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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 realacres View Post
    In 2009, group bookings was a hit. This took place in Mont Vert projects at Wakad where flats were sold for 2150/sq ft. In Bangalore, Ajmera Infinity sold flats for 2250/sq ft without floor rise as against 3500/sq ft with floor rise.

    Now tell me, if builders-investors keep selling to themselves & keep inflating the price, will end user jump in ??

    * PS:- I know 3 people who bought RE at good rates. 1 bought at Bangalore, 1 in Mumbai & 1 bought land in Chinchwad.
    Gharondabhai, Pjain, Real and Wiseman,

    I for one bought my "Dream Home" ,and I honestly mean it; in that Trough of 2009, precisely March'09, after a lot of thought. I bought an Unused Resale Flat in 3100/Sq Ft all inclusive. The asking price now for the same apartment with a pile of buyers falling over each other is 5000/Sq Ft.

    For once atleast my dear Wiseman I made a good decision. Otherwise I put down GE at $ 5, Starbucks at $ 7 and Discover Card at $ 5 on the table and left. All are 4 - 5 baggers now. And I believe in your Investment philosophy completely. I would have booked profits now. These are different times and so your strategy of Returns Maximization is the best. Buy and hold is old like Mr. Buffet.

    The other good investment decision at those times was Agricultural land. Clear title with 7 - 12 and Naksha, Namuna everything. These are 10 baggers as of today.

    Cheers,

    NT

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Stay perennial ...

      Originally posted by perrenialquest View Post
      Gharondabhai, Pjain, Real and Wiseman,

      I for one bought my "Dream Home" ,and I honestly mean it; in that Trough of 2009, precisely March'09, after a lot of thought. I bought an Unused Resale Flat in 3100/Sq Ft all inclusive. The asking price now for the same apartment with a pile of buyers falling over each other is 5000/Sq Ft.

      For once atleast my dear Wiseman I made a good decision. Otherwise I put down GE at $ 5, Starbucks at $ 7 and Discover Card at $ 5 on the table and left. All are 4 - 5 baggers now. And I believe in your Investment philosophy completely. I would have booked profits now. These are different times and so your strategy of Returns Maximization is the best. Buy and hold is old like Mr. Buffet.

      The other good investment decision at those times was Agricultural land. Clear title with 7 - 12 and Naksha, Namuna everything. These are 10 baggers as of today.

      Cheers,

      NT

      Congratulations! You achieved one of the most difficult things to do that even seasoned and professional money managers find difficult to achieve!

      This is why, in the old days, our earlier generations used to bargain so much to drive down prices to rock bottom levels before buying. This practice minimizes risk and maximizes profits. Traditional money people like Marwaris do this even today and you can see the results.

      And do not fear that prices will only run away in a single direction. The US and others have shown us that, for a guy who waits for his realistic and reasonable price, the day will always come. Patience is a rare virtue among our younger crowd today, who are all consumed by the "instant gratification" habit!!!

      Stay perennial in your quest for the "better" way to multiply. And make it a repeatable habit.

      cheers

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by wiseman View Post
        who are all consumed by the "instant gratification" habit!!!
        yeah right instant gratification - time kiske paas hai

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Everyone thinks he is the finest investor... Investing is all about TIMING, in fact everything in life is doing the "right thing at the right time"

          Simple to say, but unfortunately very few are able to do that... My dear Lehman brother guys were equally smart... but all are not equally lucky.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by gharondabhai View Post
            Everyone thinks he is the finest investor... Investing is all about TIMING, in fact everything in life is doing the "right thing at the right time"

            Simple to say, but unfortunately very few are able to do that... My dear Lehman brother guys were equally smart... but all are not equally lucky.
            So, do you think this is the CORRECT TIME to invest in RE in Pune?? If yes, why & how much returns do you expect YoY?
            If you are happy, you are successful.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              There is no right time or wrong time.

