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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  • Ever growing population need place to live ...

    ... and that to in city and metros where there are source of income. There could be fall in property rate in short to medium term but in long term, it would just appreciate. So if you are looking for the house for your own, then go ahead but if you are an investor, may be, you can wait and watch the way the short term trend is.
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  • While i continue my RE search in Pune, one thing is emerging very clear. The builders, media, and folks who are already invested in are creating a bigger RE bubble which looks more dangerous than the impact of subprime crisis - especially in this tough environments of no increments and salary cuts. The RE speculations looks more dangerous than the stock market.
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  • Originally Posted by tsongt
    While i continue my RE search in Pune, one thing is emerging very clear. The builders, media, and folks who are already invested in are creating a bigger RE bubble which looks more dangerous than the impact of subprime crisis - especially in this tough environments of no increments and salary cuts. The RE speculations looks more dangerous than the stock market.

    Well said. I totally agree with this. However, we should learn one thing from subprime crisis:- Never overstretch ourselves to buy RE from builders. At the end of the day, buyer works like donkey paying heavy EMIs while builder makes merry. There are better things to do in life than just pay EMIs which are absolutely unreasonable.

    Cracks are very much visible in Pune RE. Very soon you will see it collapse. I also have information that a big investor in Megapolis township Hinjewadi has pulled out.
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  • Just sharing some real facts which have opened my eyes more widely to see the bubble thats going on. Might help both the prospective buyers as well has the folks already invested.

    i saw the names and rates of bookings for a property in PS area today morning. Since i negotiated with the builder very hard, he showed me all details of bookings that happend since May1st. Infact he was educating me that the Buyers market is over, and wanted to show the proof for the steady increase. I supported his claims, so he became more enthusiastic.

    I could not believe my eyes, folks have booked flats with a difference of Rs452 psf between May-1st and Jun-21st. Yes, note that number 452 - per sq feet which is the difference. That means for a simple 2BHK flat one had paid at least 5lacs more since May-1st. Amazing isn't it ? !!

    Now wait for more amazing facts - Since I supported his claim of RE bull run happening again, the salesman showed me the lists for the month of April as well, there was one booking with a difference of 575 psf with the deal compared to June-21st. And if i calculate correctly, this amounts to more than 22% appreciation since April. Yes, April 09 !!!

    Driving to office, i was telling myself - Parents should spend more time with kids on education, yes please note that this is simple common sense 'education'.
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  • Useful interview of the MD of Tata Housing.

    Visit to watch the video here:-

    ]http://www.in.com/active18/watchnow/watchvideo_mc.php?autono=402676
    Another fiscal stimulus package unlikely:-

    ]http://www.moneycontrol.com/news_html_files/news_attachment/2009/Pre%20Budget%202009-10.pdf
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  • ‘Affordable housing is a misnomer’.

    ]http://timesofindia.indiatimes.com/Business/India-Business/India-Business/Affordable-housing-is-a-misnomer/articleshow/4694225.cms
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  • I came to know that Paranjape builder is out to UK. I don't know whether he requires FD from people here or wants the already cash strapped NRIs to invest in RE at inflated prices! But seeing this it is amply clear that locals are not buying RE.:)
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  • Paranjape and other Pune builders in UK property exhibition

    Originally Posted by realacres
    I came to know that Paranjape builder is out to UK. I don't know whether he requires FD from people here or wants the already cash strapped NRIs to invest in RE at inflated prices! But seeing this it is amply clear that locals are not buying RE.:)


    They are trying to lure UK NRI's into buying their properties as part of an exhibition organised by HDFC.

    ]http://www.ethnicnow.com/channels/other/press-release/22/2228/hdfc-s-india-homes-fair.html

    There are other Pune builders that are part of the exhibition. Looks like they are looking to generate revenue by selling apartments to NRI's in UK.

    There are other Pune builders that are part of the exhibition. Looks like they are looking to generate revenue by selling apartments to NRI's in UK.
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  • Monsoon!

    Friends monsoons have taken a HIT.

    Thats bad for the farmers. Last yr bumper crop, lesser price.
    this yr no crop? If there is shortage middleman r the gainers

    It is being predicted that agri at 19% of GDP, a bad monsoon will reduce GDP by 2%. Add to that the prevailing bad sentiments and the ill-will by these bldrs to raise prices on a fig of imagination. Its going to be bad going fwd. The figures of crop sowing r drastically reduced all over the country. If it doesnt rain by second week of July, There will be food shortages due to drought.

