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Property prices in Pimple Saudagar

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Property prices in Pimple Saudagar

Last updated: August 16 2009
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  • #61

    #61

    Re : Property prices in Pimple Saudagar

    Hi Amit,

    i agree with the global economic factor, and also the builders starting to raise money from stocks. I am ready to wait for more time, but is it guaranteed at least a 10-15% reduction in psf rates ?

    And please clarify one point - how does 30L in liquidity gets different from 30L loan a bank provides? assuming a reputed builder does not take any money in black. I might get finance from one of my friend if that can help me negotiate better. But i dont understand the equation that 30L liquidity can help me get better deal. How will this help the builder?

    I am a prospective buyer waiting for more than 2 years, and can wait one more year for sure if its guranteed that at least there is a 15% correction from todays psf rates.

    Thanks.

    Comment

    • #62

      #62

      Re : Property prices in Pimple Saudagar

      Originally posted by amit_2009 View Post
      you should easily get a decent 3BHK flat in PS if you have 30L ready liquidity and are willing to provide a higher downpayment percentage.


      btw, all this talk of market improving is bluff. Only the stock market has risen in the last couple of weeks. This does not mean anything for the Real estate. All other real economic indicators are spiralling downwards each passing day... but what do these brokers know about such stuff.. they think the stock market increase means that the economy is booming upwards!

      hell, companies like DLF, Unitech. Indiabulls are selling themselves... you know what does it mean by recent news of raising money to pay off debt interests by "private placement of equity" for institutionalised investments... the RE company owners have to sell off part of their ownership in the stock market to raise money for debt interest payments and prevent themselves from going bankrupt!


      There is no actual improvement of the economy... people who hold on to their hard earned money for the next 9-12 months would be surprised to see the gains made from patience.
      Amit,
      Very good post. Finally i see some logical posts in this thread. Few differences between stock and RE markets.

      1.RE market prices depend on demand-supply ratio. And the demand is decided by retail buyers unlike the FIIs in stock market. With job market becoming worse each day, its tougher to find buyers for the flats. And this is leading to huge supply and no demand problem which is going to take the RE market towards crash.
      (People, must have heard around 10k Satyam employees are going to get laid off. There are many other companies which are laying off silently.)

      2. The investment in stocks can be liquidated on any given day. In RE, one has to find a buyer for his property which may take months, specially in this scenario.Add to it, the stamp duty one has to pay Plus the profit earned after selling property is taxable. However, in case of stocks if you invest for more than an year, the income is tax free. The stock market and RE markets are totally unrelated.

      In 2005, when the flat prices were lower, lots of people bought flats for investment. Right now, only genuine buyers are looking to buy and even those are not turning up because of the loot going on by the builders. No investors are are buying flats, in fact those who bought eariler are looking to book the profit as there are clear signs of the rates going down.

      Comment

      • #63

        #63

        Re : Property prices in Pimple Saudagar

        ***************
        you should easily get a decent 3BHK flat in PS if you have 30L ready liquidity and are willing to provide a higher downpayment percentage.
        ***************
        Is it true? Why should it make any difference to the builder if I pay more as down payment or take loan? I mean all banks except nationalised banks disburse loans in less than a week. So for a builder, a customer paying in cash or a customer taking loan makes a weeks difference. Why should it make a major impact?

        **************
        There is no actual improvement of the economy... people who hold on to their hard earned money for the next 9-12 months would be surprised to see the gains made from patience.
        **************
        Hope this come out to be true. I have waited 18 months, won't mind 9 months additional wait. However, this could depend on possession date as well. So for e.g.my rental is 10K, then I spend 90k in 10 months hoping to get the house for at least 90K cheaper. I would rather buy a house at 90K higher price now than waiting for later. So the point is that there is a delicate balance there which needs to be watched out.

        Comment

        • #64

          #64

          Re : Property prices in Pimple Saudagar

          Originally posted by punebloke View Post
          ***************
          you should easily get a decent 3BHK flat in PS if you have 30L ready liquidity and are willing to provide a higher downpayment percentage.
          ***************
          Is it true? Why should it make any difference to the builder if I pay more as down payment or take loan? I mean all banks except nationalised banks disburse loans in less than a week. So for a builder, a customer paying in cash or a customer taking loan makes a weeks difference. Why should it make a major impact?

          **************
          There is no actual improvement of the economy... people who hold on to their hard earned money for the next 9-12 months would be surprised to see the gains made from patience.
          **************
          Hope this come out to be true. I have waited 18 months, won't mind 9 months additional wait. However, this could depend on possession date as well. So for e.g.my rental is 10K, then I spend 90k in 10 months hoping to get the house for at least 90K cheaper. I would rather buy a house at 90K higher price now than waiting for later. So the point is that there is a delicate balance there which needs to be watched out.
          Punebloke,

          I very much agree with you. I have been waiting from more than last 18 months too.

          You missed one point above. If you calculate the interest to buy a flat which you rent for 10k, it will turn out to me much more. Plus in the mean time there are very dark chances of rates going down.

          Comment

          • #65

            #65

            Re : Property prices in Pimple Saudagar

            i would invest heavily if there is a ticker in the stock market which states "Pune real estate", unfortunately there isnt any such.

            The reason i say this is because Pune has neither seen a noticeable correction nor will see it even if the Indian real estate corrects again. And Pune has grown heavily if you look at the data on working population and their income. Unless a developing country like India falls into a heavy recession in the next 1-3 years which is most unlikely the case, i cannot believe if someones says Pune prices will get heavily corrected especially in the upcoming areas. For already established areas where rates have gone upto more than 5000 per sq ft, there is a chance of 10-15% correction which effects to a big amount.

