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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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  • #61

    #61

    Re : Mathematics on Pricing of Land

    Originally posted by Nataraajg007 View Post
    In chennai, mots of the ads are being repeated with no takers.

    The reason is simple. People are loosing jobs/promotions.increments.

    No cash.

    Hence naturally RE is collapsing
    Dear friend,

    The Chennai RE is showing downtrend now. The collapse has not started and it may not collapse also, but will continue to show downtrend.

    ks2071746

    Comment

    • #62

      #62

      Re : Mathematics on Pricing of Land

      Originally posted by ks2071746 View Post
      Dear friend,

      The Chennai RE is showing downtrend now. The collapse has not started and it may not collapse also, but will continue to show downtrend.

      ks2071746
      Dear friend

      continuation of downtrend for long period will result in collapse.

      Global recession has not impacted India yet fully. Here it will take somewhat longer duration.

      The so called big names like Citi bank, General motors, English electric etc.. are on the verge of bankruptsy...

      More names like this will continue to appear in news hereafter.

      Certainly this will impact all over world.

      Wait and see

      thanks

      chataara

      Comment

      • #63

        #63

        Re : Mathematics on Pricing of Land

        Today's news is TCS chennai has fired some 200 people.

        Out of these atleast 50 have take housing loans and would want to sell their house at lower cost to avoid further loss

        Comment

        • #64

          #64

          Re : Mathematics on Pricing of Land

          Originally posted by Nataraajg007 View Post
          Today's news is TCS chennai has fired some 200 people.

          Out of these atleast 50 have take housing loans and would want to sell their house at lower cost to avoid further loss
          Dear friend,

          I beg to disagree with you that 50 out of the fired 200 would want to sell their flats. If I remember having read in the news papers correctly, the fired people are those mostly new joiners and in the last 5% in the ranking on performance. I do not think, they would have gone in for their flats so soon. Kindly remember, the IT guys go in for their RE mostly when they get married or in the verge of getting married. Most of them get married when they have put in atleast 3 years plus in the field. And mostly the girls they opt are also in many cases are earning members, possibly from IT field or if unemployed, are from well to do parents. Especially in Tamil Nadu, the girls side will give the boy a good lot of gold and silver jewellery which will come handy to the boy to manage the house loan in case of difficulty.

          ks2071746

          Comment

          • #65

            #65

            Re : Mathematics on Pricing of Land

            Originally posted by ks2071746 View Post
            Dear friend,

            I beg to disagree with you that 50 out of the fired 200 would want to sell their flats. If I remember having read in the news papers correctly, the fired people are those mostly new joiners and in the last 5% in the ranking on performance. I do not think, they would have gone in for their flats so soon. Kindly remember, the IT guys go in for their RE mostly when they get married or in the verge of getting married. Most of them get married when they have put in atleast 3 years plus in the field. And mostly the girls they opt are also in many cases are earning members, possibly from IT field or if unemployed, are from well to do parents. Especially in Tamil Nadu, the girls side will give the boy a good lot of gold and silver jewellery which will come handy to the boy to manage the house loan in case of difficulty.

            ks2071746

            Dear friend

            One cannot manage the housing loan which is well above 30 or 40K per month with his wife or with her husband's reduced salary or with just gold and silver given as dowry.

            thanks

            chataara

            Comment

            • #66

              #66

              Re : Mathematics on Pricing of Land

              Originally posted by chataara View Post
              Dear friend

              One cannot manage the housing loan which is well above 30 or 40K per month with his wife or with her husband's reduced salary or with just gold and silver given as dowry.

              thanks

              chataara
              Dear friend,

              Surely one should be be able to manage around Rs. 30000 EMI with salary like od Rs. 20,000 pm each and help from parents alongwith some gold and silver jewellery sale or pledging temporarily , if considered with the income tax benefit on house loan interest , interest subsidy some IT companies give as also the rent the chap may save. But it is not easy for atleast the first 2 or 3 years by which time the property will be more yielding. Of course, the family will have to curtail their expenses to the barest minimum and learn/manage to live within what cash is left out every month. I feel, for a young couple of about 27+ age, an EMI of about Rs. 30,000 may not be an impossible to manage quantum. Upto Rs. 45000 range EMI will be almost not possible situation for the IT guys in this age range unless both together get in hand cash of Rs. 60000+ every month.

              ks2071746

              Comment

              • #67

                #67

                Re : Mathematics on Pricing of Land

                Whthere Rs 20,000 or Rs 30,000 EMI, the question is job stable or not. If stablility is the problem, no one will at any EMI

