The real state boom was empowered by too many +ve factors during the year 2004 - 2008

    Cash Inflow from foreign Investers
    Home loan interest rates were quite low
    Boom in IT Sector
    People buying more than one house on loan just for investment purpose even if it was a costly affair.
    Many NRI's buying houses in India for investment.
    Black money from politicians and other sources going in to reality
    Now all of the above conditions have reversed


      Foreign investers taking out money
      Interest rates too high
      IT Boom some what burst
      People who brought more than one home are desperate to sell their 2nd home
      NRI's selling their invested houses as they need the money there.
      Black money some what already invested and not giving that result. Some more can flow in but it can not change the fate of this industry.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
      now all the +ve has become -ve and I see no reason for property rates going 25 - 50% down in another 1 year.

      So the mantra for home buyers is wait and watch policy unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.

      And for the ones who want to sell, sell your property even if it did not give u any profit.
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  • So I offloaded some more of my RE

    Originally Posted by nabishek
    The crash in prices is because the real valuation and real worth of properties/assets are catching up.

    I tend to agree with you under normal market correction. But this is biggest post WW2 recession (depression?) than that. Please read up my earlier post where I mentioned my criteria when RE will look attractive again. That my friend is real valuation.

    Originally Posted by nabishek
    For a person, who is ***ing property out of their surplus, or for self use from their own money and if they are not going to think of ******* it back for another 15-20 years and have enough cash and other assets to fall back on anytime, why should they bother about the recession?Are you saying RE is not worth investing at all for another century?I am sorry, I beg to differ.

    They should not bother if they bought it at RIGHT PRICE and have guaranteed income and no unexpected expenses that require cash-out. I have not met 1 person in last 6 months who can guarantee his income for next 5 years (let alone life). I already mentioned you about my criteria for the Right price.

    Originally Posted by nabishek
    If you can tell me any other avenue where businessmen/politicians can keep Crores of Rupees thats not on the books, evading tax and without being noticed in India.I will get convinced that RE is not the safest haven.
    People who have that kind of money, already know. Plus do not expect anyone to spell it out so openly.

    Originally Posted by nabishek
    Holding RE is not just for returns, Its about marking one's territory.From time immemorial we have seen this behaviour,Looking back at History also we can see People who own the land, rule that land.

    Wow. Last I checked we were a republic democracy and we can nott create any independent territories. Anyway, it would make sense for people who are intent on farming that land and not just SIT ON IT.

    Originally Posted by nabishek
    Neverthless, My understanding is right. Read my comment again seems you overlooked the "not"
    :-D

    Originally Posted by nabishek
    During the recession, These *5.7% people would be able to adjust and adapt quicker than the rest.
    Heard of Bengal femine in the last depression?

    Originally Posted by nabishek
    I believe India is a stronger country than how the world perceives it.
    I agree whole heartedly. I am planning to write a separate segment why I feel India is stronger (and its not the reasons you would normally expect). But I agree completely. Mera Bharat Mahan!!!


    Originally Posted by nabishek
    Every one have the right to their own opinion and have their own reasons to act and believe in a way,it should be respected.
    Agree again.

    Originally Posted by nabishek
    I am preparing myself for any inadvertant situation I may face in the future due to my job or due to the economy.I feel its the wisest thing to do now, so I am saving up cash by investing in FD's and monitoring my investments closely,I have no debt and do not over exert my capacity.Its a conscious decision I have made from the inputs I have gathered.
    Good for you. I hope others have done their own arrangements as well.

    Originally Posted by nabishek
    To say holding cash is the only best thing to do is also foolish.

    Sitting on Cash does not mean have Rs. 5Cr. In bank or under the bed. Diversification is the name of the game. Look again for Tangible Productive assets.

    Originally Posted by nabishek
    Nick,I really admire your knowledge and grasp of the world economy, learning lot from your posts.keep your thoughts coming.
    You too.
    CommentQuote
  • I tend to agree with you under normal market correction. But this is biggest post WW2 recession (depression?) than that. Please read up my earlier post where I mentioned my criteria when RE will look attractive again. That my friend is real valuation.


