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RE is again bullish

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RE is again bullish

Last updated: April 23 2012
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  • #91

    #91

    Re : RE is again bullish

    Its Reality

    Originally posted by Technocrat View Post
    Space- I think thats what seniors here are trying to say i.e. the apparent affordability is more of an illusion than reality.

    While we are on this topic, I remember a recent conversation that I was having with a friend who recently came back from a long stint in US.
    We were talking on similar lines that we are discussing here & my friend mentioned that he is really worried about the huge Debts that people have in US, he was of the opinion that if the Credit crisis(Huge number of people defaulting on credit card bills) happens it may be much bigger than the sub-prime crisis.

    Are the Banks or Govt keeping a tab on this area in US?
    technocrat,

    Nope its not an illusion. People are paying hell lot of money for something very stupid and nothings illusive about it. Why? Because people can afford it. And its reality. Things are not going to change unless a slowdown like USA hits India in future. (My heart breaks to say this, becaue I can't imagine what will happen to people like myself then !). Till that time, nothings illusion.

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    • #92

      #92

      Re : RE is again bullish

      Originally posted by realacres View Post
      ...What's more, many people fail to understand Cong gimmicks of psuedo-secularism & think these are Gandhis, though in actual they are mix breed Nehrus.
      True, only hinderance India has is Netas like this. But its all same around the world & all countries have to live with it. Itlay PM - Silvio Berlusconi is facing charge against corruption. Same goes to Japan where most of the PM's face charge for corruption.
      India has the Jeal to go ahead & thrive. I am in no way saying its the best in the world. But yeah, India is progresssing, life is getting better & I love my country.

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      • #93

        #93

        Re : RE is again bullish

        Stock markets have started to tumble. The recession might now be over too soon as is being projected by the media. It takes a long time to recover. The builders have started increasing rates based on the media propoganda about companies hiring and increments etc. The worst is probably not over yet, so its safer not to be bullish. Now that the festival season is over, I hope the builders realise that nothing has improved so far and rates start coming down.
        Last edited by lazybone007; November 3 2009, 05:32 PM.

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        • #94

          #94

          Re : RE is again bullish

          Originally posted by wiseman View Post
          Shirish,

          You should not get the feeling that everyone is targeting and dumping on you, please. Whatever you have said are all facts and no one is contesting them. But, over the years guys like me have progressed from simply injecting facts (which is good from history point of view) to figuring out the cause-effect relationships and meaningful correlations between facts that permit us to figure out what the future holds for us (because your investments grow or decline in the future). Of course, all of this is imperfect and anything may happen, but we all live on hopes!

          Some of us have been lucky to have lived our productive lives in the greatest boom period of Independent India (early 1980s to 2007). But you must also see that this was also the period that saw massive increases in global debt and a decline in ethical and moral standards (especially in the West) which is resulting in what looks like the greatest bust in the modern history of the world in the coming years as all this credit implodes and disappears. Some of the stories I can tell you of whats coming will really depress you - so I leave it unsaid ...

          Also, as someone said, this huge jump in population makes all those Cars and ACs unviable going into the future (check out whats happening to the US as its infrastructure is falling apart) and other so-called measures of "progress" has not made me or most others one bit happier than we were in the 60s and 70s. In fact, given that we had far less money to burn in those days, I for one was far more happy!!! Some British psychologist has even come out with a formula that will calculate your happiness quotient!

          While its true that the favorable economic winds are shifting towards the East, its also true that we live in a world which is contracting rapidly economically (and this may go on for the next decade or more), we are running out of natural resources too quickly and will soon have to go back to living a far less "comfortable" world (more sensible and sustainable definitely) and may not see the kind of boom we saw in the last 25-30 years in our lifetime.

          Whats also important to note is that things are hugely inflated (rent of 15k, most people don't have salaries that big and so on) and this points to the complete degradation of your paper money and much more degradation to come as scarcity of resources will bring in alarmingly high and persistent inflation sometime in the medium term future. Most assets will decline (except Gold/Silver) and while you will feel rich, you will somehow find it hard to meet ends meet and save a surplus. And given that there will be many more people than jobs (in an economically contracting world that demands less), you cannot expect ever-increasing salaries as competition will raise unemployment levels to permanently higher levels and keep salaries supressed. Increasing costs due to scarcity and high interest/inflation rates and weakly growing wages will see your EMIs come under some serious strain while also ensuring that real home prices remain growing weakly or flat for a long period of time. Don't expect your home to get you into rretirement early - America did this and are paying for it.

          In fact yesterday on TV DLF was talking about "value" homes which is where they are going to make money. And what are the specs? 10 to 20L prices and 500-600 SFt!!! And they claim they have the land bank to do it. Most RE companies are clutching at whatever straws are blowing in the wind to get out of this deep hole they have got themselves into!

