tag:blogger.com,1999:blog-5269558537262232516.post8502058764819101815..comments2024-03-28T14:01:25.631+05:30Comments on Ravi Karandeekar's Pune Real Estate Market News Blog: Are Pune Builders Squeezing & Deceiving Property Buyers?Ravi Karandeekarhttp://www.blogger.com/profile/01681035021606018101noreply@blogger.comBlogger38125tag:blogger.com,1999:blog-5269558537262232516.post-19797730379139275872013-10-22T12:07:25.822+05:302013-10-22T12:07:25.822+05:30I must say your article is astonishing. The clarit...I must say your article is astonishing. The clarity of it is simply amazing and no doubt you are a proficient in this field.<a href="http://www.agphomes.co.in" rel="nofollow"> Builders in Chennai </a>Eswarihttps://www.blogger.com/profile/00824176550546499709noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-6663966311017066712013-03-29T00:28:59.553+05:302013-03-29T00:28:59.553+05:30This comment has been removed by the author.Anonymoushttps://www.blogger.com/profile/18247279307393533065noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-38918789802634120452013-03-29T00:28:29.390+05:302013-03-29T00:28:29.390+05:30This is a good post. This post gives truly quality...This is a good post. This post gives truly quality information. I’m definitely going to look into it. Really very useful tips are provided here. thank you so much. Keep up the good works... <br /><a href="http://www.linkedin.com/in/jimzaspel" rel="nofollow">Jim Zaspel | LinkedIn</a><br />Anonymoushttps://www.blogger.com/profile/18247279307393533065noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-78297538220111531032013-01-02T14:52:32.132+05:302013-01-02T14:52:32.132+05:30Correct ! Its the time when we purchase it. I not ...Correct ! Its the time when we purchase it. I not saying one can purchase it now ... But should be think upon long term view. Probably when people were buying Magarpatta at cheaper rate, other people think why to go so far ...Parimalhttps://www.blogger.com/profile/15615700168278768765noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-84285595357168455732013-01-01T21:39:07.522+05:302013-01-01T21:39:07.522+05:30@Parimal : I respectfully disagree, It also depen...@Parimal : I respectfully disagree, It also depends when you entered Magarpatta<br /><br />If i buy a 2 BHK for 65 lakhs and as most mere mortals do, i pay 20 % as down payment and take the rest on loan, i would be shelling out close to 45 K a month as EMI. Even if i give the house out for rent after fully furnishing it, i would be able to recover a max of 20 K per month. Which means 25 K from my pocket + the rent i shell out to live in another house). It would take a considerable amount of time for the rent to reach 40 K so i begin to breakeven. GipsyKinghttps://www.blogger.com/profile/13732243013268490127noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-56400621549980098272013-01-01T21:30:58.880+05:302013-01-01T21:30:58.880+05:30Hi Ravi
I would like to equate this to the reason...Hi Ravi<br /><br />I would like to equate this to the reason why the "quarter" plate chicken curry was introduced by all the food joints when a half plate was too expensive and a full plate was a "bad idea". A 2 BHK should be at least 1200 sqft of carpet area. They are now doing if for 1/6 of that space.<br /><br />I was recently house hunting for fun (and some free ice cream) when the sales woman told me they sell the path leading from the lift to the door as the "angan" !!!!<br /><br />GipsyKinghttps://www.blogger.com/profile/13732243013268490127noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-14700812867600673722013-01-01T14:52:59.629+05:302013-01-01T14:52:59.629+05:30I agree that flat cost is out of reach of common m...I agree that flat cost is out of reach of common man.<br /><br />I don't agree with the calculation for rent ! This calculation is based on short term view. If you see long term, earlier investing is always better, of-course not with taking hefty loans.<br /><br />I give you one example - 7 years ago, flats in Magarpatta city were costing around 13-15 lacks. At that time rent for 2bhk was around 7-8K. so if you calculate annual interest at that time ~ 8*12=96K.