Monday, March 20, 2006

Property wisdom

"The whole of Delhi is into properties", said the property broker, who took me for a spin this Saturday. Clever buggers these guys ... they'll do their best to ensure that he thinks my money as his onw, he would say that he'd sell our flat to another buyer at a little higher rate (it's another story that he might do the same thing to me aswell) .... that's their way to gaining confidence. Traits of a professional salesman.

Some tips I could remember -
a) Always go in for smaller property sizes as compared to bigger property sizes. It's easier to sell and often has the best appreciation in value
b) Plots are preferable over flats if quick returns are your goal. Plots are easier to sell as compared to flats.
c) In flats, the variation in prices is not as much as compared to plots, where location and frontage is of primary significance
d) If you are searching for one (plot/flat/house), there will always a second broker who would give you a better deal. So search more, and seek more.

9 Comments:

Anonymous Anonymous said...

Hi Shankar,
Suppose if i have 2 lakh to invest how do u think that it can be invested in real estate sector. Moreover if i ask you to allocate the same amount in stock market how will you distribute it,so as to get a return of 20% over a period of say 4 to 5 months.Yaar do you have some buisness idea????i am serious:) your blogs suggest that you are working hard to make some fast money and in this process you would have gone through no. of thought processes which would have definetly included some buisness ideas.If at all you are interested in sharing them let us know abt it.Remember one thing if you have some idea and you fear to disclose it you have none of a idea.Please do not take it in a wrong way at all.Just in case if you are interested bcoz stocks generate their profits from buisnesses and if we enter into buisness we can create our own profit.

Warm Regards.

6:15 PM  
Blogger Shankar said...

Hi,

If you have 2 lakhs of rupees, then go in for any pre-launches that happen thick and fast. If it's your first dip in properties then go for an established infrastructure company like an DLF, Unitech etc. Lets take an example here -
1. Say an apartment is available at 2000 rupees/sq ft and 1000 sq ft of it.
2. The sum comes to 20,00,000 rupees. During pre-launch, a nominal sum of 10% (normally) is taken which comes to 2,00,000 rupees.
3. The next installment of another 20% will be due only 1/1.5 months after the launch. The launch itself will be 3-4 months away. So you have a time gap of 5-6 months.
4. If the property appreciates then you get big advantage ... see why ...
a) Assume the property price is upto 2400 per sq ft.
b) So the person who is to buy the property will have to pay you -
- 2,00,000 rupees which was your original investment and,
- 400 * 1000 = 4,00,000 rupees which is the premium you are entitled to.
- Total receipt : 6,00,000

In six months, your 2 lacs are 6 lacs. Annualised returns of 400% !!!

Q.E.D.

9:51 AM  
Blogger Shankar said...

On the business plans front, I seriously would like to shun my salaried status. Hv been exploring a number of business practices primarily using the wide depository of info the internet can provide.

Aquarians are rather unpredictable, people say. So you never know, when I take the dip.

Warm Regards
Shankar

9:54 AM  
Blogger Prasanth said...

Shankar,

Here are some (wacky) ideas about "business" :
1. Start a fruit and Veg store (seriously!!) - think makes sense atleast in my neighbourhood.

2. Start a in city transportation business - Buy Tata Ace's (2.2 Lakh a piece) and rent them out.
Also, leverage them for your fruit and veg store !!

3. Buy Indica's and rent them out as taxi's - check out this link : http://indiainvesting.amieo.com/

Will blog about them when i gather enough data.

Regards,

Prasanth

3:41 PM  
Blogger Shankar said...

This comment has been removed by a blog administrator.

5:04 PM  
Blogger Shankar said...

Dude, I was more working on the premise that 28% of the indian population lie between the 25-35 yrs agre-group. At 280 million people, 5% with a disposable household income of 10000 rupees per month. And 2 children per HH would come to another 14 million children in the age-group of 1-9. In another 4-6 yrs, when I am ready .. they will be of age 8-15 i.e. classes 3 to 10.

Those last words really gave it away, didn't it? This is one area of ideas.

Others ... when the time is ripe :-)

- Shankar

5:07 PM  
Anonymous Anonymous said...

mr. shankar your idea is o.k but opening play school, abacus schools and other schools kinda stuff will sap all energy out from a individual......for this you need to have a huge huge investment capacity.....money attracts money......well the idea is a good one but for the very rich and very mighty.....

7:26 PM  
Blogger Shankar said...

OK, entirely my opinion but I feel it's often not a bright idea but a driving-vision that is a function of success.

For example -

1. Education should be any-time (learn at any hour), for any-one (anyone who wants to learn) and without-any-limits (study as much as you want to) ... when I think in this way, my entire approach to the future changes

2. Information should be available on demand and free

3. Houses, where every apartment and every room can be made uniquely

4. Computers which take less than a second to boot, instead of the 3-4 minutes

5. For every human on earth, there are 200 locks. Now imagine the size of the security market.

.... thinq !!!

10:10 PM  
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4:23 PM  

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