I have got confirmed news from one of family friend who works with one of the reputed builders (from Pune), that property market in Pune is getting worse day by day. Many people who has signed but not made agreements are cancelling the deals (due to job conditions). Plenty of new projects are at High Risk. Many wise builders stopped the launch of new projects (including Paranjpe, DSK, Kumar).
People don't have money to pay EMI. Investors are not getting good rents. They want to sell off.
All in all, by Diwali rates will be down, if not the same.

You still can buy a flat if you have secured job and enough of money in hand. Those who want to take loan (more than 10L), please don't take risk.

Sansona
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  • Nop. I am truly speaking in the context of this thread.

    Keeping your hard earned money in an FD, and not venturing into risks in this economic climate can also be considered a Greedy and Cowardly act.

    As I said it all depends what it means to any one.
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  • though it would be gross understimation of people's knowledge, to assume that people (who are browsing such sites) only park their money in FD..The internet savvy youth can network easily with others.Very well acquainted with various asset classes and knows how to diversify...Gone are the days when your neighbourhood parasite Agents could easily prod you for a ULIP/endowment policy having heavy brokerages / or other such not so good deals ...

    Originally Posted by tsongt
    Nop. I am truly speaking in the context of this thread.

    Keeping your hard earned money in an FD, and not venturing into risks in this economic climate can also be considered a Greedy and Cowardly act.

    As I said it all depends what it means to any one.
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  • Originally Posted by pradip_pune
    though it would be gross understimation of people's knowledge, to assume that people (who are browsing such sites) only park their money in FD..The internet savvy youth can network easily with others.Very well acquainted with various asset classes and knows how to diversify...Gone are the days when your neighbourhood parasite Agents could easily prod you for a ULIP/endowment policy having heavy brokerages / or other such not so good deals ...


    believe it or not but that is still the case.. many people can come on these forums but may not have will power to agree to faceless advices (even if many of them are supported with credible information/proofs)

    people still like known devil instead of unknown friends!!!
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  • to cut 3500 jobs worldwide. BOFA has already started cutting jobs. a few more announcements like these and RE should correct.
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  • Originally Posted by Vinod Gupte
    to cut 3500 jobs worldwide. BOFA has already started cutting jobs. a few more announcements like these and RE should correct.


    Freebies in Pune RE started, look at todays Sakal Property Relaters suppliment (last page) FREE REGISTRATION, FREE STAMP DUTY, NO SERVICE TAX :)
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  • Originally Posted by pawarnilesh
    Freebies in Pune RE started, look at todays Sakal Property Relaters suppliment (last page) FREE REGISTRATION, FREE STAMP DUTY, NO SERVICE TAX :)


    Means 8% reduction in overall package. Hope to see reduction in psf prices as well.
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  • Heading should be --> Pune property rates will be down after Diwali.

    If builders wont get buyers in this Diwali then definitely PROPERTY RATES WILL BE DOWN !!!!!!! :bab (22):

    Just wait and watch :bab (4):
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  • True, not just in Pune , rates will come down or at least stagnate in the medium term in most Indian cities. Interest rates may be hiked yet again in October which can lead to further pressure on RE firms. They can not hold units indefinitely.
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  • Pune RE is a mix of many things which prominently include black money, political play, the Mumbai investors, and the IT public.

    And the builders have done their homework very well. Very less chance of a real RE correction in Pune. Its a Thin RE game.

    If a prospective RE buyer out here thinks he/she belongs to a middleclass who has emotions, who fear, and who think can affected economically by a Global downturn, then he/she should play as per their greed. One can afford to be cowardly, but could not behave stupid in these times.

    Greed is good.
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  • Originally Posted by pradip_pune
    though it would be gross understimation of people's knowledge, to assume that people (who are browsing such sites) only park their money in FD..The internet savvy youth can network easily with others.Very well acquainted with various asset classes and knows how to diversify...Gone are the days when your neighbourhood parasite Agents could easily prod you for a ULIP/endowment policy having heavy brokerages / or other such not so good deals ...


    Hi Pradip,

    let me give you a hypothetical example.

    I am 37 yrs old and have 35 lacs of savings from the ~11 years of my career. I have put 80% of that in FDs and see it grow by around 9% per year. I have put most of them in my wife's account so that I can save from the tax brackets. Assuming my wife is not running away from me soon.

    20% I have in MF.

    Is there anything wrong in this portfolio? Do you suggest that I should invest in RE or should I have a deeper Equity investment?

    Since I am a cowardly guy, I always think of something happening to my IT job when something bad happens in US and UK markets. But i think I may be greedy by keeping my money in FD and making it grow by 9% in this volatile stick market. I am happy though.

    TsongT
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  • Originally Posted by tsongt
    Pune RE is a mix of many things which prominently include black money, political play, the Mumbai investors, and the IT public.

    And the builders have done their homework very well. Very less chance of a real RE correction in Pune. Its a Thin RE game.

    If a prospective RE buyer out here thinks he/she belongs to a middleclass who has emotions, who fear, and who think can affected economically by a Global downturn, then he/she should play as per their greed. One can afford to be cowardly, but could not behave stupid in these times.

    Greed is good.


    i agree... builders have done their homework surely..

    it is time for buyers to do the homework and it is very simple.. they need to read only one book... their bank passbook... :)

    if they can clear the passbook test, then they can attempt the cheque book test... but till that time, just don't appear for the exam. the good part is, you can take the exam anytime you want... so work on the passbook first... :D

    On another note, in an article on Rediff they said, a prominent builder (didnt give names) said builders will increase the freebees but will not reduce the PSF rates because they know it certainly.. once they reduce it, they will never be able to increase them again...

    so better option is wait and watch.. save wisely and be ready when opportunity comes!
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  • Originally Posted by tsongt
    Hi Pradip,

    let me give you a hypothetical example.

