If You Still Like To Invest In Real Estate, Then Best Of Luck

[mkrishna100]

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If You Still Like To Invest In Real Estate, Then Best Of Luck
Vivek Kaul - October 20, 2016, 12:08 pm

SNAPSHOT
The expectation is that at the end of the holding period of five years (in this specific case) one will always be able to find a greater fool who is willing to buy real estate at an even higher price.

In more general cases, the expectation is to find a greater fool who is willing to buy.

For more follow the link below :

http://swarajyamag.com/business/if-you-still-like-to-invest-in-real-estate-then-best-of-luck

 

[prasad1]

If You Still Like To Invest In Real Estate, Then Best Of Luck
Vivek Kaul - October 20, 2016, 12:08 pm

SNAPSHOT
The expectation is that at the end of the holding period of five years (in this specific case) one will always be able to find a greater fool who is willing to buy real estate at an even higher price.

In more general cases, the expectation is to find a greater fool who is willing to buy.

For more follow the link below :

http://swarajyamag.com/business/if-you-still-like-to-invest-in-real-estate-then-best-of-luck

Is it not same in any business. So too is the share market. Yes it can be a real estate bubble, so you need to cautious.
Unless you are hopeful and optimist, you should stuff money in the mattress. That is the only way of preserving your capital. But inflation will erode the value of your money.

 

[krish44]

At present the best model is buy old flats/houses at rock bottom prices in one of the top seven , Spend a few lakhs in renovation and rent it off at market value.

The returns will be better than any deposit anywhere.

 

[tbs]

At present the best model is buy old flats/houses at rock bottom prices in one of the top seven , Spend a few lakhs in renovation and rent it off at market value.

The returns will be better than any deposit anywhere.

hi

this model of business....many desis are doing in USA....many desi realtors doing this kind of business..

 

[mkrishna100]

At present the best model is buy old flats/houses at rock bottom prices in one of the top seven , Spend a few lakhs in renovation and rent it off at market value.

The returns will be better than any deposit anywhere.

The situation right now in India and more specifically Chennai is similar to the one that came in the period 1996-97 when the RE Market started to collapse slowly and it took nearly 8-10 more years for it to revive i.e fromm 2006 onwards it started to revive and now again the downward cycle has started and the same story is repeating that was familiar to me in the 1996-97 period when we had a big trouble liquidating our own properties and finally ended up settling them for 40-50% discount later with great struggle .
Right now even Old Dirty Apartments are quoting very high rates in Chennai . The Only exception being those areas that are highly flood prone which are available at discount but no one is interested in the same . A Big RE Bubble is building up and even rentals are no longer easy like in the past and in this depressed situation still apartment prices are being quoted at very crazy rates and very few takers . Those who are interested in selling their properties now must be happy to get a cash buyer and dispose it giving a big discount but many think this is a short phase of downward spiral and are quoting crazy rates for their old ( as well as new apartments ) and except for a few no one will be able to sell their properties in this current downward spiral which will only accelerate in the coming months , years .
Also with regard to rentals no longer premium rates ( except for select properties ) are applicable and many owners are still refusing to see this reality and are quoting premium rates only to see no takers and are getting angry and frustrated . Right now Cash is King and so best is to park your funds in some liquid funds .

 

[krish44]

I have the spirit of a go getter.

I am opting for hyderabad and coimbotore.

The latest buzzword is low cost housing .

There is a builder in kerala who has taken after Laurie baker for inspiration and selling newly built houses in smaller town in kerala for 5 to 15 lakhs ,

You can see it on youtube by searching on google for low cost housing.

Since housing sector is taking a down turn due to black money hunts, this is likely to continue for more time.

Only very large housing players are able to sustain in this market which is still correcting.

For those with old flats best to renovate them and rent it out.

 

[krish44]

Renovation is a big money game.

