Topics | Search Log Out | Register | Edit Profile
Hide Clipart | Banned/Unbanned User Log | Moderator Login History | Thread Delete/Move Log | Last 30 mins | 1 | 2
Real estate steep downside - Ambit re...

Chalanachithram.com DB » New TF Industry Related » Archive through August 03, 2015 » Real estate steep downside - Ambit report « Previous Next »
Author Message
 

Sannayi_nokkulu
Side Hero
Username: Sannayi_nokkulu

Post Number: 3829
Registered: 06-2014
Posted From: 68.100.234.172

Rating: N/A
Votes: 0 (Vote!)

Posted on Saturday, August 01, 2015 - 09:12 am:       


Nice:

Return vache families boldu untayi kadha


noo chala less 1-2% veltaru emo...entha mandhi return potunnaru cheppandi..andaru 50 + ki potam antaru 50+ ki poyi chekka bhajana ikkada kuda cheskovachu...inturn they will sell the land or assets in india and bring the money back to buy something here...
OT review on Osaravell: Paatallo ayithe okko saari Micheal jackson videos ki Jr.NTR thala emanna athikinchaaraa anipinchindhi naaku....literal ga shocking ga vunnaayi konni steps ayithe.....so called heroes ayithe ee cinema teesinanni rojulu practice chesi vundaali
http://stream1.gifsoup.com/view7/20150210/5172520/chandrababu-naidu-dance-yoga-o.gif
 

Chiru_fan
Megastar
Username: Chiru_fan

Post Number: 23023
Registered: 04-2008
Posted From: 71.166.32.10

Rating: N/A
Votes: 0 (Vote!)

Posted on Saturday, August 01, 2015 - 07:37 am:       


Royyala_nayudu:

There will be a phenomenon called NRI correction. Real Estate is heavily pumped by NRI's. 10-15 years down the line they will stop pumping money and will start selling. Once the selling starts a big correction will happen.




Shrimp annai, mana NRIs akkada lower middle class lekka with few exceptions... akkada yevvadu maatlaadina crores loo talk....ikkada okka 40K pakkana ettali antee sukkalu kanabadathaayi...adi mana NRIs pozition....

I met a sarpanch from a village outside of 2 tier town in T region who has 10 crores in RE assets.....ippudu cheppu
CHIRU - SACHIN - FEDERER
 

Bluelagoon
Side Hero
Username: Bluelagoon

Post Number: 3202
Registered: 12-2013
Posted From: 49.207.227.237

Rating: N/A
Votes: 0 (Vote!)

Posted on Saturday, August 01, 2015 - 05:49 am:       

NRIs ooka lo eeka REAL ESTATE LO POLITICIANS MONEY i.e local chota mota leaders mla mps money valla binamees peru tho undhi 80% undhi
that's why real estate prices never crash

these people nevers ell that bcos its black money they don't expect any return nor they need not pay any interest
 

Nice
Hero
Username: Nice

Post Number: 10129
Registered: 05-2009
Posted From: 115.112.100.10

Rating: N/A
Votes: 0 (Vote!)

Posted on Saturday, August 01, 2015 - 05:34 am:       


Royyala_nayudu:

Real Estate is heavily pumped by NRI's. 10-15 years down the line they will stop pumping money and will start selling. Once the selling starts a big correction will happen.




sell chestaru ani ee basis medha cheptunnaru. Return vache families boldu untayi kadha
 

Royyala_nayudu
Side Hero
Username: Royyala_nayudu

Post Number: 5723
Registered: 04-2014
Posted From: 205.144.127.200

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 02:03 pm:       

There will be a phenomenon called NRI correction. Real Estate is heavily pumped by NRI's. 10-15 years down the line they will stop pumping money and will start selling. Once the selling starts a big correction will happen.
 

Andhrawala
Legend
Username: Andhrawala

Post Number: 41704
Registered: 03-2008
Posted From: 98.122.147.86

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 05:35 am:       

WTC Noida antaa

12% return and Rs 48 per sft antunnaadu

Is it worth??

It gives us immense pleasure to share an Real Estate Investment option in the world famous business office building brand WTC – World Trade Centre.

Pls find below the details for : WTC-Noida with Assured return* on your Investment.

Overview :

Spire world announces the launch of World Trade Center in Greater Noida .The development is being done in approximately 21 acres with 70 % Green, open space. This is part of the Tech zone of 600 acres, in Gr. Noida and will be having one of the best infrastructures among IT Parks. This is being developed by GNIDA (Greater Noida Industrial Development authority).