          Its worth keeping these things in mind and not get carried away with all this fake "progress" we are making, which are mainly a Western way of looking at things!!! And see where 50 years of this has brought them!

          cheers
          Though it's not directly related to RE and totally off topic but still worth a read where the world stands today.

          ]http://www.theecologyfoundation.ie/index.php?option=com_content&task=view&id=357&Item id=110[/URL]

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          • #95

            #95

            Re : RE is again bullish

            Originally posted by shirishtiwari01 View Post
            True, only hinderance India has is Netas like this. But its all same around the world & all countries have to live with it. Itlay PM - Silvio Berlusconi is facing charge against corruption. Same goes to Japan where most of the PM's face charge for corruption.
            India has the Jeal to go ahead & thrive. I am in no way saying its the best in the world. But yeah, India is progresssing, life is getting better & I love my country.
            I love my country too. But nowhere else in the world you will find a single family ruling for 60+ years including Fidel Castro.

            Anyways, coming back to topic, today realty scrips got hammered down by whopping 10% in single trading session. What's more, the QoQ results have shown the profits & net sales down by 48-52%. Now, if this is the situation, how do builders claim SOLD OUT most of inventory?
            If you are happy, you are successful.

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            • #96

              #96

              Re : RE is again bullish

              Urapakkam

              The land prices in Urapakkam has come down nearly 20% compared to 2007.

              When i enquired a land which is 1.5Km from the GST road, in 2007, the sq.ft price was around 1100, now in that area it is around Rs.800.

              I would like to know, a) whether the prices will further come down or it is the fair time to invest, b) whether Urapakkam will have appreciation in future?

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              • #97

                #97

                Re : RE is again bullish

                The land prices in Urapakkam has come down nearly 20% compared to 2007.

                When i enquired a land which is 1.5Km from the GST road, in 2007, the sq.ft price was around 1100, now in that area it is around Rs.800.

                I would like to know, a) whether the prices will further come down or it is the fair time to invest, b) whether Urapakkam will have appreciation in future?

                Comment

                • #98

                  #98

                  Re : RE is again bullish

                  Don't worry Rahul Gandhi is not even forty and will rule for another two three decades and by that time Priyanka's child or Rahul's own child will be ready. Be proud to be Indian but don't invest in Real estate now.

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                  • #99

                    #99

                    Re : RE is again bullish

                    I see Rahul G as crowd gather, being young politician, he should come up with more idea to eradicate the poverty and bring more employment but hes just talks(farts) like his grandma n mother - Hamara haath garib ke saath . Atleast in BJP terms, something used to happen but it's all silent in state govnt from past 6 yrs. Moreover Vilasrao Deshmukh used to enjoy all film star ceremony n never given attention to suicide cases of farmers.
                    I became emotional when I watched Goshta Choti Dongraevadhi, Tingya n gabhicha Paoos movies which potrayed the life of farmers.

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                    • Re : RE is again bullish

                      Rahul is only average, maybe even below avg!

                      Originally posted by kirunOnly View Post
                      I see Rahul G as crowd gather, being young politician, he should come up with more idea to eradicate the poverty and bring more employment but hes just talks(farts) like his grandma n mother - Hamara haath garib ke saath . Atleast in BJP terms, something used to happen but it's all silent in state govnt from past 6 yrs. Moreover Vilasrao Deshmukh used to enjoy all film star ceremony n never given attention to suicide cases of farmers.
                      I became emotional when I watched Goshta Choti Dongraevadhi, Tingya n gabhicha Paoos movies which potrayed the life of farmers.
                      Kirun,

                      Rahul is probably a below average chap. And you see the deterioration down the dynasty. Motilal was probably the brilliant one who built up the family wealth and name (though behind the scenes). Jawaharlal had his weaknesses, but had enough to be considered well above average! Indira had many more weaknesses but her strength of character and love of united India made her a hero when India needed one (1971) and that forgave all her other mistakes (Emergency, Bluestar, etc). Sanjay was probably the worst.

                      At least, Rahul is turning out to be a thinker and strategist of sorts (Rahul is supposed to be so average that they even specially invented a shooting competition where he won the Gold - he was the only competitor!!.

                      The problem with us is, having lived for 1000s of years Kings, we cannot really adopt democracy and are comfortable in a sycophancy-ridden structure like the Congress. Just see how the BJP is committing political harakiri without any outside help and you will realise that even a mediocre Congress is better than a crazy BJP, MNS and other hooligans. At least they are predictable and the real work is anyway done by our Civil Servants (one of the best examples of which is the RBI which has arguably become probably the best Central Bank in the World)!!!

                      cheers

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