            Comment

            • #66

              #66

              Re : Property prices in Pimple Saudagar

              Originally posted by punebloke View Post
              ***************
              you should easily get a decent 3BHK flat in PS if you have 30L ready liquidity and are willing to provide a higher downpayment percentage.
              ***************
              Is it true? Why should it make any difference to the builder if I pay more as down payment or take loan? I mean all banks except nationalised banks disburse loans in less than a week. So for a builder, a customer paying in cash or a customer taking loan makes a weeks difference. Why should it make a major impact?

              **************
              There is no actual improvement of the economy... people who hold on to their hard earned money for the next 9-12 months would be surprised to see the gains made from patience.
              **************
              Hope this come out to be true. I have waited 18 months, won't mind 9 months additional wait. However, this could depend on possession date as well. So for e.g.my rental is 10K, then I spend 90k in 10 months hoping to get the house for at least 90K cheaper. I would rather buy a house at 90K higher price now than waiting for later. So the point is that there is a delicate balance there which needs to be watched out.
              Whatever downpayment you are going to pay, put that amount in Fixed Deposit and you will get almost all of the rent that you are going to pay from the interest of your FD.

              Comment

              • #67

                #67

                Re : Property prices in Pimple Saudagar

                Originally posted by tsongt View Post
                i would invest heavily if there is a ticker in the stock market which states "Pune real estate", unfortunately there isnt any such.

                The reason i say this is because Pune has neither seen a noticeable correction nor will see it even if the Indian real estate corrects again. And Pune has grown heavily if you look at the data on working population and their income. Unless a developing country like India falls into a heavy recession in the next 1-3 years which is most unlikely the case, i cannot believe if someones says Pune prices will get heavily corrected especially in the upcoming areas. For already established areas where rates have gone upto more than 5000 per sq ft, there is a chance of 10-15% correction which effects to a big amount.
                On the contrary, Pune RE may suffer pain evenif RE market in rest of the india will come up. Pune has grown along with other cities in India only difference being, Pune has grown majorly on the back of the IT.
                Pune RE especially has most of the customers as IT folks. Even if India doesn't go into recession in next 1-3 yrs, it is unlikely to see any salary hikes for IT ppl. Job security is definitely a cause of concern. Correction for the sake of affordability is inevitable in Pune Realty.

                Comment

                • #68

                  #68

                  Re : Property prices in Pimple Saudagar

                  Originally posted by punebloke View Post
                  ***************
                  you should easily get a decent 3BHK flat in PS if you have 30L ready liquidity and are willing to provide a higher downpayment percentage.
                  ***************
                  Is it true? Why should it make any difference to the builder if I pay more as down payment or take loan? I mean all banks except nationalised banks disburse loans in less than a week. So for a builder, a customer paying in cash or a customer taking loan makes a weeks difference. Why should it make a major impact?

                  **************
                  There is no actual improvement of the economy... people who hold on to their hard earned money for the next 9-12 months would be surprised to see the gains made from patience.
                  **************
                  Hope this come out to be true. I have waited 18 months, won't mind 9 months additional wait. However, this could depend on possession date as well. So for e.g.my rental is 10K, then I spend 90k in 10 months hoping to get the house for at least 90K cheaper. I would rather buy a house at 90K higher price now than waiting for later. So the point is that there is a delicate balance there which needs to be watched out.
                  Yuo must be planning to pay some downpayment for your propery purchase. Put that amount in FD and the interest of the FD will almost earn you the house rent you are paying.

                  Comment

                  • #69

                    #69

                    Re : Property prices in Pimple Saudagar

                    IT is the big share of income everywhere including Chennai, Bangalore, Pune or Hyd. You cannot single Pune alone, for sure.

                    compare PS or wakad with similar localities in Bangalore or Chennai which are within the range of 6-8 kms away from the core city. You cannot find a decent locality in these cities where you will get a 2BHK/1000 Sq ft apts with decent amenities for around 30L or Rs 3000 psft, and that is still available in Pune.

                    Comment

                    • #70

                      #70

                      Re : Property prices in Pimple Saudagar

                      Originally posted by tsongt View Post
                      IT is the big share of income everywhere including Chennai, Bangalore, Pune or Hyd. You cannot single Pune alone, for sure.

                      compare PS or wakad with similar localities in Bangalore or Chennai which are within the range of 6-8 kms away from the core city. You cannot find a decent locality in these cities where you will get a 2BHK/1000 Sq ft apts with decent amenities for around 30L or Rs 3000 psft, and that is still available in Pune.
                      I do not have idea about Chennai and Hyd but the infrastructure is much better in Bangalore [except traffic ] in places 6-8-10-12 kms around the city. It is already developed area. PS, in my opinion is far behind in terms of regular infrastructure. A wait till monsoon will justify my concerns about infra in PS. It is tough to find vegetable market/bank/atm in this area.

                      Rates in Bangalore has also corrected a lot in last cpl of yrs and is still counting but still If we say that Bangalore is a tad bit costlier than Pune, it is much more rewarding also in terms of compensations (pay packages) w.r.to Pune.

                      However, I feel PS and other area will come up in future (no way out) but that will take long long time (especially with significant reduction in buying power of IT folks).
                      One should have early buyer's advantage while buying in such areas. I don't see that right now in PS/Wakad etc.
                      I can not see getting multifold returns 3-5 yrs down the line by buying in relatively underdeveloped areas.

                      Of course, my personal opinion.... others may choose to differ

                      Comment

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