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Sudden rise in RE adds in news papers

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Sudden rise in RE adds in news papers

Last updated: May 27 2013
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  • #21

    #21

    Re : Sudden rise in RE adds in news papers

    Originally posted by realacres View Post
    OK, so this flat didn't go for 55l & now the owner is asking 65l. What a logic? What needs to be seen is that despite owner hiking the price, is there a buyer for it. Let me know the updates in this regard.
    I was not clear in my earlier post..I mean I was getting a 3BHK flat in Supreme Palms in 55 lacs & I was waiting to get it in 50 lacs or something (As one of my neighbor had brought a 3 BHK in 52 lacs directly from builder in MAy'09) ...then That one got sold (I dont know what was the price for the flat in that deal)....Then I have seen another deal of another 3 BHK in Supreme Palms in 65 lacs (I person who was staying on rent in one of the flat in SP purchased this one in 65 lacs)....Yesterday I was browsing thru magicbricks & seen another 3BHK up on sale in 67 lacs (may negotiate till 65 lacs)....Still I see many emty flats here in SP, But I have not seen any desperation for sale here at least in Sp....And i dont think anybody here has got a very good deal in resale in recent time....

    So, my main point is that, talking about 30 or 50% crash in mumbai, bangalore or say a single property in harapsar dont interest me...what I am interested I dont see any fall in price...even I have missed opportunity to buy it in 52 lacs & now it costing 65 lacs u can calculate the rise...

    Even i never seen here anybody has shared his/her ex about price reduction (I mean he/she bought a property at even 20-30% price reduction)...
    Cheers,
    -Ashish

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    • #22

      #22

      Re : Sudden rise in RE adds in news papers

      Rates have risen right in front of our eyes, rightly or wrongly. And whether we choose to believe it or not.

      I know for a fact that the rates in Mumbai have only hardened over the past 3 months. Oshiwara, Andheri-West/East, Lokhandwala, take any new project, pick up the p_h_o_n_e and check the numbers.

      Not fun, not fair.
      Last edited by razer; December 8 2009, 01:16 AM. Reason: editor does not like the word !

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      • #23

        #23

        Re : Sudden rise in RE adds in news papers

        Investors and builders are patient and they will hold on till they have the means to sustain. I think most are sitting on lot of cash and are not in a hurry. Buyers are emotionally driven and will take a decision on pressure from friends/builders/etc.
        Last edited by ttt43; December 8 2009, 09:36 AM.

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        • #24

          #24

          Re : Sudden rise in RE adds in news papers

          Hi Ash.

          Rates for resale will never ever fall. People will hold on and not sell.

          I know of 2 people in my parents' apt complex in Delhi asking for 1 and 1.25 crore for 3 years without selling their flat. They stayed put and actually raised their asking rate as the prices around went up - now asking for 1.5 instead of 1.25 for a ground floor flat. Still no buyer.

          The price which crashes is the price of new flats being built. I saw mostly area reduction in 2008 Sept to 2009 Sept. Hardly any price reduction.

          Instead there was marked reduction in green space - very crowded apartment complexes are on offer now. Will be concrete jungles when built.
          Venky (Please read watch a or before posting)

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          • #25

            #25

            Re : Sudden rise in RE adds in news papers

            what i feel that prices are not going to increase or decrase in next 3-4 years...builder may manipute the area, addtional cost and show the new reduced price etc..

            WE CAN SEE that 2 years recession did not let the RE down in Pune more than 20% (and some area 25%).. and now it is said that we are recovering from it...we donot see any major event..even dubai ecomony is not bigger than USA...and we should not forget that NRI money is also invested in Pune..who buys the property and kept it empty for years..with the hope that one day..they would return to home...

            so according to me, if you are buying the first home, buy it..donot wait...it is a good time.. and BE remember that property prices are not going to increase in near future..moreover, you will be paying loan with interest.

            I have seen many people talking about 50% correction..but i donot see.. it will ever happen..but new buyer will not even see good profit as old buyer had been...