    This is the first recession/depression threat Independent India is going to face.We will have to wait and watch how we cope up and react to it.

    The Indicators are clear, The future for coming decade looks bleak in terms of growth.

    As Wiseman once stated, The possibility of us going back to the state in which we were in the 90's is not ruled out.In that case, The real valuation you are suggesting wont see light until 2011-12 or may take even longer.

    My current expectation/estimate of the right price seems more probable and realistic to me given the present unrelenting nature of Indian real estate,mentality of people who invest any surplus in Gold and Real estate and the debatable impact of global recession on India.

    Would surely revisit it again at a later time.

    I am trying to be cautiously optimistic and hope that our over-protective policy and good regulation could have shielded us of the major harmful effects of the global crisis.

    They should not bother if they bought it at RIGHT PRICE and have guaranteed income and no unexpected expenses that require cash-out. I have not met 1 person in last 6 months who can guarantee his income for next 5 years (let alone life). I already mentioned you about my criteria for the Right price.


    Those who have bought, Believe its the right price for them because they were able to afford it and felt comfortable doing so.

    We also cannot guarentee that we will wake up the next morning when we go to sleep each night, do we try not to sleep.Life moves on.When faced with unprecedented situation or crisis people adapt making sacrifices.If one was prepared they will sacrifice less.

    People who have that kind of money, already know. Plus do not expect anyone to spell it out so openly.


    Sure, people have their ways.

    Wow. Last I checked we were a republic democracy and we can nott create any independent territories. Anyway, it would make sense for people who are intent on farming that land and not just SIT ON IT.


    We have modern rulers.constituitionally and democratically elected/empowered politicians.They indulge and promote ghettoisation deliberately to gain cheap political mileage.

    Also, I am talking of the psyche of every person to own a land in their motherland and call it home or native.No one would want to live like nomad or vagabond.

    most NRI's invest in Indian RE because this is where their root lies.

    Heard of Bengal femine in the last depression?


    Yes I have.Its unfortunate and could and should have been avoided.

    I agree whole heartedly. I am planning to write a separate segment why I feel India is stronger (and its not the reasons you would normally expect). But I agree completely. Mera Bharat Mahan!!!


    Looking forward to it.

    Good for you. I hope others have done their own arrangements as well.


    I am learning important life lessons in the process, there's lots more to assimilate.

    Sitting on Cash does not mean have Rs. 5Cr. In bank or under the bed. Diversification is the name of the game. Look again for Tangible Productive assets.


    Thats how I have been planning my portfolio.I emphasis, proper risk assesment and proper backup is necessary even if it means less return.

    When recession/depression is bad, all investment instruments will be affected.We are currently in a volatile environment and nothing is as it seems.One should choose and plan based on their future needs and their comfort level.

    You too.


    All the best to you,Nick.
    CommentQuote
  • Wonderful posts and arguments in this thread ...

    The quality of last few posts on this thread has reached high levels. Very nice to see it.

    You will notice that all of this has been achieved without a single bad (or unnecessary) word!

    Congratulations everyone :D

    Now its my turn to threaten to quit this forum - just kidding!!! :D

    In times like this, here is a good philosophy to go with ...

    - Hope for the best, prepare for the worst

    - Cut your losses as soon as possible. Take your profits even sooner! :)

    - While Cash become King, Debt could be your (financial) Death

    cheers
    CommentQuote
  • Dear friend,

    I agree. The quaility of the posts and the comments from many have improved a lot and very nice to read the posts and the comments/views. I am sure this trend will continue to make the forum more useful to the members and guests.

    ks2071746
    CommentQuote
  • Its a mad world in Thane property

    Hello ppl,

    I feel the RE is taking the turn for the worst. I have been hunting for the property in Thane area for past 6 months. The prices ppl still quote are crazy i.e. both resale and New Construction ( to be ready in 6 months time).

