Hereby I will prove how the realty boomers arguments are false.

What are the boomers arguments?

1.) Buy today, houses always increase in value in the long run.
WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.

2.) Renting is just wastage of money.
WRONG. As said before renting is now much cheaper per month than owning. If you don't rent, you either:

* Have a mortgage, in which case you are throwing away money on interest, tax, insurance, maintenance, costs that increase forever.
* Own outright, in which case you are throwing away the extra income you could get by converting your house to cash, investing in bonds, and renting a similar place to live for much less money. This extra income is sufficient for emergency expenses,retirement etc.

Either way, owners lose much more money every month than renters and that's assuming prices don't correct to very high level & everything is smooth in the economy.

3.) As a renter, you won't have any money left as you will spend them on vacations,cars & hence won't have equity/savings etc.
WRONG. Equity is just money. Renters are actually in a better position to build equity/savings through investing in anything but housing. Renters can get rich much faster than owners, just by investing in conservative stocks & bonds.

* Owners are losing every month by paying much more for interest than they would pay for rent. The tax deduction does not come close to making owing competitive with renting.
* Owners must pay taxes simply to own a house. That is not true of stocks, bonds, or any other asset that can build equity/savings. Only houses are such a guaranteed drain on cash.
* Owners must insure a house, but not most other investments.
* Owners must pay to repair a house, but not a stock or a bond.
* Owners lose their money as house prices reduce. The EMI's remain constant in spite of reduction in rates. At the end of loan tenure, they would have paid almost twice than that of current renters who will buy at logical rates. Keep interest rates in mind. Most of the EMI is not principal amount but interest.

4.) There are great tax advantages to owning a house.
WRONG. Many people believe you can just reduce your income tax by the amount you pay in interest, but they are wrong. Buyers may not deduct interest from income tax; they deduct interest from taxable income. And even then, the tax advantage is not significant compared to the large monthly loss from owning.

If you don't own a house but want to live in one, your choice is to rent a house or rent money to buy a house. To rent money is to take out a loan. A mortgage is a money-rental agreement. House renters take no risk at all, but money-renting owners take on the huge risk of falling house prices, as well as all the costs of repairs, insurance, property taxes, etc.

5.) RE is based on local factors, it's not a national phenomenon. RE of Delhi-NCR,Bangalore & rest of the cities has nothing to do with Pune RE.
WRONG. Lending rates remain the same throughout the country. ALL loans are harder to get. This will drive prices down everywhere.

6.) A rental house provides good income. So, you can rent if you have purchased as investment.
WRONG. Rental houses provide very poor income in hyped areas and certainly cannot cover mortgage payments. Remember there is almost 300% difference between EMIs & rent for the same house.

It's pointless to do the work of being a landlord if you can make more money with no risk, no work, and no state income tax by investing in assured good returns bond.

7.) If owning is a loss in monthly cash flow, but appreciation will make up for it.
WRONG. Appreciation is negative. Prices are going down. It only adds to the injury of already high EMI's.

8.) As soon as prices drop a little, the number of buyers on the sidelines willing to jump back in increases.
WRONG. There are very few buyers left, and those who do want to buy will be limited by increasing difficulty of borrowing now that many house owners are near bankrupt as they don't save anything at the end of the month due to high EMI's.
No one has to buy, but there will be more and more people who have no choice but to sell as their payments rise. That will keep driving prices downward for a long time.

9.) House prices never fall atleast in Pune.
WRONG. If you see the RE scenario of 1996, prices crashed by 50% & took a whole 7+ years to recover.
Exact 1996 scenario may not be there today but strong correction is inevitable across the city.

10.) House prices don't fall to zero like stock prices, so it's safer to invest in real estate.
WRONG. House prices won't be zero, but the equity or the principal amount you paid can be zero or even negative. What you will pay as EMIs later in actual terms is not for the principal amount but only the interest as house prices dip. So, you will be only serving the bank.

11.) Prices will soften gradually, won't crash immediately.
WRONG. Prices are falling off a cliff. No one knows exactly what will happen, but it looks like prices will continue to fall for long time. These are just more manipulation of buyer emotions, to get them to buy even while prices are falling.

