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Mathematics on Pricing of Land

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Mathematics on Pricing of Land

Last updated: August 5 2009
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  • Re : Mathematics on Pricing of Land

    Some Mathematics

    Originally posted by Natarajg007 View Post
    Unfortunately the fear psychosis is just about to begin when people see prices moving up and desperately start buying once more sending prices to dizzy heights in RE. A few IT guys dont make much difference!
    It seems speculators specially (2nd time buyers, investors) are desperately moving out of RE.
    It would be double whammy for builders, as lot of 2-3 years old flats are off-loaded in mkt. These investor-resale flats are quoted at much lower rate than builder rates.

    This recession is not only related to IT and it is making lot of difference already.
    I checked few areas in Pune, RE is down by 20% in last 12 months. Similar is the case in Mumbai.

    Comment


    • Re : Mathematics on Pricing of Land

      I stay focused

      Originally posted by Natarajg007 View Post
      Nice one! LOL! Wisey states
      1. Govt has vested interest! So if govt wants growth our Wisey wants India to collapse. So once more the NRI coterie game of self aggrandisement is exposed.
      2. Sensx falling for 2 days and our friend is talking about 8000. Markets correct. The game is not over yet. I would expect even 3300 on Nifty (Wisey can translate into Sen terms). That does not mean it is over. Just that it will consolidate and shoot up.
      Wisey, please try to trade then you will know what markets are all about. Just once try something before writing here. We will be blessed then!

      Folks,

      I continue to stay focused on what I believe will happen based on studying relevant facts and coming to my own conclusions.

      I continue to maintain that Govt does have undue vested interest in "manufactured" growth - i.e, one that is not natural, but one that is created by creating distortions in the economy which will show up as problems later on. You only have to see the example of the USA and how blowing bubbles created all this mess. Therefore, the Govt does have a vested interest in spinning the news to always show "up, up, up", like the "Shining India" campaign.

      This does not mean that "wisey" does not want growth! What Wisey wants is sustainable growth based on honesty, not selfish interests like Nats .

      Second, the markets have fallen for more than 2 days and I only mentioned that 8000 is a possibility especially if the US takes a turn for the worst. In my belief, there is even a possibility that the DOW will eventually reach a nominal level of 1500 which looks unbelievable now, but how many unbelievable things of 12 months ago have already happened!!!

      Third, no one really knows what the markets are all about. So, if you wait to know about it like Nats, you will forever wait to trade and not make any money at all - just like him who has turned away so many buyers for his property because they did not quote what he wanted. And even with an imperfect knowledge of he markets, somehow I seem to be making over 100% per month in the markets. I like it, don't you?

      Finally, buy property now only if you need to stay in it, you feel that it will save rent and if you have the payments covered in a guaranteed way. Otherwise, it will be wise to see where the world ends up in a couple of years and then decide, when - as I believe - prices will be at least around 25% lower or worse AND you will have more savings to put down a larger chunk of the price. I think thats sensible. How about you?!

      I stay focused and steady on this course. Now with Obama finally throwing in the towel, all pretences are off. Markets will take years to come back (of course the usual ups and downs will be there for people like me to make a "few peanuts" . But a sustained Bull Market in any area is a few years away from starting in any case. Meanwhile concentrate on your respective core competencies and get ahead in your respective professions!!!

      cheers
      Last edited June 18 2009, 11:50 AM.

      Comment


      • Re : Mathematics on Pricing of Land

        Originally posted by wiseman View Post
        Folks,

        I continue to stay focused on what I believe will happen based on studying relevant facts and coming to my own conclusions.

        I continue to maintain that Govt does have undue vested interest in "manufactured" growth - i.e, one that is not natural, but one that is created by creating distortions in the economy which will show up as problems later on. You only have to see the example of the USA and how blowing bubbles created all this mess. Therefore, the Govt does have a vested interest in spinning the news to always show "up, up, up", like the "Shining India" campaign.

        This does not mean that "wisey" does not want growth! What Wisey wants is sustainable growth based on honesty, not selfish interests like Nats .

