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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 innerpeace View Post
    I dont know what is your point. If you think that this thread is negative and nothing is gonna burst. Nothing is gonna fall and everything will be grown by x times. Everyone will be rich if they invest in RE. Taking 10-20 year loan is the nicest idea, making banks and builders RICH is our moto of life. - Then please say so.

    Life is beyond making OTHER guys RICH.

    So you are now applying detroit concept, right? Dont apply detroit formula to INDIA for god sake.

    Please do correct comparison (in RE context, please do KOTHRUD to KOTHRUD comparison and not KOTHRUD to SHIRWAL)

    If this bubble DOESNT burst, you can smile at this thread and say all guys who discussed and believed this thread were stupid and move on.

    I think discussion with paaaap for me has become increasingly moot. You WIN.
    I was writing about the impact of job loss on people by taking the example of manufacturing job losses in the US. Pls read reply in context of the question. Every reply is not about -ve posts and bubble crash and IT crash.

    Bubble is not going to burst or stop from bursting jut cause we are posting on forums so relax.


    Just cause you might have lost your job does not mean someone else has got places with a 40 lakh salary by graduating from IIM or some other MBA school. I cant provide you my reaction to how I would cope with losing my job.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by paaaap View Post
      So how does one explain India going down and IT also going down at the same time. Its either or right? Its a sincere question.
      Bears tend to be more emotional so what you may get sometimes is emotional outburst rather than a logical answer

      It's not just about INR, there are many factors like economic and political stability, inflation, job environment in west, other emerging markets and immigration policies etc to consider, but I would single out INR to $ ratio, real estate cost, other cheaper alternatives and India's local inflation and taxes.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Salary hikes in 2014 to be lowest in a decade: Aon Hewitt - NDTVProfit.com

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          this is the crux of the problem. outflows in terms of EMIs remain constant till the duration of loan. but inflows in terms of salary can be constant, negative, positive or even zero in the case of layoffs. Adjusted for inflation the salary hikes suck, but the floating rate will go higher and this leads to additional savings being eaten away.

          i feel people should set aside around 20% of the property value as additional savings after taking a home loan to save for the rainy day! this will help is not causing a distress sale situation when there is a need of funds for emergency like health conditions
          ...Thoda Aasman

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            I am following this forum silently from so long and finally decide to create my id and share my views.

            I am looking for a 2 BHK from past 1 month.i dont need a loanfrom the banks as i have all the money arranged with me.....I started with my search from the new property directly from the builders....My observation good property and good location is still having value and people are ready to pay from good property i mean areas like Viman Nagar, magarpatta, Pimpe saudagar, kharadi , resale property in these areas are in very good demand and for builders lso its very easy to sell atleast 75 percent of the property so no rate depreciation.....now we will talk about the areas which are not in PMC limits....There are good projects outside also PMC limits like JADE PROPERTY in Wagholi , MEGAPOLISH at hinjewadi and few others....These properties are in good demand from the serious end user perspective but if you talk about the property from the 2nd grade builders like 1 building or max 4 to 5 building in the society, thse properties are not getting sold becase of no buyers and high prices, so good chance of negotiations,you can negotiate up to 5 to 10 lakhs in total as these builder are also think that prices are unnecessary appreciated and no will buy thre property witout proper infr,no water, no approach road no markets near by.

            yes one more thing resale property should not be old atleast not more than 3 years old.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              "There are good projects outside also PMC limits like JADE PROPERTY in Wagholi""
              Please read the thread on Jade properties in this forum.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                correct, similar experience in Banglore.



                Originally posted by BROKER SUCKS View Post
                I am following this forum silently from so long and finally decide to create my id and share my views.