About World Trade Center:

The World Trade Center’s Association (WTCA) is a worldwide organization created to promote, enhance and facilitate world trade. Headquartered in New York City, it has the exclusive worldwide right to grant the use of the name “World Trade Center†for one entity per economic region. The WTCA achieves its mission by providing a wide variety of services that help companies engage in global trade. There are currently more than 300 licensed World Trade Centers around the globe.

Advantages of association with World Trade center

· One brand that houses 1 million businesses across the globe.

· One address that is shared by Fortune 500 companies

· One branded complex that is a land mark in the region it serves

· One catalyst that brands communities and drives infrastructure growth

Highlights:

It is an investment that gives a power of 4:

· Security of Investment.


· High Returns- An investment that brings a percentage difference WTC delivers 18% Higher Rental & 33%higher Occupancy than the market on an average.

· Capital appreciation- WTCs are high profile developments that convey a premier international business address and are highly desirable locations for business tenants to occupy Mainstream Green office Complex designed to consume up to 30% lesser energy, resulting in higher financial & environmental benefits to the owners, and health benefits to its occupants.

·Pride of ownership - It is a Landmarks in the region that they serve. It is an Exclusive symbols of International Connectedness and Competitiveness.


Location Advantages-Gr. Noida

· Proximity to Yamuna Expressway,F1 Circuit and India Expo Mart.

· Opposite upcoming biggest University of the country - Gautam Budh University

· Near International Cricket Stadium Eastern Peripheral Expressway to connect Gurgaon, Faridabad and Noida.

· Corporate Like Unitech Infospace, NIIT Campus, Wipro IT/ SEZ among the neighbors in the IT Hub
No Signature
 

Pavala
Megastar
Username: Pavala

Post Number: 24552
Registered: 02-2008
Posted From: 195.137.178.130

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 05:05 am:       


Filmbuff:

Mee rich people sodhi enti


memu rich aa....national range fig vi nuvvu buffy....
Bala audio function roju ma fans ki grahanam day...memu bayataki rakudadhu....repu talk to u yaa.. - Onlytruth
 

Filmbuff
Side Hero
Username: Filmbuff

Post Number: 7390
Registered: 11-2011
Posted From: 59.91.217.186

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 05:02 am:       


Reddit:



Pavala:




Mee rich people sodhi enti naa thread lo....dobbeyandi..
 

Reddit
Hero
Username: Reddit

Post Number: 12670
Registered: 05-2013
Posted From: 122.169.208.168

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:56 am:       


Pavala:

gootle
just checked...eurail pass is not valid on Eurostar, but can get a discount with eurail pass...swary ya for wrong info


They plan to fly to budapest le ettagu from london. Flying back through munich so euro rail pass full usage vuntadi :D
Man and God met somewhere. Both exclaimed , my creator!
 

Pavala
Megastar
Username: Pavala

Post Number: 24550
Registered: 02-2008
Posted From: 195.137.178.130

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:54 am:       


Reddit:


gootle
just checked...eurail pass is not valid on Eurostar, but can get a discount with eurail pass...swary ya for wrong info
Bala audio function roju ma fans ki grahanam day...memu bayataki rakudadhu....repu talk to u yaa.. - Onlytruth
 

Redbull
Side Hero
Username: Redbull

Post Number: 3839
Registered: 03-2009
Posted From: 83.244.204.135

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:51 am:       


Filmbuff:

Real estate had a good run between 2004 to 2013. The earlier bear cycle for real estate started




spot on..that was right goldern era..especially in india...if they wanted to grow in any sphere..let it be RE, IT jobs ..any business..

ippudu baagaa tough time...no margins...in any things...seed investment itself is huge
 

Pavala
Megastar
Username: Pavala

Post Number: 24549
Registered: 02-2008
Posted From: 195.137.178.130

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:49 am:       


Reddit:

okay ty.. will let them know.


Eurostar; DB lo; Thalleys TGV; Trenitalia lo seat booking compulsory ga sesukomanu. It costs an additional £10 on Eurostar; 5 EUR on DB and Thalleys TGV and Trenitalia trains. Eee madhya reservation rates maari untaayemo theldhu
Bala audio function roju ma fans ki grahanam day...memu bayataki rakudadhu....repu talk to u yaa.. - Onlytruth
 

Reddit
Hero
Username: Reddit

Post Number: 12668
Registered: 05-2013
Posted From: 122.169.208.168

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:38 am:       


Pavala:

3-cpountry europass theeskoni enjoy nagamani...else take an all country europass and start from London on Eurostar, and then change from Paris on a DB high speed train to Vienna. Oka one day journey, but worth..


okay ty.. will let them know.
Man and God met somewhere. Both exclaimed , my creator!
 

