I am a new member on this forum..... after reading through various threads I am completely confused about whether its a good time to buy a property...... I am not looking for investment option in RE..... rather my first home...... but looks like this is the most difficult time to take a decision..... Has RE reached a peak of its prices?????? Is it a plateau????? or is there still a large scope for price increase????????

What I would like to do is……. Buy a 2000 sq ft land and build my own house.... about 1000 to 1200 sq ft..... I am not looking at center of the city but let’s say about 20-30 min drive from Laxmi road.......... any direction...... what I could afford is.. the land price of Rs 1,000 per sq ft..... so that I spend 20L on land and about the same on construction, interior and other costs........ but the land prices in the areas I am looking are around Rs 3,000 per sq ft.......

What should I do?????. Reduce my expectation and go for a 1 or 2BHK flat??? or buy only 1000 sq ft or less land?????? or simply wait for prices to drop????

People on IREF seems to be either of the two following opinions:
1. They look at the history and are confident that the RE prices will never drop and if you want to buy..... buy now....... unless you will miss the train.....
2. They look at global economy, recent RE drops in US, UK, China etc. and believe that we have reached the extreme now and there is only one way forward and it is downward......

My question is......... Is there a way we can get a reliable data for Pune?????? Is it possible to get data on,
1. How many % of flats / houses in Pune are actually occupied and how many of them are merely investment properties
2. Are the EMI's regularly paid......... has there been any change recently....
3. What is the trend of selling prices
4. A statistics of number of properties sold per year or recently per month
and so on...........
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  • in 20 - 30 Km range from laxmi road , you are still in the middle of pune , somewhere till aundh or baner. Its impossible to get a land 1200 sqr ft for 20 L .

    Infact if you are searching for a piece of land , nr pune , this rate is long breeched, now you cant get this rate even 20 mins drive from hinjewadi , laxmi road is a far cry.
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  • If 20 L is your budget, then areas you can look for is near talegao or chakan. Regarding buying new 2BHK, you can't get a new one in 40L budget, you may get a resale flat in that budget. I will suggest you if you want to invest in land with that budget, look at some smaller cities like nasik / aurangabad.
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  • What you said is exactly right and is the fact of the time.......... the numbers I quoted are perhaps what I and any other middle class person could afford........ and if we look at the rental prices..... these numbers should be logical (????).... because the rent should be an indicator of price of the property..... however the current prices seems to have no connection wth the retal prices at all........does that mean these prices are simply not true prices????? theey are just swollen by builders?????? (kind of obvious!!!) and also because we are too emotional about having a house....... that we dont care whatever the price is......... we just want to have one of our own......... if these reasons are true.......... eventually there should (????) be a time when the prices will start falling... and my numbers would no more look stupid........ You are right 20-30 min drive would be still quite close to city center...... I could relax my expection till double the distance for the same price....... Say PCMC, Hinjawadi, bavdhan, balewadi etc. areas.....
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  • Originally Posted by dev12345
    What you said is exactly right and is the fact of the time.......... the numbers I quoted are perhaps what I and any other middle class person could afford........ and if we look at the rental prices..... these numbers should be logical (????).... because the rent should be an indicator of price of the property..... however the current prices seems to have no connection wth the retal prices at all........does that mean these prices are simply not true prices????? theey are just swollen by builders?????? (kind of obvious!!!) and also because we are too emotional about having a house....... that we dont care whatever the price is......... we just want to have one of our own......... if these reasons are true.......... eventually there should (????) be a time when the prices will start falling... and my numbers would no more look stupid........ You are right 20-30 min drive would be still quite close to city center...... I could relax my expection till double the distance for the same price....... Say PCMC, Hinjawadi, bavdhan, balewadi etc. areas.....

    dev12345, buying a plot in/around Pune and building first dream home is no longer possible for middle class people. It's only for HNI's. For 40L, you can buy a 1bhk in places like Kharadi, PS, Wakad, etc and live happily everafter.....oops.....cannot say happily everafter, but you can atleast live in these areas. If you think prices have peaked, you can be true, but they will also not fall.
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  • Hmmmm!!!!!!!!. yes what is said is true....... and RE prices in India might never fall....... because of various political reasons we already know...... but I am wondering how long this can go on???? there should a an end somewhere....... just an example..... one of friends has bought a house in UK for 100,000 pounds in 2007 with 0 % down payment..... that time he was very confident that he has taken the wisest decision......... today the home report value of the house is about 60,000 pounds !!!!!!!!! If this can happen in UK......... it can happen in India as well.........
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  • Originally Posted by dev12345
    Hmmmm!!!!!!!!. yes what is said is true....... and RE prices in India might never fall....... because of various political reasons we already know...... but I am wondering how long this can go on???? there should a an end somewhere....... just an example..... one of friends has bought a house in UK for 100,000 pounds in 2007 with 0 % down payment..... that time he was very confident that he has taken the wisest decision......... today the home report value of the house is about 60,000 pounds !!!!!!!!! If this can happen in UK......... it can happen in India as well.........