        Second, the markets have fallen for more than 2 days and I only mentioned that 8000 is a possibility especially if the US takes a turn for the worst. In my belief, there is even a possibility that the DOW will eventually reach a nominal level of 1500 which looks unbelievable now, but how many unbelievable things of 12 months ago have already happened!!!

        Third, no one really knows what the markets are all about. So, if you wait to know about it like Nats, you will forever wait to trade and not make any money at all - just like him who has turned away so many buyers for his property because they did not quote what he wanted. And even with an imperfect knowledge of he markets, somehow I seem to be making over 100% per month in the markets. I like it, don't you?

        Finally, buy property now only if you need to stay in it, you feel that it will save rent and if you have the payments covered in a guaranteed way. Otherwise, it will be wise to see where the world ends up in a couple of years and then decide, when - as I believe - prices will be at least around 25% lower or worse AND you will have more savings to put down a larger chunk of the price. I think thats sensible. How about you?!

        I stay focused and steady on this course. Now with Obama finally throwing in the towel, all pretences are off. Markets will take years to come back (of course the usual ups and downs will be there for people like me to make a "few peanuts" . But a sustained Bull Market in any area is a few years away from starting in any case. Meanwhile concentrate on your respective core competencies and get ahead in your respective professions!!!

        cheers
        Interesing WIsey. So your core competency is writing here? Right! You have agreed to this one as well. So you are paid by some force to write here and my writing here puts your writings to shame is your anger with me!! Sorry I cant help it, since I try to educate folks and pass my free time.
        BTW, for all your talk. I have a buyer ANANDXX who writes here. He is seriously asking for land in CHennai (need not be RK salai, he will be pleased with Saligramam without fail and will take even in Porur, Manapakkam etc). His budget is 40L to 60L. His want is minimum 1/2ground. Can you get this for him? I have given more details in another post under Hallucinating Bears!
        Please help him. If you can do that then you have some meaning in writing here. If you cant then your bluff will get louder and like Rasputin you will face an end. Just 1/2ground for 50L (fifty lakhs) is what he wants.
        PS. You are also talking about future and not of today. So dont tell others as if I am waiting even with sellers available. I cant sell one ground in Saligramam right across Arcot road for 1.5C that crooks like you ask. I will quote 3C! Gotcha?

        Comment


        • Re : Mathematics on Pricing of Land

          Originally posted by wiseman View Post
          Folks,



          Third, no one really knows what the markets are all about. So, if you wait to know about it like Nats, you will forever wait to trade and not make any money at all - just like him who has turned away so many buyers for his property because they did not quote what he wanted. And even with an imperfect knowledge of he markets, somehow I seem to be making over 100% per month in the markets. I like it, don't you?

          cheers
          BTW Wisey why did you not sell your RK Salai land or your RE in Kormangala (2 grounds). Answer that and then talk about whether I sold my land or not!
          Let us not bother about my understanding of markets but let us find out why you ask others to sell when you are not selling in the first place. Arent you a terrible liar?
          Last edited June 18 2009, 07:08 PM.

          Comment


          • Re : Mathematics on Pricing of Land

            How are you so sure I did not sell?

            Originally posted by Natarajg007 View Post
            BTW Wisey why did you not sell your RK Salai land or your RE in Kormangala (2 grounds). Answer that and then talk about whether I sold my land or not!
            Let us not bother about my understanding of markets but let us find out why you ask others to sell when you are not selling in the first place. Arent you a terrible liar?
            The problem with conceited people like you Nats is that you think that there is only one way to think and thats yours. So, there is nothing more to be known or learnt because you already know everything, right?

            Well, brilliant man, how did you arrive at the deduction that I have not sold either or both? Some more of your mathematics?

            cheers

            Comment


            • Re : Mathematics on Pricing of Land

              Originally posted by wiseman View Post
              The problem with conceited people like you Nats is that you think that there is only one way to think and thats yours. So, there is nothing more to be known or learnt because you already know everything, right?

              Well, brilliant man, how did you arrive at the deduction that I have not sold either or both? Some more of your mathematics?

              cheers
              Why dont you tell us if you sold them? Now this is a double joke? One you own property and two you sold them that too overnight. You mentioned that you own Koramangala property in the last 10 days. You sold them suddenly in the past 10 days.
              I know you lie. However the limits of your lies is making you suitable for Vijay awards! ROTFL.
              PS. I will ask Vijay TV to award you with the BIGGEST LIAR OF THE CENTURY AWARD.