Pavala
Megastar
Username: Pavala

Post Number: 24548
Registered: 02-2008
Posted From: 195.137.178.130

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:33 am:       


Reddit:

Budapest - Vienna - Prague


3-cpountry europass theeskoni enjoy nagamani...else take an all country europass and start from London on Eurostar, and then change from Paris on a DB high speed train to Vienna. Oka one day journey, but worth..

http://www.eurail.com/eurail-passes
Bala audio function roju ma fans ki grahanam day...memu bayataki rakudadhu....repu talk to u yaa.. - Onlytruth
 

Reddit
Hero
Username: Reddit

Post Number: 12667
Registered: 05-2013
Posted From: 122.169.208.168

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:28 am:       


Filmbuff:

Equities, Mutual funds, Tax free bonds - happy ga relax avvachchu


akkada adigindhi bilaak money gurinchi white kadu :-O
Man and God met somewhere. Both exclaimed , my creator!
 

Reddit
Hero
Username: Reddit

Post Number: 12666
Registered: 05-2013
Posted From: 122.169.208.168

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:27 am:       


Pavala:


gootle Budapest - Vienna - Prague package ki entha avuthundi uk ninchi
Man and God met somewhere. Both exclaimed , my creator!
 

Kkd
Megastar
Username: Kkd

Post Number: 28827
Registered: 02-2008
Posted From: 170.61.236.1

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:27 am:       

RE prices are very unrealistic.....60 lakhs leka pothe decent apt kooda ravatam ledhu....middle class ki city limits konatam impossible....
 

Filmbuff
Side Hero
Username: Filmbuff

Post Number: 7389
Registered: 11-2011
Posted From: 59.91.217.186

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:27 am:       


Pavala:




Equities, Mutual funds, Tax free bonds - happy ga relax avvachchu
 

Filmbuff
Side Hero
Username: Filmbuff

Post Number: 7388
Registered: 11-2011
Posted From: 59.91.217.186

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:26 am:       

The 50% correction which they are talking about is not far fetched. In Delhi-NCR, prices have already come down by 15% in nominal terms, which means around 30-35% in real terms over the last 2 years. Another 10% decline over the next 2 years and we are there at 50% in real terms.
 

Pavala
Megastar
Username: Pavala

Post Number: 24547
Registered: 02-2008
Posted From: 195.137.178.130

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:24 am:       

buffy
bottomline ettu...gold lo ettka, silver lo ettaka, real lo ettaka, banks lo ettaka paisal em jeyyaal...gothul thavvi lopala dhaachukovaala?
Bala audio function roju ma fans ki grahanam day...memu bayataki rakudadhu....repu talk to u yaa.. - Onlytruth
 

Chiru_fan
Megastar
Username: Chiru_fan

Post Number: 23019
Registered: 04-2008
Posted From: 71.166.32.10

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:10 am:       


Filmbuff:

After the last years black money bill, RE transactions lo black money thagguthundhi, this is another big impact..




desaaniki pattina daridram voduluthundi when RE transactions are done completely with white....I wish Indian RE comes to a slowdown ASAP.....
CHIRU - SACHIN - FEDERER
 

Filmbuff
Side Hero
Username: Filmbuff

Post Number: 7387
Registered: 11-2011
Posted From: 59.91.217.186

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:06 am:       

After the last years black money bill, RE transactions lo black money thagguthundhi, this is another big impact..
 

Filmbuff
Side Hero
Username: Filmbuff

Post Number: 7386
Registered: 11-2011
Posted From: 59.91.217.186

Rating: N/A
Votes: 0 (Vote!)

Posted on Friday, July 31, 2015 - 04:02 am:       

http://reports.ambitcapital.com/reports/Ambit_Economy_Themat ic_RealEstate_14Jul2015.pdf

Detailed report above....summary below...basic ga nakesindhi...adhi matter

Real Estate: The fall has just begun

In global markets, gold has fallen over 40% in last 5 years and silver has fallen over whopping 70% during the same period. Commodities prices are also crashing. The Bloomberg commodity index is now at 13 year low.

We’ve written many times in the past about various asset cycles.

In stock markets, a bull market last on an average for 5 years and a bear market for 3 years. So it takes 8 years for equity market to go through one complete cycle. So any holding period for less than 10 years or so is speculation.

