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

    Originally posted by neerajbans View Post
    Despite rising prices, homes most affordable in 30 years: HDFC - The Economic Times

    HDFC says that house is most affordable in last 3 decades and till the ration remains below 5, the demand will exist.

    The average house price calculated is 30 lacs. But even if you assume 60 lacs and Double Income of couples with 10 lacs each, the argument sustains. Also, guess the absolute no. of people with 15 lac + salary has increased dramatically in past 4 years and continue to do so.
    Crap article. It says property prices have gone up from 15 lacs to 30 lacs in last decade i.e. just doubled .

    How can you trust other data ?

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

      These people have now changed the definition of affordability and we people are giving all possible reasons to justify these articles.

      A husband can not afford to buy from his salary so you add his wife's salary to conclude they now has affordability? So people can't buy house before marriage?

      In 2004/2005, when a fresh engineer starting IT career was getting package in the range of 2.5 lakh to 3 lakh range. After one year of service, he was able to buy 2 BHK in decent locality in pune like warje, bavdhan, baner, aundh etc that time and without getting marriage.

      In 2011/2012, a fresher in IT is getting same package range but can't even afford 1 BHK on his own in fringe areas forget about decent localities mentioned above. I have seen number of such example.

      Is this called affordability increased? I think in marriage also now a days home+car is basic necessity and the well-settled working couple scenario can not drive demand of huge housing inventory in pune. Such working couples has got area constraints to find easy accessibility for their daily needs of day care and schooling of their kids.
      Moreover non-IT working couple can't even compete with earnings of 8-10 years experienced IT guy. They can't even able to buy decent 1 bhk in city.

      Due to IT industry in pune the non-IT people are finding very difficult to own house with basic amenities.
      I really doubt the intention/timing of all these economic times article.

      Originally posted by neerajbans View Post
      Despite rising prices, homes most affordable in 30 years: HDFC - The Economic Times

      HDFC says that house is most affordable in last 3 decades and till the ration remains below 5, the demand will exist.

      The average house price calculated is 30 lacs. But even if you assume 60 lacs and Double Income of couples with 10 lacs each, the argument sustains. Also, guess the absolute no. of people with 15 lac + salary has increased dramatically in past 4 years and continue to do so.

      Comment


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

        Originally posted by amit3011 View Post
        That was not a comment but a question. If RE is appreciating by 20% Yearly, why waste time on forum, just go an buy and make money.
        Why should anyone avoid asking questions just because you hate those questions?
        If thats a question, it was't a right one. How much time it takes to buy a property? 24x7x365??? No, it doesn't. Investing in RE is NOT like a regular job where one works all day long and has no time to write on forums.

        Whether RE will increase or won't is hard to say. We mere mortals just do not have answer or the timeline for this. Buyer may think its unreasonable and seller may think its very reasonable. It all depends on what side of RE barrier you are at that moment.

        The truth is almost everything in India has doubled or tripled in last decade and so expecting RE to lag behind is unreasonable. Only thing that has not kept pace with inflation is IT guys salary.

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

          Originally posted by NG2012 View Post
          The truth is almost everything in India has doubled or tripled in last decade and so expecting RE to lag behind is unreasonable. Only thing that has not kept pace with inflation is IT guys salary.
          RE has gone up by atleast 4-5 times in past 6 yrs flat. Nothing else has gone up this way. Not to forget that interest rates too have gone up drastcially.

          High prices + high interest rates = less affordability.
          And as far ITG salary is concerned, when it has not grown alongwith inflation, how will their savings rise ?? This will lead to lower capacity for repayment, not to forget that loan amount too has now reduced compared to 2006.

          No point in comparing things which are bough outright that too ready possessions Vs RE prices !!
          If you are happy, you are successful.

          Comment


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

            Thanks everyone posting the data/analysis/views which prove that the RE bull theory has proved right. No other asset class has shown such an appreciation.
            No other asset appreciation evokes so much emotional reponses (never heard terms "crooked gold traders" or "crooked stock brokers" or "crooked forex traders"). Where as "crooked builders" finds such an acceptance on this forum

            Residex has given up collecing data I guess

            http://www.nhb.org.in/Residex/PUNEres.php
            Last edited May 21 2012, 11:25 AM.

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

              Originally posted by compuwalah View Post
              Thanks everyone posting the data/analysis/views which prove that the RE bull theory has proved right. No other asset class has shown such an appreciation.
              No other asset appreciation evokes so much emotional reponses (never heard terms "crooked gold traders" or "crooked stock brokers" or "crooked forex traders"). Where as "crooked builders" finds such an acceptance on this forum

              Residex has given up collecing data I guess

              National Housing Bank
              ....But a pin lies in wait for every bubble. And when the two eventually meet, a new wave of investors learns some very old lessons: First, many in Wall Street – a community in which quality control is not prized – will sell investors anything they will buy. Second, speculation is most dangerous when it looks easiest. (Warren Buffet regarding *** com bubble)

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

                Maybe Transparency and good Price Discovery?

