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

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