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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

    I visited A few properties over the weekend....

    The builders seem to be in no hurry to sell their flats...

    The prices are skyhigh ....and though they hint that the price is negotiable but only a few rs......

    No major correction

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by kingmanish View Post
      I visited A few properties over the weekend....

      The builders seem to be in no hurry to sell their flats...

      The prices are skyhigh ....and though they hint that the price is negotiable but only a few rs......

      No major correction

      Beware this thread can get you in to major losses in your life by not buying the real estate when you can.

      Current market proves beyond doubt that stocks and gold etc are not for common man to make money let alone enough money to compare returns. Also FD will eventually be eroded by inflation.

      All baseless attackers you would be ignored. All structured contrary view points welcome.
      When the facts change, I change my mind. What do you do, sir? - John Maynard Keynes

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        All baseless attackers you would be ignored. All structured contrary view points welcome.
        I like the above sentence.

        I think the RE investors in Pune are mostly business folks, who don't care much of selling at a lower rate. Since the stock/finance markets are affected right now, they have no motivation of selling their RE at reduced prices to invest that money in something more beneficial. So, they can keep their RE for some more time assuming that some buyers will lose patience and buy at current prices.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Realty developers expect 10-15% fall in home prices

          Realty developers expect 10-15% fall in home prices

          With a sharp decline in home sales and rising interest rates, property developers say a correction in prices is inevitable over the next couple of months.

          Niranjan Hiranandani, managing director, Hiranandani Constructions, believes the probability of a correction is more in city centres than suburbs, given the sharp spurt in property prices there.

          “If you are a real buyer and go to buy property, you will anyway get a discount of five to 10 per cent. It will get harder...I think there will be 10 to 15 per cent correction over a period of time,” said Rajeev Piramal, executive vice chairman, Peninsula Land

          Joe Silva, chairman of Eredene Capital-backed Tanaji Malusare City, says there could be a correction of 20 per cent in the next one month.

          Lets wait and watch...Be prepared for another hike in rate of interest.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            RE prices are falling

            Check the resale prices below, shows some story about where RE is headed.

            3-BHK Multistorey Apartment For Sale in Aundh, Pune, Maharashtra - 1260 Sq-ft - **************** - 8781869

            3-BHK Multistorey Apartment For Sale in Aundh, Pune, Maharashtra - 1220 Sq-ft - **************** - 9404943
            If you are happy, you are successful.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              +1, I have been checking resale flats prices on portals like 99acres/magicbricks and more and more properties are now being quoted <40L slab while earlier majority of the properties (in the areas I looked for) was > 45L. Trend? I am not sure. But it does look noticeable.

              *Sigh* I will never understand people's craze to book under construction properties with possession date in 2-3 years time, pay more money and added heartburn to deal with builders.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by shahkushan View Post
                +1, I have been checking resale flats prices on portals like 99acres/magicbricks and more and more properties are now being quoted <40L slab while earlier majority of the properties (in the areas I looked for) was > 45L. Trend? I am not sure. But it does look noticeable.

                *Sigh* I will never understand people's craze to book under construction properties with possession date in 2-3 years time, pay more money and added heartburn to deal with builders.
                Not sure , yet . I see few quoted less but most are still outrageously quoted .
                And only basic price is quoted . Add abt 15% more to it for what it will cost to the buyer .

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Real estate valuations fall to new lows in Mumbai; Alok Realtors may sell Lower Parel

                  http://economictimes.indiatimes.com/...w/10134366.cms

                  Real estate valuations are falling to new lows in India's biggest real estate market - Mumbai. In what could open a Pandora's Box for the sector, Alok Realtors, the real estate arm of Alok Industries, which had bought a commercial building from Peninsula Land in Lower Parel four years ago, is now desperately trying to dispose it of even at a loss. Alok Realtors had bought the property for Rs 1,075 crore in 2007, in the middle of the property boom. A top executive in the publicly-listed Alok Industries confirmed that the company has the option of selling the property by March 2012, "even at a loss", as it has decided to exit the real estate business completely to repay the mounting debt.

                  The group has already announced its decision to exit the realty business completely, given the rising debt on Alok's balance sheet.

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    When I left US in 2005, the RE prices there fell nearly 50%, Yes, it is 50% and not a typo.

                    My friend who have purchased a House in Fremont CA for nearly $ 6.5L, fell to about $2.3L. Poor guy, he is still stuck paying EMI on that high value. He had plans of returning, but cannot do it without incurring a heavy loss.

                    So, I see a similar trend here due to inflation, price stagnation, RE price affordability, job prospects, slow economy etc. Though the property prices here will not fall that much. But at least the over-inflated prices will be come down to some realistic levels.

                    I don't agree to buy a resale property at 200% of the original price, that too when the property has aged. Max I think it should be about 120-130%.

                    Though how much ever these analysts or experts harp about the strong domestic consumption, it is a fact that our economy will also be hit by the downturn.

                    What goes up, has to come down, in some way or other.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by mymarji View Post
                      When I left US in 2005, the RE prices there fell nearly 50%, Yes, it is 50% and not a typo.

                      My friend who have purchased a House in Fremont CA for nearly $ 6.5L, fell to about $2.3L. Poor guy, he is still stuck paying EMI on that high value. He had plans of returning, but cannot do it without incurring a heavy loss.

                      So, I see a similar trend here due to inflation, price stagnation, RE price affordability, job prospects, slow economy etc. Though the property prices here will not fall that much. But at least the over-inflated prices will be come down to some realistic levels.

                      I don't agree to buy a resale property at 200% of the original price, that too when the property has aged. Max I think it should be about 120-130%.

                      Though how much ever these analysts or experts harp about the strong domestic consumption, it is a fact that our economy will also be hit by the downturn.

                      What goes up, has to come down, in some way or other.
                      I agree on that.

                      I don't understand why do many people in India think that prices of RE can only go up? Is it because of the fact that India has not noticed some thing like what happened to US in 2008 (subprime crisis)? People say, it can't be possible in India (well people used to say that it is not possible for human to reach moon) but the fact is Indian RE market is in real danger (if not today, but any time in next 5-10 year).

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