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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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  • #31

    #31

    Re : Have I missed the 'bus'

    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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    • #32

      #32

      Re : Have I missed the 'bus'

      Investor need to have realistic expectation when he is trying to sell off his property.
      To quote a few examples from PS area:

      Mirchandani Palms:1600 sq ft total sellable area: 87L
      Vasant Avenue:1300 sq ft:72L
      Kunal Icon row house:2100 sq ft: 1.3 Cr
      Roseland Rowhouse: 2200 sq ft: 1.37 Cr
      Shubhshree Rowhouse: 1800 sq ft: 1 Cr

      The rate quoted is just rediculous that too for more than 6 year old property.Not willing to negotiate more than 3-4%.
      I had seen these properties during May-June & still none of them is sold.Pissed off Owner decided to rent it out.

      Wondering,if in current market rate these are not selling off what would happen after 2/3 years given the owners expect appreciation by almost 10% y-o-y.

      Sensible pricing & exit the market is the key,which seems to missing with the them.

      Comment

      • #33

        #33

        Re : Have I missed the 'bus'

        it surely makes sense that I need to gauge my capacity and make the investment
        "Jab naash manuj per chata hai pehle vivek mar jaata hai"

        Comment

        • #34

          #34

          Re : Have I missed the 'bus'

          Originally posted by fatichar View Post
          Please give me the details of the flat. Might suit my needs.
          Waiting for the details

          Comment

          • #35

            #35

            Re : Have I missed the 'bus'

            Originally posted by alok_kumar View Post

            The rate quoted is just rediculous that too for more than 6 year old property.Not willing to negotiate more than 3-4%.
            I had seen these properties during May-June & still none of them is sold.Pissed off Owner decided to rent it out.

            Wondering,if in current market rate these are not selling off what would happen after 2/3 years given the owners expect appreciation by almost 10% y-o-y.

            Sensible pricing & exit the market is the key,which seems to missing with the them.
            But are there buyers if the prices is reduced 3-4%. If yes then its a bad decision on the part of the seller not to sell at 3-4% discount. If the seller is just putting out an ad / notice to sell to check the market value then its different (have seen this where owner has not intention to sell but just to get a market valuation they put the property on sale)

            People dont sell property like a normal sales man. Some of them dont even budge 1 lakh and wait for months waiting for a buyer instead of selling it at 3-4% discount and moving on.

            In the cases you have pointed out the sellers dont seem to have problem with loan EMI or might have bought the property without a loan and so can hold on to the property and rent it out instead.

            Crazy times in Indian RE

            Comment

            • #36

              #36

              Re : Have I missed the 'bus'

              missing buses and metro

              Be advised that we Puneities no longer miss buses we miss metros.
              We have a feeling that if we don't get 100% profit in short time in sale of flats we have missed the bus.We feel left out out if rent hike for our flat is more than 20% on YoY basis.This is of course our expectation when we are on the owner side of the fence.
              But being realistic in expectations is the basic fundamental of investment. You miss one bus,look for another avenue of investment.
              Look for long term SIP in Quantum Gold savings fund,Long term equity fund or even IDFC premier equity fund or sterling equity fund for periods of five years at least.( By the way, I dont work for either of these two MF)
              Invest in FD on childrens names above 18, so as to save on IT as they may not be working.(Neither do i work in any bank)
              PPF accounts will be a nice safe investment8.8% compound interest is a good ROI.
              RE is not the only avenue of growth in wealth. Steady investments in carefully selected instruments,taking tax into account is a way to catch the forthcoming Metro.
              If you invest in these instruments you may be able to board the first ride of metro from Ramwadi to Vanaz.
              I get reminded of the recent article in the paper where an executive of some big company in his hurry to avoid missing the train ,held on to the door handle of /c compartment and fell to his death.Very regrettable death it may be ,but we should not commit financial harakiri by rushing into so called non stop buses-be it RE,Land or EMU farms.
              Steady saving in various asset classes will the best avenue to build your future.
              (Note all disclaimers in good humor only to lighten this serious subject of wealth creation).
              Last edited December 18 2012, 06:21 PM.

