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Have I missed the 'bus'

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Have I missed the 'bus'

Last updated: December 19 2012
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  • #11

    #11

    Re : Have I missed the 'bus'

    pune RE is like PMT you will never know by how much you missed the bus or when the next bus will come .... if see one just hop on if you can buy a ticket

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    • #12

      #12

      Re : Have I missed the 'bus'

      Buying RE depends on several factors. If you are a 40 years old guy, have 2 kids and you earn 25 lakhs per year and have 70 lakhs in bank accounts, FDs and other liquid assets/instruments, and find the current rented accomodation not great, Rs 4000 and Rs 5000 per sqft is NOT going to make a whole lot of difference. Yes, you will pay 18 lakhs more for 1500 sqft house, but its not going to impact your financial well being drastically. Your EMI might increase by Rs 18000 per month but over the period that will be easy to manage.

      Whether you have missed the bus or about to board a bullet train is not easy to predict.

      House may have been cheap 10 years ago but if you had no money then its futile to think about it.

      However, if you are 30 year old guy with 20 lakhs in cash and 10 lakhs salary, extra Rs 10,000 per month may have serious impact if the salary doesn't keep rising and wife doesn't work.

      In the long term its always a good idea to own your home. If you think that Rs 10 lakhs are not going to make a whole lot of difference to you an if you need a place to live, go ahead and buy.

      For investment, RE seems to be a bad choice after looking at the statistics but nobody knows the future and most talented people get proven wrong....so its futile to think too analytically about the entire RE market. Think about your own circumstances and then decide.

      IMO, with higher RE prices and less number of sales transactions, the market is ripe for correction by 10-20% an there will be distress sales...but all this will need a trigger. Market triggers are impossible to predict and so if one has money and willing to absorb 20% fall in the house prices, one is good to go with purchase.

      If one is pure investor wanting to cash in the 20% rise in the RE market, it doesn't look like a good time.
      ---------------------
      Houses have been expensive since time immemorial and thats why poor people lived in small huts and rich people in sprawling houses even 2000 years ago. As long as you are bullish on your own future, just buy.
      Last edited December 11 2012, 08:48 AM.

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      • #13

        #13

        Re : Have I missed the 'bus'

        PMC buses

        [QUOTE=PointOfView;653095]did you listen to this forum and then missed the bus ?[/QUOTE
        ]Post is quite new,so chances of missing the bus due to the "valuable" advice is very less.
        But point is important.hear advice and decide on your own based on your needs,risk level and circumstances.
        Last edited December 11 2012, 09:41 AM.

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        • #14

          #14

          Re : Have I missed the 'bus'

          Originally posted by pras_kul View Post
          Friends,

          I wanted to make an investment in Pune; but the prices have appreciated a lot. I was just wondering whether it makes any sense to invest in a property now? We have seen prices going from 2500 to 5200 psf, but now if we enter at 5200 psf, how much appreciation can we expect? Places like Punavale, Dhanori, Wagholi...which are not even livable have started charging in the range of 3400-3900; Should I just take history of RE (prices would never correct, but would be stable)...and move on with the mad rush of investing?...or is it that I have really missed the bus? so maybe consider any other option of investments.

          Note: I am already exhausted in terms of financial resources, will be shelling out my entire savings, doing all this in a hope that post retirement I would have something to make a living out of!

          Do not get carried away looking at the history.

          Understand that people have put money in real estate when no one else was ready to invest in. Now they are reaping benefits. And it is partly luck and coincidence.

          I know people who loaned huge sums from friends and family members to invest in real estate only to repent later.

          While the so called 'RATES INCREASE' happens on paper ( times of india, HT etc), its a PAIN IN THE A%% to be able to see a property at a given rate in real life.

          The scenario painted by media that you can easily sell a property for profit is any thing but truth. I repeat , it is a pain in the a$$ to sell a property. The hassle , time involved, the procedure and all that.

          So the idea of 'make huge moolah in real estate' NOW, is a misconstrued one. It is not easy. It is not that you put one lac and boom it will be 6 lacs in 6 years.

          Remember that people are not going to line up to buy your 'appreciated' property. The guy buying a resale property wants to squeeze as much money as the guy who wants to sell.


          At the end, the buyer has upper hand cos he has LIQUID cash.

