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Planning to buy a house? Do it right now!

Last updated on: October 09, 2009 09:01 IST

HighrisesThe story of the boom and the crash in the real estate sector has been well documented. Ever-increasing demand and inflated prices saw housing costs rising to unprecendented heights. But soon the global economic slowdown hit industry sectors hard; none was as badly affected as the real estate sector.

Then the government and the Reserve Bank stepped in. Stimuls packages coupled with dropping interest rates and housing prices have sought to breathe life into the realy sector so that builders can sell their apartments and people can buy them at affordable rates.

So will housing prices drop further? Or should you wait for a while? When will the price rise bottom out? Is this the right time to buy a home? What factors affect real estate the most?

What should you keep in mind while buying a house? How can one get the best bargain?

In an hour-long chat on Thursday, Santosh Naik, managing director and chief executive of Disha Direct Marketing Services Pvt Ltd, answered many such queries. Here is the transcript:

Samartha asked, Hi Mr Naik. With the recession finally receding, is this a good time to invest in property. I have a feeling that real estate rates in most tier 1 cities in India are hugely inflated and not value for money. Under these circumstances, is it better to invest in smaller towns? If yes, is it better to invest in land or in a build-up house, considering the personal income tax sops on house loans are set to go?
Santosh Naik answers,  at 2009-10-08 15:53:39As you said correctly the prises have come down but i still feel that there is a possibility of prices to come down by 10 - 15%. So if you are thinking of investment dont invest in city properties, invest in plots or land if the investment is sole purpose I dont think tax sops on house loans would be waved off soon