    Its pretty sad to see that ppl are still stuck in dreamy prices that they have seen in late 2007 & early 2008. This way they are not only stagnating the real estate market but also eventually will default on their debts. This is true for both resale end users and builders. Builders might abandon the projects & Resale sales wont happen at all.
    The real estate brokers are playing dirty game of price cartel of RE prices so that there 2 % commission money will be higher. An Interesting article in Property Times on Saturday Times of India, shows that how resale values need to drop to initiate some kind of sales in RE and how brokers are literally killing the resale market by refusing to close the deals on lower prices.
    My advice to the ppl who are holding the property for possible exit: this is the best time to sale the property for whatever profit you are making. holding the property tight on your wish list pricing will see a greater value erosion on the profits.
    Also I seek the advice from experts on how Thane property market is heading and how one should deal there in terms of right cost of property or valuation of property in Thane city & GB rd area.
    Your replies are appreciated.

    Thanks,
    Kashyap
    CommentQuote
  • Dear Kashyap,

    Its not right to blame people just because you need a property and not getting lowered price.

    Please let me tell you these is a tremendous drop in price at all locations. yes it may not be to your expectations but in line with the down fall projected by the experts.

    How ever please give your expectations in terms of price and area expected I may help you in this regard.

    Mind well I am not a broker and hence dont worry for 2%.

    Vinayak Pande
    CommentQuote
  • Its a mad world in Thane property

    Dear Vinayak,

    I appreciate your response. I am not saying that there is not a single drop in the pricing. I am just saying that as an end seller there is still lot of apprehension & confusion created by brokers/agents regarding price points. May not be all the agents but significant amount of them do.

    For e.g. : a 2 BHK flat in Raheja township in Thane was purchased for INR 22 Lakhs in 2006 (with agreement value reference) is currently offered at 1.2 Cr.. Now it may have been possible to sell this in booming economy but will be difficult for him to get this price points in real world now.

    I have friend who is a broker in Thane , who is ready to deal with the actual price points but unable to do so coz of pressure from existing broker cartel. The big broker fellows made lakhs in selling these flats at inflated prices are doing this to safeguard their own Interest & which is killing the market.

    well regarding my price points let me tell you my friend, I am not blaming anyone for the price they are quoting. It is their virtue to tag a purticular price point to their product but it does not always go down as right as a market price and the brokers are supporting their moves to safeguard their own interest.
    I am not sure what offended you in my post but I dont mean the way if it has so.
    If you can help then I am looking for 2 BHK property in Thane city area. from Naupada- Bhaskar Colony- Ghantali - Panch Pakhadi. If you can help with right price and valuations then I would be greatful.
    The article I was referring to is on the below link.
    http://www.narains.com/Residential-Article-Be-Realistic.html
    I gave the reference because it really depcited the state we are in.

    Please let me know if you need any more info. I would be glad to share.

    Regards,
    Kashyap

    Originally Posted by vdpande
    Dear Kashyap,

    Its not right to blame people just because you need a property and not getting lowered price.

    Please let me tell you these is a tremendous drop in price at all locations. yes it may not be to your expectations but in line with the down fall projected by the experts.
    CommentQuote
  • Investment with Actual Real Negative Value:

    Real Estate is one of the few investments that can Gain an Actual Negative Value. Here is how. The investment in real estate would make sense if
    The cost of borrowing + upkeep expenses (taxes, improvements, bills etc) is less than rent that could be charged on the property.
    The /rent equation never made sense in the first place. So In fact you are actually losing money just sitting on the RE.

    The only place holding (or PARKING) the RE would have made sense was if the year over year gains in RE surpassed the expenses (left side of the above equation). Mind you that this DID happen for past few years. However the RE prices have gone beyond the affordability (even if you do not make /rent calculation... which would be really stupid) of majority of population. RE is not coming back to the same levels. In fact the er pool is reducing with the job losses (high paying jobs) and ongoing economic turmoil. FIRST TO EXIT IS A SMART SPECULATOR..