    I am 37 yrs old and have 35 lacs of savings from the ~11 years of my career. I have put 80% of that in FDs and see it grow by around 9% per year. I have put most of them in my wife's account so that I can save from the tax brackets. Assuming my wife is not running away from me soon.

    20% I have in MF.

    Is there anything wrong in this portfolio? Do you suggest that I should invest in RE or should I have a deeper Equity investment?

    Since I am a cowardly guy, I always think of something happening to my IT job when something bad happens in US and UK markets. But i think I may be greedy by keeping my money in FD and making it grow by 9% in this volatile stick market. I am happy though.

    TsongT


    This is a conservative approach to investing money (cowardly is too strong a word for such), and nothing wrong with it.

    Everything turns down to one's appetite for risk, and I agree, people who do not do trading as a living, should be ideally conservative to moderate. Also, as you start to move into early 40s, going from moderate to conservative is a good idea. I consider myself to have moderate approach and try to diverse my portfolio across relatively safe assets. Currently trying to diversify as below:

    15% stocks, 10% Equity MF, 5% Debt MF, 10% GOLD, 10% PPF, 40% FD and 10% Liquid in hand.
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  • If the definition of RE is limited to a 2/3 BHK flat and that in pune given the irrational price , and is just for investment and taking the deal just on rational financial analysis . I think RE is strict No No.

    11 years of service, 35 lakhs savings after meeting all other personal obligations in a decent way then it's GOOD amount and will certainly vary from person to person ....this accumulation would be gradual and not overnight ... I dont think I need to spent time on figuring out the best hypothetical portfolio for a unknown Financial entity for a hypothetical amount is simply not worth the time. and Financial advising is not my profession.

    Yes if you ask me If I have that much FD amount all of a sudden tonight, Given my background, I would certainly invest 30% amount in land purchase in my home town. 40% in Stock/Mutual fund/Gold in a staggered manner till Q2-3 2012, 20% in FD or other secure asset class... and the rest 10% in PF and some floating amount. Yes you would get better suggestion from your financial advisor. Make sure there is no conflict of interest....Every body is sold out...doctors / Bank managers ... After all they have to survive in this mess...

    If the better sense prevail in the pune agents and builders. Yes I will opt to buy a 3 BHK in a decent locality . I am apalled when the sales agent refuse to share the documents, agreement details prior to depositing the booking amount and adamant and arrogant with their irrational price. The people who have bought the houses during this boom tenure 2004-2008 and so on... have set a wrong precedence leading to this mess. If they had been stubborn and made sure the builder sharing all the relevant document details prior to depositing the amount...the sales agent would not have been so arrogant.... The situation would have been otherwise....Unfortunately this wont change so easily... we have to live with it...

    Originally Posted by tsongt
    Hi Pradip,

    let me give you a hypothetical example.

    I am 37 yrs old and have 35 lacs of savings from the ~11 years of my career. I have put 80% of that in FDs and see it grow by around 9% per year. I have put most of them in my wife's account so that I can save from the tax brackets. Assuming my wife is not running away from me soon.

    20% I have in MF.

    Is there anything wrong in this portfolio? Do you suggest that I should invest in RE or should I have a deeper Equity investment?

    Since I am a cowardly guy, I always think of something happening to my IT job when something bad happens in US and UK markets. But i think I may be greedy by keeping my money in FD and making it grow by 9% in this volatile stick market. I am happy though.

    TsongT
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  • So called "Buy your dream house at double discount this Diwali"

    Buy your dream house at double discount this Diwali | ETNow.tv
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  • Originally Posted by tsongt
    Hi Pradip,

    let me give you a hypothetical example.

    I am 37 yrs old and have 35 lacs of savings from the ~11 years of my career. I have put 80% of that in FDs and see it grow by around 9% per year. I have put most of them in my wife's account so that I can save from the tax brackets. Assuming my wife is not running away from me soon.

    20% I have in MF.

    Is there anything wrong in this portfolio? Do you suggest that I should invest in RE or should I have a deeper Equity investment?

    Since I am a cowardly guy, I always think of something happening to my IT job when something bad happens in US and UK markets. But i think I may be greedy by keeping my money in FD and making it grow by 9% in this volatile stick market. I am happy though.

    TsongT


    I think, investing 80% of your money in FD and 20% in Mutual fund is the best option in today's dynamic market conditions. See, even banks are not sure to grow their money (or make profit) by 8-9% every year, though they are giving you 9.5%(soon it will be 10%) return on FD. I don't know, whether there will be any investor in the world today who can guarantee to get 10% or more return in any of available investment options (like gold, real estate, stocks etc.) in current market conditions (I think in this decade 2011-2020).

    The best way to invest money is to create one FD account for the name of any of your non earning family member (so that you can save 30% tax). I know people, who happen to invest in Real estate despite knowing the fact that their investment of 50L today will give them only 40L (20% loss) after 3-4 years, but the only reason they are investing that they have surplus money to handle (that too black money) and they will still be satisfied with 20% loss, because if they don't invest now, either their sons and daughters will spend those money on luxury things or some relatives may come to borrow that amount.

    12L in FD can give you around 10,000 Rs/Month tax free return, and that may be sufficient to get 2BHK on rent in outskirts of Pune. Or you can buy the same flat by giving 12L as initial amount and remaining 30-35L as loan, which you will end up paying more than 1 Cr Rs (and forget the loss of return which you would have made on your 12L initial amount over the years). Choice is yours, you can decide, what you want.
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