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Builders & Real Estate Bulls Theory Proved Wrong

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Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
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  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    U have to spoil it didnt you???

    I was nicely getting brain washed by all the -ve posts and "facts" about Indian RE but then you had to post this drivel and wake me up!!!

    Cant you just let the bears do their job!!

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      My actual experience in looking for a Premium / High End Property (for self-use) in the last couple of years has been rather different. I have looked at projects in areas like Prabhat rd, Model Colony, Bhosale Ngr, etc. & found that - (1) Yes, builders initially quote prices which are 30-40% higher than 2012. (2) One can negotiate a fair bit & the negotiations are in the range of 1 to 2 Cr. (3) The final price (compared to 2012 price) is up by max 10-15%. This is even when 100% payment is by cheque. I am sure people with high cash component are in a stronger position to negotiate.
      My conclusion regards High-End properties for last couple of years is (Purely on my experience) - There is no "crash" in prices like lots of people talk about. There is a modest 10-15% appreciation in prices. There is no "boom" with appreciation of 30-40% like the article talks about.
      AJ

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        @Baruch - "Pune beats Mumbai, sees highest rise in property prices - Rediff.com Business"

        It is interesting how these things are reported. In the boom years, it was almost Qtr on Qtr price rises that were reported. Now it is 2011-2014.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by rambler View Post
          I agree with your figure of 30000 expense but don't understand why people with 70000-80000 struggle to make both the ends meet ???
          Such figures don't vary even in Banglore or pune or Mumbai [here rent may be high].
          By the way I remember you posting similar info about your business last year when you forecast the doom of such businesses.Am I right??
          Rambler,

          Rs 30,000 expense for 2 people is fine and we can definitely manage with 70K or 80K income. But a family of 2 adults and 2 kids definitely could not save much with 70k or 80k, end of the day it's not what you earn, it is what you save matters.

          Yes, I did post a similar info about my business last year. It's been nearly 3 years we have raised prices for our service and the expenses have improved by nearly 80%. We are now in the process of setting up a team of online freelancers where they will be working from home and on project basis. This way we are cutting down on office rent and salary.

          The current situation is even a hot trend like mobile app development is so commoditized that it is really hard make the kind of profit we use to make earlier.

          Now I'm venturing into livestock farming

          Thanks,
          Sridhar

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            My landlord after trying to sell off his flat for more than a year is now frustrated and now wants to jack up the rentals by 20% (This after 12% the previous year).
            This is in the midst of IT belt in Bangalore, Sarjapur Road.
            Same was the case with another flat in my apt. Wanted to sale, couldn't find a buyer, putting it back on rent.
            The only problem for me is pressure from wife will go up significantly if we have to shift to another place. (She believes if we move into our own 3 BHK then it will be a dream come true for her and she will be very happy in life )
            I have a house in Pune (rent > EMI) but consciously delaying buying another one as I don't see much value in it. I could afford buying a 80-90L house but I like the fact that I am living debt-free and can take decisions regarding job, travel etc without any sword hanging over my head.

            And BTW, this is the appreciation in my apt over the last 5 years.
            2 BHK: 50L (2009) -> 65-70L (2014)
            3 BHK: 75L (2009) -> 90-95L (2014)

            Facts.
            Last edited by FenceSitter; August 28 2014, 10:21 AM.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              And BTW, my wife who was very keen on buying a flat in the same apartment till 2 years back, now feels there is no point in buying here and we should buy it in a new apartment scheme instead..

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by aamehra View Post
                U have to spoil it didnt you???

                I was nicely getting brain washed by all the -ve posts and "facts" about Indian RE but then you had to post this drivel and wake me up!!!

                Cant you just let the bears do their job!!
                LOL . ajoshi565 further spoils the party by quoting more ground facts.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by FenceSitter View Post
                  My landlord after trying to sell off his flat for more than a year is now frustrated and now wants to jack up the rentals by 20% (This after 12% the previous year).
                  This is in the midst of IT belt in Bangalore, Sarjapur Road.
                  Same was the case with another flat in my apt. Wanted to sale, couldn't find a buyer, putting it back on rent.
                  The only problem for me is pressure from wife will go up significantly if we have to shift to another place. (She believes if we move into our own 3 BHK then it will be a dream come true for her and she will be very happy in life )
                  I have a house in Pune (rent > EMI) but consciously delaying buying another one as I don't see much value in it. I could afford buying a 80-90L house but I like the fact that I am living debt-free and can take decisions regarding job, travel etc without any sword hanging over my head.

                  And BTW, this is the appreciation in my apt over the last 5 years.
                  2 BHK: 50L (2009) -> 65-70L (2014)
                  3 BHK: 75L (2009) -> 90-95L (2014)

                  Facts.
                  Right decision FenceSitter. Why after all people enter into RE ? For peace of mind. But if RE itself gonna tie you inti bindings (of jobs etc due to EMI worries), better not to enter into it. Suhc anxiety better be dealt with once with first purchase. Rest time is to enjoy it.
                  btw what stops you from relocating to Pune ?

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by compuwalah View Post
                    Right decision FenceSitter. Why after all people enter into RE ? For peace of mind. But if RE itself gonna tie you inti bindings (of jobs etc due to EMI worries), better not to enter into it. Suhc anxiety better be dealt with once with first purchase. Rest time is to enjoy it.
                    btw what stops you from relocating to Pune ?
                    Little bit of peace of mind is taken away due to nagging.
                    Not that I have completely stayed away. Purchased a plot in Bangalore outskirts but without taking any loan.

                    Although I would love to relocate to Pune for personal reasons but opportunity wise Pune is nowhere close to Bangalore. I prefer startups and not many options for my domain.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Home demand subdued in Pune: Report - The Times of India v/s Pune beats Mumbai, sees highest rise in property prices - Rediff.com Business

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