<br />But now rent is around 16k for unfurnished 2bhk ! so annual rent is ~ 16*12=1.92 lacks. Plus flat value is around 65 lacks. Also rent increases by 10-12% per anum. So in long term buyer is in profit, and that's the reason "investors" are putting heavily in this sector. If there were no profits, inverters not surely fools to put their money in ! :)<br /><br />Parimalhttps://www.blogger.com/profile/15615700168278768765noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-66360018573688781332012-12-31T19:20:41.759+05:302012-12-31T19:20:41.759+05:30You are right, Prasanna!You are right, Prasanna!Ravi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-37471149991038572032012-12-31T19:17:43.138+05:302012-12-31T19:17:43.138+05:30Thanks! Long time no see, Trupti! Looking forward ...Thanks! Long time no see, Trupti! Looking forward to see you more. Happy new year! Ravi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-23936641803585754612012-12-31T19:15:01.538+05:302012-12-31T19:15:01.538+05:30Thanks! Amolw, yours is the best comment of 2012. ...Thanks! Amolw, yours is the best comment of 2012. Ravi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-58006066113081056282012-12-31T19:07:43.313+05:302012-12-31T19:07:43.313+05:30Good idea, Shark. Let me tryGood idea, Shark. Let me tryRavi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-45457324802321240172012-12-29T11:39:03.291+05:302012-12-29T11:39:03.291+05:30Ravi you seemed to be hell bound to keep punekars ...Ravi you seemed to be hell bound to keep punekars homeless... just mention some good properties in pune as well for investment...SHARKhttps://www.blogger.com/profile/13765621835187219217noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-55829280050590721972012-12-28T23:31:31.441+05:302012-12-28T23:31:31.441+05:30Ravi,
There is something called as "Financial...Ravi,<br />There is something called as "Financial Education" for the common man...<br />Until we have it taught it high scool or college we will not learn to make right financial decesion in life.<br />I know 100's of my friend who earn like 1 lac per month but fail to understand the basic consepts like "Compound annual growth rate", "Compounding"<br />What we are today into real estate mess is an effect of such poor knowledge.<br />When we calculate the return on real estate investment we conviently forgot to ignore the cost like property tax, soceity charges, maintainance cost etc.<br /><br />When a friend called me saying “I am planning to buy a house for Rs. 60 lakhs, should I buy it?”. I asked him what was the cost of the house. He said Rs. 60 L, I just told you. I asked him again. He grew silent. Then I said “If the cost of the house is equal to the amounts paid, then the cost is EMI * No. of months. In this case it was working out to 75,000 (emi) * 240 months = Rs. 180 lakhs, not 60 lakhs<br />This calculation of course ignores the time value of money – but given maintenance costs, painting…and other costs, real estate cannot give great returns.<br /><br />Another point is rental yield. How much rental yield one is going to get in the current market for a flat costing 50-60 lacs ?<br /><br />Rs. 12000 to 13000 per month * 12 = Rs. 1.44 to Rs. 1.6 lacs<br />Rental yield is less than 3% of the amount invested(which is 50-60 lacs). Add to it the property tax, maintainance cost after 3 to 4 years. When the tenant changes property might left empty for 1 month or so...sometimes more than that. So Effective yield decreases to 2.5% per annum of the cost of flat<br />This is LESS THAN THE SAVING ACCOUNT INTEREST.<br /><br />but most of the people ignore this cost and make statements about their return...<br /><br />YES, property apprecites over the time but then other instruments too...<br /><br />We need to start discovering other instruments like mutual funds, quality stocks, bonds<br />Amolwhttps://www.blogger.com/profile/11161943149781053368noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-14448029791020351492012-12-28T23:05:28.064+05:302012-12-28T23:05:28.064+05:30Baramatikar have started controlling cities like p...Baramatikar have started controlling cities like pune, nashik, and many other cities in maharashtra.<br /><br /> truptihttps://www.blogger.com/profile/09771823398775098384noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-21178144894658511882012-12-28T20:01:48.536+05:302012-12-28T20:01:48.536+05:30Looks like your friend need to sell it at a discou...Looks like your friend need to sell it at a discount.Pphhttps://www.blogger.com/profile/12263087479796610781noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-32525145309979467852012-12-28T17:02:49.642+05:302012-12-28T17:02:49.642+05:30Nice blog!!
