Members this thread is to know if RE will continue to be the best
place to hoard Blackmoney.

Please suggest other avenues other than RE for black money.
Please post with reasons. Do not post without reason.
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  • Originally Posted by ks2071746
    Dear friend,

    I agree. Lack of liquidity is due to the high prices being quoted by the promoters/builders as also the buyers are awaiting further drop in the prices.
    I have been noticing that in the away from city areas, the prices are coming down even to the tune of 25 % or so. Where as, in the city areas, they have come down to a small extent only and here too no new projects are coming up and only already started projects are going on.
    In Saidpaet area, in Alandur Road nearer the sub way, one project with 2 bed rooms are going on and the rate settled is Rs. 4500/sq. ft. Due to locational advantage, I gather all the flats have been sold of very fast and the project is also progressing fast. I feel, people still go for buying for their own use in good localities/of their preference even if the prices do not come down appreciably.
    Today, I saw an advertisement in The Hindu, one developer has advertised that the buyer need to pay only 10% and the balance 90% can be the house loan. This is not in line with what we hear that banks are insisting on margin money of even 25 to 30 % for the new house loans now for fear of reducing value during the course of the repayment.

    ks2071746

    KS, What is high is a relative value? IN 2000 a price of 2000 psft in Mylapore was considered high. In 2008 a value of 3000psft is the price in Urapakkam, Medavakkam etc. ANy justifications? Well salaries went up. So what is the mistake in hiking prices.
    TO take an example, a retired colonel was stating that his pension based on 1990s retirement time is about 14k wile a current colonel retires at 28K. Now even govt pensions have gone up so much. So it is not a fault of the builder or seller, just the fact of life. So in reality if jobs REALLY VANISH as many seem to be claiming just looking at someperipheral job losses then if consequent demand becomes so bad that Sethugm like folks dont have a job, folks like you get a salary of 10K which you claimed was the salary (when u were working...i assume u retired now!) in 1990s then price of these flats in Mylapore will go back to 2000 or lesser and Urapakkam and MEdavakkam flats will just remain UNSALEABLE.
    IN other words in CHennai in particular after every boom there is a dull period and at that time non prime properties just have NO QUOTES. So if you bought one of those plots in that CHengalpet line in the past 2 years and if it was sold to you at 500psft and if it cost when SALEABLE at the peak of 1000psft then if market really falls as claimed it will become NON SALEABLE. So even if you sell at 100psft u wont find a buyer. The problem is in new areas there are no houses and no facilities.
    So as I always said and as you remarked above, on the outskirts properties can become JUST UNSALEABLE if we really are in a Depression as promoted by bear cartel and in the useable areas sales and purchases will happen at decent prices the worst being 60% of peak value but the effort to sell and waiting time will be high. Also buying a good property will be a difficulty as I explained in another thread. Today there are lots of WORTHLESS properties with Zero Meaningful documents being sold in the city zone!
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  • Originally Posted by Natarajg007
    So Dear Pitchakaran thinks that a said price is high because he cant afford it. Let us assume a ground of land is as low as Rs 10lakhs, to please our Pitchakaran. Now if someone has 100 grounds to sell then it again will be worth 10crores. Now on the converse suppose a ground costs 10 crores, then it means that one should be able to reuse it to sell 100 blocks for 10 lakhs or 10 blocks for 1crore each or 2 blocks for 5crores each.
    In other words affordability is a person's ability and worth is determined by the demand and supply not by some pitchakaran's needs.
    BTW keeping land is an extremely useful investment. Since its appreciation is higher than any rental value as also the fact that you pay no tax until to sell it.
    This is like telling whether one should invest money in a MIS (monthly income scheme) or a FD (Fixed deposit). PItchakarans need MIS since they will die without it. Others choose FD.
    I hope Mr Pitchai has got the answer!


    Hi Useless, Certain SaligramPimps like you can afford/quote 2C 3C and 10 C for useless plots as you can earn lakhs in a day/night with your notorious family business in Saligram. But you lunatics cant change the falling RE .