    The purchasers have exited the market... Elvis has left the building. The sellers are sitting on the castles built in sand. Emperor has no cloths.
    I saw an interesting phenomenon in RE in USA. The guy who is able to make mortgage payments is actually defaulting on his loan and so is his neighbor. Then the house goes in foreclosure. Then the neighbor s his house cheap and he s his neighbors’ house... cheap. Read it up.

    AND FOR GOD’S SAKE STOP READING AND BELIEVING THE SO CALLED EXPERTS.
    CommentQuote
  • Originally Posted by nick_alan_76

    I saw an interesting phenomenon in RE in USA. The guy who is able to make mortgage payments is actually defaulting on his loan and so is his neighbor. Then the house goes in foreclosure. Then the neighbor s his house cheap and he s his neighbors’ house... cheap. Read it up.


    Many thought they could do the same in India too.Give back the property to the bank and walk away.

    Banks in india dont offer loans on exculpatory clause(non recourse).

    i.e. A provision in a Mortgage allowing the borrower to surrender the property to the lender without personal Liability for the loan.

    The Home loans in India are granted on recourse.

    If one takes a loan of 80Lakhs from a bank for 1C worth property.On foreclosure, if the property was sold only for 60 Lakhs, the borrower is personally liable to pay back the delta amount of 20 Lakhs to the bank.

    Moreover, defaulting on EMI will affect the credit rating and impact credit worthiness while availing any kind of loan in the future.

    The attractive option of swapping mortgages at lower prices by foreclosing the property is not available for Indian borrowers.

    If a person's debt is choking them and paying EMI regularly seems unmanageable, its prudent to cut down on losses and exit ASAP.
    CommentQuote
  • Not that I am suggesting

    Originally Posted by nabishek
    If one takes a loan of 80Lakhs from a bank for 1C worth property.On foreclosure, if the property was sold only for 60 Lakhs, the borrower is personally liable to pay back the delta amount of 20 Lakhs to the bank.


    Not that I am suggesting. But think about it... right now if the person exits his position (from RE), the incurred loss is lesser than the incurred loss if he/she exits later. Plus he would have saved on the ongoing expenses.

    Similar property could be had for much cheaper looking at the way things are going.

    Are you guys looking at the unemployment numbers in USA... 8.1% thats not even their U6 unemployment number. Things are getting nasty and even I am getting squeezed now (though my positions are well contained).
    CommentQuote
  • Originally Posted by dineshp
    I would like to where in B'lore the correction is evident? From going back to the same developers and builders I have gathered that the latest tactic adopted by the cartel is that of passing the buck - "sir the correction is there but not here, it is in xyz part of B'lore #$#2","correction has happened but we would not like to sell the houses built during boom time at reduced rates","these are luxury flats and come at a premium still..." are some of the ridiculous responses still doing the rounds. Understand that no one on other side of fence would like to lose a naya paisa on RE but then where the hell is the correction taking place - a ground reality or in print alone? Sick with these guys all.

    DLF blore on Baneghatta road reduced prices by 30%.
    CommentQuote
  • Originally Posted by nabishek


    We all know that people who earn large money, park them in RE, Thats the safest haven for them.

    They have been doing this for several years, and are continuing doing so because they are still able to afford it.They are buying out of their money.

    As long as they are able to convert the unmanageble cash into a solid immovable asset like RE they are happy and dont care about the returns,the economic situation etc.

    They have various sources of income unlike the salaried class who are so dependant on their job.




    I would like to agree with and add to this with some thoughts/opinions of my own:

    During the last property boom, there were lots of people buying property. Broadly speaking, we can put them in two categories:
    1. The investors who had money, didn't need loans and saw RE as a good investment in the short or long term.
    2. Salaried people who bought a home to live in, and then perhaps another as an investment, and have taken loans, hoping to pay them off by their salary. IT and BPO crowd, both local and onsite were a big part of this.

    Both these put together added up to more than 100% demand - there was a shortage of houses/apartments to supply both types of buyers so the prices went up.

    A huge amount of properties started getting constructed to cater to this demand.

    Real demand - was still low: the rents did not rise at the same acceleration - and rentals are what give you the picture of true demand based on people who want to actually live in the homes.

