Money matters - Personal investing / finance - Page 8

satishanu · January 5th, 2012, 09:23 PM

when buying diamond, check for 4C's (Carat, Cut, Color and Clarity). Not sure if the quality check is same in India as well.

http://www.source.co.il/diamonds-4cs.html

http://www.myjewelrysource.com/tople...efinitions.htm

chennaidesi · January 5th, 2012, 10:27 PM

Dont buy anything just invest in real estate.

kongutamizhan · January 5th, 2012, 11:00 PM

Quote:

Originally Posted by chennaidesi

Dont buy anything just invest in real estate.

Well my doomsday prediction on RE in India. Real estate market needs a correction. It's a bubble waiting to burst

satishanu · January 5th, 2012, 11:27 PM

It's good time to buy/invest in RE @ US.

kongutamizhan · January 5th, 2012, 11:38 PM

True that!! India veeta vitha, US'la rendu vangalam. Periya veedu onnu, chinna veedu onnu. Anyone up to it?

krishnaswamy · January 6th, 2012, 03:39 AM

Quote:

Originally Posted by kongutamizhan

Well my doomsday prediction on RE in India. Real estate market needs a correction. It's a bubble waiting to burst

+1..
high inflation..high EMI..Cost of Education is going high..
People in India are suffocating from various corners..
1 more recession..."DAMAL"...

kongutamizhan · January 8th, 2012, 07:04 PM

NRI makkals, unga kitta gevermentu panam kekkudhu

http://www.deccanchronicle.com/chann...s-diaspora-014

Increase investment in India: Pranab urges diaspora

Finance Minister Pranab Mukherjee on Sunday urged non-resident Indian (NRI) entrepreneures to increase investment in India, saying the the economic engagement of the diaspora was not been upto the potential so far.

"We have not yet reaped the full benefits of India's great diaspora. The most obvious area remains that of investment and entrepreneurship," Mukherjee said while addressing the 10th edition of the Pravasi Bharatiya Divas annual diaspora meet here.

The finance minister pointed out that flow of foreign direct investment in the countries like China had been mostly by the Chinese living overseas, while in case of India, it was not upto that level.

"I am aware that there have been large ticket investments by non-resident Indian entrepreneurs. But I think it is far less than the potential and perhaps too concentrated on the formal sector," he said.

"Rather, we must pursue an alternative model. One that is more balanced and holistic in a socio-economic sense," he added.

Mukherjee said the entrepreneurial skills of the Indian business community settled abroad were a matter of envy for other nations.

"Foreign firms are increasingly aware of the sharp business acumen of the Indian entrepreneur and managers. They have come to respect our business houses and practices," he said.

The finance minister said India was emerging as a major player in global economic affairs and talents and entrepreneurship of its citizens were widely recognised.

"We are widely recognised as a major driver of global growth. India is a member of the G20 and, within the G20, it is considered a part of the systemically most important 7," he said.

Mukherjee said migration of people should not be regarded as a 'brain drain'.

"The movement of the diaspora is no longer unidirectional as it was in the past. What started as a brain drain, has now become a brain gain, not just for India but the world as a whole," he said.

Almost 30 million Indian diaspora live in over 130 countries across the world. The finance minister said movement of people from India has helped in growth and development of the country.

"When in the 1970s a large number of highly qualified Indians were moving abroad, we were warned of the severe consequences of the brain drain. Contrary to conventional, and in hindsight myopic opinions, luckily we made no attempt to stop the flow. Today we are better off due to that," he said.

TShyam · January 8th, 2012, 10:35 PM

Quote:

Originally Posted by kongutamizhan

Well my doomsday prediction on RE in India. Real estate market needs a correction. It's a bubble waiting to burst

Well if Eurozone goes under (likely) or if there is some problem in Chinese RE market (unlikely), it may reverberate here. There may be some corrections but i wont go to the extent of using words like bubble, doomsday et al. There is a huge population waitlisted to have a decent piece of land in a urban area. Even now after such a huge appreciation (Chennai RE prices have doubled on an average from 2009 lows) residential rentals are in the 3 -4% region. A 30 lac apartment will fetch you 10K rent., a 50 lac apartment fetches you 15K rent and a one crore apartment fetches you around 25K to 30K in rent. Fundamentals are quite strong atleast for the current prices to stay if not for appreciation. So I dont think prices are going to fall dramatically as is the case in a bubble. You are not going to get a 50 lac apartment for 30 lacs next year (or the year after that).

Asset bubbles typically form over a period of low interest rates, when borrowing and investing in an appreciating asset class is easier and not when the cost of money is so high. If it was a bubble, it would have burst around sometime now - with interest rates so high. From now on, interest rates can take only one direction - down which means RE investment would be much easier. A RE bubble may form from now on (provided there are no external shocks) but I dont think there is any bubble right now.

satishanu · January 9th, 2012, 12:24 AM

^True that. Prices atleast in Chennai would hover around same price or slightly increase depending on location (near by metro or mono or ORR/IRR etc would get hiked considerably).

