Comments on The Happionaire™ Blog- Investing, Wealth Creation, The Economy, Entrepreneurship And More!: Real Estate Prices To Crash 70% Across India - If ...

prices will decline when US treasury stops its pri...

2011-05-21T01:06:02.326+05:30

prices will decline when US treasury stops its printing machine

current US debt is 18 trillion dollars

US treasury gives cheap money to FII
that money finds way into indian stock market

this creates feel good sentiments everywhere

and real estate prices touch the sky

Hi Yogesh, I have been queitly following your blo...

2010-08-26T21:09:57.729+05:30

Hi Yogesh,

I have been queitly following your blog for quite sometime and just wanted to userstand if you still hold on to the views expressed around an year earlier in this post.

This is because, at that point of time - I was about to close on a 240 sq yard villa for around 1.08 Crore in Sector 57 (Sushant Lok III - Gurgaon) and yes, seeing the state of infrastucture, rental income and other fundamentals - it seemed overpriced. I therefore did not sign the dotted line. The same property was sold within a month for 1.20 crore and currently similar propoerties are not available for less than 1.65 crore.

It seems that there has been almost a 50% hike in just an year and this seems counter intuitive as all said and done, there seems to be buyers out there because I have tried all sources - online, trusted brokers, directly with builder but there is the same rhetoric. If we look at Flats in Nirvana country in Gurgaon, they were available at a BSP of Rs 4000 per square feet last year this time and currently, you cannot get anything for less than 5200. Mind it, the property I am talking about here is Unitech Fresco which has not even offered possession completely. Ditto with unknown builders like JMD (JMD Gardens - Sohna Road) where the prices increased from 3300 to 4200 during the same period.

I am saying that to some extent when the media is saying reality recovery has started seems to be true, at least in the short run.

Therefore, I think it will benefit all of us if you explain this short run recovery and if you still believe that correction is yet to happen, reasons for them.

This is because, properties which I could afford last year (say at 1.08 Crore) are now out of my reach and I am getting a little worried and anxious.

Thanks for your blog and views. My idea is not to question you but just to understand what's going on.

Hi Yogesh, I have been queitly following your blo...

2010-08-26T21:06:39.570+05:30

Hi Domesh Similarily in Bangalore, Prest...

2010-01-17T15:48:31.218+05:30

Hi Domesh
Similarily in Bangalore, Prestige Grp started a project called Prestige South Ridge.It is very far from city but they are still advertising that the starting price is 1.2 crores.There are 264 flats in that project & starting basic price is advertised as 1.2 crores!

i wonder how these builders plan projects.Do they have 264 people who pay about 1.5crores to go to some place far away from city? They dont seem to bother at all.Another villa from same grp is advertised as starting from 1.8 crores!!!

i am v confused too as real estate prices just dont seem to be coming down at all.

well i dunno what to make of all that ive been rea...

2010-01-17T14:13:07.015+05:30

well i dunno what to make of all that ive been reading, ive been lookin at flats in andheri w for the last few months.. and a lot of the buildings that are coming up are already fully booked. and the few that arent are askin for 10k plus psf on superbuilt up .. making even a small 2 bhk in buildings with no ameneties whatsoever a crore plus .. similar flats were sellin for 40 lakhs just 2-3 years back..

and even then the builders dont really care, take it or leave it , they have enough customers they say .. , infact the last coupla under construction builings i visited, they told me they are sold out and didnt even bother givin me any details of the property.. i really would like to know what projects are avail in andheri that reputed builders arent being able to sell..

Have a look at this article from VROL. http://new....

2009-11-26T18:43:32.323+05:30

Have a look at this article from VROL.
http://new.valueresearchonline.com/story/h2_storyview.asp?str=101032

ITS REALLY INTERESTING AND IMPRESSIVE, BUT THE 70%...

2009-10-29T00:52:55.287+05:30

ITS REALLY INTERESTING AND IMPRESSIVE, BUT THE 70% FALL IS REALLY SEEMS VERY HIGH. AS FAR S THE COMPANIES SHOWING GOOD NUMBERS ALL HOUSING FINANCE COMPANIES ARE RUNNING TO THE SKY. SOMETHING IS STILL TO THINK AND REVIVE.

Can we make this as a mass movement. We have Inter...