Many self styled designers [available online . mostly youngsters] who offer to visit your home and offer to redesign it for a few thousands . They prepare 3D views,

Suggest modifications, prepare bill of material and arrange/recommend contractors to carry out the works.Of course no civil modifications on load carrying walls.

I am trying to get some to see [out of curiousity ] what they are capable of.

 

[mkrishna100]

I am opting for hyderabad and coimbotore.

Hyderabad is much better in my opinion .

Since housing sector is taking a down turn due to black money hunts, this is likely to continue for more time.

Yes this down turn will be again for a decade and this fall down will not be pure vertical fall down but a slow and steady decline and a very frustrating one .

Only very large housing players are able to sustain in this market which is still correcting.

Only the financially sound ones can sustain . Most of them are in RED or running with the help of foreign PE Money which will get pulled out .

For those with old flats best to renovate them and rent it out.

True but reality is you cant command premium rents like you did in the past . A cousin of mine had a taste of this reality when her apartments in the heart of city was vacant for 6 months ( an old one ) and I told better to cut down rent and once she cut the rent there were many takers .

The latest buzzword is low cost housing .

True . The proper word is affordable housing .

 

[biswa]

hi

this model of business....many desis are doing in USA....many desi realtors doing this kind of business..

Wait until the interest rates start to rise.

 

[krish44]

Hyderabad is much better in my opinion .



Yes this down turn will be again for a decade and this fall down will not be pure vertical fall down but a slow and steady decline and a very frustrating one .


Only the financially sound ones can sustain . Most of them are in RED or running with the help of foreign PE Money which will get pulled out .



True but reality is you cant command premium rents like you did in the past . A cousin of mine had a taste of this reality when her apartments in the heart of city was vacant for 6 months ( an old one ) and I told better to cut down rent and once she cut the rent there were many takers .


True . The proper word is affordable housing .

Hyderabad realty had been battered by telengana agitation. Now with separate AP many andhras are pulling out of hyderabad .

Still tamils because of IT are continuing.Besides for TBs it is a much better place than chennai as there is no brahmin bashing.There is only kamma,reddy ,mulki non

mulki feelings.If you know hindi one can manage there without speaking telengana telugu.

Rentals can still be had in chennai if one offers all modern gadgets ,decor and tastefully furnish. I have never had tenant finding problem.Only my tenants [if they are single]

become nuisance for neighbours.I happily enjoy it from a distance of 2000 km where I stay

 

[mkrishna100]

[FONT=&quot]Saw this comment on RE in another forum and sharing the same here :


This note is for all the investors in Real Estate.. The entire print, FM radio and online media is being bombarded by Real estate companies trying to sell their projects during the festive season - Diwali.[/FONT]

The bottomline today is if you buy in ANY of these apartment projects, you will never recover your investment for at least 5 years. And even over 10 years, the gains, if any, will be marginal. The plain and simple reason is there are no greater fools in the market and free money time is over.

IT companies are struggling with changing market dynamics. Wipro today declared pathetic results.There will be massive job cuts in IT industry and jobs in the industry will shrink over next 5-10 years.
Banks are doing bad and massive consolidation is happening leading to job cuts.
Ecommerce companies are either shutting down or merging (eg. ibibo and makemytrip) which means there is no money to be made.
Hotels are doing terrible and room rates have crashed thanks to OYO and other players
Mining and Infrastructure industries are struggling with debts and low revenues.
Steel and Iron companies are down in the dumps.
Construction and Real estate sector is deep in trouble.
Telecom companies are consolidating and cutting jobs.

Overall the scenario is bleak and the last thing on ones mind is to buy real estate. Stay away from buying unless you are an end user and not willing to look at returns for a long time. And buying for rental income is a total waste of money.

 

[vgane]

Today we were talking about completed projects in Gurgaon at far way locations where infrastructure is not fully developed (like Dwaraka Expressway) are fetching rental income of 0.6% which only means that prices that you have paid are through the roof!

 

[mkrishna100]

Today we were talking about completed projects in Gurgaon at far way locations where infrastructure is not fully developed (like Dwaraka Expressway) are fetching rental income of 0.6% which only means that prices that you have paid are through the roof!