              Comment

              • #37

                #37

                Re : Have I missed the 'bus'

                Originally posted by truptid
                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"...
                +1. And these people forget the fact that they won't get the price of new flat either, no matter which location it maybe.

                Coming to rent, I will give you similar eg.

                A owner of 2BR flat wanted 16k rental (earlier it was 14.5). He couldn't get any for about 5 months & finally rented out for 15k, that too after small repairs done at his cost.
                Even at older rent of 41.5k, the owner lost 14.5x5 = 72.5k as against the 5.5k (500x11) more he would be making in 11 months. This is straight loss of 72.5-5.5 = 67k.
                But rather than focussing on this 67k, owner feels he striked a good deal as he is now getting 500/month more .

                fatichar,

                I would have loved to give you the details of flat, including project name, building & flat number but then my address will be known .
                But yes, if you know good broker personally, ask him about the current state of RE & he will inform you.
                If you are happy, you are successful.

                Comment

                • #38

                  #38

                  Re : Have I missed the 'bus'

                  Originally posted by vaibav123 View Post
                  Be advised that we Puneities no longer miss buses we miss metros.
                  We have a feeling that if we don't get 100% profit in short time in sale of flats we have missed the bus.We feel left out out if rent hike for our flat is more than 20% on YoY basis.This is of course our expectation when we are on the owner side of the fence.
                  But being realistic in expectations is the basic fundamental of investment. You miss one bus,look for another avenue of investment.
                  Look for long term SIP in Quantum Gold savings fund,Long term equity fund or even IDFC premier equity fund or sterling equity fund for periods of five years at least.( By the way, I dont work for either of these two MF)
                  Invest in FD on childrens names above 18, so as to save on IT as they may not be working.(Neither do i work in any bank)
                  PPF accounts will be a nice safe investment8.8% compound interest is a good ROI.
                  RE is not the only avenue of growth in wealth. Steady investments in carefully selected instruments,taking tax into account is a way to catch the forthcoming Metro.
                  If you invest in these instruments you may be able to board the first ride of metro from Ramwadi to Vanaz.
                  I get reminded of the recent article in the paper where an executive of some big company in his hurry to avoid missing the train ,held on to the door handle of /c compartment and fell to his death.Very regrettable death it may be ,but we should not commit financial harakiri by rushing into so called non stop buses-be it RE,Land or EMU farms.
                  Steady saving in various asset classes will the best avenue to build your future.
                  (Note all disclaimers in good humor only to lighten this serious subject of wealth creation).
                  +1. SBI has started a new tax benefit FD scheme with 5 yr lock-in period. The YoY returns are 16.64% - 17.6% depending upon the age. The money more than doubles in 5 yrs, that too without any head-ache . So why bother else where when you have such fantastic schemes going on.
                  Informing this so that all of you can benefit. Hope I don't sound like SBI agent.
                  If you are happy, you are successful.

                  Comment

                  • #39

                    #39

                    Re : Have I missed the 'bus'

                    i so wish people like those posting on this thread posted, along with their experiences in other threads of this forum, specially those related to delhi and noida area. people there quote sum most insane prices, and make each other believe as if those r the true rates, fooling themselves more than fooling others. probably they get too influenced by uneducated and jobless brokers, and, feel happy/satisfied and richer to hear such rates for their areas.
                    Last edited December 18 2012, 11:54 PM.

                    Comment

                    • #40

                      #40

                      Re : Have I missed the 'bus'

                      Originally posted by realacres View Post
                      +1. SBI has started a new tax benefit FD scheme with 5 yr lock-in period. The YoY returns are 16.64% - 17.6% depending upon the age. The money more than doubles in 5 yrs, that too without any head-ache . So why bother else where when you have such fantastic schemes going on.
                      Informing this so that all of you can benefit. Hope I don't sound like SBI agent.
                      Can you kindly provide the name of this SBI scheme? 16.64 to 17.6 (even before tax) is a damn good rate from a stable bank like SBI.

                      Comment

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