    This has happened in UK, US, Dubai as they are developed and can also happen in India, but not in next 5yrs. Other possibility is big RE scam is unearthed and many land bank managers get caught with black money, in that case its possible that RE prices will drop or a political party like AAP comes into power or someone like Anna Hazare sits on a fast for all middle class home buyers and bring draft a law saying anyone owning 2 flats, or 2 plots, etc, they will have to pay 20% wealth tax of the current property value or circle rates per year. Basically making realty purchase more for personal home than for any investment opportunity. It is possible in near future....
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  • i just want to understand , how is rental price an indicator of the sale value.
    What must be the ideal ratio of rental per month as a %age of sale value.
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  • No explanation but deep dived expert advise

    THIS IS TIME TO SELL NOT BUY REAL ESTATE......... stay liquid

    Dont ask me why and how- research on resell market, and look for inventory/demand ratio.
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  • Time to buy first home

    If you have sufficient liquidity and are sure of future flow of income,Go ahead and buy a flat for yourself.No one can predict with absolute certainty about rise and collapse of RE.
    Your decision should be taken on the need for a flat,your other commitments.
    If you are staying in rented flat,having transportation problems r difficulties etc and it can be solved by buying a house,you should not keep waiting.
    Do due diligence,weigh all factors-finance,legal,family advice,locational checks etc,assess unknowns to the best of your ability and plunge in.
    While I am no economist or RE pundit,my reading is that barring a war,grave political uncertainty the prices will keep creeping up slowly.
    We cannot compare our economy with UK,US where it is said that RE prices fell.Our situation is different.
    Anyway as the flat is for your stay,increase and decrease in price(if any) should not make a difference in the short term.
    My only advice is go in for ready built with completion certificate.No under construction,pre launches etc whom so ever the builder.
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  • Buy Now or after 10 years

    I am planning to settle down in Pune after my retirement which is almost 13 years away. Till my retirement I will be working at various parts of Maharashtra/India. Till my retirement I will be provided accommodation by my employer. If I purchase now I can take home loan and earn rental income. After retirement I have to purchase the house from my savings. Please suggest whether to purchase now or wait till my retirement.
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  • Buying a house is a holistic decision.
    Where to buy?place.project,budget etc
    You will be travelling and tenants will use the flat.
    Think over this aspect.
    You will finally move into house which will be 13 years old when you start using it.
    Probably you can build up a fund for buying a house few years before you retire.
    No one can predict price direction/rate of increase.
    You have lot of planning to do before deciding.
    What ever you decide-go for RTM or resale only.
    Dont get into u/c how so ever attractive it sounds.
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  • Invest in land early in life and buy an apartment closer to your retirement
    Most people prefer to invest in real estate. By real estate investment, we mean buying land for capital appreciation or apartment for earning rental income. As real estate is an immovable, illiquid investment requiring “lumpy” initial capital, the question is: At what stage in your career should you invest in it?

    Here, we discuss why you should invest in real estate when you are nearing retirement and buy land during your early and mid-career phases.

    Read more at:

    How to time your realty buys | Business Line

    My view:

    This gives some pointers towards the query above.
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  • Originally Posted by vaibav123
    Invest in land early in life and buy an apartment closer to your retirement
    Most people prefer to invest in real estate. By real estate investment, we mean buying land for capital appreciation or apartment for earning rental income. As real estate is an immovable, illiquid investment requiring “lumpy” initial capital, the question is: At what stage in your career should you invest in it?

    Here, we discuss why you should invest in real estate when you are nearing retirement and buy land during your early and mid-career phases.

    Read more at:

    How to time your realty buys | Business Line

    My view:

    This gives some pointers towards the query above.



    The view given is for investors..People for self use how they should plan ...
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  • Originally Posted by manmay
    The view given is for investors..People for self use how they should plan ...

    Many factors come into play.
    Are you in a touring job?
    Where is the family?
    Have you decided where you want to settle down and is your family in agreement with the place of choice.
    For example I would like Nashik but my family may want Pune.
    How many years of service left and does your company provide accommodation?
    Are you ready to take a home loan and buy an RTM?
    It will be holistic planning before a decision is taken and family should be fully involved.
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  • Originally Posted by vaibav123
    Many factors come into play.
    Are you in a touring job?
    Where is the family?
    Have you decided where you want to settle down and is your family in agreement with the place of choice.
    For example I would like Nashik but my family may want Pune.
    How many years of service left and does your company provide accommodation?
    Are you ready to take a home loan and buy an RTM?
    It will be holistic planning before a decision is taken and family should be fully involved.

    If it's your first home and you plan to stay in Current city for next five years go ahead and buy the property you are living in presently. Why? That property is lucky enough to push you to the level where you can think of buying a property.

    I never wanted to write this but at the end all endeavour is multiplied by the 1% of bloody good luck and if you are living in a house which is lucky for you why not own it?
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