A very Poor Investment .If someone had bought it for self use that is a different matter .

 

[V.Balasubramani]

Tip of the iceberg … poor plight of those who invested…

Dream home turns nightmare as Marg delays handing over 3 Chennai properties by 3 years

Marg replies in detail to the complaints, says delay due to unforeseen roadblocks.

Infrastructure company Marg ProperTies, wholly owned and subsidiary of MARG Ltd is in the news for the wrong reasons. Around 4000 customers who had invested in their properties are yet to receive apartments promised to them as part of their Swarnabhoomi, Brindavan and Savithanjali projects in Chennai and Kancheepuram districts.

According to many who bought houses in these properties, all the three apartment complexes were supposed to have been handed over in 2013. Buyers say that the company sold properties even before they had environmental clearances and were also demanding more money from them claiming construction prices had gone up. Various FIRs have been filed by individual buyers and associations, but the police are yet to take action.

While buyers are running from pillar to post, Marg ProperTies said that the projects were getting delayed due to road blocks ‘beyond their control’ including new regulations, approvals, non availability and increase in price of raw materials and unforeseen economic slowdown.

The News Minute spoke to buyers at length and sought Marg’s response on the allegations.

Read more at: http://www.thenewsminute.com/articl...nding-over-3-chennai-properties-3-years-51780

 

[mkrishna100]

Tip of the iceberg … poor plight of those who invested…

Dream home turns nightmare as Marg delays handing over 3 Chennai properties by 3 years

If it is normal operational delays we can understand the same but it seems to be willful default and most of big developers are guilty of this crime ( there are some exceptions to this ) . They usually advertise big and take the initial money and that money either goes to complete the previous projects or to buy new land or to politicians kitty ( for their election expense ) or for some other business but very rarely is the collected fund used for the project advertised and this circus was going on smoothly but now coming to an end as very few are interested in investing in these new ventures and so the cracks have started to appear and soon it is going to explode .

 

[krish44]

The most optimal way of dealing is look for apartment which are about 80% complete and in final stages. Alternately buy resale sale flats [old or new] which are

complete. If old spend a few lakhs to renovate with a good interior decorater and contracter. Also lease it out atleast couple of years to get over the teething issues .

What matters most is the location and infrastructure around. Back up power, water ,security ,markets and easy availability of transport really matter than the size of

accomodation. What matters most in chennai is the privacy from extra curious neighbours who are more interested in what is happening in your home.Then this

temple thing in most apartment complexes.When flats turn into bhajanai madams, one loses sleep specially early mornings.

 

[krish44]

What makes flat living bad?

The Gate keepers of morality -with association and neighbours deciding how others should live.

Auto drivers with their vehicles at the gate of apartment complexes,harassing residents with their unwanted attention and engaging in gossiping.

Then the God statues at the gate with many residents expecting others to contribute to its upkeep and participate in poojas.

These are all over the country more so in chennai.

In delhi I have two temples -one north indian Anjaneya and other south indian with both vaishnavite saivite Gods and navagraha blaring out music on festival days on

loudspeakers.Worse is jagran where it is a whole night affair.

On tuesdays the line of beggars looking for charity and free food outside anjaneya temple extends a furlong .

In buying of apartment one needs to be careful about the neighbourhood before opting for a flat/house

To me worship is personal and not to be loud in residential colonies or apartment blocks.

 

[krish44]

Saw this comment on RE in another forum and sharing the same here :


This note is for all the investors in Real Estate.. The entire print, FM radio and online media is being bombarded by Real estate companies trying to sell their projects during the festive season - Diwali.

The bottomline today is if you buy in ANY of these apartment projects, you will never recover your investment for at least 5 years. And even over 10 years, the gains, if any, will be marginal. The plain and simple reason is there are no greater fools in the market and free money time is over.

