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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 REinvest View Post
    I agree with you but still 10 hours a days seems stretched work life, my office asks for 40 hours a week which I don't think more than 50% would have ever achieved in any week

    My experience -

    2008
    Never took loan and had same feelings like you but then I saw lot of guys buying and rates are going up.. here I fell in the trap - got home loan no more than 40% of my salary to go in EMI.. listening to so called veterans.. Then I was offered a car loan at lower interest than home loan and that too fixed rate - I grabbed the opportunity, kept my little savings in FD and FD interest used to pay for car loan interest (yep, I got it that cheap and hence I bought a car without necessity another wrong decision).

    2009
    Now with two EMIs I felt that I cannot save much and hardly I can spend what I was spending in all those years of no EMI. This made me look for something else, I talked to my employer (HR) and they refused any hike in salary so I switched at approx 40-42% hike.

    2010
    I was in top performers so got a very good raise - approx 18-20% and was happy with it..

    2011
    Paid off my remaining car loan in one stroke to get some other loan and started looking for bigger property. This year hike was only 8% at my level. Didn't like available options.

    2012
    Realized that RE prices went too high in all these years and I need more savings to buy another property so again switched the job - this time only 1 EMI was there - home loan (as car load was already settled down) so I took 30% raise on current and joined where I am today..

    2013
    Waited for stability in this new organization, got 12% hike which is very good at this level and bonus too (apart from CTC) and then I took decision to buy another property.. which I booked under construction in late 2013 with home loan of 75%

    2014
    Mid year, Got possession and rented it out.. 2 EMIs continued, tax benefits are continued.. Hike this year 7% - you know every company wanted to save..

    2015
    Again sector saw good progress and future so for hike of 10%.. paid some extra to first home loan (2L - though seems small but it made big difference) - adding both EMIs is approx 60% of my take home salary now (yep, second one is very costly).

    2016
    Planning to save more so that I can buy something else.. tax benefits will continue, rent pays maintenance of both properties and I can save some of it..


    If you count, my salary hiked multi-fold with 2 switches and 2 home loans.. I am able to do lot of stuff with remaining 40% of my take home..
    meanwhile got married in 2012, wife earns a bit which covers her expense and no extra burden on me, I get gifts from her on all occassions which is added benefit (of getting married not of home loan ) which made me save more as I haven't bought any jeans or shirt or any type of clothing with my money in 2015

    Now I am planning to go for joint ownership with wife for another property so that she could also save on tax, savings are on for down payment.

    Conclusion of long post -
    Total amount earned and invested 6L (first property) + 29L (second property) and rest I am earning and paying to bank and writing posts here from some time taken out in office.. wealth created as per today's market value - at least 1.5 CR.. hopefully will close both home loans in coming 5-6 years..
    each person has different priorities in life....my company asks me to spend only 8 hours...but i spend 10 hours or sometimes 12 hours because work is good...
    for me buying home is not related to making money ...i intend to do it through other ways.......you might like spending time doing all the ground work for buying RE.... i do not....

    different people would have different views...so what has worked for me might not work for others...same way what has worked for you might not work for others....its just that we can present our views and people can take calls based on there circumstances.....

    To each his own.....
    Last edited by Carefree; February 4 2016, 12:45 PM.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      REinvest; hang in there for a decade or two on this forum. Long term comparison will help us all. All the best to the both sides. Time will decide.
      Last edited by AveMaria2407; February 4 2016, 12:50 PM. Reason: Tagged a User

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by Hairpin View Post
        @reinvest hang in there for a decade or two on this forum. Long term comparison will help us all. All the best to the both sides. Time will decide.
        I think it's already a decade since this thread is ON.. check you typed comment on page # 1228

        and we all must have witnessed our parents or elders in all those decades when we grew up - I think that should be enough to understand how it works in RE.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          REinvest; - look around and see whether the economy is doing good instead of relying on newspaper articles by stakeholders whose job is to prove that economy is shining .
          Hope u get the returns that u project in actual . Residential flat investment is dead . It would have served you better to invest in land if you're a RE investor .
          Last edited by AveMaria2407; February 4 2016, 01:15 PM. Reason: Tagged a User

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by REinvest View Post
            Conclusion of long post -
            Total amount earned and invested 6L (first property) + 29L (second property) and rest I am earning and paying to bank and writing posts here from some time taken out in office.. wealth created as per today's market value - at least 1.5 CR.. hopefully will close both home loans in coming 5-6 years..
            Your actual investment should be definitely more than 6 + 29, as you have been paying EMIs and will continue to pay for next 5-6 years.

            Net : you should be able to get 12-15% compounded returns which is still good, but not as spectacular as you are making it out to be.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by REinvest View Post

              Conclusion of long post -
              Total amount earned and invested 6L (first property) + 29L (second property) and rest I am earning and paying to bank and writing posts here from some time taken out in office.. wealth created as per today's market value - at least 1.5 CR.. hopefully will close both home loans in coming 5-6 years..

