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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 wiseman View Post
    If this is done and if the person does some homework and spreads this money into other investment in Stocks, PMs, fixed income securities, I have pointed out, with a spreadsheet long ago, that this strategy ensures that the person can keep pace with RE price rise and still buy at anytime in future without suffering increase in cost to him/her.
    Wiseman: Can you please send that spreadsheet again. Maybe I joined much later.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by RealHunter1 View Post
      On sunday I met an NRI investor who bought 3 BHK in some GINI Construction property in Hadapsar at the price of 2750 psf 2 years back. He offered me 2800 psf 2 months back and I denied the offer because I did not like the location. And now last week he sold that property 2350 psf. Loss of 400 psf + 2 Years interest.

      This is the reality. Pune is no more property investors town and they are exiting very quickly even at huge loss.
      Thanks for the update man. The only good part for investor is that he didn't pay any PROPERTY GAINS TAX !

      I also came to know that prices have reduced in resale in Amanora Park Town. And those Aspire towers are still aspiring to get some buyers !!

      And as some link Pune RE to Mumbai, here is another news :-

      Indiabulls have reduced their prices from 4800/sq ft to 4150/sq ft at their Panvel project.
      If you are happy, you are successful.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        real,

        investor selling property at a loss may be a particular one-off case. the attitude of builders, the current atrocious cost of 3 bhk touching a crore in some projects, the psft rate at locations like "kaspatey wasti" casts serious doubts on many investors exiting their investment with losses selling at lower cost.

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by puser View Post
          real,

          investor selling property at a loss may be a particular one-off case. the attitude of builders, the current atrocious cost of 3 bhk touching a crore in some projects, the psft rate at locations like "kaspatey wasti" casts serious doubts on many investors exiting their investment with losses selling at lower cost.
          Look, investors don't sell in cartel. They have 1-3 flats & the more they hold, more they suffer when market is not good. And unlike builders, the investors need not put money earned from RE back into RE. This are the first one to exit.

          And the recent eg. of DSK Hariyali is a classic eg. for the same. There is also a flat in Ganga Satellite, 2100 sq ft for around 1.1 Cr. Resales for 2 BR in Tain Square are available for 50L for 1300 sq ft.

          Look man, at the end of the day, I think this is even better in one way. Why ? Coz buyers can get ready poss flats at lesser rates. And don't forget that in boom period over 40% of buyers were investors. Imagine if this supply comes in, mostly in ready poss, where will builders stand ??

          And ready poss at cheaper price is always better than just launched project with higher price with 100% terrace & 30% loading.
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by realacres View Post
            Look, investors don't sell in cartel. They have 1-3 flats & the more they hold, more they suffer when market is not good. And unlike builders, the investors need not put money earned from RE back into RE. This are the first one to exit.

            And the recent eg. of DSK Hariyali is a classic eg. for the same. There is also a flat in Ganga Satellite, 2100 sq ft for around 1.1 Cr. Resales for 2 BR in Tain Square are available for 50L for 1300 sq ft.

            Look man, at the end of the day, I think this is even better in one way. Why ? Coz buyers can get ready poss flats at lesser rates. And don't forget that in boom period over 40% of buyers were investors. Imagine if this supply comes in, mostly in ready poss, where will builders stand ??

            And ready poss at cheaper price is always better than just launched project with higher price with 100% terrace & 30% loading.

            Totally agree. I have not booked any flat yet and now i am in a position that i have to book one as early as possible. I will always opt for resale flat, over newly launched project, because I do not want to wait for years to get possession.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by puser View Post
              real,

              investor selling property at a loss may be a particular one-off case. the attitude of builders, the current atrocious cost of 3 bhk touching a crore in some projects, the psft rate at locations like "kaspatey wasti" casts serious doubts on many investors exiting their investment with losses selling at lower cost.
              For investors, its all a matter of 2 key things
              1. "takka" (what is the right time to sell flat so that I can exit with max. profits and min. risk). He will never want longer wait and high probability of risk.

              2. black money - if he can find buyer who can pay him in black proportionate to what he may have put in, his tax liability goes down significantly

              3. May not be for Pune, but for Mumbai market, most of the investors do not even do "agreement". It is just understanding with the builder. Investor's agents are always on the lookout when they think better sell sooner than later

              For them, it's like stock market - guessing the top and selling before people start realizing or sentiment starts becoming bad. It is a fact that investors have stopped buying and smart ones are looking to do profit booking, if not distress sale. If they are not sure, they may put the money in some other investment. They do not have any compulsion to hold or reinvest.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by puser View Post
                real,

                investor selling property at a loss may be a particular one-off case. the attitude of builders, the current atrocious cost of 3 bhk touching a crore in some projects, the psft rate at locations like "kaspatey wasti" casts serious doubts on many investors exiting their investment with losses selling at lower cost.
                Well the investor I mentioned was unable to find the buyers since long time. And he sold his flat to another investor (his friend). When I asked him about what about builder NOC he said he did not make registration with the builder hence that was not needed.

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Goint to basics of this thread, the overall study in last 10 year shows something opp what we have been discussing so far on this thread...

                  India witnessed biggest rise in house prices in world since 2001


                  London, Mar 21 (ANI): Housing prices in India have witnessed the biggest increase in the world over the last ten years, according to a new research.
                  According to the Lloyds TSB International Global Housing Market Review, house prices in India increased by a staggering 284 per cent since 2001, after inflation.
                  This is equivalent to an average annual rise of 14 per cent.
                  The report showed that emerging markets saw the biggest increases in house prices over the past decade, but the UK was still among the 15 top performing housing markets.
                  Just behind India in the table is Russia and South Africa, which saw house values rise by 209 percent and 161 per cent respectively, The Daily Mail reports.
                  Japan recorded the biggest fall in house prices, 30 per cent, while house prices in Germany are down 17 per cent and United States two per cent.
                  According to the report, Britain fared well in comparison, with house prices rising by 50 per cent over the past decade, putting it 13th out of 32 countries covered in the list.

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Originally posted by aedhole View Post
                    Japan recorded the biggest fall in house prices, 30 per cent, while house prices in Germany are down 17 per cent and United States two per cent.
                    According to the report, Britain fared well in comparison, with house prices rising by 50 per cent over the past decade, putting it 13th out of 32 countries covered in the list.
                    I would agree with the statement on US. One of my friend bought house last year in US and while talking to him around that time I commented that he must be spoilt for choices and price given the news we are hearing about US housing market , bank trying to get rid of inventory etc.
                    To my amazement he told me that price fall and market flooded with cheap houses is just not true. The prices in decent localities are still holding same prices as before the meltdown and noone is negotiating on those. He finally paid more or less same amount (pre metldown) for a newly built house. The fall in price are in areas which no desi person would like to stay (basically unsafe areas) and were purely driven by invetors.

                    Even price drop in India would also start in the locations which never should have commanded high price. I would think of places like Ravet etc in the category. Price near to city (Baner/Balewadi etc) will see minor correction if at all.

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      even baner/balewadi/wakad/hinjewadi/bavdhan dont command prices that are quoted. Unfortunately there are way too many buyers in hurry to buy (now or never mentality) so things will persist. because people go with expectation of 70 lakh worth of flat 3 BHK, why would builder sell for 40 lakh same flat if he senses buyers are there with paying capacity of 70lakh?

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