12.) The bubble prices were driven by supply and demand alone.
WRONG. Prices were driven by low interest rates and risky loans & good returns for investors in initial phases of boom in 2004-05.
Prices went up, interest rates went up & buyers savings went down. So prices are violating the most basic assumptions about supply and demand.

13.) There is lack of land.
WRONG. Ample of land is available & continue to be even in future in Pune. Sales volume are down. Even in Japan (small country with less land), prices went down. Current prices here are the same as that of 23 years ago. If we really had a housing shortage, there would not be so many vacant rentals.

14.) If you don't own, you'll live in a cheap neighborhood later.
WRONG. For the any given monthly payment, you can rent a much better house than you can buy. Renters live better, not worse. There are downsides to renting, such as being told to move at the end of your lease, or having your rent raised, but since there are thousands of vacant rentals, you can take your pick and be quite happy renting during the crash. There are similar but worse problems for owners anyway, such as being fired and losing your house, or having your interest rate and property taxes adjust upward. Remember, property taxes are forever.

15.) There's always someone predicting a real estate crash.
TRUE, yet irrelevant. There are very real crashes every decade or so. Even a broken clock is right twice a day.

16.) Local incomes justify the high prices.
WRONG. The mortgage should be more than your 3 years earning. It is much higher today. Most are already in danger/red zone.

17.) You have to live somewhere.
CORRECT. But that doesn't mean you should waste your life savings on a bad investment. You can live in a better house for much less money by renting during the down slide in RE.

18.) It's not a house, it's a home.
WRONG. Wherever one lives in it is home, be it apartment, condo, bungalow , mansion or house. Calling a house a "home" is a manipulation of your emotions for profit.

19.) If you don't buy now, you'll never get another chance.
WRONG. History proves otherwise.
Here's a beautiful quote from a analyst:-
"The real issue isn't whether you will be stuck being a renter all your life, she says. Its whether you'll get so scared about being shut out that you'll buy at the market's peak and be stuck in a property you can't afford or sell."

20.) It would take major economic recession or a major earthquake that wipes out this area in order for the price to fall by over 50%.
WRONG. Even today, if the prices fall by 50%, there will still be very few people who can buy at this levels due to uncertainty in jobs & most importantly high EMIs. Also, look at the rental rates for equivalent houses. Which loss per month is larger? EMI or rent?

contd....
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  • Mid-level realty companies reel under rate burden

    After major listed RE cos woes, it is now turn of small & medium RE firms which are facing several probs. Read the link below for more.

    Institutional investors are trimming their exposure to construction stocks as they expect higher interest rates to put pressure on their bottomlines at least for the next two quarters. A quick look at the financial performance of mid-cap construction companies in June 2011 quarter reveals many are reeling under the pressure of rising interest. Almost half the operating profits of most mid-cap companies have gone into servicing the huge debt burden on their books. This may increase, going ahead, Economic Times reported, citing analysts.

    "The weak execution and rising interest outgo, led by increasing debt level and interest rates, resulted in a dismal performance for construction companies in Q1 FY12," said Deepak Purswani, infrastructure analyst, ICICI Direct.Besides interest costs, other issues like lack of order flows and execution problems will continue to keep a check on the prices, he said.

    Property Pulse - the Realty Plus Newsletter
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  • A lost half decade for realty firms

    The BSE Realty index is trading at 1.4 times its past book value, the lowest in two-and-a-half years.

    The basic problem for real estate companies is leverage. Property firms were among the most indebted and it proved to be their undoing as the global financial crisis unfolded. The BSE Realty index lost the most among sectoral indices, down 72% before the start of the next rally in March 2009.

    That problem never really went away, even though many property firms raised fresh equity during the past couple of years. High debt continues to suffocate companies, with some showing an increase in net debt levels in the first quarter of this fiscal year from the end of the last year, according to data compiled by Motilal Oswal Financial Services Ltd. DLF Ltd, for instance, saw its net debt at Rs. 21,500 crore at the end of June, about R
    s. 100 crore
    higher from three months ago. Phoenix Mills Ltd saw a sharper rise in debt to Rs. 790 crore,
    up 23.4% from a quarter earlier.

    While this increase may seem minuscule, what it means is that companies are not able to generate cash flows at the desired level. The June quarter earnings for the sector were disappointing. Most of the bigger companies such as DLF, Unitech Ltd and Housing Development and Infrastructure Ltd showed a fall in profits from a year ago. Margins were affected and are under further pressure as interest rates continue to rise.