            GOOD LUCK...

            Comment

            • #26

              #26

              Re : Sudden rise in RE adds in news papers

              Originally posted by Venkytalks View Post
              Hi Ash.

              Rates for resale will never ever fall. People will hold on and not sell.

              I know of 2 people in my parents' apt complex in Delhi asking for 1 and 1.25 crore for 3 years without selling their flat. They stayed put and actually raised their asking rate as the prices around went up - now asking for 1.5 instead of 1.25 for a ground floor flat. Still no buyer.
              Well how much rent do their properties fetch? Is it more than making a simple FD of 1.25 cr? Did they do
              their math at all? Its hard for me to accept that there are many such people, who dont do simple math
              for their investments.

              My friend price is what is paid by the buyer and NOT what seller quotes

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              • #27

                #27

                Re : Sudden rise in RE adds in news papers

                Originally posted by manna143 View Post
                what i feel that prices are not going to increase or decrase in next 3-4 years...builder may manipute the area, addtional cost and show the new reduced price etc..

                WE CAN SEE that 2 years recession did not let the RE down in Pune more than 20% (and some area 25%).. and now it is said that we are recovering from it...we donot see any major event..even dubai ecomony is not bigger than USA...and we should not forget that NRI money is also invested in Pune..who buys the property and kept it empty for years..with the hope that one day..they would return to home...

                so according to me, if you are buying the first home, buy it..donot wait...it is a good time.. and BE remember that property prices are not going to increase in near future..moreover, you will be paying loan with interest.

                I have seen many people talking about 50% correction..but i donot see.. it will ever happen..but new buyer will not even see good profit as old buyer had been...

                GOOD LUCK...

                Yes price rise from current levels is impossible which is already proved by price stagnation from 2008 levels.
                Wether there will be fall or no, depends on % of investors in the market.

                I am sure during boom time, many investors have jumped in to make easy/quick money.
                Price stagnation will not help them, and they would like to cash in their investments, which puts downard
                pressure on the price. So patience...

                Good luck to every one.

                Comment

                • #28

                  #28

                  Re : Sudden rise in RE adds in news papers

                  Originally posted by Venkytalks View Post
                  Hi Ash.

                  Rates for resale will never ever fall. People will hold on and not sell.

                  I know of 2 people in my parents' apt complex in Delhi asking for 1 and 1.25 crore for 3 years without selling their flat. They stayed put and actually raised their asking rate as the prices around went up - now asking for 1.5 instead of 1.25 for a ground floor flat. Still no buyer.

                  The price which crashes is the price of new flats being built. I saw mostly area reduction in 2008 Sept to 2009 Sept. Hardly any price reduction.

                  Instead there was marked reduction in green space - very crowded apartment complexes are on offer now. Will be concrete jungles when built.
                  I have given my example here coz ppls are quoting that there are huge pile of investor flat & they will sell it in loss (first this Diwali , Then early 2010 then 2012 & then I dont know when)....But reality is that I didn't get a decent flat in resale since last 1 years...I dont know who are the investor & why they will sell those flats in loss
                  Cheers,
                  -Ashish

                  Comment

                  • #29

                    #29

                    Re : Sudden rise in RE adds in news papers

                    I would reckon for every 100 units, 10 units would be investors (read flippers).

                    30 are long term investors, those who will hold regardless of what the current prevalent climate is. These are those who have grey sources of income and those who know no other form of investment or are not comfortable with other forms of investment. I think about 60% are nett end-users.

                    At any given point in time do you find more than a handful of resale apartments for any ready possession project? I have seen that resale apartments number in low single digits for many sought after locations.

                    Flippers who want to exit tend to ask for income from grey sources, and also don't like loaners. They want a quick exit, and without bank's involvement as much as possible. Flippers always have the best apartments though, the best view, the best location, and often more than one parking. These are things they throw in as a total package, and discount it from the builder's price by about 10-15% if you are ready for a full cash deal.