    Food will become more important than anything else
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  • I feel if you want to stay in a house and if you can afford it, buy it. you can never time the market.
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  • Originally Posted by tsongt
    Just sharing some real facts which have opened my eyes more widely to see the bubble thats going on. Might help both the prospective buyers as well has the folks already invested.

    i saw the names and rates of bookings for a property in PS area today morning. Since i negotiated with the builder very hard, he showed me all details of bookings that happend since May1st. Infact he was educating me that the Buyers market is over, and wanted to show the proof for the steady increase. I supported his claims, so he became more enthusiastic.

    I could not believe my eyes, folks have booked flats with a difference of Rs452 psf between May-1st and Jun-21st. Yes, note that number 452 - per sq feet which is the difference. That means for a simple 2BHK flat one had paid at least 5lacs more since May-1st. Amazing isn't it ? !!

    Now wait for more amazing facts - Since I supported his claim of RE bull run happening again, the salesman showed me the lists for the month of April as well, there was one booking with a difference of 575 psf with the deal compared to June-21st. And if i calculate correctly, this amounts to more than 22% appreciation since April. Yes, April 09 !!!

    Driving to office, i was telling myself - Parents should spend more time with kids on education, yes please note that this is simple common sense 'education'.

    What's the name of the project?
    Btw, I totally agree with you Sansei. This will mean that people will pay more & save less.
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  • Current realty scenario.

    Read page no. 41-47

    http://profit.outlookindia.com/magazine/26062009/home.aspx
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  • More suckers being taken to the cleaners ...

    Originally Posted by tsongt
    Just sharing some real facts which have opened my eyes more widely to see the bubble thats going on. Might help both the prospective buyers as well has the folks already invested.

    i saw the names and rates of bookings for a property in PS area today morning. Since i negotiated with the builder very hard, he showed me all details of bookings that happend since May1st. Infact he was educating me that the Buyers market is over, and wanted to show the proof for the steady increase. I supported his claims, so he became more enthusiastic.

    I could not believe my eyes, folks have booked flats with a difference of Rs452 psf between May-1st and Jun-21st. Yes, note that number 452 - per sq feet which is the difference. That means for a simple 2BHK flat one had paid at least 5lacs more since May-1st. Amazing isn't it ? !!

    Now wait for more amazing facts - Since I supported his claim of RE bull run happening again, the salesman showed me the lists for the month of April as well, there was one booking with a difference of 575 psf with the deal compared to June-21st. And if i calculate correctly, this amounts to more than 22% appreciation since April. Yes, April 09 !!!

    Driving to office, i was telling myself - Parents should spend more time with kids on education, yes please note that this is simple common sense 'education'.



    Folks,

    The story here only points out to a few things:

    1. Most of the youngsters whose working life is restricted to the post 2003 period have absolutely no idea what a bad period will look or feel like. So they have no sense of caution

    2. They treat RE as some people treat vegetables. They take on humongous loans with the mistaken impression that life is one long happy period of multile job offers always at 30% higher salary

    3. They desperately long to get back to the speculative period pre-2009 when they blew up money before it came into their account (how many people do you know who started depending on their credit cards before the end of the month because they ran out of cash? Basically living paycheck to paycheck).

    So, the builders are merely palming off to these suckers at whatever price they can. You can't blame them for it because they have huge debt burden on them and eack tick of the clock literally means many rupees paid to lenders.

    In conclusion, so long as there is this deperate urge to plunge into buying RE after a 15-20% drop calling a false bottom with undue haste, the real bottom is not yet in and these early buyers will see pain by paying unnecessarily to the builders and buyers.

    As I have said before, if you bought a flat 5 lakhs more than its previous price, you are in the hole to the tune of some 14.30 lakhs. 5 lakhs to the builder, 5 lakhs to the banker. And since this money is taxed 30% in your hands, you need to earn 14.30 lakhs gross so as to pay 10 lakh extra over the years to the 2 shylocks.

    And if the base price is 25 lakhs and you paid 5 lakhs more, and the yearly ROI over the next few years (including the dip and the subsequent rise) is around 8%, then you have to wait at least another 6 years before the price comes up to cover the extra money you put up. If you include the lost opportunity cost of investing this money in any alternate investment at say 10% pa, then the wait for you to recover your losses may even go upto 10 years from now.

    And all this 10 years you will be suffering the pain of large EMIs whether you have an income or not.

    Just think about all these things before your decision. Its easy for some people to say, buy, buy, buy. But in the end, it will be you who has to endure the pain for many long years!!!

    cheers
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  • As per ET article RE prices would fall further by 8-10%. The research included Pune.

    ]http://economictimes.indiatimes.com/Markets/Real-Estate/Residential-property-prices-to-fall-8-10-more-in-2009/articleshow/4697896.cms
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