    With real estate companies refusing to cut prices and a slowdown looming, things are only going to get tougher. For instance, sales registrations in Mumbai fell 31% from a year ago. Even the outlook for commercial property is gloomy as firms shy away from capital expenditure.

    A lost half decade for realty firms - Money Matters - livemint.com
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  • Property rental yields decline

    The following news now clearly proves how staying on rent makes more sense than to buy at current rates :) :-

    "Rental yields in the city was 6% in 2004-05 but has now dipped to only about 2%. This is also true for most of the real estate markets in India where property prices have gone up but the rentals have not," said Ambar Maheshwari, managing director, corporate finance, at real estate consulting firm Jones Lang LaSalle India.

    Industry experts say that the fall in rental yields reflects the "unsustainable" increase in the property prices. "In Mumbai, except a couple of areas, most properties get rental yields as low as 1% to 1.5% per annum. Like if you go to Palm Beach road in Mumbai you have to shell at least Rs 80 lakh for a 1,000-sq ft apartment but you can get the same property on rent for anywhere around Rs 6,000 per month," said Pankaj Kapoor, managing director, Liases Foras, a real estate consultancy.

    "In a healthy real estate market the equal monthly installments for a property and rental per month should not be divorced from each other. And whichever markets that does not give a 5% to 6% rental yields could see a correction in prices," added Kapoor.

    Property rental yields decline - Hindustan Times
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  • RE "experts" 2-3 years behind the curve!

    Originally Posted by realacres
    The following news now clearly proves how staying on rent makes more sense than to buy at current rates :) :-

    "Rental yields in the city was 6% in 2004-05 but has now dipped to only about 2%. This is also true for most of the real estate markets in India where property prices have gone up but the rentals have not," said Ambar Maheshwari, managing director, corporate finance, at real estate consulting firm Jones Lang LaSalle India.

    Industry experts say that the fall in rental yields reflects the "unsustainable" increase in the property prices. "In Mumbai, except a couple of areas, most properties get rental yields as low as 1% to 1.5% per annum. Like if you go to Palm Beach road in Mumbai you have to shell at least Rs 80 lakh for a 1,000-sq ft apartment but you can get the same property on rent for anywhere around Rs 6,000 per month," said Pankaj Kapoor, managing director, Liases Foras, a real estate consultancy.

    "In a healthy real estate market the equal monthly installments for a property and rental per month should not be divorced from each other. And whichever markets that does not give a 5% to 6% rental yields could see a correction in prices," added Kapoor.

    Property rental yields decline - Hindustan Times


    Real,

    If you remember, we had this discussion on rental yields long ago (with contributions from many people), which generally agreed that yields in a normally priced market should be around the 4% mark. As usual I was asking for even more - 4 - 6% range, which is the long term average.

    Now the "experts" come out when it is too late and say the same thing. Only thing is, the dumb correspondents making it look as though genius's are pronouncing earth-shaking truths! :)

    The problem is, all the "experts" thrive on the Industry and are therefore disconnected with reality most of the time; unless it rises and hits them between the eyes.

    Regarding DLF and Unitech, I do not believe they will go bankrupt. We have had many companies languish for years in the under Re 1 levels before suddenly rising to 10, 20 or even 100 in one go.

    But it may so transpire that these companies will hit the levels I'm waiting for to give me a once in a long-cycle opportunity to get in (Unitech at single digits). For all who have long been stating that such a target was foolish talk, do you now think talk of bankruptcy is not more extreme than merely the stock going to single-digits?!:D

    Humans always re-adjust their perspective to accomodate what looked impossible earlier, but looks okay under new circumstances.

    The only difference is, I adjust a little earlier, when the impossible looks possible just over the horizon! While I look foolish in the short run, a little later one appears like an Oracle! :D

    Of course they too make mistakes often. But in such things, a single hit sets you up for life! So, its worth the trouble.

    cheers
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  • Hi guys,

    Not sure if i'm correct, but i guess cracks in Noida realty have started showing up. Just few mins ago i received an SMS -

    Jaypee Greens -
    - Rs. 410 psf discount
    - 32 inch LCD with every booking
    - 45 lacs ownwards
    - No EMI for 2 years
    - 3/4 BHK on Noida Expressway

    Considering this SMS is not a hoax, if a reputed builder like JP giving discount on Expressway kind of location, that too on expressway kind of location, then i think situation is heading from bad to worse. Personal POV.... :bab (6):
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  • Bhuvang, actually NOIDA situation is already in doldrums and is giving good opportunities - especially since acqusition of land is now difficult and this will push up cost.

