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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

    Credit Suisse sees Sen at 13,200; Re at 55 by June

    Originally posted by suryawork View Post
    Unfortunately , few buyers will take your advice...simply because they cannot buy at these prices !
    Credit Suisse sees Sensex at 13,200; Re at 55 by June - PTI -

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Exposed: The dark underbelly of Indian Real Estate

      Good expose by Bloomberg-UTV.
      Now Mah govt has said it will come up with new MOFA law which will be more stringent !!

      Exposed: The dark underbelly of Indian Real Estate - YouTube
      If you are happy, you are successful.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        It takes time to build sustainable wealth

        Originally posted by Mikhail View Post
        What i am saying might not be a proper s to s comparison but here goes..
        Noida expressway :: Just a 6 lane road with vast tracts of land on either side but not a soul in sight. A few companies have set up shop but nothing major. All you see are some constructions going on - scattered across a few sectors. Note that this area will take atleast 2 or 3 years to be livable- bare minimum (Livable as in - people living, not quality of living)
        Rates: 4200 on an average nowadays (Its higher for projects where construction has already started)
        Noida RE experts are expecting that rates will go much higher.

        Dwarka Expressway in Gurgaon: Most of the things are on paper, even the road to some extent!! This will take atleast 5 years for the first settlers to move in.
        Rates: 4.5k approx
        The rates just keep on increasing.

        Now, take Wakad in Pune
        Livable (maybe not quality living but still, manageable)
        Next to scores of companies in Hinjewadi.
        Has an active network of roads.
        Rates: 3.7k approx

        My question is, when i compare Noida expressway and something like Wakad, Wakad is infinitely better. Job opportunities are better, people are living, basic shops are there, hospitals etc are not too far off. Why do you think it is overpriced ?

        Just playing the devils advocate

        Mikhail,

        Its simple really.

        If you look at heart of town, most Metros today have developed over several decades. MG Road in Bangalore, Connaught Place in Delhi, Mount Road in Chennai, Marine Drive in Mumbai (I somehow still like Madras and Bombay), etc.

        So, property values that grow gradually over time (like they used to back in the good old days when property was largely bought by your and my father for living and not for speculation or parking excess money) have a tendency to be resilient to economic weakness as they are as bought by people with financial strength with own money and are considered as good as gold since they provide access to the most lucrative income generating parts of town (the CBD).

        But people think that, just because there is a 4-lane highway leading to nowhere, and some swanky and unsustainable developments coming up, somehow that will make these outlying locations catch up in price with City Centers hyper-quick.

        While for a while during boomtimes they might seem to catch up, when weakness comes, also comes the weakness in prices of these places. The money that goes into these development is largely bank money at stretched leverage and not substantially owned money (like the rich dudes who buy posh localities all in own cash).

        So, it is prudent to buy outlying areas at reasonable prices and not jump in at any price as you may have to wait a much longer period for prices to eventually make your purchase a worthwhile one.

        Also, as you go radially out of city, risk increases as you are depending on "development" coming your way to justify ever-increasing prices. I have known many people lose out when this development went some other way.

        cheers
        Last edited by wiseman; December 12 2011, 08:12 PM.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          It's time to start calling the current situation what it is: a depression: Paul Krugman

          It's time to start calling the current situation what it is: a depression, says Paul Krugman - The Economic Times

          We are already in depression as per Paul Krugman, the man who predicted 2008 recession well in advance.

          Very bad domestic IIP figures today(worst in 28 months), domestic + global problems.

          How can people be still bullish about RE ?

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            I personally believe that these rates are high. But if you can afford and are buying for personal use and not investment than you should go ahead at anytime.
            Because you never know when the situation changes rapidly and suddenly all the things will be bullish, prices will rise and fall, it doesn't matter for end user. Only investors should watch out.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by gery128 View Post
              I personally believe that these rates are high. But if you can afford and are buying for personal use and not investment than you should go ahead at anytime.
              Because you never know when the situation changes rapidly and suddenly all the things will be bullish, prices will rise and fall, it doesn't matter for end user. Only investors should watch out.
              What I don't understand is how is it that something which is bad for investors is not bad for end users ?? Do end users get money free or subsidized ?? When rents are so low compared to EMIs, even for end users, it makes sense to save rather than buy at inflated prices & the good time for end users to enter market is when investors start exiting.
              If you are happy, you are successful.

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Surana Developers is offering free stamp duty + registration (officially) & some cash discounts in addition to this (unofficially),

                Pride-Purple also is offering discounts on its price/sq ft.

                Btw, IIP nos are out & are -5.1% . Man, this is -5.1% from +11.4% YoY.
                If you are happy, you are successful.

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  So in 2-3 years 2bhk in pune for 1 crore ? in 7 years 1.5-1.75 crores ? is that what your bullish trend is saying.


                  Originally posted by gery128 View Post
                  I personally believe that these rates are high. But if you can afford and are buying for personal use and not investment than you should go ahead at anytime.
                  Because you never know when the situation changes rapidly and suddenly all the things will be bullish, prices will rise and fall, it doesn't matter for end user. Only investors should watch out.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by realacres View Post
                    Surana Developers is offering free stamp duty + registration (officially) & some cash discounts in addition to this (unofficially),

                    Pride-Purple also is offering discounts on its price/sq ft.

                    Btw, IIP nos are out & are -5.1% . Man, this is -5.1% from +11.4% YoY.

                    Man!!! How this will reverse the prices?

                    Man, so many bad news came and went nothing happened....in so much time.....everything just going up n up.......

                    Man what r u still betting on man!!!!!

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Finally! Vindicated!

                      Originally posted by realpune View Post
                      It's time to start calling the current situation what it is: a depression, says Paul Krugman - The Economic Times

                      We are already in depression as per Paul Krugman, the man who predicted 2008 recession well in advance.

                      Very bad domestic IIP figures today(worst in 28 months), domestic + global problems.

                      How can people be still bullish about RE ?
                      Dudes,

                      I have been alone in yet another thing on this forum ... calling this an oncoming Depression all along!

                      Finally (despite in disagreement with many of Krugman's views - though I suppose he wouldn't even know who I was!), he has been the first of the pro-establishment people to call a spade a spade!

                      So, now that its nearly official, be extra careful!

                      cheers

                      Comment

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