              Given below is the post from Wiseman not too long ago. JUST A WEEK AGO. I think with this I will like to refer to him as LIARMAN only!

              Originally Posted by wiseman ="http://www.indianrealestateforum.com/chennai/t-better-to-invest-in-stocks-than-real-estate-4886-post23251.html#post23251"][/URL]
              Nats,


              I could buy a 2400SFt plot (land) around half a km from the Koramangala BDA complex for less than 15k - 4 months gross pay for me and I got 2 of them!
              Last edited June 19 2009, 11:45 PM.

              Comment


              • Re : Mathematics on Pricing of Land

                Nataraj 007 you must take it a bit easy.

                Chill out Nataraj - This much anger is not good for you.

                Comment


                • Re : Mathematics on Pricing of Land

                  Dear Wiseman, Ragavan Ayangar and other blogers please do not stress over Nataraj.

                  It is not his fault for being a Kenathu Thavali and uninformed.

                  BTW on the long run Indian Real estate is a great Investment.
                  The time in the market is more important than trying to time it.

                  There will be up and downs and speculators will be burnt in the up and downs.

                  I am very confident about Indian RE price growth.There will be two factors pushing it up (On the long term)

                  1. The growth of Indian Economy.
                  2. The long term Inflation rate of India.

                  What we call real growth (Growth less Inflation) may be 8% - 10%p/a on the long term,But longterm Inflation of India will be well over 8% (Dont belive the Goverment CPI figures).


                  The biggest losers will be the ones who are not invested in Indian RE Market for the long term (10 - 15 yrs).

                  Inflation will eat cash value.
                  long term Value of INR is another prime factor.

                  Comment


                  • Re : Mathematics on Pricing of Land

                    Originally posted by Economist View Post
                    Dear Wiseman, Ragavan Ayangar and other blogers please do not stress over Nataraj.

                    It is not his fault for being a Kenathu Thavali and uninformed.
                    .
                    Do you understand what you write?
                    "Stress over" - What does that mean in your English?
                    "Kenathu Thavali"...I assume you meant Thavalai! - Who is uninformed? BTW, you are also talking about a positive outlook for India and how is it any different from your Kenathu Thavali?

                    It looks like taking me on, is a way to gain popularity! BTW dont worry about some Ayangar, he is just a dup id. Very soon I will know about Economist's id!!

                    Comment


                    • Re : Mathematics on Pricing of Land

                      History of 90s

                      In the 1990s in India the interest rate kept going up to the point that in 1994-96 I could get 18% clean safe interest in Company FDs and not one of these deposits disappeared. I am not talking about RBC or another famous name that disappeared. Simple, interest is 15% and you get 3% upfront commission in decent finance companies.
                      Now our friends argue that interest hardening will result in RE contraction. How foolish they are, only time will tell. Go back to the 90s. The interest rate raised and RE prices started soaring up. Atleast until late 96. Then they stabilised while interest rates reduced. Now using basic incomplete knowledge of Economics will not let these bears understand why. I will leave with what history has shown in the 90s. Anyone who bought in the 1992-94 went rich by 96 and never had to worry till today. We in 2009 are somewhere trudging towards 92 period. You know what a boom we are waiting for. Incidentally some of my investments were in 1988 and I know how much they have grown. So if you continue to believe the bear talkers who never give you one reason beyond talking about the greatest depression in the world and so on, then you are going to feel bad.
                      One newspaper today is talking about Chinese aggression, good story! In the 90s people talked that the world will end in the late 90s. Did that happen? Same way all those talking that RE will fall in Chennai are going to just make you get nervous. On this board atleast one Natpudan came and mentioned the RE he bought and the price he bought it for. I am yet to see one seller talk here. In other words, there are almost no sellers! Those who want to miss the bus again as they did in 2004 can sell or miss buying. For the rest it is a one way ticket to the moon.
                      Last edited July 15 2009, 12:49 AM.

                      Comment

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