    Affordability is a person's ability and worth is determined by the demand and supply . (Ur stmt) ... Am sure many would visit your Saligram house for a day/night having a specific demand and sure you have a supply. Surely they will have a homely treat(real worth).

    Its very difficult to make you write in a human way.

    First of all, try to write in a legible way .

    Its the final warning for you scoundrel . Be polite .
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  • Dear friends,

    The subject drifts away from what was started intitially. Let us come back to the specific subject pl.

    ks2071746
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  • Dear friend,

    Those having black money know that they can better park the same in RE. One who does not have the BM cannot prove it.

    ks2071746
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  • Originally Posted by ks2071746
    Dear friend,

    Those having black money know that they can better park the same in RE. One who does not have the BM cannot prove it.

    ks2071746


    Heard of Swiss banking, Hawala rackets, anonymous investment funds? Those are lot safer places to park the BM. RE is hardly a place as a store of BM as it lacks mobility of funds and hence easily tractable.
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  • Originally Posted by Natarajg007
    Whether RE is the best place to park BM is another question? Can I sell one RE and buy another in a convenient location without BM troubles is my question. For example, one reason I have been trying to sell some property in Chennai is to buy for that price in Bangalore. Now it is almost impossible to do it. Suppose the price I sell is 100 then in Chennai with such absurd guideline values and Registrars preventing fair deals, I wont get more than 20 in white and in the best case will be 50. Now the remaing 50 is BM whether I like it or not, whether the buyer likes it or no. So I might sell my property to a Gentleman with 100% white money, but if I cant register my transaction due to the registrar it becomes black! Not my fault or the fault of the buyer.
    Now in Bangalore the rate of White:Black is not as bad as Chennai. So if I sold for 100 and took say 30 white and 70black and bought a property for 100 in bangalore I will need to pay 50white and 50black or even higher percentage of white. Now I need to get the remaining white and need to hide the black.
    Explains why RE in Chennai might never fall and why having RE in Chennai is worthless if you want to liquify it into cash!


    Your first paragraph made sense, till I came to your non stop chorus "RE in Chennai might never faill". Now I have come to believe your argument is to promote your vested interest.
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  • Parking BM

    Dear friend,

    I strongly feel, only people who do not have BM in their possession talk about parking their non existant BM. Those in possession will know of many ways and means of parking their BM. I do not think, any one need to teach them on where or how to park their BM.

    ks2071746
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  • Originally Posted by nick_alan_76
    Heard of Swiss banking, Hawala rackets, anonymous investment funds? Those are lot safer places to park the BM. RE is hardly a place as a store of BM as it lacks mobility of funds and hence easily tractable.


    Dear friend

    What you said is 100 % true. I accept your views

    thanks

    chataara
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  • Dear friend,

    I do not think, many friends in this forum, may have sufficient BM to park in RE?

    ks2071746
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  • Originally Posted by ks2071746
    Dear friend,

    I do not think, many friends in this forum, may have sufficient BM to park in RE?

    ks2071746


    If they have sufficient black money they will not sit and write in this forum.

    They have many other works to exploit and amass the BM for their next generations.

    Thanks

    chataara
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  • Originally Posted by chataara
    If they have sufficient black money they will not sit and write in this forum.

    They have many other works to exploit and amass the BM for their next generations.

    Thanks

    chataara


    Dear friend,

    I do not disagree with you. Still, there can be a few as I find there are agents/brokers found participating here.

    ks2071746
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  • Originally Posted by ks2071746
    Dear friend,

    I do not disagree with you. Still, there can be a few as I find there are agents/brokers found participating here.

    ks2071746


    Dear friend

    Any forum like this will definitely have brokers and agents.

    They are here to watch what the genuine buyers and sellers of RE think. It will help them change their trend and apply different bait to capture the innocent people.

    Thanks

    chataara
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  • Dear friend,

    I agree.

    ks2071746
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