Banks in India have strict rules even for NRI. so many procedures to get loan. Bubble in US caused by sub prime lending to unqualified people which is not the case in India.

satishanu · January 24th, 2012, 10:21 PM

Any working couples tried filing tax separately in US ? Seems it may be better option to do depending on the scenarios.

geico2000 · January 26th, 2012, 07:56 PM

Quote:

Originally Posted by kongutamizhan

Well my doomsday prediction on RE in India. Real estate market needs a correction. It's a bubble waiting to burst

I have been personally advised to with hold any investments in land. First the economy doesn't looks good. Next, there are no buyers in the market. Third as the new governments land valuations are coming to effect, which will increase the registration cost, this will led to reduction in land cost. This is insider advice, who is in to high-end real estate dealings for the last 25 years. He said, "கையில காசு வைசிருகவந்தன் இபோதைக்கு புத்திசாலி ".

I backtracked buying a co**** farm and invested in to some stocks.

geico2000 · January 26th, 2012, 08:14 PM

Quote:

Originally Posted by TShyam

Well if Eurozone goes under (likely) or if there is some problem in Chinese RE market (unlikely), it may reverberate here. There may be some corrections but i wont go to the extent of using words like bubble, doomsday et al. There is a huge population waitlisted to have a decent piece of land in a urban area. Even now after such a huge appreciation (Chennai RE prices have doubled on an average from 2009 lows) residential rentals are in the 3 -4% region. A 30 lac apartment will fetch you 10K rent., a 50 lac apartment fetches you 15K rent and a one crore apartment fetches you around 25K to 30K in rent. Fundamentals are quite strong atleast for the current prices to stay if not for appreciation. So I dont think prices are going to fall dramatically as is the case in a bubble. You are not going to get a 50 lac apartment for 30 lacs next year (or the year after that).

Asset bubbles typically form over a period of low interest rates, when borrowing and investing in an appreciating asset class is easier and not when the cost of money is so high. If it was a bubble, it would have burst around sometime now - with interest rates so high. From now on, interest rates can take only one direction - down which means RE investment would be much easier. A RE bubble may form from now on (provided there are no external shocks) but I dont think there is any bubble right now.

The answer for the first highlight is the second highligted one. China is under severe strain from bad loans and inflation is so high there. Dooms day is not so long in RE-China. Chinese banks are writing off huge chunk of laons.

Coming back to india, already the balance sheet of most Indian infra companies are in negative which is really a cause for concern. Many of them miscalculated their returns. Europe is collapsing and US is becoming another Japan. There are other countries that have started to give a tough competition for India for outsourcing, like vietnam for textiles. so our FDI inflow is not in good shape. There are predications that Rupee may break 55 to dollar. All this may cause a black hole in Indian RE.

Other than this, the big இலிசாவை group software enginers are not seeing those big salary hikes and the days of companiens showing 30% increase in profits are gone. So unless a new இலிசாவை group is found there wont be much increase in RE prices but if the current scenrio (slowdown) continues for another 1 year we will see reduction in prices.

geico2000 · January 26th, 2012, 08:16 PM

Quote:

Originally Posted by satishanu

Any working couples tried filing tax separately in US ? Seems it may be better option to do depending on the scenarios.

I dont think you will be saving much by filing separetely unless your income is very high (more than a million). This may not be true for some states.

satishanu · January 28th, 2012, 02:55 AM

Not true. My sis-in-law family tried it and got $800 saving filing separate. Again as it said it may vary depending on certain factors such as salary range, medical costs, per-diem etc..

kongutamizhan · January 28th, 2012, 03:03 AM

http://www.bankrate.com/finance/mone...eparately.aspx

Next one is an old article. Joint income limits may have changed now but still has good info

http://www.fool.com/taxes/2000/taxes000526.htm

TShyam · January 28th, 2012, 10:59 AM

Quote:

Originally Posted by geico2000

The answer for the first highlight is the second highligted one. China is under severe strain from bad loans and inflation is so high there. Dooms day is not so long in RE-China. Chinese banks are writing off huge chunk of laons.

Coming back to india, already the balance sheet of most Indian infra companies are in negative which is really a cause for concern. Many of them miscalculated their returns. Europe is collapsing and US is becoming another Japan. There are other countries that have started to give a tough competition for India for outsourcing, like vietnam for textiles. so our FDI inflow is not in good shape. There are predications that Rupee may break 55 to dollar. All this may cause a black hole in Indian RE.

Other than this, the big இலிசாவை group software enginers are not seeing those big salary hikes and the days of companiens showing 30% increase in profits are gone. So unless a new இலிசாவை group is found there wont be much increase in RE prices but if the current scenrio (slowdown) continues for another 1 year we will see reduction in prices.

