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!
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  • Originally Posted by pras_kul
    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
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  • Originally Posted by NG2012
    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?
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  • Originally Posted by fatichar
    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
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  • Originally Posted by NG2012
    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. :D

    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.
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  • 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.


    I am seeing this trend for the last 3-4 months. From last 2 weeks, I am getting 4-5 SMSes daily from Aashiyana brokerage firm regarding resales in Kothrud, Aundh, Warje, Bavdhan, sus road areas. Seems like lot of people are in a hurry to sell..

    All SMSes say: expected xx L (negotiable) :D
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  • resales

    "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".
    This phenomena could be more due to poor condition of flat and higher expected prices,rather than economic turn down or bust in RE market.The owner may be pricing himself out of the market.
    As far as some resales which have taken place to my knowledge.Regency Meadows,Dhanori had a two bhk flat resale for around 50lakhs two months ago.The upgradation of Porwal road and developments in the area could have contributed to the price.The building is quite nicely built anyway and is noticeable from a distance or even the departure lounge of airport.The green domes are quite visible on the six buildings.
    During my visits to Kesnand Road,Wagholi I found the projects of Karia Developers--Exotica,orchid mostly sold out.Orchid is having several buildings under construction and hand over to purchasers should be in Oct/Nov next year,though the full project will get over only in Dec 14 as some more buildings are to be built in the huge plot of land.Konark Exotica looks really beautiful and is fully sold out,though water is tanker/bore based,which is a drawback reducing prospects.,Micasa was having flats available for booking as its delivery is after three years. I visited Suyog Project on Lohegaon -Wagholi road,possession is in Dec 13 only.Probably with the boom in construction in the area,the probability of coming under PMC exists in the next three years.Marvel is off course beyond most middle class peoples budget.
    Well maintained flats and properly priced projects do find a market.But greed should not make one ask for the moon and find no one is ready to undertake a lunar journey in terms of price.
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  • Originally Posted by pras_kul
    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!



    The note you have put at the bottom should be at the top :). After reading you note its quite clear that you should not be investing in a house. No one should invest their entire saving in the just one asset class and no one should even invest all their savings anyways. Keep some money for emergency.

    If you are investing for a good retirement and dont want to get bothered about the RE and stock market noise and predictions that come on air and on forums everyday then open a SIP account with a good MF and invest regularly in it for the next 15-20 yrs. You retirement will be peaceful :)

    Investing in RE is a high risk game today and so one should invest directly in RE very carefully. Look at lower risk investment options which benefit from high RE prices and the general consumer led growth India has seen over the last 10 yrs.
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  • Originally Posted by realacres
    +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. :D

    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.

    Please give me the details of the flat. Might suit my needs.
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  • You have neither missed the Bus nor the Train.

    Think,
    Yeh Duniya Kal bhi thi, Aaj bhi hai aur Kal bhi Rahegi.
    Pahle bhi real Estate ka karobaar hota tha, aaj bhi ho raha hai aur aage bhi hoga.

    Good offers hamesha aate rahta hai - Sirf Eyes & Ears open rakhne ki jarurat hai - For sure Dimaag ka Batti bhi.

    Be very Careful Things seems to be too good is not always good. Har Chamakne wali cheez is not Gold.

    These are few basic rules to be happy even you missed the bus.
    God will send a good luxary car for you.
    Bhagya se jyada aur samay se pahle kabhi kisi ko kuch nahi milta ====
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  • Originally Posted by realacres
    +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. :D

    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.


    Bhai,
    Sabhi star ka khel hai. Bura mat man jana,
    Kabhi kabhi owner ka star aaisa kharaab ho jata hai ki Lakh ki cheej Thousands mein bhi nahi milti.
    Log aapke paas ke heera ko bhi Patthar bata dete hain.
    Aur jab Makaan maalik / Investor ka stars is good, then .....

    I had been to this situation before, I had gpood inventory to sale but nothing good, My pet brokers also shown me back. I loose money / give damage/ resold to one financer on less money....

    Some times tona / totka on that flat don't allow for quick resale / rent.

    Sometimes real legal problems -- So must check the Legal diocuments of these type of property -- May be disputed.

    Some times broker make a Lobby and not allow to sale by making rumers.

    Anyway, Must check this type of deals. If legally OK then refurbishment of flat and resale can be done to make good money.

    All the best====Cheers
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  • Mayan calendar

    "Yeh Duniya Kal bhi thi, Aaj bhi hai aur Kal bhi Rahegi"
    I can see that you dont believe in the Mayan Calendar.
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  • Originally Posted by vaibav123
    "Yeh Duniya Kal bhi thi, Aaj bhi hai aur Kal bhi Rahegi"
    I can see that you dont believe in the Mayan Calendar.




    Speaking of Mayan Calendar :bab (59):
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  • Instead of missing the goner bus we can talk about the bus to come. Even if somebody has missed the last bus of the day there will be another one in the morning.
    Its never too late for an end user but for investors there is a concern in the market as the rise may not be that high as has been for past few years. I believe some areas will continue to see growth in price while others will see a slower growth. With Inflation so high, being stagnant or correction is mostly out of my thinking. So any given day is good for end user to select his dreamhome.
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  • very true

    Originally Posted by realacres
    +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. :D

    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.

    This is true.

    I genuinely think that people who have bought property years back must have appreciated but they fail to understand the exact price market can give them and instead live in their own world of appreciation standards...
    it may result into shocking experience later when they actually enter into market for selling it...
    We have 1 bhk (2 year old construction)apartment at Hadapsar which was given on rent of Rs. 5000 until June end 2012...after first renter left it we raised the price to Rs. 6000 but for first two month nobody showed interest...we reduced the rent to Rs. 5500 but again 1 month nobody showed up.. finally gave it on same rent of Rs. 5000...

    it short, market will show us "what we deserve"...
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  • rental hikes

    "it may result into shocking experience later when they actually enter into market for selling it...
    We have 1 bhk (2 year old construction)apartment at Hadapsar which was given on rent of Rs. 5000 until June end 2012...after first renter left it we raised the price to Rs. 6000 but for first two month nobody showed interest...we reduced the rent to Rs. 5500 but again 1 month nobody showed up.. finally gave it on same rent of Rs. 5000"...
    This experience of not getting yearly hikes in rent have become common. My friend had a two bhk in Tingrenagar lane 13,but whe he sought to increase rent by 2000 rs,he could not get any decent tenant and had to be happy with Rs 500 increase only.
    Probably the clause which speaks of 10% increase in L&L agreement needs to be revisited in present times.
    You have to study the market,check with neighbors etc about resale prices in the area or get a market shock.
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