Announcement

Collapse
No announcement yet.

Builders & Real Estate Bulls Theory Proved Wrong

Collapse
X
Collapse

Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
12768 | Posts
  • Time
  • Show
Clear All
new posts

  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    can someone suggest 3 bhk apartment investment upto 60 lac to get good investment opportunity.

    Dr. Ashish

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by ashish789 View Post
      can someone suggest 3 bhk apartment investment upto 60 lac to get good investment opportunity.

      Dr. Ashish
      Please use search facility to find threads like http://www.indianrealestateforum.com...ner-51647.html

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by ashish789 View Post
        can someone suggest 3 bhk apartment investment upto 60 lac to get good investment opportunity.

        Dr. Ashish
        You need to look at real outskirts of Pune to get a 3BHK (assuming more than 1300 sq ft sale-able area) in that budget. If you can raise it upto 75L may be people here can suggest some projects to you. Psf rates of around 3800-4000 is history now even in PCMC limits for pre-launches too.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by wiseman View Post
          But Compu, have you ever thought that it might apply to bulls as well?!

          These proverbs are always double-edged!!!

          cheers
          I have already made up my mind. Please do not confuse me with facts!!

          That's applicable to almost all IREF members including bulls, bears, crows...
          ...Thoda Aasman

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by anirban8 View Post
            When bearish news links are not providing great results you are now starting to scare people with such negative thoughts !! Dude don't you think we all are aware of such basic grandpa type caution items ?
            First of all, if the common indian person was financially savy enough to perform all such calculations, then they wouldn't have over-leveraged themselves into the EMI mess and overinflated property values.

            And apparently this guy was not aware of this "grandpa" logic. In fact he went to on to kill his wife, his daughter and his mother under the stress of EMI and not being "liquid"...
            https://www.youtube.com/watch?v=0KQ8D9DEPiw

            Freakin Amir Khan will make a movie on this like 3 idiots or an episode of Satyamayvejayate on how the EMI culture in India is actually corroding the quality of life, then people will shower crores on him, but here its claimed that this is obvious.

            In fact i will call your logic the the YOLO logic (which apparently in india means to party and get drunk as opposed to doing something productive with your life as its the only one you have got). Its better to be a grandpa than to be tethered to the very short EMI leash by the bank.
            ...Thoda Aasman

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by herohiralal View Post
              Exactly. Even with such high interest rates if the NPAs of SBI are 1% then its great news.
              Do you know how banks avoid NPAs ?? By putting stressed assets in restructured section.
              Please see coming news giving precisely the same details.
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by Sj2013 View Post
                Quote from above article
                " In October 2014, the government could earn only Rs 15.19 crore from 16,700 properties that were registered."

                Revenue department ensures correct stamp duty and registration amount is paid before starting the registration process.

                16.7K properties would earn Rs 50.1 CR only on registration charges, considering Rs. 30K as standard registration charge

                Here is the link for calculating registration for greater Mumbai http://www.igrmaharashtra.gov.in/SB_..._Structure.pdf

                If you add stamp duty, take average Rs. 2.5L with 5% on say 50L property cost.

                It comes to Rs. 410 CR approx.

                So total revenue is, somewhere around Rs 450 CR, whereas this article says and this article Rs 450 CR revenue is only Rs 15.19 crores, you see?

                Note - I have not added revenue tickets amount in above calculations being minor amount

                And 16.7K property registrations in a one month means it is 1.6L property registrations on annual basis only in greater Mumbai region, you agree?
                What you missed here is this :-

                Kapoor says big deals are not happening. Only small transactions – one BHK and one room kitchen – are taking place. Even here, lease, leave and licence transactions form a major chunk.

                Hope you got the reasons based on facts than fancy imagination.
                If you are happy, you are successful.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Loan recast hides stress in banks

                  Originally posted by realacres View Post
                  Do you know how banks avoid NPAs ?? By putting stressed assets in restructured section.
                  Please see coming news giving precisely the same details.
                  Banks seem to have undertaken massive restructuring exercise in recent months, which has helped them show lower bad debt.

                  Data collated by the finance ministry for a meeting of bank chiefs on Thursday reveals that in case of at least five state-run lenders, the ratio of assets which have turned non-performing or have been restructured is as high as one-fifth of their loan book.

                  By restructuring debt — through conversion into equity, extension of repayment period and other changes —banks have managed to ensure that these loans don't turn sticky. For instance, in case of Dabhol Power, banks have converted a part of their loans into equity and deferred immediate provisioning to report healthier finances although the company is not earning any revenue and therefore unable to pay installments.