    Most of us were saying NOIDA is down the toilet in Jan 2010 - now after all these disruptions, actually value is emerging in NOIDA and it is a time to buy and not to stay away in NOIDA.

    Price on expressway is 2900 psf with 400 odd Rs discount and 6-10% dealer discount = 2300-2400 psf rates or so for CLP - can you get that in even Pune for such a well located flat? Delhi is a metro and these are rock bottom prices
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  • Originally Posted by Venkytalks
    Bhuvang, actually NOIDA situation is already in doldrums and is giving good opportunities - especially since acqusition of land is now difficult and this will push up cost.

    Most of us were saying NOIDA is down the toilet in Jan 2010 - now after all these disruptions, actually value is emerging in NOIDA and it is a time to buy and not to stay away in NOIDA.

    Price on expressway is 2900 psf with 400 odd Rs discount and 6-10% dealer discount = 2300-2400 psf rates or so for CLP - can you get that in even Pune for such a well located flat? Delhi is a metro and these are rock bottom prices


    Hi Venky,
    2300-2400 psf for CLP, i couldn't find them anywhere in Noida except for Noida Extn. Probably i need to do more research.

    Secondly, due to huge supply coming in entire Noida (incl. NE and Expway) + similar supply coming in adjoining IP as well, somehow i'm little sceptical about its appreciation. I see supply overtaking demand in near future (say 5 yrs), and prices getting stablized, but again i might be missing something.
    CommentQuote
  • i at one point wanted to buy in jaypee aman..for investment..thank god they didnt give me allotment..projects in ncr just dont deliver..the so called big builders are the most hopeless..jaypee.dlf..unitech..

    but i concur..i dont understand why pune commands so much premium..kothrud which i find absolutely wanting infra wise looks distinctely sub standard to noida..

    unfortunately its pune i want to settle in and not noida..


    Originally Posted by Venkytalks
    Bhuvang, actually NOIDA situation is already in doldrums and is giving good opportunities - especially since acqusition of land is now difficult and this will push up cost.

    Most of us were saying NOIDA is down the toilet in Jan 2010 - now after all these disruptions, actually value is emerging in NOIDA and it is a time to buy and not to stay away in NOIDA.

    Price on expressway is 2900 psf with 400 odd Rs discount and 6-10% dealer discount = 2300-2400 psf rates or so for CLP - can you get that in even Pune for such a well located flat? Delhi is a metro and these are rock bottom prices
    CommentQuote
  • Originally Posted by kazihamed
    .

    unfortunately its pune i want to settle in and not noida..


    You have answered the question :) . Many people are in same boat. Praise NCR/Noida but actually want to settle in Pune.
    CommentQuote
  • Originally Posted by kazihamed
    but i concur..i dont understand why pune commands so much premium..kothrud which i find absolutely wanting infra wise looks distinctely sub standard to noida..

    +1. An this is true not only for Kothrud but even several other parts of Pune.
    Pune to me is one of the most hyped city in the country.
    Just see some things :-

    Public transport ? Where ? you take out rickshaws & people without self vehicles won't be able to move. Very obsolete buses, poor frequency, poor maintainance. Infact, in last 1 year, I saw break-down van which came to tow a PMPML bus, itself broken down:D.

    Metro ? Hmmmmm, Kallu in jail means it will go on backfoot coz who will earn commissions then ? Same is the case with sky bus. This bus fell down even before it started :D.

    Most important :- DP ? Blown with the wind. The CM said that it will be passed by Aug end. Today is 29th & the day has ended. This DP stuff is going on for past 10+ years.

    And yes, unlike BDA, DDA etc. there is no PMRDA (DA~Development Authority).

    And the media & builders falsely say that Pune is Detroit of east & stuff like that. Fact is it was once, now over-taken by Uttarakhand, Gujarat & Tamil Nadu & those cos which are coming are coming in Chakan which make PCMC more lucrative than Pune.