              29+6= 35 , 1.5 cr/ 35~ 420%.Your property appreciated by 4 times in 7 / 2 years .??

              If you do not mind , can you please give the separate current price of each property? and loan amount that still needs to be paid
              Last edited by polo1234; February 4 2016, 01:56 PM.

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by suryawork View Post
                REinvest; - look around and see whether the economy is doing good instead of relying on newspaper articles by stakeholders whose job is to prove that economy is shining .
                Hope u get the returns that u project in actual . Residential flat investment is dead . It would have served you better to invest in land if you're a RE investor .
                I am not relying on paper articles - these pics are from today's newspaper.
                I am looking around and keeping watch and to my analysis - market is not that bad as it's being painted by some here. If you do well, even in times of crisis employer thinks for you and if you don't even in good times or boom times you can loose your job.
                I do not agree to point that saving job is a big deal today and forget about new job and so on.

                I agree with you on land but in that case it has to be a big chunk at prime location, there's no point in buying 3-4k sqft in somatane, shirwal or some distant place with 20 ft road layout.
                I just mentioned my job earnings and scenario as an individual - I didn't talk about other options or what other I do, did or chose

                I do not agree that residential flats are not good investment - they pay you off and they'll pay you off in long term - as land prices go up, overall RE prices in all sectors go up - if you agree that the land prices will go up, how can you deny that the price of constructed property on that land will also go up - there can be difference in % hike from all sectors like commercial saw great hikes in past years than lands but today commercial are almost stagnant for 2 years, rents of course hiked for commercial properties. While we were painting the world where RE will burst - that never happened in last few years - see this thread and in 2009 as well people used same words but residential properties grown multi-fold.

                Once people used to call you fool to buy at kakade city karve nagar or roseland in pimple saudagar. Now people buying at pirangut, khadakwasla, somatane, talegaon, dhayari and even shirwal and rajguru nagar

                Simply look around and see if India is getting respect from around the world and try to analyze why? It's not because Modi visited them, it's because the economy of India is in it's best shape now - govt has money, development is going on and being planned for future (which was halted for few years) and what's not? Govt getting huge amounts in the form of taxes and excess taxes on fuel which can fund all dreams like smart city, bullet train and so on.
                yes one can argue on basic needs and basic development but that's also happening, some third world country recognizes that we lighted 200+ villages in a year but we Indians don't see or prefer to turn our back on such news.

                Look around for development of non conventional energy production as well as overall energy production plans which are getting executed and are not just on papers - look at famous / infamous jaitapur example - it's not only on paper and there are some coal power projects sanctioned all over India where majority of land acquisition is already done and initial planning is started.

                Look around and you'll suddenly start finding that the per capita income throughout India has increased and it'll further go up.

                Look around and see the numbers of sales of residential flats as well as all types of properties, look at sales of gold and other precious metals, look at sales of automobiles and you'll be surprised that the numbers in 2015 surpass numbers in 2014 which surpassed numbers of 2013.

                Now you tell me after looking around, where the problem is? Only in our minds?

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by GlobeSon View Post
                  Your actual investment should be definitely more than 6 + 29, as you have been paying EMIs and will continue to pay for next 5-6 years.

                  Net : you should be able to get 12-15% compounded returns which is still good, but not as spectacular as you are making it out to be.
                  12-15% is what most of big companies even don't make I do have few stocks which pay handsome dividend but not at these limits and this is short term gain only - please try to foresee 10 years down the line with half the rate of increase or only quarter the rate of increase.

                  Yes, I am paying EMI of first property less than the rent I get from second one. Second property I would say is pre mature business yet and it'll take time to perform.

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    REinvest yaar yeah bata which company you are working at?? 24*7 IREF per. Your management should be worried a lot...or they have no work for you??


                    Refer me as well and I will make moollah out of nothing and trust me will not counter your idiotic assumptions...hah !!!


                    By the way I liked Pune and want to buy a property here "kuch recommend kar yaar" budget 60-70 Lac !!! I want to double it in next 5-7years !!!
                    Last edited by nikkugautam; February 4 2016, 02:10 PM.

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by polo1234 View Post
                      29+6= 35 , 1.5 cr/ 35~ 420%.Your property appreciated by 4 times in 7 / 2 years .??

                      If you do not mind , can you please give the separate current price of each property? and loan amount that still needs to be paid
                      First property bought for 18L - 12L was the loan for 15 years. Outstanding now is 6L, current market price of the property is 40L (builders in surrounding areas selling same size properties for 45-55L all inclusive range.

                      Second property is very young and will take time to come up with returns and it's in bit upper segment where it further takes time to get returns. I am planning for end use of this one in future.
                      Bought at 92 L all inclusive with loan of ~ 65L - nothing is planned yet for this one. Current market price is 1.2 CR at least as at this price same flat got sold 3-4 months back.

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