                  So, Central Bank of India's gross NPA level may be 6.25% at the end of September, but if you look at the ratio of restructured loans and NPAs, it adds up to close to 20.5%. For the entire public sector banking segment the level is around 12.6%, when gross NPAs are 5.3% of the loan portfolio.

                  Loan recast hides stress in banks - The Times of India
                  If you are happy, you are successful.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    A home of our own? No, thanks

                    A piece of earth you can call your own, a permanent roof over your head, a house you can transform into a home — this is what most of us hanker for. Buying a home is the next milestone for most 25-year-olds with a secure job. But there are many who are breaking this mould and treading a different path. They are giving tradition the go-by, preferring to stay in a rented accommodation rather than spending on buying a house. Why are they doing so?



                    Unaffordable property

                    Look at the sky-high cost of real estate, says Gautam Rekhi, an ex-merchant navy officer and a shipping professional. He finds the cost of apartments in Mumbai way too steep. “Right from Borivali to further up, one cannot imagine buying a two-bedroom apartment for less than ₹1.5 crore,” he says. So, buying that dream house becomes a very expensive proposition. “I will need to make a down payment of, say, ₹40 lakh, for the home loan. And then pay EMI (equated monthly instalments) which works out to about ₹1 lakh a month for the next 10 or 15 years. That is a lot of money. How many people make that kind of money?” he wonders.



                    Job security is another issue. To make a commitment of that kind for a long period is not easy given the current situation, according to Gautam.


                    So, is renting a cheaper option? Absolutely, says Gautam, who has his math already done. “If I opt for rent, I get to live in the same apartment — that costs more than a crore to buy — by paying about ₹50,000 per month as rent. Plus, I get it fully furnished, with a garage, two parking spaces, all for a third of the amount I would spend on the EMI.”


                    But many would argue that it’s not the same. After all, you will be paying rent all your life and not own any property. Doesn’t that bother him? Not really. He says that in case of an emergency, he cannot really sell the house. In fact, he feels that at least he will have more liquid cash to meet any contingencies. “Had I taken a home loan, I would have been living hand to mouth.”



                    Flexibility to relocate

                    Aside from cost and the desire to live in prime locations, flexibility to move is also one of the reasons why some prefer rented accommodations. “Given the current scenario where employees have to be mobile and go where the company deputes them, it made sense to rent,” says Neil.



                    But you could sell the house and buy another when you move from one city to another? “If I decide to move, I will obviously look for a bigger house. So even if I sell my old house, I will fall short of money. I will have to go for a home loan again to fund the difference,” says Gautam. And don’t forget the 30 per cent capital gains tax on selling the house, if I don’t buy another house, reminds Gautam.



                    What about later?

                    The golden era for real estate is gone. One used to hear of cases where people bought for ₹2 lakh and sold for ₹2 crore is over. Nowadays no investment can fetch more than 15 per cent returns, feels Gautam.
                    So, do these people plan to stay in rented accommodations for the rest of their lives? Will they consider buying a home in the long run?
                    “Over the long term, yes, we will definitely look forward to staying in our own place but not with compromises,” says Gayathri.
                    “Eventually yes, I will want to buy a house, but not at the expense of living like a pauper,” adds Gautam.


                    For Rumya and Neil, when they buy a home, it will be to settle down after retirement. “We will look at buying a place in a destination like Goa where we can retire,”
                    So, how will they buy their dream house then?
                    Most of them have this figured out too. Liquidating other assets and investments should take care of that. It’s not ‘save all, spend all’ for these people. They have investments too.



                    And last of all, who doesn’t want a good life? Everyone wants to go that extra mile to cherish the best years of their lives. You earn, you save and then splurge a bit too.
                    “I can provide my wife and son with all the good things and small luxuries too. We are planning a Europe trip soon — it’s great to be able to afford that,” says Shankar.
                    But don’t good things come to people who wait?



                    “Today I can buy an Audi because I am not tied down with an EMI. What is the point of buying one when you are 55 years old? You won’t have that kind of passion and thrill at that age. No one will even look at you,” replies Gautam.


                    A home of our own? No, thanks | Business Line
                    If you are happy, you are successful.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by ashish789 View Post
                      can someone suggest 3 bhk apartment investment upto 60 lac to get good investment opportunity.

                      Dr. Ashish

                      Only on outskirts .. but in 60 Lacs, you may get a 2 BHK or compact 3BHK. If you can increase your budget by another 10 Lacs then there may be several options both on east and west side of the Pune .. but again, outskirts only ...

                      My research is limited to east side - you may be able to find something in Wagholi in 60 to 70 Lacs .. on west side, check out PCMC area.

                      Comment

                      Tags: None
                      Have any questions or thoughts about this?
                      Working...
                      X