2009-10-15T14:42:27.742+05:30

Can we make this as a mass movement. We have Internet and media to do so. Only if buyers refrain from buying the prices will fall. But there are millions who need to be educated on this - not just the handful who visit Yogesh's Blog.

Thanks for the appreciation Yogesh. Its a pleasure...

2009-10-08T16:51:50.708+05:30

Thanks for the appreciation Yogesh. Its a pleasure. I'll share few more like these in your coming posts as they come across. Let's create more Happionaire and bring smile on their faces. It is really nice to see you doing this kind of work for such a noble cause - to create Happionaire!!

Cheers!!

I couldn't not tell you how much your story ma...

2009-10-08T16:19:57.663+05:30

I couldn't not tell you how much your story made me smile Ravi. It was very relevant and beautiful. It really touched my heart.

Thanks.
Yogesh

I know this comment of mine is not relevant to the...

2009-10-08T13:45:51.712+05:30

I know this comment of mine is not relevant to the post, but i came across a story that is worth to share with all our happionaires out there. Please go through it, am sure you won't regret a single minute you'll spend reading this...

One day a farmer's donkey fell into an abandoned well. The animal cried piteously for hours as the farmer tried to figure out what to do. Finally, he decided the animal was old and the well needed to be covered up anyway; so it just wasn't worth it to him to try to retrieve the donkey.

He invited all his neighbors to come over and help him. They each grabbed a shovel and began to shovel dirt into the well. Realizing what was happening, the donkey at first cried and wailed horribly. Then, a few shovelfuls later, he quieted down completely.

The farmer peered down into the well, and was astounded by what he saw. With every shovelful of dirt that hit his back, the donkey was doing some thing amazing. He would shake it off and take a step up on the new layer of dirt. As the farmer's neighbors continued to shovel dirt on top of the animal, he would shake it off and take a step up.

Pretty soon, the donkey stepped up over the edge of the well and trotted off, to the shock and astonishment of all the neighbors. Life is going to shovel dirt on you, all kinds of dirt. The trick to getting out of the well is to not let it bury you, but to shake it off and take a step up. Each of our troubles is a stepping stone.

We can get out of the deepest wells just by not stopping, never giving up! Shake it off and take a step up!

Cheers & Stay Happy

Stock markets have become volatile, we can expect ...

2009-10-07T20:37:32.850+05:30

Stock markets have become volatile, we can expect a 10-20% correction after a 3-5% upmove, which should be used to buy, i feel we must book 50 % profits

Hi Yogesh I hope that happens so that i can then ...

2009-10-06T14:47:31.360+05:30

Hi Yogesh

I hope that happens so that i can then buy an affordable house on my own without any loans some day. On the other hand, I am just worried. One of my closest friend bought a house in 80 Lakhs. Phew that's a good amount of money for someone in IT firm. Though he's able to buy it in cash because he's selling a prime property at peak but again buying at peak doesn't make any clear sense to me. Anyways may god be with him!!

I think you're right in terms of actual demand which hasn't picked up and not sure why prices are up. One of my elder friend in business told me that India got tremendous amount of black money that no matter at what price you buy a property, you'll get a better price some day. All you need is a bit of patience. A tip to everyone, while selling just stay calm and show as if you never wanted to sell this property. You'll sure get a great deal in favor of you.

Cheers!!

Desperation creeps in only if there is a dire need...

2009-10-05T15:47:32.164+05:30

Desperation creeps in only if there is a dire need for something.
If a developer has made 80% of his profit in black money, obviously the holding power will be so much longer. And to actually sell a property at real/fair value would be detrimental to their own interest in the long run.

Also India, shamefully, has 31.5 million tax payers and we(Indians) purchased 120,669 cars and 611,173 motor cycles in the month of August this year! Crude ballpark extrapolation tells us that atleast a quarter of us (taxpayers who actually have an income) recycle their vehicles every year !!
Sources:
http://www.indiaenews.com/india/20070728/62869.htm

http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Car-sales-rise-26-in-India/articleshow/4984794.cms

In short downturn on not, the real economy in India is actually run on 'black' money. Unless this money flow is chocked, there will not really be a dent in the property market.

Hence I really doubt if we are going to see a dramatic correction in prices.

Hi Yogesh, Can i request you to post your updated ...

2009-10-03T12:58:43.984+05:30

Hi Yogesh,
Can i request you to post your updated views on the assumptions and business models of the educational research reports shared by you earlier. This will help happionaires like me to learn what one should look of while holding a stock and how one should rework his initial assumptions.

