Posted on: 18-10-07 15:54:57
Quote:
Originally posted by ramrao
Just wondering if anybody is observing Indian Real estate market?
Is it down or stable?
Ram
Currently there is slack in the RE market in sourther india..especially in Hyderabad..e.t.c
I was following this thread and i my self was under the impression posted by you...but it's not happening.
Every time i wanna buy..feel its too expensive...dont know weather i could really buy ever unless the bubble gets burst.
btw..i always use to think as buy any thing that is "buck for bank"
cheers
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MK
First of all the market has slumped so low,... How low you want to know?... The skin is chaffing on the scrotum. They are looking for bandaids for the marbles. The people who are buying are quoting a price that is 50% of the asking price. Then, they try and settle somewhere around the 65-70% of the Values. That is how low it has gotten, at end of last week, from reliable sources. The Boom has burst.
It has happened in India and see what Greenspan is saying as well in the U.S.of A.
The builders for new homes are not budging a bit in India. They are sticking to their guns. Trying to weather the slump and see if they can hang in there. Otherwise they all will go belly up, the whole project and the new home sales with it.
There are two kinds of rupees. One is White. Now another interesting point is, In Delhi, the sellers are demanding 80% of the other kind and I do not know about the South, but I can see where we are heading with this topic on this website. May be they are selling any kind of grass. Ask Lalloo.
One thing I can assure you, YOU CAN'T BUY A HOUSE WITH THIS NRI MONEY anywhere in India. So go and rent a place if you need it now or whenever you go there. They haven't been able to squeeze the renters as yet. Don't worry, it is on its way too.
If there is a way, they will find it. If there is none then, they will make one.
Leave it to the Indians.
Freddie.
Fortunately finding this thread has saved me from starting a new one.
I plan to purchase a property in India -1st preference land and 2nd residential apartment in the NCR of Delhi .Places I am looking at are Dwarka & Noida besides S Delhi.
I have a couple of questions , to which I invite veterans or hopefuls to share views on :
1. As an NRI , if I purchase property from money not taken to India from abroad , can that money be later repatriated out of India upon a sale subject to capital gains.
2. Which is more likely to give more returns over a span of 5 years ~ a residential apartment in a metro city like Delhi OR land for the same value in a side city like Noida / Gurgaon .
3. As we know sellers expect 50% or more in black to save taxes . But if we pay so then while selling off our capital gains will be much high . Eg purchase a flat for 50 lacs but the transaction is for 25 lacs .Now if I sell it later for 70 lacs and wish to take it abroad my capital gains would be on 70-25 = 45 lacs . Assuming if I also sell it the same way showing 35 lacs as the transaction , can I get full 70 lacs out of India.
4. What precautions should be taken while checking the ownership of the property.
I would appreciate if experienced people could share some knowledge on these points and beyond.
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Fido.
Quote:
Originally posted by Fido
4. What precautions should be taken while checking the ownership of the property.
Watch the movie "Khosla ka Gosla" to get some feeling of the ground reality. It may be a funny movie but it is as close to the fact as you can get- only the revenge was fictional - irrespective of the location anywhere in India...
A very 'cliched' suggestion, dont buy property in India unless you have a very reliable person to look after it...physically present NEAR the property...a security guard is not enough.
All the best!
Hiren
Thanks Hiren , I will be cautious on that .Any ideas what should be looked for in the deed and title to confirm ownership. Someone has mentioned in a proceeding post that if one buye from reputed builders , risk is less.
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Fido.
That is correct, look for a project with major builders and where major banks like HSBC, ICICI etc are also involved. A friend of ours bought a commercial office place in Pitampura (opposite TV tower) on loan from ICICI, the transaction was safe and secure. With no black money involved...all fair and white. But selling later can be a problem as the buyers in India don't like to pay everything in white. Dunno what can he do of it...anyone else with personal experience can help. Renowned property purchases can be done by staying outside India but you need someone trustworthy who can inform you about availability of offers (mostly newspapers are full of them)and do talks on your behalf.
Jona
If u r buying a land or an used/existing apartment (resale), show the papers to a lawyer in the city where u want to buy. They should be able to verify the authenticity of the ownership, etc. If u r buying a new apartment thru a builder and getting a loan etc., then banks are the safe bet. They do all the verification as they are lending u the money. HDFC is one of the good one to deal with.
DIO
