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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

    Originally posted by compuwalah View Post
    This is true for people who can buy RE without taking loan from bank and then as well they do not have job (which earns them over 3L of income and making thie FD taxable at 30%).

    Otherwise never heard of any bank giving you a loan to put them in FD with same (or other) bank (and even if they do, effectively its negetive interest rate).

    btw a renter woul dalso have lost money in rentals in the meantime and the hassle of changing house every year (and hearing comments from wife/in laws :-) )can't be measured in money
    This is because one of the key principles of investing (regardless of asset class) is to not try and create equity with borrowed debt, and even if you do, it has to be highly limited to de-risk your capital. This fact is lost on people 'investing' in real estate, however, fortunately common people do not get loans to invest in liquid instruments like FDs and the stock market. Imagine the catastrophic bubble that can result in that situation !

    EDIT : Actually, you dont need to imagine this scenario : This is playing out in our markets today !

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by compuwalah View Post
      This is true for people who can buy RE without taking loan from bank and then as well they do not have job (which earns them over 3L of income and making thie FD taxable at 30%).

      Otherwise never heard of any bank giving you a loan to put them in FD with same (or other) bank (and even if they do, effectively its negetive interest rate).

      btw a renter woul dalso have lost money in rentals in the meantime and the hassle of changing house every year (and hearing comments from wife/in laws :-) )can't be measured in money
      Definitely, one should own the flat as it gives lots and lots of peace of mind.

      The purpose of my post is that the real estate market has already seen decent correction time wise over the last 2 yrs.

      In terms of price, builders are not lowering it on cost sheet but on the table they are negotiating a lot.

      So if someone bought a flat in Wakad at 5200/-psf 2 yrs back and if still getting deal at around 5000 - 5200/-psf, that in itself is a correction. Given that sentiment is still weak, we will see more time wise correction but may or may not be in prices (at least in Pune).

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Not every builder and not every project.

        Look at Rahatani - Rose-e-meher - builder asking for 5800 to 6000

        There are many such projects where prices went up - basically because of good location (in demand) and good plans or good builders.

        So if you are looking for end use, there's no point in waiting as no good property price will come down.
        Last edited by MANOJa; August 28 2015, 08:30 PM. Reason: Text Formatting

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Genuine buyers were unable to buy home due to high property prices, says RBI - The Economic Times

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Somehow not able to follow the link mango.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Link not working. Looks like ET pulled off the article because it exposes the truth about RE.

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                ET ki chandi hai.......Credai ne paisa diya rahega...!!! (article nikal dene ko)

                Stock market pe article likhega ...toh mutual fund/brokers se paisa milta hai

                Govt pe article likhega toh ....subsidies aur paisa milega....

                Acha business hai ET ka

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Its here

                  Genuine buyers were unable to buy home due to high property prices, says RBI - The Economic Times

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by shikhinm View Post
                    So if someone bought a flat in Wakad at 5200/-psf 2 yrs back and if still getting deal at around 5000 - 5200/-psf, that in itself is a correction. Given that sentiment is still weak, we will see more time wise correction but may or may not be in prices (at least in Pune).
                    1. That is what the real estate lobby wants customers to believe.

                    2.Why does Pune defy the laws of credit, economy and finance?
                    Does Pune not follow gravitational laws and other laws in Physics ?

                    3. Today, everybody wants us to believe its the bottom...

                    stock analysts want us to believe that the market has bottomed out
                    jewellers still advertise that the best time to buy yellow metal is NOW !
                    I wouldn't be surprised if our real estate mates want us to believe their story.

                    Finally, everybody is vying for the same piece of cake.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by GlobeSon View Post
                      1. That is what the real estate lobby wants customers to believe.

                      2.Why does Pune defy the laws of credit, economy and finance?
                      Does Pune not follow gravitational laws and other laws in Physics ?

                      3. Today, everybody wants us to believe its the bottom...

                      stock analysts want us to believe that the market has bottomed out
                      jewellers still advertise that the best time to buy yellow metal is NOW !
                      I wouldn't be surprised if our real estate mates want us to believe their story.

                      Finally, everybody is vying for the same piece of cake.

                      Its a very practical advice that if you are planning to buy for self use, don't wait for correction.
                      See the best location according to family requirement and negotiate hard.

                      If you are looking for investment, you have the liberty to wait and zero in on best investment opportunity.

                      Its futile to wait endlessly for correction and troubling self and family by shifting every 11 months. That itself will cause greater loss and harassment to the family.

                      We can argue that its economical to pay rent than buying flat and pay EMI / interest. However, staying in own flat gives you and your family unparalleled peace of mind.

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