    Now with the crunch, salaried people don't have the optimism to buy a home. They have left the market and are renting apartments. There is a huge supply because of all the homes constructed during the boom, so there is no shortage of housing and rentals aren't going up.

    Since salaried people aren't buying any more, half the demand equation has died down. the demand is now less than 100% (i.e. for every 100 homes, there are say 50 buyers). Plus more homes are completing construction (e.g. Sohna Road and Golf Course Road in Gurgaon which are full of constructed and empty apartments. Similarly areas towards the international airport in Bangalore).

    So why aren't prices coming down?
    1. The investors don't need the money immediately, so are willing to wait for a desperate buyer
    2. The salaried classes are living in their homes. They are very worried about the EMIs, but still aren't selling out because they are actually living in the homes.

    When will they come down?
    1. The investors will need money soon - the slowdown will continue for atleast a year and businesses will need cashflow. Investors will sell property to get cashflow, to keep their business afloat.
    2. The salaried class will continue to live in rented places and will not come back to the market. The huge number of constructed apartments available will go out on rent to these people and rentals will not go up. So there will be no pressure on anyone to buy a home to actually live in. The concept of buy a home early in your career will die a slow death.

    The ones worst squeezed in this will be the developers (and their investors) who will have huge inventory, large loan repayments and buyers aren't buying. The second worst squeezed in this will be the property agents who have seen their month to month cashflow dry up (because no transactions are happening).

    We will not have a boom in the next few years. There will be no upward pressure on property for many years to come.

    Prices have come down and in the absence of any support they will gradually deflate for a number of years.

    Today the prevailing sentiment is that property prices always rise, so people are still waiting to enter the market hoping to make or save money.
    After many years of prices deflation, when they reach affordable levels, they will not rise fast because by then people will only remember the price deflation and the prevailing sentiment will be that you should not stick a lot of money in property.

    So if you have property that you want to dispose, sell now.
    If you want to buy a home, go for a rental. Do some bargain hunting, you'll get a good deal on rentals. Don't think that you're throwing away money that you could have invested in your own home - remember that if you buy a home on loan, the first few years you're just paying off the interest on the loan and still owe the full cost of the house.
    If you wait a few years, you'll save more money for a downpayment, prices will be lower, therefore the interest outflow will be on a smaller loan and you'll come out ahead even if you consider the rent you paid for the intervening period.
    CommentQuote
  • here is the bear rally and what about the top 10 stocks which have gained 100-180%.


    Those who got the timing of bottom-fishing right have gained handsomely in stocks since early March when the Sen decided to shoot up on hopes of a global economic recovery. Unfortunately, there weren’t too many of them as the upswing has caught most investors on the wrong foot.

    But while the Sen has made a strong recovery of 40% from March 6, there are many in the BSE-500 which are buzzing. Almost 275 stocks in the BSE-500 category have given more than 50% return during the period. As worries over the global outlook subside with rising optimism of a speedy recovery, equity markets across the world have rallied during the last one month, appreciating between 11-30 %.

    Here's a list of the top 10 stocks which have gained over 100% on the BSE:

    ]http://economictimes.indiatimes.com/articleshowpics/4408519.cms
    CommentQuote
  • Bear Rallies are quite common ...

    Originally Posted by abk
    here is the bear rally and what about the top 10 stocks which have gained 100-180%.

    Those who got the timing of bottom-fishing right have gained handsomely in stocks since early March when the Sen decided to shoot up on hopes of a global economic recovery. Unfortunately, there weren’t too many of them as the upswing has caught most investors on the wrong foot.

    But while the Sen has made a strong recovery of 40% from March 6, there are many in the BSE-500 which are buzzing. Almost 275 stocks in the BSE-500 category have given more than 50% return during the period. As worries over the global outlook subside with rising optimism of a speedy recovery, equity markets across the world have rallied during the last one month, appreciating between 11-30 %.

