Hello All:
I plan to buy a property in Aundh. Does any one know the prevailing rates for this area in the current market scenerio. I am getting unreliable information from a number of sources. I have read some real good posts on this site....please provide your valuable guidance

Thanks -
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  • Originally Posted by logix
    Indian RE is due for correction, saying everything sold out doesn't actually sell, Lavasa are hit very bad, investors listed property in open market through brokers & after 8 months even they are looking for an end buyer. They still keep saying though that all flats near lake sold out!! - Yes but to investors mostly, city will not be inhabited before 2015 or so, & thats a huge time frame for a 2006 investor

    Investment rule - buy when under priced, sell when overpriced!

    Right now RE in India is overpriced for Indians, i have NRI friends who find it hard to afford a 1Cr flat in Pune & looking at quality & comparing to UK standards they get turned off.

    Next question - 1.25Cr property fetching 25K per month rent in Pune - either rent is less or property is overpriced - this is based on experience of a colleague from UK, as rent is expected to be 7-8% annual of property value



    Yes many people fail to understand, price of any thing in this world is what is paid by the buyer in the last transaction. Its not what seller quotes. If people cannot afford, who will buy? People argue that there is black money that buys it, but question comes

    * How many % of buyers have black money.
    * Even black money is loved and people like to see it grow and would not invest where they dont see growth.

    a Typical(TCS/Infy) NRI saves 12L /yr, decent salary NRI, single income, saves 20L/yr and double income NRI saves 50L/yr.
    An NRI who staying for 10 yrs outside, usually does not come back and is not interested in buying propery in India, they buy house where they live.

    1+ Cr properties are unaffordable even to NRI for sure.

    I also find it surprising many times, when rents are cheap why are people impatient to buy?
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  • As far as my understanding goes only 10-20% willing to stay in US/UK or other countries and rest of the 70-80% ppl can not stay due to long term visa issues or GC issues. So all those who have stayed onsite for atleast 2-3 yrs saved sufficient amt of money to invest in flat and thats where the purchases are happening.

    I am working in a middle level IT co. and around 300-400 ppl at onsite and i think if 200 of those goes to offshore due to cost cutting or for good 150 ppl will buy the flats without thinking more because of their first home.

    So think about this..

    I have seen many ppl who went offshore bought flats in Pune !

    This is another problem for increasing the real estate rates...
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  • Originally Posted by RAJESHP


    * Even black money is loved and people like to see it grow and would not invest where they dont see growth.



    How do you know Even black money is loved????? How much do you have;););)

    Jokes apart, could you please let us know a single investment option where you will see growth & that is safe also ( I mean you can hid that, as this is BLACK Money off course):D:D:D

    Rajesh, I think you are so naive to comment on Black money....I can judge you might be in your early 20s, Right???
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  • good discussion, although we should not get personal. Everyone has their share of opinion - right or wrong - only time can tell. I agree to RahulD that there is a large population base in each segment. And even if rents are low compared to owning cost, one might still buy a property to get that 'ownership' feeling. Black money - I wish I had some, I would have bought something long time back and not bothered to come on this forum to debate and argue and hope - that the prices would come down. But alas!
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  • Originally Posted by jhaashish
    Dear Dhinchek,

    Hold onto your hard earned money for now. Prices in Pune haven't really come down at all. Wait for another year and buy flats at 1400 - 1800psf.

    Regards,
    Ashish


    From this old thread from 2009 Q1


    reality is pole apart though Aundh is no more so much darling of prop hunters :)

    PS/Wakad which were scoffed at in 2009 is new sought after areas.
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  • Originally Posted by compuwalah
    From this old thread from 2009 Q1


    reality is pole apart though Aundh is no more so much darling of prop hunters :)

    PS/Wakad which was scoffed at in 2009 is new sought after areas.


    Quite an interesting "bump" there compuwallah.

    From the first page, I can see that the avg per sq ft price in May 2009 is Rs 4000 per sq. feet in Aundh.

    Today from magic bricks I can see avg sq feet rate is Rs 7300 (Please note this is magic bricks rate, which is normally atleast some % over the market rate, leaving some room for negotiation to the seller, also the sq. feet rate is on actual sq. feet area and not built up)

    So lets check the average appreciation in other asset classes in comparison with Aundh RE (which I think we all agree is pretty much 'prime' now in Pune). Lets take 4000 as the base, and how much it will be worth today.

