10 Points to consider before investing in Real Estate – By Jayesh

Hello All, I generally suggest to all the people about their investment portfolio. Here I am going to suggest you NOT to invest in any property for next 2 years and the reason. Also will specify the way to come for right decision.

1. With S&P downgrading US rating from AAA to AA, this is a huge impact to Indian economy. This has happend after 1917 and hence the consequences will be very bad.

2. We are definitely going into double depression as I predicted earlier. The recession cycle will impact Indian market. Mainly IT/ITES, and export oriented projects.

3. Huge job cuts, salary cuts, growth downgrades on card. We need to wait till 2014.

4. During 2008-09 recession, India survived because of bufferred domestic consumption and hence real estate player did not compromise on price. You would have seen that there is no correction or a less correction happened compare to global real estate correction. This will change now. Although we might have a steady demand supply ratio but the real estate bubble is about to burst now. Imagine, all bought apartments, second investments and plots/houses come on the market for sell because of losing job, cutting salaries, and then the government setup rules for real estate player to check on pricing and bank push pressure on individuals and real estate players to give the money back asap.

5. If anybody is planning to buy a house/plot/flat, kindly stop it now itself. Its better to lose some meagre amount of booking rather than next 3 years of gloomy time. Big players like DLF, Unitech, Prestige, Brigade may not compromise on prices, but they will realize the burden when Government to Bank to them comes up for new law enforcement.

4. I have read articles that only small players will be obliterated from the real estate. its not true, checkout the debt balance with the big players they have. SEZs are good revenue generator for them but its in commercial space. Residential space will be a blow. These players will have no alternative but to get out of their rigidness and reduce the price.

5. Ex: Gurgaon correction, Navi Mumbai correction, Noida extn correction, Kochi correction, Pune correction, Bangalore correction. Players who will be impacted: Amrapali, DSK, DLF, Unitech, Hiranandani, Brigade, Prestige to name a few.

6. Specific to Bangalore: Top projects launched but where we should not buy: Brigade Projects in South Bangalore, Prestige Projects, North and Whitefield region, DLF, South, etc.

7. What is the best price to go for? I am expecting if you have to wait for correction. 2500 becomes 2000, 2800 becomes 2200 and so on.

8. What region to go for in Bangalore: I am recommending None except Kanakpura Road and Yelahanka side. Rest all will be losses.

9. Any other factors: Yes water is major reason. No water availability in Whitefield, Budigere, Hoskote.

10. Where to invest? Gold, GOLD ETF, Silver bars, Platinum, and Fixed Deposits.

375 Comments

  1. Swapneel January 10, 2013
  2. shailendra December 26, 2012
    • realist December 27, 2012
  3. laltu December 16, 2012
    • Vinay December 17, 2012
      • laltu December 20, 2012
  4. Anil November 30, 2012
  5. Srinivas November 19, 2012
  6. Anu November 7, 2012
    • Vinay December 17, 2012
  7. TS October 12, 2012
  8. Shiva September 21, 2012
  9. Amrita September 20, 2012
  10. Anil September 20, 2012
    • abishek shroff September 20, 2012
      • Anil September 21, 2012
        • Pk September 21, 2012
          • Anil September 24, 2012
            • sandhya482 November 20, 2012
              • Anil November 21, 2012
          • Vinay December 17, 2012
            • Tarun December 17, 2012
  11. raj September 16, 2012
    • jayesh September 18, 2012
      • somya September 23, 2012
  12. Abhijeet September 4, 2012
    • Abi September 16, 2012
    • jayesh September 18, 2012
  13. Sunitha August 10, 2012
    • Pranavi September 14, 2012
      • jayesh September 18, 2012
        • pranavi September 24, 2012
    • jayesh September 18, 2012
  14. MOHIT August 9, 2012
    • jayesh September 18, 2012
      • SG September 20, 2012
  15. vmurthy June 25, 2012
  16. Subham June 18, 2012
    • jayesh September 18, 2012
  17. Renuka June 13, 2012
    • ukumar July 19, 2012
    • jayesh September 18, 2012
  18. Arpit Narain June 11, 2012
    • Ajay June 18, 2012
    • jayesh September 18, 2012
  19. rags May 10, 2012
    • jayesh September 18, 2012
  20. Shailendra May 9, 2012
    • jayesh September 18, 2012
  21. abhi_house_hunt January 16, 2012
    • abhi_house_hunt January 17, 2012
      • Rohit June 12, 2012
    • jayesh September 18, 2012
  22. Mahesh January 15, 2012
  23. Amit Saxena January 12, 2012
  24. Ravi Anand December 17, 2011
  25. amu December 3, 2011
    • deepthi December 16, 2011
      • amu December 19, 2011
  26. VS November 24, 2011
  27. Ritu November 21, 2011
    • rajeshaz09 November 22, 2011
      • Venu December 5, 2011
  28. rajeshaz09 November 13, 2011
  29. Sri November 12, 2011
    • Kapil January 18, 2012
      • nikita February 11, 2012
        • Vinod April 23, 2012
          • Sreelekha May 8, 2012
  30. Sushma November 11, 2011
    • Sushma November 11, 2011
  31. harshasagar November 7, 2011
  32. harshasagar November 7, 2011
  33. Arpan November 7, 2011
    • Sasikumar November 15, 2011