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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

    SBI hints interest rates may rise from June 2010

    http://www.realtyplusmag.com/rpnewsl...=7369&cat_id=2

    Btw, many banks like HDFC, BOI etc. have increased their FD rates by 150 basis point. Man, cash is best in current times.
    If you are happy, you are successful.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      RE buying is India is still purely, sentimental/vintage decision. RE sells and breeds on emotions.

      Unitech, DLF announcing big plans is nothing new as it feed fear-psychosis.
      These co's can announce big plans and sit on it for 4-5 year coz they have land and our loan-money to bank on.
      But what has happen to your intelligent middle-class It is obivious who is greater-fool
      Last edited by hitmady; February 21 2010, 11:59 PM.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by hitmady View Post
        But what has happen to your intelligent middle-class
        Emotions have killed Intelligence. People need to think from 1ft higher!!
        If you are happy, you are successful.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by RAJESHP View Post
          This is because, these investors, in general, are very optimistic people and they take hell of time to convince themselves that price can actually fall.

          Also another reason is still the mood in the market is flat(neutral) to bullish, and for investors its only bullish, so they keep convincing themselves that they are going to get their target price.

          Same people when the mood in the market changes to bearish(and they are convinced about this), panic and buyers too disappear from the market like anything.
          Yes this person is not in need of money and hence not selling. However i doubt if he will get the expected even if market goes up. Though the quality is good, its a little old and will only get older. People generally want to buy something new. I have also seen a lot of other properties (both new and old). They are all of poor/average quality. I dint even consider proceeding further to negotiate on rent. I wonder why they bought these flats in first place. All these would have cost a minimum of 35 lacs. and surely most of them must have bought on loan. I can think of 3 reasons
          1)During boom time, people thought price will go up forever and feared they might not be able to buy in future if they didn't buy. They just bought whatever that was in their budget
          2)Easy credit. Since bank gives upto 85% of the total price.
          3)Following the crowd. I think most of the people bought just because someone else bought. (relatives/friends etc). They think living in a so called own house ( and leveraging about 85%) is a status symbol.

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            When can we say RE is reached to rock bottom

            All, I have read most of the recent posts of this topic..so many interesting views and discussions..one question that always strikes to my mind is..when can we say that now this is rock bottom price and go ahead and buy the flat...I guess here everyone will have different figures (also opinions based on locations) but for the sake of discussion..let's say at balewadi..what price we call it as rock bottom price?

            If I think about it..I guess different people will have different figure in their mind mostly driven by their finalcial capacity to afford..and if this is true...that means there is no thumb rule for bottom price and whenever the figure in one's mind touches...he/she will go ahead and book the flat..which in tern means delay in reaching ACTUAL bottom price as builders are getting enough bakaras as they reduce the price by say Rs50 psqft...Now during this slow transition..if even small hype comes in the market..say IT gets in boom again (hard to believe but lets take this as an example)....psqft prices will shoot faster than they were falling...and once hype goes..it takes longer to recover to original price...

            So coming back to original point..when can we say that this is the ACTUAL bottom price...and what would be the criterion to decide that?

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by kaatesha View Post
              They are all of poor/average quality.

              They think living in a so called own house ( and leveraging about 85%) is a status symbol.
              Very noticeable in Delhi's DDA flats - by the time the price appreciates significantly from purchase price, it is ready for demolition
              Venky (Please read watch a or before posting)

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by realacres View Post
                Emotions have killed Intelligence. People need to think from 1ft higher!!
                real,
                buyers are burried meters deep, they need to rise-up meters high

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  The state at which Pune RE is currently in, it would be useful for us to read about the dutch tulip mania: ]http://en.wikipedia.org/wiki/Tulip_mania[/url]

                  Some interesting excerpts:

                  "Many individuals grew suddenly rich. A en bait hung temptingly out before the people, and, one after the other, they rushed to the tulip marts, like flies around a honey-pot."

                  "People were purchasing [tulip] bulbs at higher and higher prices, intending to re-sell them for a profit. However, such a scheme could not last unless someone was ultimately willing to pay such high prices and take possession of the bulbs. In February 1637, tulip traders could no longer find new buyers willing to pay increasingly inflated prices for their bulbs. As this realization set in, the demand for tulips collapsed, and prices plummeted—speculative bubbleburst

                  http://en.wikipedia.org/wiki/Stock_market_bubble

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    In long run as it is very well said by experience people " the day you buy property you will always find expensive "

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      The greater fool theory ...

                      Originally posted by asliarun View Post
                      The state at which Pune RE is currently in, it would be useful for us to read about the dutch tulip mania: ]http://en.wikipedia.org/wiki/Tulip_mania[/url]

                      Some interesting excerpts:

                      "Many individuals grew suddenly rich. A en bait hung temptingly out before the people, and, one after the other, they rushed to the tulip marts, like flies around a honey-pot."

                      "People were purchasing [tulip] bulbs at higher and higher prices, intending to re-sell them for a profit. However, such a scheme could not last unless someone was ultimately willing to pay such high prices and take possession of the bulbs. In February 1637, tulip traders could no longer find new buyers willing to pay increasingly inflated prices for their bulbs. As this realization set in, the demand for tulips collapsed, and prices plummeted—speculative bubbleburst

                      ]http://en.wikipedia.org/wiki/Stock_market_bubble[/URL]

                      This is the popular greater fool theory followed up every bubble ...

                      But Indian RE is not yet a bubble as in how stocks have gone up. Here is how the tulip mania played out ... check the image ...

                      cheers
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