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Has anyone seen the sudden surge of property advertises in newspapers

I opened today's SAKAL and found it full of property adds.

Even S3 of Pimple Saudagar was there in it. There was also ad of Pride Platinum, of Ganeshum

What does it mean?
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  • Rajesh P, The flats in my parents apt complexes were speculations gone partly wrong.

    One guy bought for 50L or so in 2006. Wanted 1 Cr plus. Could not get it.

    Now the buyer has moved in. Drinks and makes a nuisance of himself, being of a different background from the rest of the residents. Nobody wants to protest, since such people can do anything.

    The other guy bought for 40L and rents out at 20,000 PM. Wants to sell at 1Cr. No takers.

    Uskokumar,

    My info is reasonably accurate based on broker responses and the project staff. Kosmos has sold over 4000 flats. Top floors are left - 80 towers with 6-8 flats per floor is itself some 500 odd flats, which will not sell now at all, except at heavy discount.

    Building risk of course exists. But should go through if the market continues like this for 6 more months.

    Prices of built up flats are not falling at all. Omaxe next to 93B in NOIDA was selling at 3600 psf built up 6 months ago. Now price is 4200 or 4400 depending on location. The flats are ready to move in.

    With such discounted prices direct from builder, no resellers are active. In 93B the flats were bought for 5000 or even 6000 psf. How can they sell when now ready to move in flats are being sold by builders nearby for 4000 psf?

    Only an idiot would sell and tell his family and friends he bought for 60 Lakhs and sold for 40 Lakhs after waiting for 3 years to see his flat built. Even if it made financial sense as some here argue, it does not make emotional sense.

    People just dont behave that way. They (irr)rationalise, change short term speculation into long term investment, and do something else for a few years, so that nobody notices their stupidity. After 10 years if they sell for 80L, who is going to calculate what his FD return would have been?

    Often after 10 years, prices run up a lot, he sells for 1.5 crores and boasts of his fantastic 60L investment. Although he might have repaid 1.1 Cr in loans - who is calculating? People always boast of the purchase price, not loan repayment cost.

    The only people who might go for distress sale are builders. Those fire sales happened 4 months ago and some people got lucky.

    Just like some people bought stocks in March 2009 and doubled their money in 6 months.

    I have never lost money in the stock market in the last 10 years with 2 downturns in the period. But I have missed many opportunities.

    Unfortunately, there were many on other fora who talked similar to Wiseman, Realacres etc. I agreed with their pessimism.

    I had not discovered this site then to be misled even further.

    But I never cry over missed opportunity, only look for more.

    One lesson? Six months is enough for getting oversold or overbought. Repeating the same mantra for more than 6 months means one misses the turning point.

    By this token, six months of upside has resulted in overbought stage in both stock and RE. Downturn is 1-2 months away at maximum. Or tomorrow at minimum.

    Still for RE there will be arrested development with static prices, no downturn in prices, as argued above.

    Or so I believe.
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  • Usco, what kind of property are you looking for?
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  • Originally Posted by realacres
    LoL:D. Lets outsource it to Kumar builders/Manikchand as they have many guys sitting on bench:D.

    If I outsource to builder I will not get low cost. thats the problem :)
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  • Assumption of this thread that since there is flurry of advt in newspaper, its a sign of RE prices goign down. However after start of this thread in Dec 2009, prices have not looked back since then for 3+ years.

    So if we again see a scenario when there is flurry of advt in newspapers, builder sending SMS to various people etc, should we assume that its a sign of one more curve of price rise ahead ?

    Just trying to see if there is any correlation.
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  • I have observed that in past 365 days, Maharashtra Times in Pune has advertised about 350 different properties on its first page. A full page colour ad on the front page, promising a new launch that finally brings end to my so far futile search of serenity and calmness and spiritual well being and having my wife smiling always and neighbors jealous always. That too, every time the offer for best pre-launch rate is for first 10 -15 flats only. Still, after seeing a new ad everyday for past one year, yet I am searching for a house.

    Oh human nature, how inhumane thou art!
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  • Originally Posted by compuwalah
    Assumption of this thread that since there is flurry of advt in newspaper, its a sign of RE prices goign down. However after start of this thread in Dec 2009, prices have not looked back since then for 3+ years.

    So if we again see a scenario when there is flurry of advt in newspapers, builder sending SMS to various people etc, should we assume that its a sign of one more curve of price rise ahead ?

    Just trying to see if there is any correlation.


    prices are gonna increase again

    visited Kul Ecoloch this week, rates are 4750 psft. surely if that far flung area is asking 4750 psft that too for a under construction properties, clearly ready/near=ready properties are undervalued in areas like wakad, balewadi etc.
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  • Nobody is selling property these days. All builders are trying to sell a lifestyle and buyers are falling for it. The differences between new construction and a ready property are the specifications and the amenities. Those barely cost anything to the builder. Yet the price difference between new construction and ready properties is quite remarkable. But buyers envision themselves with this high-end lifestyle and are ready to pay hugely inflated prices...

    I am not sure if that is a relevant point on this thread, but I wanted to make it nonetheless...
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  • Good observation. And not only ads have increased, even RE exhibis have increased showcasing same projects here & there.

    Other thing which I have observed is rather than putting up picture of project or giving more details about the project, there is generally some pic of model or even hot model, some even have model with a dog !!

    Some ads below :- :bab (3):







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  • Increased ads,models and sales

    If IPL needed cheer girls to add glamor,then RE ads can take models to promote sales. Advertisers hope that some flats may get sold just by enticing ads.These distracting ads on roads may cause distraction and accidents anyway.
    The aim of the game is to somehow push out unsold inventory at higher prices.
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