    Infra is hopeless. PCMC has better infra, yet the prices are less than Pune.

    No civilian airport, including domestic.

    Problem with Pune is:-

    Scorpio chaps are too many,
    Continuous power struggle between Kallu & Yeda,
    No professional builders, most are gunthamantris & pet dogs of local politicians,
    Most of buyers are ITGs, which don't have enough financial sense. This is strange to me as Bangalore based ITGs are more alert than Pune ones,
    PBAP.
    CommentQuote
  • Taking this from other thread:-

    Originally Posted by pune_friend
    Lets take up pricing from builders' point of view. Builders always have a target of how they want to push pricing in an area in next 12-24 months' timeframe.

    This is important for those who are waiting to launch a new project in a given area. But it is also important for those who are having on going project. Because, they would have, invariably procured land in that area where they may be looking to start another scheme some time down the line.

    So builders collectively help each other to push prices in a planned manner.

    Even today, if you ask a builder, he will tell you what price they are targetting 12 months down the line.

    This was done by builders before 2008 stock market crash (in 2007).
    So in second half of 2009 and first half of 2010.

    It didn't work for those who trusted them in 2007.
    It worked for those who trusted in mid-2009, early 2010.

    Only difference was: in second case, Western countries annouced that they are out of recession and on course to recovery. And companies announced heavy growth, hiring, salary revisions etc.

    Today, you know the real situation on recession and growth of companies.
    Recession really never went away and we are talking about worse now.
    But that helped builders jack up pricing to levels they wanted in last 2 years. Otherwise, they could not have created RE boom in last 2 years.

    Builders have additional trick if RE is not doing well - they keep pushing asking prices in current areas and launch schemes in new area at lower rates. So, here you have... appreciation of prices in area u were tracking n waiting to buy home...

    Builders have achieved one target - price push they wanted.
    But have they actually delivered? delivered at acceptable quality?
    there r so many schemes that are going on at lethargic pace despite RE boom in last 2 years. That should tell the story.

    Looking at today's situation, what call would you make? Buy now or wait for peak of recession? When will be peak of recession?
    And do you think if you buy at peak of recession, it will lead to heavy appreciation of prices from current levels?

    +1. Very well said. Infact, Comfort Zone guys had said to me that the price will be 5500/sq ft by mid-2009 :D. See what has happened to the project.

    And those who bought in 2009, did get it at price less than today's one, no doubt about that but in this, the RE bulls just see the price/sq ft. What about the following parameters:-

    > Hike in interest rates by almost 30% in just 1 year,

    > Projects which were supposed to be completed in 2010 are still going on with no completion seen in near future,

    > Addition of VAT, Service Tax. This is applicable even for those who bought under-constro flat in 2009 & didn't get possession by early 2010,

    > Rise in inflation ate away the savings....not to forget the fuel prices, school fees, food etc,

    Man, several of us knew even in 2009 that the world economy is not out of recession. By merely printing more $$ doesn't mean people started to earn more. And now as this has shown its ugly face, people are running for cover coz the option of printing money is gone & getting more debt to repay older debt has made matters worse.

    To cut long story short, just see whether the lifestyle of people who bought on loan in 2009 has improved or deteriorated. I have myself seen cases where people have bought flats in 2009 but now don't have money to even make beds & wardrobes as most of the money is gone in home loan EMIs. The flat value is around INR 45L.

    Man, house is not a cell-fone or a car where you can keep a horizon of 1-5 yrs. It is much longer than that & unless one is sure about his/her own future, no point in taking such a big gamble & repent for next 15-20 years.

    Always remember:-

    Focus more on long term loss rather than short term profits .
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  • Financial turmoil adds to real estate sector’s woes

    A very good article alongwith 2 videos. The videos are indeed very good & must be gone through.

    Financial turmoil adds to real estate sector
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  • Indian realty sector to face tough time in next 12 months

    NEW DELHI: With the US and European debt crisis affecting sentiments across the world, the Indian real estate sector is likely to see a gloomy phase in the next 12 months and developers would face liquidity crunch, low sales and pressure on margins, consultant Jones Lang LaSalle said.