Dhyaani asked, Ever big name representing the real estate industry is asking to INVEST NOW. How strongly do you recommend it? Is the future that unpredictable?
Santosh Naik answers, This the right time to buy a property if you are looking for your own. Since i see a stead increase in prices in near future
cyrus asked, hi is it the right time to a flat where do u suggest, is virar or thane and name of projects and builders budget 20lac for invstment and which bank u suggest for loan.
Santosh Naik answers, You can get a good product in Virar or Thane in the budget of 20 - 25lakhs. I suggest you to buy one if it is for your own use
ITurn asked, If investing in real estate be considered an intelligent decision, what do we invest in? Open plots, bungalows, apartments or any thing that you suggest PLEASE ADVISE
Santosh Naik answers, Due to town turn in the over all economy in general and in particular real estate industry, the prices of property has come down drastically and this is the right time for a buyer to invest in real estate. However, as far as pure investment is concerned, investment in plots would be advisable since it would give a better appreciation at a later date.
tina asked, Is it possible that gov. will be raising the interest rate again? I feel its still heigh.
Santosh Naik answers, No. Rates will still go down.
Rosh asked, Hello Mr. Naik. I'm looking to buy a 3BHK flat in Bangalore, Hennur area. The per sq. ft. rate being quoted is Rs. 2000. Would you say it's reasonable?
Santosh Naik answers, Yes it is reasonable
ITurn asked, Renowned names from the real estate industry are merging with government bodies to affordable housing. Wise move or wait & watch policy?
Santosh Naik answers, There should be a partnership between the government and the real estate developers. The central as well as state governments are coming up with lot of policies in order to have an understanding with the local real estate developers, which is an encouraging sign and I think that within the next five years there is a possibility of building up large townships through this partnership
Harish Bhandary asked, Hello Mr. Naik,am interested in investing in Pune...Would investing in Hinjewadi Ph III be a good idea, considering its proximity to the highway and my job being in Mumbai? Currently am staying ata rental facility in Mumbai...and dont plan to settle in Mumbai....Also would like to understand the option of buying a house in Vasai...How lucrative would it be to do so
Santosh Naik answers, Investing in Pune will be a good decision today
RAOCHE asked, Iam planning to buy flat. Which one do you advise Chennai or Bangalore
Santosh Naik answers, Chennai will be a better option
prabhod asked, i am planning to buy a 2bhk resale flat in Riverwood park at kalyan-shil road at 14lakhs. Is it worth buying there?
Santosh Naik answers, Yes
sankalp asked,  Is it the right time to buy a flat in DAHISAR-BORIWALI ? ALREADY RATES ARE GOING UPWARDS
Santosh Naik answers, Yes it is right time
Rajesh asked, Do u think Real estate prices in chennai will come down in near time future?
Santosh Naik answers, No it will not go down
ITurn asked, The common man is not that street smart in buying a property. How would you help him in making the right choice while buying a home?
Santosh Naik answers, According to me there are four parameters one should check before buying any real estate property, which are a)reliability of developer b)the legal documents and clearances for the property c)timely completion of the projects d)value for money you could check all these things and the developers background through his completed projects and some references through his existing customers plus with the financial institutions / banks who are providing home loans for the project. I suggest a thorough reference check on developer's back ground and documentation and clearances of the project is a must
suhas asked, Hello Naik, I am planning to buy plot in JP nagar bangalore for Rs 2300/sqft.Would you say its reasonable?
Santosh Naik answers, Yes
Chakri asked, Hello Mr. Santosh, I am planning to buy a apartment in Mahadevpura, Bangalore , 100 mtrs to outer-ring road which is 1290 sqft ( 2 + study) with basic amenities and a small builder for 33 lakhs including registration - is the deal ok?
Santosh Naik answers, Yes
sf asked, Do u think Real estate prices in Kolkata will come down in near time future?
Santosh Naik answers, No
Amit 28 asked, I Am taking housing lone which will be best fixed or floating.
Santosh Naik answers, As of now you should go for a floating rate of interest
ghargrahak asked, Naik Saheb. Is there a guarantee that the housing price wont fall any further. Economists say that the bubble has burst. No real estate company is doing good. Listed ones are in bad shape. Then how can a house price appreciate if purchased in todays situation. With a home loan of 20 years i would end up spending 63 lac Rs @ 9% if I buy a 30 Lac apartment. How will that ensure an appreciation on my investment
Santosh Naik answers, There are lot of debate weather the prices will go up or down. I strongly feel with demand of 30million housing units in India the prices will steadyly increase
ITurn asked, How well are properties falling in the premium category housing garnering demand since the economic slowdown continues to advance at an unknown pace?
Santosh Naik answers, There is a substantial fall in demand as far as the premium properties are concerned. However, in the last couple of months one can see an improvement in the premium sector as well. As a whole, even the present sign is also less than what was recorded in the last year
Ashish asked, How much appreciation you would expect in Pimple Saudagar Area,Pune. Current rates are 2500-3000 /sqft/ Are these price seasonable to invest?
Santosh Naik answers, Expect 10% increase in next 1year
Mehul asked, How is sheth builder- of Mumbai?he has done many projects,his buildings name starts usuaally with vasant like lawns,valley,marvel etc...We have heard , flat booking he makes at lower rate in under construction projetcs, then he compelles buyers to pay higher prices once prices hikes else compells then to cancel the booking & take refund?is this true?how buyer legally can fight in such cases?please respond.
Santosh Naik answers, They are one of the most reputed developers in Mumbai and completed many projects.You can safely invest in their projects
kaush asked, What is your opinion on prices of Delhi properties. Is this the right time to purchase?
Santosh Naik answers, Yes
Shashank asked, What about Hyderabad, should I go for a flat or house NOW?
Santosh Naik answers, If it is for your own use then you should buy it
sverma asked, Have the prices really come down or is it an eyewash? Like showing a decrease in basic cost and increasing parking charges and other expenses.
Santosh Naik answers, Prices have come down between 20-30% across all projects. And there is a trend of increase in prices in last one month
Akansha asked, Are the real estate prices going to go down in Pune inthe near future?
Santosh Naik answers, No it will not go down any further
KunalUppal asked, My Borther has invested in Lodha Properties in Ghodbunder Road, Thane (Mumbai) for 2 bhk at 3200 psf. Did he make right decision. Property will be ready in 2 years. How much do you think the property will appreciate