I dont understand what you are trying to say. Please be more precise. Besides I dont think Chinese inflation is so high. Its in the 4-5% range. Uncomfortable but cannot be labelled "so high". Infact India's inflation is almost double that of China. The so called Chinese bubble has so many reasons but easy credit was definitely not one of them. The govt and lenders tightened the screws even when there was a ravenous appetite for RE in China. So, it is set for a soft landing with prices and supply moderating unlike what happened in 2006-07 in the west.

Most probably there is going to be an Eurozone induced recession this year, so yes RE market will have difficult times. For example there is a 2700 flat project coming up at Tiruporur near Mahabalipuram. Sathishanu posted a residential project in Chennai residential projects thread which seems to have 2000 flats some 4 km's off OMR near TCS, Siruseri. Now these promoters are definitely going to have a tough time selling even 20% of those things. There wont be enough end user demand even in normal times let alone during recessions. These projects depend overwhelmingly on IT/ITES employees and a global downturn will affect them more than the others and these projects come up in places which dont have substantial social infrastructure.

But in core city and its suburbs, there is still lot of demand which has nothing to do with IT/ITES or for that matter any foreign trade. Chennai RE has gone up almost 3 times in 4 years. That kind of performance may not be seen going forward; it will not go up another 4 times by 2015 but I dont see any reason for a "crash".

satishanu · January 28th, 2012, 06:48 PM

Shyam, certain blocks(15,18,21,24) in bollinenihillside is completely sold out.

http://www.bollinenihillside.com/inn...ihillside.html

Still construction is going on for new blocks and handing over lot of blocks.
Here is the Jan 2012 newsletter from their site:

http://www.bollinenihillside.com/ima...ary%202012.pdf

TShyam · January 28th, 2012, 07:10 PM

But it has a total of 70 odd blocks isnt it? Do you know the rates at which they are selling? I searched the website but couldnt find the rates.

krishnaswamy · January 28th, 2012, 07:17 PM

Quote:

Originally Posted by TShyam

But it has a total of 70 odd blocks isnt it? Do you know the rates at which they are selling? I searched the website but couldnt find the rates.

my 2 friends(both of them are brothers and my ex- manager). 1 is here and the elder is in chennai.
elder one gave all the "big" hype about bollineni to the younger guy and went to see the site..
"there is no hills" near by and they are calling hillside.
there is no proper roads and they are calling World class.
2 perum "thalai" therikka odi vanthutanga..
6-7 of my friends, went and saw the site, just escaped...

I will still stuck to my words..buying apartment outside chennai city and buying with short span of return of 10-15 yrs...
they are going to get big "Halwa"..
buying a apartment in 30th floor or 45th floor with more than 1000 apartments...
maintenance cost will be huge...
because of corruption, absence of lack of vision for the infrastructure..political compulsion... life will not be as smooth as in small apartments or within the city.
but still the bookings are going on and people are buying..
but their fate is going to be seen in next few years.

satishanu · January 28th, 2012, 07:24 PM

I agree the facilities will improve slowly outside city limits. Now it seems they have school, 24 hr power back etc. Long term things will get better.

January 5th, 2012, 11:38 PM	#145
kongutamizhan Registered User Join Date: Jun 2010 Posts: 7,088 Likes (Received): 361	True that!! India veeta vitha, US'la rendu vangalam. Periya veedu onnu, chinna veedu onnu. Anyone up to it? __________________ To a worm in horseradish, the world is horseradish - An old Yiddish proverb

January 8th, 2012, 07:04 PM	#147
kongutamizhan Registered User Join Date: Jun 2010 Posts: 7,088 Likes (Received): 361	NRI makkals, unga kitta gevermentu panam kekkudhu http://www.deccanchronicle.com/chann...s-diaspora-014 Increase investment in India: Pranab urges diaspora Finance Minister Pranab Mukherjee on Sunday urged non-resident Indian (NRI) entrepreneures to increase investment in India, saying the the economic engagement of the diaspora was not been upto the potential so far. "We have not yet reaped the full benefits of India's great diaspora. The most obvious area remains that of investment and entrepreneurship," Mukherjee said while addressing the 10th edition of the Pravasi Bharatiya Divas annual diaspora meet here. The finance minister pointed out that flow of foreign direct investment in the countries like China had been mostly by the Chinese living overseas, while in case of India, it was not upto that level. "I am aware that there have been large ticket investments by non-resident Indian entrepreneurs. But I think it is far less than the potential and perhaps too concentrated on the formal sector," he said. "Rather, we must pursue an alternative model. One that is more balanced and holistic in a socio-economic sense," he added. Mukherjee said the entrepreneurial skills of the Indian business community settled abroad were a matter of envy for other nations. "Foreign firms are increasingly aware of the sharp business acumen of the Indian entrepreneur and managers. They have come to respect our business houses and practices," he said. The finance minister said India was emerging as a major player in global economic affairs and talents and entrepreneurship of its citizens were widely recognised. "We are widely recognised as a major driver of global growth. India is a member of the G20 and, within the G20, it is considered a part of the systemically most important 7," he said. Mukherjee said migration of people should not be regarded as a 'brain drain'. "The movement of the diaspora is no longer unidirectional as it was in the past. What started as a brain drain, has now become a brain gain, not just for India but the world as a whole," he said. Almost 30 million Indian diaspora live in over 130 countries across the world. The finance minister said movement of people from India has helped in growth and development of the country. "When in the 1970s a large number of highly qualified Indians were moving abroad, we were warned of the severe consequences of the brain drain. Contrary to conventional, and in hindsight myopic opinions, luckily we made no attempt to stop the flow. Today we are better off due to that," he said. __________________ To a worm in horseradish, the world is horseradish - An old Yiddish proverb