    Time period : 1 May 2009 -27 May 2013

    1. Real Estate rate per sq. feet in Aundh :
    4000 -> 7300, absolute appreciation of 82.5 %

    2. HDFC top 200 fund (the mutual fund with highest AUM in India) :
    4000 - > 7828, absolute appreciation of 95.7 %

    3. Bank Fixed Deposit Pre tax :
    4000 -> 5909, (considering interest rate of 10.25% for a 5 year FD in 2009)

    4. Gold :
    4000 -> 7288 ( Gold price has gone up from 14,503 to 26,428 today, 82% returns)

    I think we can safely conclude that there were other asset classes (apart from FD, which ofcourse is sub maximal use of your money) which could have helped you keep pace with the RE boom in 2009-2013.
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  • From this old thread from 2009

    Originally Posted by asliarun

    Are you serious? Please explain what "bottom" has Pune found? Compared to 2007 prices, Pune RE prices have increased by 3%. Since when has a price increase become a "bottom"?
    Reference: ]http://www.nhb.org.in/Residex/Data&Graphs.php
    (Found this link thanks to avickey's earlier post )
    These are statistics by the RBI by the way, not some random RE analysis company.

    Seems like NHB has stppoed tracking in Q4 2013 . Think they have given up :).

    Originally Posted by asliarun

    What is so special about 2004-2005? Are you saying that prices in 2004 were drastically lower than say 2000 or 1997 or 1994? Nothing. RE prices UNTIL 2004 were increasing gradually and linearly. After that, the RE bubble took over and prices started increasing exponentially and with no logic (not backed up by any exponential increase in real infrastructure)
    .

    Ok. That's a topic discuss till cattle come home :D

    Originally Posted by asliarun

    Wow, what a sweeping statement. Please tell me one thing. If Pune prices increased due to fast growth industries like IT, then Bangalore and Hyderabad are in even better positions. However, RE prices in Bangalore and Hyderabad have DECREASED by 42% and 35% respectively since 2007. What makes Pune so special?
    .

    Bas pata chalte hee aapko khabar kar denge mausi (Jai in Sholay).

    Originally Posted by asliarun

    Quite frankly, I am surprised at YOUR height of optimism.


    asli arun. after 3 years you must be surprised at your self.
    Following gazal lines for same

    kya koi nayi baat nazar aati hai hamme
    aaina (mirror) hame, dekh ke hairaan (surprised) sa kyon hai
    (from movie Gaman)

    asli arun. after 3 years you must be surprised at your self.
    Following gazal lines for same

    kya koi nayi baat nazar aati hai hamme
    aaina (mirror) hame, dekh ke hairaan (surprised) sa kyon hai
    (from movie Gaman)

    asli arun. after 3 years you must be surprised at your self.
    Following gazal lines for same

    kya koi nayi baat nazar aati hai hamme
    aaina (mirror) hame, dekh ke hairaan (surprised) sa kyon hai
    (from movie Gaman)

    asli arun. after 3 years you must be surprised at your self.
    Following gazal lines for same

    kya koi nayi baat nazar aati hai hamme
    aaina (mirror) hame, dekh ke hairaan (surprised) sa kyon hai
    (from movie Gaman)
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    A few members are using “Hindi’ and ‘Hinglish’ on our forums. Please limit their use as we would like to maintain a consistent language across our board.
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  • Originally Posted by compuwalah
    From this old thread from 2009
    Seems like NHB has stppoed tracking in Q4 2013 . Think they have given up :).


    speak of the devil and.....

    New Delhi, May 27:
    Residential property prices witnessed an upward trend in the January-March 2013 quarter in most of the 20 cities covered under the National Housing Bank RESIDEX.
    The trend was noticeable on a year-on-year basis and also to a large extent on a sequential basis.
    From the January-March 2013 quarter, the NHB RESIDEX has been expanded to include six new cities – Chandigarh, Coimbatore, Dehradun, Meerut, Nagpur and Raipur – taking the overall count to 26.
    The NHB RESIDEX has been tracking the movement in prices of residential properties on a quarterly basis since 2007. Sequentially, residential property prices have been shown a rising trend in January-March 2013 quarter in 12 out of 20 cities already being covered.
    The highest increase was seen in Jaipur (28.74 per cent) followed by Bhubaneswar (14.54 per cent), Pune (7.81 per cent), Bhopal (6.49 per cent), Delhi (3.59 per cent), Bangalore (2.83 per cent), Mumbai (2.31 per cent) and Kochi (2.30 per cent) besides others, according to an NHB release.

