SIX reasons why property prices WILL NOT fall in your city!

SIX reasons why property prices WILL NOT fall in your city! - Rediff Getahead
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  • Originally Posted by truptid
    SIX reasons why property prices WILL NOT fall in your city!

    SIX reasons why property prices WILL NOT fall in your city! - Rediff Getahead



    Why not SIXty reasons? :D
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  • Originally Posted by truptid
    SIX reasons why property prices WILL NOT fall in your city!

    SIX reasons why property prices WILL NOT fall in your city! - Rediff Getahead

    :D It says RE prices double every 4 year & rural employment guarantee scheme as reason for property prices not falling.

    What a Siddhu logic :D.

    Here are some more reasons why RE prices will not fall:-

    Bicycles don't require petrol,

    Samosa is fried in oil,

    Washing machine doesn't help in cooking,

    You can't date a buffalo.

    :D
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  • Originally Posted by truptid
    SIX reasons why property prices WILL NOT fall in your city!

    SIX reasons why property prices WILL NOT fall in your city! - Rediff Getahead


    Inflation in construction cost or labour cost can't be the reason of higher RE prices, because price of same quality (and size too) flat in across the cities is not same, I mean, same flat is being sold for 20 Lakh in outskirts of Pune, and same flat is available for 2.5 Cr in Mumbai (or in 90 Lakh in Pune).
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  • Originally Posted by truptid
    SIX reasons why property prices WILL NOT fall in your city!

    SIX reasons why property prices WILL NOT fall in your city! - Rediff Getahead


    As mentioned in another thread, this is an article written by someone who makes a living selling properties (e-broker, in a way). I wouldn't read too much into it. Just trying to soft-peddle his target market.
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  • Originally Posted by truptid
    SIX reasons why property prices WILL NOT fall in your city!

    SIX reasons why property prices WILL NOT fall in your city! - Rediff Getahead



    (Un)Real Estate prices only sustained because of :-

    - Black money
    - Black money
    - Black money

    :bab (3):
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  • its not just the balck money!

    Black money was always there.... Still there was a correction in late 90's and in 2009.... I am no expert but on such matters but I strongly feel the only reason for RE sustaining at such obscene level is the attitude of people towards RE...it has to change before we see any faintest clue of correction...:bab (63):
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  • well said Ninja_Chacha
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  • Originally Posted by Ninja_Chacha
    Black money was always there.... Still there was a correction in late 90's and in 2009.... I am no expert but on such matters but I strongly feel the only reason for RE sustaining at such obscene level is the attitude of people towards RE...it has to change before we see any faintest clue of correction...:bab (63):




    Kick the gold diggers (RE investors) out of the RE market. Or make the rules tight for them NOT to just invest for a short period and resale even before possession at a very high rate creating an artificial demand for properties & artificial hike in property prices.

    Do not allow resale at least until the possession of the flats.
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  • Originally Posted by Ninja_Chacha
    Black money was always there.... Still there was a correction in late 90's and in 2009.... I am no expert but on such matters but I strongly feel the only reason for RE sustaining at such obscene level is the attitude of people towards RE...it has to change before we see any faintest clue of correction...:bab (63):


    True indeed. The attitude must change. The willingness to own a home at any cost must change. As quoted in various posts, even a property falls into budget but unreasonable priced should be ignored. Otherwise a time will come when middle class will be slaves of either banks or builders.
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  • Originally Posted by mangopeople
    Kick the gold diggers (RE investors) out of the RE market. Or make the rules tight for them NOT to just invest for a short period and resale even before possession at a very high rate creating an artificial demand for properties & artificial hike in property prices.

    Do not allow resale at least until the possession of the flats.



    +1 ... met some core investors while exploring projects in Wagholi. What they do is just put money for may be a year & then exit the projects by resale at higher price.

    eg: Some of them invested in pre launch projects at Rs 2200 psf & with in a year rates jump to Rs 3400 (thanks to the artificial demand, hike in rates, & panic buying caused by these investors) So they resale at Rs 3400 psf & exit the project in early stages to invest money in some other pre launch project & this goes on ....
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  • Middle class is already slaves of either banks or builders.
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  • Is RE under government rules and regulations in other developing nations ?

    If yes which are those nation and what type of policies they are following.

    I believe RE prices can come down in only two cases -

    1. Global economic crisis like we saw in 2001, 2008.
    2. RE regulation which can put few rules which are in favor of buyers.

    Is there any other case which can bring RE prices down ?
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  • Originally Posted by mangopeople
    Kick the gold diggers (RE investors) out of the RE market. Or make the rules tight for them NOT to just invest for a short period and resale even before possession at a very high rate creating an artificial demand for properties & artificial hike in property prices.

    Do not allow resale at least until the possession of the flats.



    So you are suggesting reducing the demand of a product? what would happen to the supply? Ans - it will fall and when supply falls we are all worse off.

    What needs to happen is that we need more RE supply and that can happen by increasing FSI and by allowing construction on agri land.
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  • True, that for RE prices to go down where must be some global slowdown...even if there is one then also Indian RE will be the e last to get affected by that...because people will bend their lifestyles and other aspiration for RE...it is happening now also....even a person earning 80k per month also dont think of sending some money to his parents ( most of them dont :bab (3):)... instead in most of the cases they suck a sizable chunk of the parents savings to procure a downpayment for the home...

    At the same time, if the price correction needs a shocker...then a 20% clockwork appreciation also needs a booster of sorts to sustain for long( at least I cant see that booster:bab (59):) .period.
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  • Originally Posted by herohiralal
    So you are suggesting reducing the demand of a product? what would happen to the supply? Ans - it will fall and when supply falls we are all worse off.

    What needs to happen is that we need more RE supply and that can happen by increasing FSI and by allowing construction on agri land.




    You didnt get my point.... I never said that we bring down demand ... but to make it difficult for RE investors to exploit the RE buying / selling loopholes & thereby creating artificial demand for RE, inflating the property rates, create panic buying atmosphere...

    This will at least regulate the RE prices for genuine buyers.

    For instance, a RE scheme is launched at Rs.2200 psf in a fringe area. Investors rush in with cheque books. Then within an hour the rate is increased to Rs. 2400 psf. And if you enquire the rates after a week, dont be surprised if you hear that the rate is Rs. 2600 psf. Now interesting point will be to know how many of them are actually genuine buyers & how many are investors who feel extremely delighted with every increase of property rates !
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