IT companies are struggling with changing market dynamics. Wipro today declared pathetic results.There will be massive job cuts in IT industry and jobs in the industry will shrink over next 5-10 years.
Banks are doing bad and massive consolidation is happening leading to job cuts.
Ecommerce companies are either shutting down or merging (eg. ibibo and makemytrip) which means there is no money to be made.
Hotels are doing terrible and room rates have crashed thanks to OYO and other players
Mining and Infrastructure industries are struggling with debts and low revenues.
Steel and Iron companies are down in the dumps.
Construction and Real estate sector is deep in trouble.
Telecom companies are consolidating and cutting jobs.

Overall the scenario is bleak and the last thing on ones mind is to buy real estate. Stay away from buying unless you are an end user and not willing to look at returns for a long time. And buying for rental income is a total waste of money.

I believe in contrarian play.
When chips are down best time to invest .

Sooner than later things will look up.

A rupee carelessly thrown into beaten down real estate or stocks will turn into a fortune later by my experience.

When one is burning last candles of ones life , it is sensible to be reckless and have a ball.

There is nothing much to lose except life which has already been used up with hardly a max of 15-20% left in best case..

Best to spend it all on exotic holidays or invest some in risky ventures .

If more than 6 out of 10 ventures succeed then you have done well.

holding on to money and putting in savings instruments at 5 or 6 percent is stupid in extreme.

It is wiser to leave some debts in worst case for next generation to remember you

 

[vgane]

In South India Hyderabad is the best place to invest...Rates are rock bottom...You can pick and choose good properties...It will soon bloom

 

[mkrishna100]

Currently RE in India is going through the last stage before its crash and just like a flame before extinguishing will grow bright and fizzle out , RE is also the same and every Tom , Dick and Harry is quoting Crore after Crore for his old apartment and few few or no takers for the same . They will all become wise and humble within one year .
I see a similar pattern in RE that came in the mid to late 90s when RE started to crack from 1997-2006 and only after 2006 it started booming and now the downward cycle starts and those in cash wait for a year or more to get decent properties at better discounts .

 

[krish44]

RE is like stock market.

No one knows where is the bottom or when it touches the top.

So one sets own levels by experience and hope for the best.

Also , when stocks crash , gold and precious commodities find favour for safety.

This is a continuous cycle.

In gold and foreign currency , the money is in arbitrage oppurtunities.

So play them all in some proportions.

Loss and gains might balance over time.

 

[mkrishna100]

RE is like stock market.

They are similar as far as building wealth over a period of time but there is a vast difference i.e stocks can be easily sold and bought and needs less maintenance charges but same is not true for RE which is very difficult to liquify and frequent trading in RE is very cumbersome .
But both stocks and RE can create good wealth if you know when to buy and when to see at the right time and are lucky to find both a buyer and seller more so in case of RE .

 

[Jaykay767]

RE is not like Stock market !! How can it be the same ??

RE is a "certain money maker" if you buy in key cities - Bangalore, Chennai & Hyderabad.. & some key small towns.

All of this country wants to migrate to Bangalore, Chennai, Hyderabad, so RE will only go up !!! of course, this is not applicable for other countries..

Stock market is a gamble for most people & they are advised to stay away unless they are experts !!

 

[krish44]

The way real estate is traded has changed with time.

One can buy or sell or rent online

You can buy real estate stocks [without getting house or flat]

Shares like dewan housing or lic housing finance are making waves.

Those operating in affordable segments in metros are doing well.

One can even buy at pre launch of apartment and sell before handover if you want it as investment.

Thats what most well versed with housing market do.

With black money hunts real estate sector has dried up .

Many are sitting pretty with their piles of black money.

some due to fear declared as the govt got tough.

If one is buying for living there then there is no bad time or good time.

Any time is good.

Then comparison is against renting of flat against owning.

 

[vgane]

In metros /Tier 2 cities rental is a good option...You can get steady income provided property is maintained well...Also you should be ready to decrease rent when the chips are down