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Old 05-07-2008, 02:05 AM   #1 (permalink)
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Question Real estate prices

Land for Sale in India is acquired by land developers and improves it with utility connections, roads, earth grading, covenants, and entitlements. Purchasing a property in India requires a significant real estate investment in India, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Specialists are often called on to valuate real estate and facilitate transactions. Commercial Property Investments have given excellent returns over the past 3 years, where in the real estate prices have nearly gone 5 to 6 times. Several forces are driving commercial real estate’s revival. Most obviously, the economy is improving and businesses are growing once more. Over the past few months, a number of major institutional and private investors have been selling off large chunks of their portfolios of prime commercial real estate. These investors have been taking advantage of what they see as a frothy market. Building or buying a newly built property is one of the biggest investments you will make. For this reason it is imperative that you choose a well-qualified and reputable builder or developer. The market does not suffer from excess construction. Even the real estate prices are augmenting fast, especially Chennai real estate, Hyderabad real estate and Bangalore real estate are on a very high phase. The market boom is spread across the country and hence more and more Indians are not interested in investing for India real estate. The economy rate as well has managed to grow faster than 8% each year because of increasing real estate market trend. Infrastructure improvement provides a base for further development of built improvements. Covenants define the context in which future development of built improvements may take place often in the form of deed restrictions on particular parcels - a sort of private zoning code limited only to those properties. Entitlements are secured legal permissions from regulatory bodies typically in the form of permits, but sometimes in the form of re-zoning or planned unit developments. Once these improvements have been made to the raw land, it is typically subdivided and sold piecemeal at a profit to individuals or building developers.
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Old 05-07-2008, 06:50 PM   #2 (permalink)
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Okay, so I know that was kind of spammy, but I'm going to use this pre-existing thread to talk about real estate prices.

I live in Southern California, where (I'm using terms I've overheard here), the bottom has dropped out of the market. My brother, who is willing to take far more financial risks than I am, keeps suggesting I buy a house now and sell it in a few months for a profit. The market has dropped so much now, though, and so many people have lost money trying to do just that, that is scares me. I plan on buying my own home in a few years, and I don't want to lose the money I have saved up on some property that ends up being worth less than I paid for it. I'm not ready to buy my true first home now.

So, how do you feel about buying property only to turn around and sell it? Have any of you done that successfully? Do you have any experiences you would like to share?
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Old 05-07-2008, 07:09 PM   #3 (permalink)
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Hi duckie, thanks for the post, personally i do not have any experience flipping houses, however 2 very close friends of mine do. From what i have seen and heard from them is that location is key. With the market as crappy as it is right now for sellers, it would be a good time to buy a house cheap, live in it while fixing it up. Change out kitchen appliance and bathrooms and more over a period of 2 years or so then sell it, hopefully when the market gets better. The first house my friend flipped cost him around $300,000 which over 2 years he put $30,000 into and sold it for a little over $400,000. But remember the location wasnt a slum for there isnt much demand or apperiation for fancy houses in low income areas. Also have to remember the taxes that you have to pay on a house. I am not sure how it is in Cali but in Orlando, they are through the roof. But it is definatly possible if you do it right.

Also if you do plan on doing something of this sort, check out the Home Depot Expo, they have some really nice stuff.
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Old 05-25-2008, 02:02 AM   #4 (permalink)
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I use two different approaches when investing with property. I do a few reno/flips to gain some capital and I also sub-divide/develop property to maximise capital growth and keep my portfolio growing.

Flipping is not as scary as people make it sound. Research an area so you know the median.
Buy a cosmetically-challenged house that's priced below that median you researched earlier. Be prepared to get your hands dirty. Paint. Pull weeds. Hire contractors for big stuff. Lay carpet. Hang curtains. Sell at profit. Rinse and repeat. Not scary.

What IS scary is the tax involved if you haven't set up your investing structure correctly. Because there are such large sums of money involved, I'd strongly suggest you talk to an accountant about setting up a suitable investing structure for YOUR situation before jumping in.
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Old 05-26-2008, 09:20 AM   #5 (permalink)
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This is something I have done once, thankfully I sold the apartment just in time, before the world economy started to shake. At this moment in time it is very difficult to sell, however if I had the finances I would start looking into buying and re selling in a few months. You just have to be sure that the price you pay is as small as possible, even if you buy a place that needs some work, it can be turned around.

The best times to buy are when the prices are at an all time low. But if you are not sure of the risk, and it will cause you sleepless nights then leave it for now, until you have thought about the prospect for a little longer.
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Old 01-09-2009, 11:23 PM   #6 (permalink)
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Old 06-18-2009, 10:33 PM   #7 (permalink)
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Old 06-24-2009, 03:00 AM   #8 (permalink)
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