annex.

                      2. Now, Topaz Park, (Park Street phase 3?) by Pride Purple is ready to charge Rs.2,900 if you give an advance disbursement of loan or if you make 100 % down payment.

                      Should it be new thread ?
                      I am not sure if either of these news is true.

                      1. Which Vilas javdekar scheme you are talking about in Wakad? If it is Palash, the rate was 3200 for Insignia's booking - after that it is back to 3600 for the remaining ones. A number of people have inquired. how do you get the 2900 figure? Just trolling

                      2. As mentioned by others, the rate is still 4,000 plus in Topaz park. This is the rate quoted by them this monday.

                      Comment

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