For gold, a bull market last on an average of 10 years and bear market for 20 years. So it takes 30 years for gold to go through one complete cycle. What is true for gold is true for many other commodities as well. Commodities had a good run from 2002 to 2012 and it would not be a surprise if the current bear cycle last for next 2 decades.

I’m saying the above based on my extensive reading and understanding. Again the term ‘average’ can be misleading, as one bull market in stocks can be for 10 years and a bear market can be for 6 years. The given number is an average over many cycles. Each cycle may vary.

As far as real estate is concerned, based on what I discussed with people who have been observing real estate in the country for long time, they say that the real estate bull cycle is usually for 10 years and followed by bear cycle for another 10 years. A complete cycle may take usually 20 years. It looks like the current bear cycle in real estate has started some time in 2013. Real estate had a good run between 2004 to 2013. The earlier bear cycle for real estate started in 1996 and lasted till 2003.

Instead of like sharp corrections in stock markets, real estate market corrections are slow and last over many years. A fall of even 50% is not uncommon. In the 1996-2003 bear cycle, properties in many part of India fell by 50%.

Assuming this bear cycle lasts for 10 years, we may expect the real estate to rise again only in the early part of next decade. One significant change which is happening to real estate is that black money in the same has started coming down. The direction is very clear. As the environment and legislations are getting tough for black money, over a period, black money would play a significantly lesser role in the years to come.

Indian real estate prices have been kept very high and unaffordable for common man due to black money. During the current bear cycle in real estate, the black money also would be largely brought under control. If that happens, in my opinion, we can longer expect mind boggling returns in real estate even in next bull cycle. Real estate would give around 2% to 3% more than inflation. If inflation is 5%, we can expect real estate to give 7% to 8%.

In a fair market, the rental yields are close to cost of borrowing. Whereas in India, the rental yields are 2% and the cost of borrowing is 10%. As interest rates soften, the cost of borrowing would come down. As real estate prices correct, the rental yields would also go up. This would narrow the gap between rental yield and cost of borrowing.

Another thumb rule is that the value of the property should not be more than 3 times one’s annual income. If your annual income is Rs.12 lakhs, your house purchase value should be Rs.36 lakhs. If just assumed someone in Chennai has a Rs.3 lakhs annual income and a good 2 BHK in any decent suburb costs not less than Rs.75 lakhs. So a Chennaiite need 25 years of income, if he wants to own a flat in his city.

From my interaction with many people, I find that they commit not less than their 10 years income for a flat. This is not accounting for interest component.

The house price to rent ratio should be around 15. If a house cost Rs.1 Crore and the annual rent is Rs.3 lakhs; the price to rent ratio works out to 33, which is very expensive. Going by the thumb rule, if this ratio is above 20, then the cost of owning is considered higher than cost of renting. This means you would be better of paying rent.

If the above ratio is 15, then the rental yield will be 6.7% per annum (example: Property price is Rs.30 lakhs and annual rental is Rs.2 lakhs). So the ideal rental yield should not be less than 5%.

It would not be a surprise that in next few years real estate prices fall to such an extent, that the rental yields may be around 5% instead of the current 2%.

In nut shell, the bear cycle in real estate has just begun. Don’t be surprised even if there is a 50% correction over next few years. Tone down your expectation on real estate even in the next bull cycle as black money would start playing a lesser role.

Learn to accept the following returns from asset classes over long run:

Fixed Deposits: Inflation + 1%

Gold: Inflation + 1.5%

Real Estate: Inflation + 3%

Equity: Inflation + 7%

Add Your Message Here
Post:
Bold text Italics Underline Create a hyperlink Insert a clipart image HASH(0x90b6358){Movie Clipart}
Show / hide regular icons selection options

Click on following links to open cliparts by Alphabetical Order

 A   B   C   D   E   F   G   H   I   J   K   L   M  

N   O   P   Q   R   S   T   U   V   W   X   Y   Z  

Show / Hide Filmy icons selection options

Click on following links to open cliparts by Alphabetical Order

  A   B   C   D   E   F   G   H   I   J   K   L   M  

N   O   P   Q   R   S   T   U   V   W   X   Y   Z  

Username: Posting Information:
This is a public posting area. Enter your username and password if you have an account. Otherwise, enter your full name as your username and leave the password blank. Your e-mail address is optional.
Password:
E-mail:
Options: Enable HTML code in message
Automatically activate URLs in message
Action: