Real estate property prices trends
Key: buying at low selling at high.
buying overpriced than actual value.
Appraisers: to valuate the land.
Speculation has to 2 ways for incident.
Real estate performance in recession
there’s no way to predict the future real estate market
7 years ago 50k for 60sqyds
300k for 60sqyds
24% rate very avg 12%. (Devoloping countries)
(3-4% in devoloped countries).
1.21M/121 (12lkhs) in 6 years
growth rate ==??.
(8k*300= 2M or 20lakhs
2020 (will I get 4M not possible,
at least 12k(@7%) 15k (15%) 20k @24% growth rate per year..
3k hoped to 8-12k why not 8k not grown..
18lkhs 190sqyd highway.
Plot rates at highway price vs slums in main city
asset yield is here important, highway only for commercial.
Downsizing: selling higher value assests taking profit and again buying lower rates &wait for price increase.
How fast & how much land /property rates increase?
double in few months.(3-6months)
double in 1 year
decline stage (slowly growth)
no one buying (growth according to inflation rate).
Market assumption vs real sale value.
employment is the key to residence.
Problem no growth at all?
Demand & supply
population & economy grows but land size not.
Fixed deposit vs shares vs gold vs real estate
Real estate @10-10
apartments & individual house
7.5% cap rate (yield)
Many investors experienced in house properties.
land or house grew 50 or 100 times in 40-50 years
100times in 50 years = 9.6%cagr
sensex 300x in 38 years @15%cagr.
2x in 3 years @24% cagr thumbrule.
2x in 5 years @12% cagr
time to double income formula
72/60= 1.2 (5rupees)
72/36= 2yeara (3rupees)
72/24=3 years (2rupees for 100 per month)
72/4= 18 years (saving account)
Inflation rate 8%.
compound inflation rate:
Selling at future price for now,
Historical growth of real estate property 5 stages
Agriculture to residential or commercial
Devolopment of physical infrastructure (new purose)
Improvement of livability or commercial livability because are gets popular
Periodical real estate booms & busts
5 cr property maybe 250cr in 50 years.
The land in forest vs agri vs residential vs commercial.
for showrooms, shopping malls, petrolbunk etc.
Making on real estate with no money?
5% amount & 45 days to make agreement.
and find a buyer to higher rate.
buying agriculture land in partnership, making venture selling plots, registering through original seller, (rera act to control this).
commission on selling open plots 5%- 30%.
Properties @2% of 1cr.