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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'm sure RA does not bad mouth anyone. He generally ignores. So cheer up! ""
    RA definitely never bad mouths anybody,though he has been targeted for his view,pretty rudely.
    I guess a confident person generally behaves in this mature manner.
    I disagree on certain views of RA but do understand that different people have different views.
    Opinion/views are to be countered by facts and not by rude posts.The posts in Blueridege thread do go on to personal level.
    Last edited by vaibav123; December 13 2013, 09:41 AM.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by fatichar View Post
      Seriously,

      It's baffling that so many experts think that RE is bad because rentals are much lower than inflation. As if the property price is going to remain same forever!
      I never find anyone saying that Gold is bad investment because it gives zero rent!
      Gold us a very good investment asset for Indians who dont want to invest outside India. INR is going to lose value if the govt policies do not improve.

      A person investing in US stocks should not need to look at gold. A very run company will always beat gold.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        ""Gold us a very good investment asset ""
        I agree but only some hesitation comes up at present high rates.
        Will it go up still?

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by vaibav123 View Post
          ""Gold us a very good investment asset ""
          I agree but only some hesitation comes up at present high rates.
          Will it go up still?
          In INR gold will stay steady or go up as the govt make a big mess of the INR with its crazy policies. Folks in India should either go into Gold, RE or start a SIP. Keeping money in FD is like gifting it to the govt.

          In USD gold is going down (in the short term it may bounce back cause it has really taken a hit but the medium term trend is downwards)

          In Bitcoin it will be very hard to predict

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by vaibav123 View Post
            ""Gold us a very good investment asset ""
            I agree but only some hesitation comes up at present high rates.
            Will it go up still?
            Present rates of gold are definitely not "high". I can agree that gold at $1900 was high simply because of the rapid climb to that level. Remember that, when gold was $1900, it was Rs26000 and today, when gold is $1225 in rupees its Rs 30000 nearly.

            But considering that everyone thought the Indian Govt was mad to buy 200 tons when it was $1045 (and rupee rate was much lower than today), it is not high.

            As Hero said (and I've maintained for long) gold seldom goes down and remains down for long over the last 100 years at least!

            Its been in a range (25000-32000) for over 2 years and most analysts think gold is at or near its bottom in $$$ ($1200 or $1000).

            Unlike RE, which is bought mostly through high debt, which means that for anyone to show positive returns as an investment (and we are discussing RE Vs gold as investment here), it has to keep on rising every year to compensate for interest paid on debt. Gold doesn't have that problem.

            If you remove the multiplier effect of debt (and tax relief) from RE, I suspect it will be only as good or even worse than the long term ROI on gold. Thus, under the current scheme of things they are not really comparable. Apart from this, there are at least 5 types of other major risks with RE that you don't see in gold (only fake gold is the risk).

            And if someone thinks that gold can be taken away from you, land and property can be taken away even more easily (litigation - especially when prices go up - Govt fiat, etc, etc). Gold is easier to hide and more as its very high value in very small sizes (5kg gold will buy you a 1.5Cr home - compare the sizes!

            cheers
            Last edited by wiseman; December 13 2013, 10:36 AM.

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              ""In Bitcoin it will be very hard to predict ""
              Many people may not be knowledgeable about bitcoins.
              I have no clue of how to invest etc in this new item and therefore no interest in investing there.
              I would always advise understand the instrument well before investing.
              NSEL scam is a warning for investors.

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by vaibav123 View Post
                ""In Bitcoin it will be very hard to predict ""
                Many people may not be knowledgeable about bitcoins.
                I have no clue of how to invest etc in this new item and therefore no interest in investing there.
                I would always advise understand the instrument well before investing.
                NSEL scam is a warning for investors.
                Absolutely correct. And therefore there is very little chance currently of Bitcoins becoming a currency anytime soon.

                Just think! When Bitcoin went from $500 to $1050 recently, majority of payment through bitcoin was to buy gold. So gold got bought at $1050 one day. Next day the gold vendors saw bitcoin drop to $500!!! 50% drop in a single day. Next day, again to $1000.

                A currency is as solid as it is stable!

                Then there are other reason why bitcoin will never be a currency or even mainstream.

                - Lack of control by Govt
                - Difficult to obtain
                - Low general holding (over 50% of bitcoin is held only by 914 people)
                - etc, etc.

                There is a lot of stuff on Net about how it came about, the technical explanations, etc are all available for you to understand what it is.

                There are a lot of competitors coming up and thats another problem with it becoming a currency.

                Interesting to see where it goes.

                cheers

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Chinese ban weighs on Bitcoin’s global fight for acceptance.
                  Chinese ban weighs on Bitcoin

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Golden story

                    Price of gold around 50 dollars in 1833 and fell to 25 sometime later.From 1833 to 1968 [135 years ] it hovered between 25 and 50 dollars per ounce.
                    1983 to 1999--600 [ stagnant ].
                    1999---below 300--even 250 dollars.
                    2000--280 [ stagnant ].
                    2001--250 to 275.
                    2002--350--average.
                    2003--between 320 and 420.
                    2004--between 420 and 440.
                    2005--between 420 and 520.
                    2006--between 500 and 600.
                    2007--between 600 and 850.
                    2008--between 1000 and 900 [ - ].
                    2009--between 800 and 1200.
                    2010--between 1050 and 1400.
                    2011-- 1300 and 1600.
                    2012--1600 and 1650.
                    2013--1700 and 1250 [ - ].
                    There have been wild variations in between every year.
                    Imagine that you had bought at 25 in 1850 you will have multiplied your wealth by 50 times.
                    At the same rate your wealth would have been 10 times in 2001.

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                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Golden story --II

                      Gold in rupees---1950 onwards per 10 grams.
                      1950--99
                      1953--73
                      1960---111
                      1964--63
                      1969--176
                      1970--184
                      1979--890
                      1989--3100
                      1994--4500
                      1999--4200
                      2001--4300.
                      All of you know the present prices.

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