Rohit, Are you saying that builders are holding o...

2009-10-03T09:56:40.551+05:30

Rohit,

Are you saying that builders are holding on for 7 years? How does this work. I brought a flat three years back in Raheja Chembur and today we have formed society. The last flat buliders has sold is at 11k.

I dont know where you get your assumption. I have seen all my friends who have brought in last couple of years have formed society and are staying.

Please give the forum one specific project and respective details. We will stand to benefit.

Thanks,

BB across the line almost all projects are lying e...

2009-10-02T13:25:58.846+05:30

BB across the line almost all projects are lying empty. It wouldn't be fair for me to point out at just one builder - right from Raheja's project on Link Road to Wadhawa's in Bandra/Khar. ALmost every project is lying vacant. When a buyer goes to see new buildings, almost 75-90% are lying empty across Mumbai. Specially in Suburbs starting from Bandra.

Hi Yogesh, Thank you very much for this topic. Fin...

2009-10-02T00:29:13.213+05:30

Hi Yogesh,
Thank you very much for this topic. Finally you considered real estate topic for our discussion and helped many people like me to escape from the lot of confusions about the direction it is moving.
Now I will wait more for real estate prices to crash and then will buy a house for me.
:)
Is really patience that we need and which many of us don't have... ;)

PL TELL ME WHAT'S THE FUTURE OF REAL ESTATE CO...

2009-10-01T17:12:31.387+05:30

PL TELL ME WHAT'S THE FUTURE OF REAL ESTATE COMP NOW LIKE UNITECH & JP ASSO. ETC

Rohit, Can you give more details about the proper...

2009-10-01T14:33:05.487+05:30

Rohit,

Can you give more details about the property which has been not sold for more then 5 years?

BB

I have learnt a lot of tricks played by real estat...

2009-10-01T14:28:24.704+05:30

I have learnt a lot of tricks played by real estate brokers and builders on innocent customers, thanks to the information shared here. For instance as you said here and in Cash The Crash, even when no apartment has sold to create sense of panic they just say it is sold within 1 or 2 days of seeing flat.

I have decided not to even inquire for property for sometime and am noticing that brokers and builders are getting desperate for making a sale. I understand their concern also, but if they reduce prices more people will buy and they will also benefit in the long run.

We are all Indians let us make our nation a super power. Jai Hind.

I know of projects in Andheri that have also not s...

2009-10-01T14:15:21.327+05:30

I know of projects in Andheri that have also not sold since past 5 years. In my search fro property in past 5 years, I have noticed that several times same flat is being shown and no sale has happened.

Media just spoke that prices fell to fool people even a year ago. No major fall has yet taken place. This is an excellent post Mr. Chabria and a time for the truth has come.

Keep spreading the power of Saraswati and Laxmi to one and all!

I really cannot comprehend the fact that your frie...

2009-10-01T14:11:54.399+05:30

I really cannot comprehend the fact that your friend could not sell his flat for last five years. I can understand is you say last one or two years but last five years seems strange

A year back the same media were talking about how the property prices are falling, what are your views on that?

Awaiting your reply.

BB

The way that you go behind the news is what keeps ...

2009-10-01T10:53:26.428+05:30

The way that you go behind the news is what keeps making me come here. I have managed to save Rs. 50 lakhs and can not buy decent apartment in Mumbai. I have decided to continue living on rent and invest my money wisely based on Happionaire values.

High prices are also bad for common sellers, because they will never end up selling. Once prices reduce across line you said right, more people will have cash in hand to invest and live better.

I have sent this article by e-mail to all my friends and Gopi, even if the mass media doesn't pick it up due to vested reasons our power of people is very strong. I can easily e-mail this to 100 people at one click and those 100 can again each e-mail it to another 100.

BTW, I read your article in TOI - it was very good.

I fully agree with the views that Real Estate Pric...

2009-10-01T10:34:00.317+05:30

I fully agree with the views that Real Estate Prices are artificially inflated. If you see Mumbai or for that matter any other city in India, prices of even 1 bedroom house are so high that it is out of reach of almost 90% of the population. This may look exaggeration but thats reality. Now if 90% of the population is not able to buy a small house, how long price can be sustainable? This is only because of our ignorance which help keep prices at unreasonably high rates