    ===============================================
    ps: NHB hasn't stopped tracking prices...just that they are so slow that by the time the data is published it is too old to evoke any interest.
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  • Originally Posted by badanalyst
    Quite an interesting "bump" there compuwallah.

    From the first page, I can see that the avg per sq ft price in May 2009 is Rs 4000 per sq. feet in Aundh.

    Today from magic bricks I can see avg sq feet rate is Rs 7300 (Please note this is magic bricks rate, which is normally atleast some % over the market rate, leaving some room for negotiation to the seller, also the sq. feet rate is on actual sq. feet area and not built up)

    So lets check the average appreciation in other asset classes in comparison with Aundh RE (which I think we all agree is pretty much 'prime' now in Pune). Lets take 4000 as the base, and how much it will be worth today.

    Time period : 1 May 2009 -27 May 2013

    1. Real Estate rate per sq. feet in Aundh :
    4000 -> 7300, absolute appreciation of 82.5 %

    2. HDFC top 200 fund (the mutual fund with highest AUM in India) :
    4000 - > 7828, absolute appreciation of 95.7 %

    3. Bank Fixed Deposit Pre tax :
    4000 -> 5909, (considering interest rate of 10.25% for a 5 year FD in 2009)

    4. Gold :
    4000 -> 7288 ( Gold price has gone up from 14,503 to 26,428 today, 82% returns)

    I think we can safely conclude that there were other asset classes (apart from FD, which ofcourse is sub maximal use of your money) which could have helped you keep pace with the RE boom in 2009-2013.


    One important point to consider is that fact that how many people (as a percentage) would be able to pool in a big amount of money (equivalent to a property purchase) and invest in any of these other asset classes?

    SIP route for the other asset classes are quite popular..but would bring down the overall returns..

    RE purchase has no SIP funda..It's a one shot investment...so assuming the timing is right on a person's RE purchase..the returns would be far superior..

    The other aspect about the RE purchase is the leverage aspect. As long as there is sensible leverage..the returns are pretty darn good..
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  • Originally Posted by AnkitS
    One important point to consider is that fact that how many people (as a percentage) would be able to pool in a big amount of money (equivalent to a property purchase) and invest in any of these other asset classes?

    SIP route for the other asset classes are quite popular..but would bring down the overall returns..

    RE purchase has no SIP funda..It's a one shot investment...so assuming the timing is right on a person's RE purchase..the returns would be far superior..

    The other aspect about the RE purchase is the leverage aspect. As long as there is sensible leverage..the returns are pretty darn good..


    But its a double edged sword as well. You gain big on RE price rise but may loose equally big on drop. However this should worry investors more. The end user is not so much concerned till he has worked out well his finances, streched himself a little an dable to pay timely EMI, everythign is ok. The RE price rise for him is just icing on the cake.

    But said that RE is a field which has support from Govt and politicos, so chances of it going down is far less than other asset classes. So the risks are reduced by large factor.
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  • Aundh 4000 was a big steal. Even then we were cursing the rates saying "its not worth 2000 psft" and were day dreaming of a crash landing prices to 1500 psft
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  • The real estate story is same across pune +/- 20%. but as far as stocks and mutual funds are concerned less than 10% have performed. The high probability is you will get into wrong pick.

    Another point that you fail to understand is - if I take 30 Lakh home loan at 10% and invest in property which appreciates at 15%. Straight away - I am earning 5% on someone else's money.

    Originally Posted by badanalyst
    Quite an interesting "bump" there compuwallah.

    From the first page, I can see that the avg per sq ft price in May 2009 is Rs 4000 per sq. feet in Aundh.

    Today from magic bricks I can see avg sq feet rate is Rs 7300 (Please note this is magic bricks rate, which is normally atleast some % over the market rate, leaving some room for negotiation to the seller, also the sq. feet rate is on actual sq. feet area and not built up)

    So lets check the average appreciation in other asset classes in comparison with Aundh RE (which I think we all agree is pretty much 'prime' now in Pune). Lets take 4000 as the base, and how much it will be worth today.