    The country's leading realty consultant pointed out that the projects would be delayed, unsold housing stock will rise and developers might have to offer new projects at 10-15 per cent discount, all because of a slowdown in property demand.

    "The US and European debt worries have added to the uncertainty... With the escalating global liquidity issues, these are challenging times. Over the next 12 months, we definitely expect these sentiments to reflect in the financial profile of the Indian real estate sector," Jones Lang LaSalle India Managing Director (West India) Ramesh Nair said.

    He said the banks would further tighten lending to realty sector and disbursal rate of home loans is bound to reduce.

    "Developers will be under pressure to reduce their debt-to-equity ratios. Fund raising through the QIP route will reduce, and we are going to see a decrease in real estate IPOs," Nair said.

    In order to generate funds, the consultant said many developers will sell their non-core land and divest their stakes in non-core businesses such as hospitality and retail.

    Major firms like DLF is selling its non-core assets to cut its huge debt that stands at over Rs 20,000 crore. Unitech at present has debt of about Rs 4,000 crore.

    "This is an unsettling time for the market, and obviously for real estate investors as well. Are we looking at 2008 all over again?" Nair said, referring to the global economic slowdown in 2008 that had hit Indian realty sector badly.

    The consultant observed that high interest rates, increase in vacancy and demand slowdown will impact the earnings of developers leading to a slowdown of construction activity and delay in project delivery.

    The margins of realtors would also be affected due to increased construction costs, Nair said.

    "We are likely to see pre-launch projects coming with at 10 per cent to 15 per cent discount, over the pricing of other projects in the same areas," he added.

    Besides, the distressed projects of smaller developers will be acquired by medium-to-large players at prices significantly lower than their original valuations.

    "The only constant is change. This has been an axiomatic truth for the Indian real estate market over the last 24 months, with volatility having become a byword to describe it. There has been little or no respite from this state of flux," Nair said.
    CommentQuote
  • Originally Posted by bhuvang
    Hi Venky,
    2300-2400 psf for CLP, i couldn't find them anywhere in Noida except for Noida Extn. Probably i need to do more research.

    Secondly, due to huge supply coming in entire Noida (incl. NE and Expway) + similar supply coming in adjoining IP as well, somehow i'm little sceptical about its appreciation. I see supply overtaking demand in near future (say 5 yrs), and prices getting stablized, but again i might be missing something.


    That 410 psf discunt is a downpayment discount. Dont go for that.

    I made a mistake in my math, actually is is 2400 with DP, 2800 or so for CLP. Jaypee is well known for huge delays - avoid.

    As an investment, this is affordable housing and should give steady returns of 7-8% long term. NOIDA is a good option for end user only. You can expect nil returns in short term with such huge supply overhang - holding period of 7-10 years is needed for even the 7-8% return.

    For speculation and huge short term returns, Bombay, Puna and Gurgaon are the best markets. For huge rewards, you have to put up with more risk

    Obviously, if you want to settle in Pune, it is silly to buy a flat in NOIDA!

    Infrastructure of NOIDA is miles ahead of Pune though - but crime rates are very high and people are not cosmopolitan - whereas Pune is full of young urban/urbane professionals and much better place to live in because of the difference in the people
    CommentQuote
  • Originally Posted by Venkytalks
    That 410 psf discunt is a downpayment discount. Dont go for that.

    I made a mistake in my math, actually is is 2400 with DP, 2800 or so for CLP. Jaypee is well known for huge delays - avoid.

    As an investment, this is affordable housing and should give steady returns of 7-8% long term. NOIDA is a good option for end user only. You can expect nil returns in short term with such huge supply overhang - holding period of 7-10 years is needed for even the 7-8% return.

    For speculation and huge short term returns, Bombay, Puna and Gurgaon are the best markets. For huge rewards, you have to put up with more risk

    Obviously, if you want to settle in Pune, it is silly to buy a flat in NOIDA!

    Infrastructure of NOIDA is miles ahead of Pune though - but crime rates are very high and people are not cosmopolitan - whereas Pune is full of young urban/urbane professionals and much better place to live in because of the difference in the people


    Agreed, for speculation and huge short term returns, i believe Delhi's market is second to none. Cash dealing upto 2/3rd or even 100%, entirely run by Black Money. That's why my first preference of speculation is Delhi. For residing, obviously Noida is better. :bab (45):
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