                Comment

                • #68

                  #68

                  Re : Mathematics on Pricing of Land

                  Dear friend,

                  Jobs are a little difficult now for those with less than 2 years of experience in IT field. I have referred to those of about 27 + years of age, who will have atleast 3 or 4 years of experience who can somehow manage to be in some IT job or the other with even Rs. 30,000+ pm type of take home pay and with his spouse also with atleast 2+ or 3 years experience can supplement with another Rs. 20000 + a month atleast. it will not be easy for the initial period of 2 or 3 years to manage the family within what remains after the EMI, but it is to be managed and possible though difficult in today's situation. 15 years back, when I went in for a flat of about 850 sq. ft. at Saidapet, costing Rs. 7.5 lakhs then, I managed to put in about Rs. 3.0 lakhs out of my savings/Provident Fund withdrawals and a house loan of Rs. 4.5 lakhs from HDFC at a whopping 16 % ROI. The EMI was coming to Rs. 7700 PM and my take home salary was then less than Rs. 10,000 with a son going to school, of course living in company township with a low rent of Rs. 300 PM. It was Himalayan efforts initially, but we did manage. The ROI has come down later to almost 8.5% progressively in another 7 years time and the loan was fully paid of 2 years back. I was the only breadwinner in the house and we did manage somehow. Unless some risk is taken and the couple manage, ing a flat any time will look most difficult and at times impossible. I feel, one should not only look into what income comes in today but also what can be the income possible in the coming years till the loan repayment. Afterall, the so called dull economy may reverse after 2 or 3 years and it may be flourishing again. Regards.

                  ks2071746:p

                  Comment

                  • #69

                    #69

                    Re : Mathematics on Pricing of Land

                    We now face a completely differrent world!!!

                    Originally posted by ks2071746 View Post
                    Dear friend,

                    Jobs are a little difficult now for those with less than 2 years of experience in IT field. I have referred to those of about 27 + years of age, who will have atleast 3 or 4 years of experience who can somehow manage to be in some IT job or the other with even Rs. 30,000+ pm type of take home pay and with his spouse also with atleast 2+ or 3 years experience can supplement with another Rs. 20000 + a month atleast. it will not be easy for the initial period of 2 or 3 years to manage the family within what remains after the EMI, but it is to be managed and possible though difficult in today's situation. 15 years back, when I went in for a flat of about 850 sq. ft. at Saidapet, costing Rs. 7.5 lakhs then, I managed to put in about Rs. 3.0 lakhs out of my savings/Provident Fund withdrawals and a house loan of Rs. 4.5 lakhs from HDFC at a whopping 16 % ROI. The EMI was coming to Rs. 7700 PM and my take home salary was then less than Rs. 10,000 with a son going to school, of course living in company township with a low rent of Rs. 300 PM. It was Himalayan efforts initially, but we did manage. The ROI has come down later to almost 8.5% progressively in another 7 years time and the loan was fully paid of 2 years back. I was the only breadwinner in the house and we did manage somehow. Unless some risk is taken and the couple manage, ing a flat any time will look most difficult and at times impossible. I feel, one should not only look into what income comes in today but also what can be the income possible in the coming years till the loan repayment. Afterall, the so called dull economy may reverse after 2 or 3 years and it may be flourishing again. Regards.

                    ks2071746:p
                    ks,

                    Consider yourself a lucky person. You may think that it was your ability to sacrifice and face hardships which pulled you through.

                    And no doubt this was the case !

                    But please remember that it was only the global economic boom for the last 27 years - from 1981 - which helped you keep you job as well as look forward to ever increasing salaries to pay off your loan and be the proud owner of your own home!!! Congrats.

                    Look at today's scenario and see what a world of difference 12 months has made.

                    The Whole World is nearing depression. Globally decline in assets has crossed US$ 40 TRILLION in just a single year. Global has declined over 20% and we are just entering the serious phase of this depression. These things take around 3-4 years to reach the bottom. They then take another 4-6 years to bottom out and start rising! Thats a decade gone. Then it takes around another 15 years to come back to the previous peak. Thats a grand total of 25 years!!!

                    Don't believe me? No problem. The Dow took till 1954 to come back to its peak of 1929. Thats 25 years. And it was helped by World War II which saw a huge stimulus in rebuilding the world, which only the US was able to do (as it was relatively unscathed by the War).

                    If you were in the same position now as you were when you had the Rs.10000 salary you will be in serious trouble. Today, people with 50k in salary - and how many people really have 50k salaries outside the IT business? - have 30k - 40k EMIs. This thing about pawning Gold is all good for the talk. But remember, this bears interest as well - and now-a-days at very high rates. So, as someone had said, its now all about job security. Anyone having a 60 lakhs home with a 60k EMI is probably looking at seeing this home come down in value to say 45 lakhs has an extremely uphill task to see his home still in his hands at the end of 3 years from now. He has my sympathies, but - like fate was working to your advantage then - it will probably work against this person now.

                    cheers

                    Comment

                    • #70

                      #70

                      Re : Mathematics on Pricing of Land

                      Herd mentality

                      People have herd mentality. they tend to realise the gravity of the problem only after it is too late to do anything. when all are ing RE one also gets carried away & gets into debt trap for 25 to 30 years . debt is very sharp edged sword. people will surely bleed by the cuts of debt sword

                      Comment

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