Investment in Real estate only possib...Nice blog!! <br />Investment in Real estate only possible thru Self money , but not thru Loan where making the Builders and Banks Rich at same time !! <br /><br />and as a IT professional , we dont have be having such huge downpayment, what i have learnt all these days is never ever invest with Loan in hand !!! it burns!!<br /><br />If we can accumulate atleast 50 % of the flat cost as downpayment we can still think of investing ! but that seems difficult for an avg IT guy like me (us).<br /><br />coming to original post ! its eye-opener , i also suggest everyone to look at the room sizes rather than Carper area/built-up areaHemanth Pradeephttps://www.blogger.com/profile/07394883600478719351noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-77264612424418900422012-12-28T16:16:17.749+05:302012-12-28T16:16:17.749+05:30You are right, Prasad. Pune real estate market is ...You are right, Prasad. Pune real estate market is already in trouble.<br />Of course, for me, not the builders and their projects but property buyers in Pune is the market. <br /><br />Means you & your friend are the market. Look at you - you want to invest but don't find the suitable property. Your friend wants to encash his investment - he doesn't find buyer. Doesn't this prove that the Pune real estate market is not doing well?<br /><br />Add to you - all those IT professionals who can get 40 - 50 Lakh home loan but don't have enough money to pay own contribution.<br /><br />What it shows? <br /><br />Pune real estate market is going through a rough patch! Ravi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-55863511074347145902012-12-28T09:19:58.927+05:302012-12-28T09:19:58.927+05:30I agree with your statement "we are not earni...I agree with your statement "we are not earning to live, we are living to earn".<br /><br />I have a friend who is struggling to sell his flat. He bought it for a reasonable price at Wakad and now with the so called realty boom, he wants to sell it but he's not able to find a buyer. Why would anyone buy a resale at the same price when they can get a brand new after waiting for 18 months?<br /> <br />Overall looks like due to the greed of builders and with so many empty houses...I feel the Pune real estate market would see a rough patch soon.<br /><br />Ravi, by the way I have cancelled the booking I made at Vesta (not sure if you recollect, but we met there that evening) :)...does not make any sense to buy match-box flats at such heavy prices...Pune trying to imitate Mumbai :-DPrasadhttps://www.blogger.com/profile/04336669380196487026noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-27274084846420518442012-12-28T06:50:02.405+05:302012-12-28T06:50:02.405+05:30Yes, Sir.
Besides focusing on the risk & suff...Yes, Sir. <br />Besides focusing on the risk & suffering because of the booking a flat, in 2013, I will write about the selling price as well as <br />the actual construction cost. <br />After all my aim is to help you change the way you buy a home <br />- stop booking & start buying a ready possession home. Ravi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-28572384593141276732012-12-28T00:16:29.913+05:302012-12-28T00:16:29.913+05:30Thanks Ravi for writing this article..it was thoug...Thanks Ravi for writing this article..it was thoughtful. I am a prospective buyer and such articles and peoples comments help me educate about the nuances of property buying. I liked Kedar's thought and would appreciate if you could dissect the property price to reveal the actual value of the flat. Looking forward to it.Observerhttps://www.blogger.com/profile/03478264597717072929noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-6871687290507608452012-12-27T22:28:20.590+05:302012-12-27T22:28:20.590+05:30This comment has been removed by the author.Anonymoushttps://www.blogger.com/profile/14587656652016239970noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-78924570671587041442012-12-27T21:15:25.732+05:302012-12-27T21:15:25.732+05:30Sirji.........
got it now....
will call u soonSirji.........<br /><br />got it now....<br />will call u soonAnonymoushttps://www.blogger.com/profile/17749849475710773947noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-66654834541093212012012-12-27T17:39:01.597+05:302012-12-27T17:39:01.597+05:30Government is nothing but a biggest real estate co...Government is nothing but a biggest real estate company. Which only bothers about the lands in it's control. Not the people who occupy it. Ravi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-42726553343525975882012-12-27T17:34:49.005+05:302012-12-27T17:34:49.005+05:30Government! Are you joking, Vikram? Government! Are you joking, Vikram? Ravi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-10160998236879402672012-12-27T17:32:17.041+05:302012-12-27T17:32:17.041+05:30Dear Binoy,
Technically, floor rise is based on h...Dear Binoy,<br /><br />Technically, floor rise is based on higher cost of construction of the upper floors. <br /><br />Practically, floor rise is nothing but greed. An opportunity to exploit the property buyers. <br /><br />Rationally, most of the property buyers don't understand that Pune real estate runs on their money - they are the paymasters. And the builder is 'service provider'. Property buyer's servant. Who has no right to dictate the terms to his master. Ravi Karandeekarhttps://www.blogger.com/profile/01681035021606018101noreply@blogger.com