                Originally posted by compuwalah View Post
                Thanks everyone posting the data/analysis/views which prove that the RE bull theory has proved right. No other asset class has shown such an appreciation.
                No other asset appreciation evokes so much emotional reponses (never heard terms "crooked gold traders" or "crooked stock brokers" or "crooked forex traders"). Where as "crooked builders" finds such an acceptance on this forum

                Residex has given up collecing data I guess

                National Housing Bank

                Hint! Good regulation. Decent transparency. Price discovery. Liquidity.

                When you buy any of the 3, you get quotes every second, confirmation of your purchase is electronic and instantaneous with a trail for verification if necessary. Quality of gold can be done independently and people put behind bars if they cheat. Even brokerage is stated well in advance and its highly competitive.

                If you noticed, the other 3 - Gold, Stocks, Forex - creates a fairly level playing field for even the smallest of players.

                So, even the smallest guy FEELS he is getting a fair deal and win or lose, thats his problem.

                Come to RE. Can you ask the builder ... "why so much?" and get a decent and informative response?

                Can you ask the broker to work on your behalf and for your benefit and not rob you blind?

                In RE, exactly the opposite happens. Therefore, the guys who stack things in their favor - who might that be? - get to be called "Crooked".

                I didn't think it would be such a surprise for you!

                cheers
                Last edited May 21 2012, 08:04 PM.

                Comment


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

                  Originally posted by compuwalah View Post
                  Thanks everyone posting the data/analysis/views which prove that the RE bull theory has proved right. No other asset class has shown such an appreciation.
                  No other asset appreciation evokes so much emotional reponses (never heard terms "crooked gold traders" or "crooked stock brokers" or "crooked forex traders"). Where as "crooked builders" finds such an acceptance on this forum

                  Residex has given up collecing data I guess

                  National Housing Bank
                  Even you also posted a big analysis (post) few week back which was thrashed (with factual data) by many and you rather than defending your analysis you chose to run away from forum for week or so.

                  Comment


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

                    Originally posted by wiseman View Post
                    Hint! Good regulation. Decent transparency. Price discovery. Liquidity.

                    When you buy any of the 3, you get quotes every second, confirmation of your purchase is electronic and instantaneous with a trail for verification if necessary. Quality of gold can be done independently and people put behind bars if they cheat. Even brokerage is stated well in advance and its highly competitive.

                    If you noticed, the other 3 - Gold, Stocks, Forex - creates a fairly level playing field for even the smallest of players.

                    So, even the smallest guy FEELS he is getting a fair deal and win or lose, thats his problem.

                    Come to RE. Can you ask the builder ... "why so much?" and get a decent and informative response?

                    Can you ask the broker to work on your behalf and for your benefit and not rob you blind?

                    In RE, exactly the opposite happens. Therefore, the guys who stack things in their favor - who might that be? - get to be called "Crooked".

                    I didn't think it would be such a surprise for you!

                    cheers
                    wisey. good point you made. But lets step back. Why would you not ask a gold trader "Why so much ?". This fair deal is just a acceptance based on some common understanding. Its akin to somehting like this. You will not ask a beverage vendor why champagne is Rs 10,000. But if hotel next to you bumps up price of say navratan korma by Rs 50, hell breaks loose. This world has unique characterstics. The gold that cannot given you anythign other than just a feeling you have something whereas RE serves a essential end purpose. You are gonna eat or stay inside the gold ?

                    A burgular (some Harshad Meheta in case of paper gold or some real thief in case of physical unless you have Dad like SanjanaSingh ) can bring your portfolio to some decent level without before you even know about it and instantly have infinite negetive gammas and deltas . Same true for stocks.

                    Baki samajhdaar ko ishaara kaafi hai.

                    Comment


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

                      Originally posted by AJ2008oo View Post
                      ..... Second, speculation is most dangerous when it looks easiest. (Warren Buffet regarding *** com bubble)
                      I like this. Man you have uncovered a hidden gem. This is exactly what I was talking about. All the speculation by bears in last few years have been exactly this. Every negetive news was portrayed and linked to the fall in RE prices. It looked easiest. Didn't it (first time using this emotocon) ? These are few one I remember. You wouldbe surprised what not has been linked to RE fall in last so many years. One day some person linked fertility fallt o RE fall. But here are few one posted by sensible members. Interest rate hike to RE fall, Santander bank crisis RE fall, Euro zone crisis to RE fall, rise in stamp duty RE fall, new service tax RE fall, scorpio to RE fall, city sucks to RE fall, IT slump to RE fall, fight with wife to RE fall. ok last one was to chek if you are reading attentively .

                      So point is that it looked so easy to speculate and hence had been dangerous. People who have delayed the buying indeed have learnt it.

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