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          • #15

            #15

            Re : Have I missed the 'bus'

            Originally posted by dubyaskin View Post
            While the so called 'RATES INCREASE' happens on paper ( times of india, HT etc), its a PAIN IN THE A%% to be able to see a property at a given rate in real life.

            The scenario painted by media that you can easily sell a property for profit is any thing but truth. I repeat , it is a pain in the a$$ to sell a property. The hassle , time involved, the procedure and all that.
            I have seen properties costing well above a crore languishing in market for years. There are lots of rowhouses/twin bungalows in Pune that are lying empty for well over 7 years as owner is away in the US and doesn't want to rent it out. Owner might be patting his back for such a great investments and counting his huge gains but buyers get immediately put off by cobwebs, dirt and falling plasters of these unoccupied houses. Its not easy to sell properties when builders are still active in the area and amenities and fixtures are getting better each passing month.

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            • #16

              #16

              Re : Have I missed the 'bus'

              While I agree in principal to what you're saying, in my opinion the best way to quickly sell off a resale property is to price it competitively. If your entry point is much below the current market price and if you decide to be sensible about what you can profit from the resale..it should be a lot easier..

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              • #17

                #17

                Re : Have I missed the 'bus'

                Originally posted by pras_kul View Post
                Friends,

                I wanted to make an investment in Pune; but the prices have appreciated a lot. I was just wondering whether it makes any sense to invest in a property now? We have seen prices going from 2500 to 5200 psf, but now if we enter at 5200 psf, how much appreciation can we expect? Places like Punavale, Dhanori, Wagholi...which are not even livable have started charging in the range of 3400-3900; Should I just take history of RE (prices would never correct, but would be stable)...and move on with the mad rush of investing?...or is it that I have really missed the bus? so maybe consider any other option of investments.

                Note: I am already exhausted in terms of financial resources, will be shelling out my entire savings, doing all this in a hope that post retirement I would have something to make a living out of!
                There is nothing like missing the bus. Do your research and look out for opportunities regularly in the market. You will at the end narrow down on your dream home as per the prevailing market conditions

                Comment

                • #18

                  #18

                  Re : Have I missed the 'bus'

                  Originally posted by NG2012 View Post
                  I have seen properties costing well above a crore languishing in market for years. There are lots of rowhouses/twin bungalows in Pune that are lying empty for well over 7 years as owner is away in the US and doesn't want to rent it out. Owner might be patting his back for such a great investments and counting his huge gains but buyers get immediately put off by cobwebs, dirt and falling plasters of these unoccupied houses. Its not easy to sell properties when builders are still active in the area and amenities and fixtures are getting better each passing month.
                  Any chances of finding such houses in 70-80L budget?

                  Comment

                  • #19

                    #19

                    Re : Have I missed the 'bus'

                    Originally posted by fatichar View Post
                    Any chances of finding such houses in 70-80L budget?
                    I had been to Sukhwani Discover which was constructed 4 years ago. 3 flats were lying vacant in the top floor and the builder was who initially was willing to let go of the flat 3500 is now charging 4100 saying that rates have increased even though if you see the condition of the flats its little horrible

                    Unless the owner resorts to a distress sale or if he wants to get rid of the house its unlikely you will get such a good deal

                    Comment

                    • #20

                      #20

                      Re : Have I missed the 'bus'

                      Originally posted by NG2012 View Post
                      I have seen properties costing well above a crore languishing in market for years. There are lots of rowhouses/twin bungalows in Pune that are lying empty for well over 7 years as owner is away in the US and doesn't want to rent it out. Owner might be patting his back for such a great investments and counting his huge gains but buyers get immediately put off by cobwebs, dirt and falling plasters of these unoccupied houses. Its not easy to sell properties when builders are still active in the area and amenities and fixtures are getting better each passing month.
                      +1 man. I have seen some flats which are up for sale for past 8-9 months & some were in so bad shape that you may even play 'Bhoot Bangla err Bhoor Flat, Bhoot Flat' there.

                      Just like to inform that in my neighbouring society, there is a flat for sale for atleast an year. Earlier that chap was asking 82L, last month the flat price is 70L with owner ready to bear broker charges, but still no buyers. The society office chaps are also fed up as this investor has not paid maintenance charges to the society for past 4-5 months.
                      If you are happy, you are successful.

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