January 28th, 2012, 03:03 AM	#155
kongutamizhan Registered User Join Date: Jun 2010 Posts: 7,088 Likes (Received): 361	http://www.bankrate.com/finance/mone...eparately.aspx Next one is an old article. Joint income limits may have changed now but still has good info http://www.fool.com/taxes/2000/taxes000526.htm __________________ To a worm in horseradish, the world is horseradish - An old Yiddish proverb

January 28th, 2012, 07:10 PM	#158
TShyam Stalin - Man of Steel Join Date: Sep 2010 Posts: 2,646 Likes (Received): 10	But it has a total of 70 odd blocks isnt it? Do you know the rates at which they are selling? I searched the website but couldnt find the rates. __________________ Peak oil isn't running out of oil. It means that the cost of incremental supply exceeds the price economies can pay without destroying growth. - Chris Skrebrowski I'd put my money on solar energy. I hope we don't have to wait till oil and coal run out before we tackle that. - Thomas Edison, in conversation with Henry Ford and Harvey Firestone, March 1931.

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January 5th, 2012, 09:23 PM	#141
satishanu Registered User Join Date: Jun 2008 Location: Jacksonville, FL Posts: 2,741 Likes (Received): 168	when buying diamond, check for 4C's (Carat, Cut, Color and Clarity). Not sure if the quality check is same in India as well. http://www.source.co.il/diamonds-4cs.html http://www.myjewelrysource.com/tople...efinitions.htm

January 5th, 2012, 10:27 PM	#142
chennaidesi Registered User Join Date: Apr 2008 Location: Philadelphia/Chennai Posts: 2,672 Likes (Received): 86	Dont buy anything just invest in real estate.

January 5th, 2012, 11:27 PM	#144
satishanu Registered User Join Date: Jun 2008 Location: Jacksonville, FL Posts: 2,741 Likes (Received): 168	It's good time to buy/invest in RE @ US.

January 9th, 2012, 12:24 AM	#149
satishanu Registered User Join Date: Jun 2008 Location: Jacksonville, FL Posts: 2,741 Likes (Received): 168	^True that. Prices atleast in Chennai would hover around same price or slightly increase depending on location (near by metro or mono or ORR/IRR etc would get hiked considerably). Banks in India have strict rules even for NRI. so many procedures to get loan. Bubble in US caused by sub prime lending to unqualified people which is not the case in India.

January 24th, 2012, 10:21 PM	#150
satishanu Registered User Join Date: Jun 2008 Location: Jacksonville, FL Posts: 2,741 Likes (Received): 168	Any working couples tried filing tax separately in US ? Seems it may be better option to do depending on the scenarios.

January 28th, 2012, 02:55 AM	#154
satishanu Registered User Join Date: Jun 2008 Location: Jacksonville, FL Posts: 2,741 Likes (Received): 168	Not true. My sis-in-law family tried it and got $800 saving filing separate. Again as it said it may vary depending on certain factors such as salary range, medical costs, per-diem etc..

January 28th, 2012, 06:48 PM	#157
satishanu Registered User Join Date: Jun 2008 Location: Jacksonville, FL Posts: 2,741 Likes (Received): 168	Shyam, certain blocks(15,18,21,24) in bollinenihillside is completely sold out. http://www.bollinenihillside.com/inn...ihillside.html Still construction is going on for new blocks and handing over lot of blocks. Here is the Jan 2012 newsletter from their site: http://www.bollinenihillside.com/ima...ary%202012.pdf

January 28th, 2012, 07:24 PM	#160
satishanu Registered User Join Date: Jun 2008 Location: Jacksonville, FL Posts: 2,741 Likes (Received): 168	I agree the facilities will improve slowly outside city limits. Now it seems they have school, 24 hr power back etc. Long term things will get better.