                I am looking for a 2 BHK from past 1 month.i dont need a loanfrom the banks as i have all the money arranged with me.....I started with my search from the new property directly from the builders....My observation good property and good location is still having value and people are ready to pay from good property i mean areas like Viman Nagar, magarpatta, Pimpe saudagar, kharadi , resale property in these areas are in very good demand and for builders lso its very easy to sell atleast 75 percent of the property so no rate depreciation.....now we will talk about the areas which are not in PMC limits....There are good projects outside also PMC limits like JADE PROPERTY in Wagholi , MEGAPOLISH at hinjewadi and few others....These properties are in good demand from the serious end user perspective but if you talk about the property from the 2nd grade builders like 1 building or max 4 to 5 building in the society, thse properties are not getting sold becase of no buyers and high prices, so good chance of negotiations,you can negotiate up to 5 to 10 lakhs in total as these builder are also think that prices are unnecessary appreciated and no will buy thre property witout proper infr,no water, no approach road no markets near by.

                yes one more thing resale property should not be old atleast not more than 3 years old.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Demand for housing remained weak in the second half of 2013, due to slowing economic growth, coupled with high property prices and steep interest rates, says latest bi-annual report of CBRE, a global realty consultant.
                  High vacancy levels and rising construction costs led to a slowdown in construction activity, leading to a decline in new launches, and further delay in project completion timelines, says the report. Liquidity issues and an increasing inventory caused developers to shift their focus from new launches to the completion of existing projects.
                  While the premium housing segment saw a steady interest from high net worth individuals (HNIs) and non-resident Indians (NRIs), end-user demand in the high-end and mid-end segments remained low. The depreciating rupee, which tumbled to a series of record lows during 2013, resulted in an increase in NRI enquiries for property in India.
                  Developers reduced prices across select projects and offered discounts or marketing promotions to attract buyers in micro-markets with high inventory levels.
                  According to CBRE, Delhi NCR witnessed capital appreciation across most micro-markets. Capital values in locations such as Sohna Road and MG Road in Gurgaon increased by 4–5% owing to strong demand for high-end properties over the last review period. Mumbai’s housing market remained largely stable, with a slight appreciation in select premium micro-markets. The exception was central Mumbai, where values declined by 4–5%, owing to sluggish demand, in comparison to the first half of 2013. While prices appreciated in Bangalore’s Whitefield, the Outer Ring Road (ORR), Koramangala and Hebbal due to enhanced housing demand; a cautious home buyer sentiment continued to keep capital values stable in the luxury and high-end segments of Kolkata and Hyderabad.
                  “Home buyer sentiments remained cautious and subdued due to high price points, with preferences shifting to secondary and emerging micro-markets of leading cities. Housing demand in the high-end and mid-end, as well as in the luxury segment, is likely to remain sluggish across India’s leading cities during the first half of 2014, due to the subdued, pre-election macro-economic environment,” said Anshuman Magazine, chairman and managing director of CBRE, South Asia Pvt. Ltd.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    ""i feel people should set aside around 20% of the property value as additional savings after taking a home loan to save for the rainy day! this will help is not causing a distress sale situation when there is a need of funds for emergency like health conditions""
                    Buying a flat on Loan or otherwise is indeed a major decision for most of us.
                    Plan for the total amount+ woodwork,fittings,furniture,taxes,society maintenance etc.
                    Job stability,likely hikes in pay etc-
                    Reserve of funds to meet unexpected emergencies is a must.
                    What happens if there is a job loss?
                    Medical emergencies,accidents do happen-cater for them.
                    While there is never ever a situation of total certainty, we must cater for known risk and hope for the best.
                    Reducing salary hikes is disappointing news.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      In my opinion everyone makes all these provisions.
                      But the unknown is the possibility of builder going bust or something happening beyond our capacity.That is the reason for many distress sales.



                      Originally posted by vaibav123 View Post
                      ""i feel people should set aside around 20% of the property value as additional savings after taking a home loan to save for the rainy day! this will help is not causing a distress sale situation when there is a need of funds for emergency like health conditions""
                      Buying a flat on Loan or otherwise is indeed a major decision for most of us.
                      Plan for the total amount+ woodwork,fittings,furniture,taxes,society maintenance etc.
                      Job stability,likely hikes in pay etc-
                      Reserve of funds to meet unexpected emergencies is a must.
                      What happens if there is a job loss?
                      Medical emergencies,accidents do happen-cater for them.
                      While there is never ever a situation of total certainty, we must cater for known risk and hope for the best.
                      Reducing salary hikes is disappointing news.

                      Comment

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