    Here's a list of the top 10 stocks which have gained over 100% on the BSE:

    ]http://economictimes.indiatimes.com/articleshowpics/4408519.cms


    SSMAN, I have said precisely the same thing several times in the past. In fact, I'm in the process of selling property at handsome profits while also considering renting for the next few years waiting for the near-bottoms.

    So if you have property that you want to dispose, sell now.
    If you want to buy a home, go for a rental. Do some bargain hunting, you'll get a good deal on rentals. Don't think that you're throwing away money that you could have invested in your own home - remember that if you buy a home on loan, the first few years you're just paying off the interest on the loan and still owe the full cost of the house.
    If you wait a few years, you'll save more money for a downpayment, prices will be lower, therefore the interest outflow will be on a smaller loan and you'll come out ahead even if you consider the rent you paid for the intervening period.



    abk. Bear market rallies are quite common. In fact, in the stock market, traders make the maximum profits in the shortest time during bear crashes. The second most profitable period is during bear rallies. Bull markets are only third in profit potential for a very good reason. While bull markets actually give very good profits, these profits are lost when people continue to pump them in even at the top of the market and the subsequent crash wipes out most profits gained! :D

    I was lucky enough to pick 9th march as turnaround day. This happened to be precisely the day the market made an intermediate (not final) bottom. Unlike stocks (which I will get into when the real bottom comes), I currently do only options (don't try it at home unless you have spent at least 1 year studying it and understanding it and also have very good exit/stoploss strategies). Do you know that a reasonable call option on the Nifty 2900 Call, went from Rs.26 on 9 mar to over Rs.615 just a couple of days ago? And for the completely crazy risk-taker the 3300 call has gone up 120 times in the same period?

    As someone said, there are a quite a few people still making money!

    As Nick said, while RE is probably going to be the foundation of wealth-building for most people, it is still an asset that behaves like an elephant at most times (slow to move and slow to turn) and sometimes even like a dinosaur! :D

    Please remember that it is a high-leverage asset (you are leveraged 10 times on a very-high-value asset) and if you get stuck with illiquidity as well as declining value which may see you go underwater, if you then also lose your earning power, then you are well and truly stuck possibly for decades!!! Very important reason to keep your head and play it safe rather than go all-out into it at any cost!

    cheers in the same period?

    As someone said, there are a quite a few people still making money!

    As Nick said, while RE is probably going to be the foundation of wealth-building for most people, it is still an asset that behaves like an elephant at most times (slow to move and slow to turn) and sometimes even like a dinosaur! :D

    Please remember that it is a high-leverage asset (you are leveraged 10 times on a very-high-value asset) and if you get stuck with illiquidity as well as declining value which may see you go underwater, if you then also lose your earning power, then you are well and truly stuck possibly for decades!!! Very important reason to keep your head and play it safe rather than go all-out into it at any cost!

    cheers in the same period?

    As someone said, there are a quite a few people still making money!

    As Nick said, while RE is probably going to be the foundation of wealth-building for most people, it is still an asset that behaves like an elephant at most times (slow to move and slow to turn) and sometimes even like a dinosaur! :D

    Please remember that it is a high-leverage asset (you are leveraged 10 times on a very-high-value asset) and if you get stuck with illiquidity as well as declining value which may see you go underwater, if you then also lose your earning power, then you are well and truly stuck possibly for decades!!! Very important reason to keep your head and play it safe rather than go all-out into it at any cost!

    cheers in the same period?

    As someone said, there are a quite a few people still making money!

    As Nick said, while RE is probably going to be the foundation of wealth-building for most people, it is still an asset that behaves like an elephant at most times (slow to move and slow to turn) and sometimes even like a dinosaur! :D

    Please remember that it is a high-leverage asset (you are leveraged 10 times on a very-high-value asset) and if you get stuck with illiquidity as well as declining value which may see you go underwater, if you then also lose your earning power, then you are well and truly stuck possibly for decades!!! Very important reason to keep your head and play it safe rather than go all-out into it at any cost!

    cheers
    CommentQuote
  • Dear friend,

    Quite true. May also apply to Share Market?

    ks2071746
    CommentQuote