              You need a roof over your head that you can call your own home ... go ahead and buy one. You need now means buy now.... your need is not urgent then scout for the best deal that suits you. There is absolutely no guarantee that tomorrow you will get a better one.... in fact there is no guarantee in anything. You like it means you have to act fast

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by gharondabhai View Post
                There is no right time or wrong time.
                This means that even if someone makes profits, it is more of 'matka' than timing. Ofcourse, once they get lucky due to matka, people say 'What timing it was'!! You contradicted your statement above.

                You need a roof over your head that you can call your own home ... go ahead and buy one. You need now means buy now.... your need is not urgent then scout for the best deal that suits you. There is absolutely no guarantee that tomorrow you will get a better one.... in fact there is no guarantee in anything. You like it means you have to act fast
                C'mon man, even staying on rent means having a roof on the head. Who said that the roof has to be owned??

                What many people forget is:-

                Many either RENT HOUSE or RENT MONEY (LOAN). At the end of the day, one remains renter & real house ownership is one when there are no more home loan EMIs.
                If you are happy, you are successful.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by realacres View Post
                  This means that even if someone makes profits, it is more of 'matka' than timing. Ofcourse, once they get lucky due to matka, people say 'What timing it was'!! You contradicted your statement above.


                  C'mon man, even staying on rent means having a roof on the head. Who said that the roof has to be owned??

                  What many people forget is:-

                  Many either RENT HOUSE or RENT MONEY (LOAN). At the end of the day, one remains renter & real house ownership is one when there are no more home loan EMIs.
                  A simple thing you don't understand, a common man is not a financial whiz kid.... many are still novice about equity... ohh sorry share. forget about rest of financial jargon

                  They simply look at the fact that Home is their own, whatever EMI he is paying is for his own asset. Whatever rent he pays goes to drain. Don't show me complicated number game.... a common man is least bothered about those. And you know very well, those numbers are based on hypothesis. Hope you understand what hypothesis is.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by gharondabhai View Post
                    A simple thing you don't understand, a common man is not a financial whiz kid.... many are still novice about equity... ohh sorry share. forget about rest of financial jargon
                    And this leads to foreclosures. I will be posting the offers which I received from banks for auctions of several flats due to default here soon.

                    The buyer understands how he has been hammered when his full loan EMIs start.

                    They simply look at the fact that Home is their own, whatever EMI he is paying is for his own asset. Whatever rent he pays goes to drain. Don't show me complicated number game.... a common man is least bothered about those. And you know very well, those numbers are based on hypothesis. Hope you understand what hypothesis is.
                    If EMI is 4x-5x the rent, what sense does it make?? It is better to have SIP using the amount equivalent to EMIs & then buy flat on downpayment after 8-9 yrs. And this is not hypothesis, it is a fact, you can check out any rent & sale price charts in the city.

                    If one thinks that rent goes down the drain, then he is an idiot. It is like saying one should buy a rickshaw rather than pay fare as paying to rickshawala is putting the money down the drain.

                    Man, didn't that person use the house?? What do you think that the rent should be free?? By that logic some of the biggest establishments in the country are idiots as they opt for lease agreement than outright purchase which include banks as well .

                    * PS:- We do financial calculation coz we VALUE MONEY .
                    If you are happy, you are successful.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by realacres View Post

                      If EMI is 4x-5x the rent, what sense does it make?? It is better to have SIP using the amount equivalent to EMIs & then buy flat on downpayment after 8-9 yrs. And this is not hypothesis, it is a fact, you can check out any rent & sale price charts in the city.

                      If one thinks that rent goes down the drain, then he is an idiot.
                      Realacres you are right - I am a glaring example of living on rent - saving big chunk of money for the down payment of 80% now I own more than 2 houses and all are fully paid for.

                      It does make sense to do some calculations then use the right tool to find the undervalued yet upcoming areas - believe me there is no shortage of that.

                      I have written in many of posts before that everyone should go for atleast one short term financial planning course.

                      Rohit

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