                    For the vast majority, these deals are simply not possible.

                    Comment

                    • #30

                      #30

                      Re : Sudden rise in RE adds in news papers

                      Replying to general talk on this thread ...

                      Originally posted by vfour View Post
                      It took long for Dubai RE to crash after USA RE crash.

                      I guess tide is coming this way.

                      Builders and wise investors will try their best to cash their properties before tide hits us.

                      I am not an expert. Just personnel forecast by the way.

                      Folks,

                      By now you must be tired of me saying the same thing again and again - that we are NOT done with the downward market in most assets including RE (except Gold and Silver).

                      The problem is not with you or me or anyone else on this forum. The problem is with the period under analysis - we are all having knee-jerk reactions to what is basically short-term swings in prices. In 2008 the bears reacted and now the bulls are reacting to the "recovery rally".

                      The other problem is our inability to properly grasp the size and seriousness of the excess-debt problem globally and the severe pressure it will be putting on "growth" in the next decade or two on every country in this world!!!

                      Please note that only a year ago, Dubai was considered a solid defence against the recession-hit countries of this world. And today? ... It is not only the $80 Billion that it has no way of repaying (rumor has it that prices around Burj Dubai has declined 77% from expected sale prices in 2007). It is also the TRILLIONS (yes, you read it right, Trillions) of dollars of derivative bets placed on the financing of this Dubai "Mirage in the Desert".

                      In fact, I saw real fear when everyone with something at stake came out with statements within hours about how Dubai had no effect on their finances. The truth will take another few weeks/months to hit. The fear was a recurrence of 2008 and so people found that burying their heads deeper in the sand gave them a warm feeling of comfort . Somehow, the Ostrich is becoming the favorite bird of the World.

                      Please note that the US problem is a thousand times that of Dubai and China is rumored to be many times that a problem of excess credit and faulty accounting and cover-ups.

                      Today, the US (and global) markets are tanking despite good performance by FedEx. This is because of the downgrading of Sovereign rating of Greece. Other countries in the same boat include Latvia and (surprise!) the UK!!! Now that will be a big one if and when it hits!

                      Its just a matter of time before the markets crash again and I expect this around mid-2010 (say May). You will once again see the fear but this time it will be worse as people will have far less of a cushion, having spent their little cushions believing in the "recovery" of 2009!!!

                      I understand the instant responses by people to RE prices going up or down on short-term basis. This is because, in the last 10 years, we have all been brought up on everything happening instantly (the American way). RE cycles are typically 10-year or more cycles. We have only just started the downturn which should easily take another decade to return to peak prices. There will be many false bottoms on the way down (like the one in end-2008).

                      To give you an example, I was approached by an owner in late 2007 to buy a 3-Bed 1430 SFt flat within walking distance of MG Road in a nice location for 72 lakhs (previous last sold price was 65 lakhs). This house in 2005 was 30 lakhs. I told that person that I will wait for prices to fall. Today, I'm still being chased for a price of 50 lakhs. I have let them know that I'm waiting for 40 lakhs or at the most 45 since the Metro is close and price may not fall all that much. This person is not able to sell and that is why I'm being chased .

                      I already have a 23% - 30% gain in my hands. Waiting for a 40% to 45% fall before I consider it safe to buy all cash down! If it does not happen, no sweat off my brow as I still hold the cash for a better deal. This is inner city. Outskirts have much greater supply and other intrinsic problems of their own and I expect them to fall much more before this decline is over. Having seen this kind of thing before, I have the patience to wear down the seller/builder. Patience can save 10s of lakhs in excess payment to seller as well as to bank in interest (especially as interest rates will rise sharply in the next few years and will kill the unwary buyer today who does so with sizeable loans!!! Watch out for interest rates as they can lead to inability to pay and defaults in the next few years as they are expected to rise sharply!!!).

                      What about you?

                      cheers
                      Last edited by wiseman; December 9 2009, 12:44 AM.

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