    Time period : 1 May 2009 -27 May 2013

    1. Real Estate rate per sq. feet in Aundh :
    4000 -> 7300, absolute appreciation of 82.5 %

    2. HDFC top 200 fund (the mutual fund with highest AUM in India) :
    4000 - > 7828, absolute appreciation of 95.7 %

    3. Bank Fixed Deposit Pre tax :
    4000 -> 5909, (considering interest rate of 10.25% for a 5 year FD in 2009)

    4. Gold :
    4000 -> 7288 ( Gold price has gone up from 14,503 to 26,428 today, 82% returns)

    I think we can safely conclude that there were other asset classes (apart from FD, which ofcourse is sub maximal use of your money) which could have helped you keep pace with the RE boom in 2009-2013.
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  • Originally Posted by tushart
    The real estate story is same across pune +/- 20%. but as far as stocks and mutual funds are concerned less than 10% have performed. The high probability is you will get into wrong pick.

    Another point that you fail to understand is - if I take 30 Lakh home loan at 10% and invest in property which appreciates at 15%. Straight away - I am earning 5% on someone else's money.



    well summed up tushart. You cannot go to bank and say, hey give me 35 lakhs as I want to open a FD :) . On the other hand lets assume you had 35L to start with , if you take into account the income tax you would pay (assumign yoiu are employed and already above tax brackets), the real return from the FD is less.

    To sum up having RE is hitting two birds with single stone. Get a place to stay (or get rental income) and at the same time enjoy appreciation on leveraged asset (its not your money you are betting anyway).
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  • Originally Posted by AnkitS
    One important point to consider is that fact that how many people (as a percentage) would be able to pool in a big amount of money (equivalent to a property purchase) and invest in any of these other asset classes?

    SIP route for the other asset classes are quite popular..but would bring down the overall returns..

    RE purchase has no SIP funda..It's a one shot investment...so assuming the timing is right on a person's RE purchase..the returns would be far superior..

    The other aspect about the RE purchase is the leverage aspect. As long as there is sensible leverage..the returns are pretty darn good..


    Interesting point. So lets take a scenario of a common home buyer, using 20% as downpayment and the remaining as a home loan.

    So in 2009, considering a rate of Rs 4000 sq.ft, for a 1000 sq feet flat, the basic cost would be Rs 40 Lakh. Adding 10% to agreement cost, taxes, parking etc, the total cost of the flat would be Rs 44 lakh. Lets assume the common man has Rs 10 lakh (or 25% cash ) in hand for downpament, and the remaining on home loan at 10% giving an approximate EMI of Rs 34,000 for 20 years.

    Disclaimer : I realize there are huge over simplifications here, but this is just back of the paper calculations. You're free to edit this and correct me.

    So, lets take this amount of money and see what we're left with if this money was invested in HDFC top 200.

    May 1, 2009 -> May 1, 2013
    Principal Rs 10 lakh : Rs 19.5 Lakh
    SIP of Rs 36,000 monthly :
    Invested amount : Rs 17,64,000
    Value at current price (May 1, 2013) : Rs 20,06,346

    Total Equity in hand ~ Rs 40 lakh rupees

    So lets say this person wanted to buy the same flat today, what would be its value ?
    1000 sq. ft flat at Rs 7300 / sq ft : Rs 73 lakh. Adding 10% for agreement cost, taxes, parking etc. Cost of flat ~ Rs 81 lakh.

    If this person now wants to buy this flat, he will have :
    1. Approximiately 50% of the cash on hand for downpayment (Rs 40 lakh)
    2. A home loan of Rs 41 lakh, which though will be higher than the loan he would have taken in 2009. However, we have not considered that a loan of Rs 40 lakh today is worth less than a loan of Rs 36 lakh in 2009, considering inflation.
    3. A flat that will be 4 years newer.

    Exclusions :
    I have not considered the cost of renting an apartment in the interim. However, I have also not calculated the real equity of the flat bought in 2009, on loan. Remember, you have to pay 10% interest on your home loan every year, which is eating away at the appreciation you get from buying the flat. If someone is able to bring this calculation to the table, we'll get more accuracy to this comparison. What is the real value of a flat bought on loan in 2009, considering the interest you've paid in the first 5 years on your home loan is "wasted expenditure". What about depreciation of a 5 year old building as compared to a new one ? I am biased to this, but I think the two costs (cost of renting vs cost of ownership using a home loan) will be somewhat similar.

    This is very rough calculations, however, and I'm sure you can point out a lot of holes in this. But my point is clear, there is no such thing as "Missing the bus" in Real estate, if you're clever with your money. You can afford a house even in the future, by leveraging your self less, or paying a higher % as downpayment, if you can be smart with your finances.
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