Santosh Naik answers, Yes. I see appreciation of 15 - 20% in next 2 years
Manu asked, hello naik one more thing ...is it better to buy a flat at 2700 Rs per sq feet in greater noida....it is ready to move flat
Santosh Naik answers, Yes
sunnlong asked, hello sir, I am planning to buy a house for Rs 27 lacs in Indirapuram Ghaziabad. Its area is 1005 sq.ft with east facing PLC. I am buying it directly from original seller. Need your advice
Santosh Naik answers, Yes
Amit 28 asked, Now Bank will give @8 % but after 1 yr Bank will give 9 for 2 yrs. But fix bank will give @11%. At the same time I am taking lone of Rs 8 Laks. So Floting will be best of Fix. And the property in WB Krishnanagar.IT s 2 bed room indipendent not completed. Rate I have give 8.5000laks.
Santosh Naik answers, It is better to go for a floating rate
Sandhya asked, Hi, What would be your advice on a long pending decision to invest in plots? Is this a good time to invest or should one hold on for more time? the recent slow down has discouraged many to take a decision...
Santosh Naik answers, It is a good time to invest in plots. Specially outskirts of any city
Balaji asked, is it right time to buy house in chennai for residence not for investment
Santosh Naik answers, Yes.
Vinod asked, Does bank provide loan to purchase agricultural land (coffee estate) since I am not a farmer but I want to buy Coffee Estate. The agricultural land cost Rs 20 Lack and my monthly income is 46, 0000. The property it's in Karnataka
Santosh Naik answers, You cannot buy an agricuture land f yu are not a farmer. There are special schemes of Banks to buy agricultural land.
yahu asked, sir,I planing to buy a plot of RS 20LAKHS IN lucknow,LDA.What returns should I expect in 4 to 5 years
Santosh Naik answers, You could expect 40-60% return
Manu asked, How much appreciation you see in greater noida properties in near future...
Santosh Naik answers, you can expect 10-15% retrn in next one year
pab asked, I am getting a 1086 SQ FT 2 BHK ready possesion apartment in Pimple Saudagar, Pune - its just opposite to park street. What should be total cost (inclusive of everything) - it has LPG gas connection, solar heater, childrens play area, a gymnasium. Please respond.
Santosh Naik answers, around 30-35Lakhs
Pranab asked, Hi Santosh, I am planing to take Home Loan.Which bank is best for this ?
Santosh Naik answers, SBI, HDFC & LIC Housing are best
ritu asked, wht is the cost of a 1500 sq ft house in posh area of indore ???
Santosh Naik answers, I wont be able to answer this question right now
jazz asked, Good Afternoon Mr.Naik, I have booked 3BHK flat in Maninagar Area of Ahmedabad recently @ INR 26500.00 per sq.yrd. Kindly advise whether booking price is good or on the higher side and how you look at the prospectus of real estate prices in this area
Santosh Naik answers, Ahmedabad is a emerging market forreal estate and expect a good appreciation
somi asked, Hi Santosh, Can you tell me whether is it right time to buy a properly in Harbour Mumbai for an investment where the flat price would go above 1 cr??
Santosh Naik answers, Yes
manojpreeti59 asked, Hello sir Is there in any chances of mahada development in charkop, kandivali? Are builders coming overthere?
Santosh Naik answers, There are many developer who are developing roperties in this area
ITurn asked, What factors affect property prices? Political activities, policies, expectations or scope of development in destination/present development
Santosh Naik answers, The basic reason for the raise in property prices is the huge demand as against which the supply is far less. The demand for housing units in India based on a recent survey is 30 million units. The other factors are infrastructure, the government policies to meet the demand
anant asked, Mr. naik, The builders are claimimg a lot on the quality. Do you really think that builders in India has come of the profit making age and ready to ofer quality buildings.
Santosh Naik answers, I think uilders are striking a right balance between quality products and reasonalable profits. THere are many developers who are able to do this
Amit 28 asked, Amit 28 Which will be best to Invest in gold or Flat
Santosh Naik answers, Ofcourse Real Estate
Vikki asked, Hello Naik, I plan to buy 1500 sq.ft, 4 years old flat in Pasahn, Pune. Is the price 55 lacs okay?
Santosh Naik answers, Yes the price is OK
RajeshNair asked, Is DB Realty a reputed builder ? Would it be a right decision to book in thier Parkwood project in Ghodbunder Road,Thane ?
Santosh Naik answers, Yes they are a rputed developers and it is a good roject
nikil asked,  i would like to know if 5300 psf in bhandup a good price? for investment i would like to know if 5300 psf in bhandup a good price? for investment i would like to know if 5300 psf in bhandup a good price? for investment i would like to know if 5300 psf in bhandup a good price? for investment i would like to know if 5300 psf in bhandup a good price? for investment
Santosh Naik answers, Which project???
manojpreeti59 asked, Is it right time to buy Mhada House in charkop at the price of 17 Lac?
Santosh Naik answers, Yes this is the right time
PP asked, Hi is there any scope for price appreciation in near future if invested in Kamoth, Navi Mumbai Area, where the proposed Airport is likely to come
Santosh Naik answers, According to me the airport wil take another 5-7years.
satyajeet asked, Sir, where to buy a flat to get better returns : Mumbai,Pune or Chennai.
Santosh Naik answers, Mumbai
ankur asked, is investment at Marol MIDC at Andheri (E) in a residential property advisable at this point?
Santosh Naik answers, Yes. I see further appreciation in this area
AbBaby asked, SIR, PLS ANSWER, is it a good time to buy property in Navi Mumbai areas like Airoli, nerul, kharghar etc?
Santosh Naik answers, YEs
Pradipt asked, Mr. Naik, A big builder is asking a price of Rs. 2100/sqft in BTM extension, Bangalore. Is that good price? Whether Price of real estate in Bangalore will again raise heavily? If yes, what is the projection?
Santosh Naik answers, Yes it is a good rate
akki asked, is it the right time to buy house or wait till december
Santosh Naik answers, It is the right time to buy. I see appriciation in rate in next one quater
nikil asked,  i would like to know if 5300 psf in bhandup a good price? for investment for investment 7 bstorey apt. no swimming pool private builder on lbs road pls. reply
Santosh Naik answers, I think the price is on a higher side
Sujoy asked, How do you forsee investment in tier II towns like Bhopal and indore and wht u feel is the better alternative....Invest in Housing or Commercial space
Santosh Naik answers, Investment in tier 2 towns are adivisible, but as of now metros have better opportunities to nvest in Real Estate
sham asked, I am planning to purchase 2bhk flat for 37 lakhs for area of 1260 sft (SBUA) with all aminities at Kodegehalli North Bangalore . What will be rate of appreciation in future?
Santosh Naik answers, You can expect 10-15% appriciation in next one year


Akansha asked, Which are good areas to invest in Pune? Shall i invest in land or flat?
Santosh Naik answers, Pune prces have come down drastically. And itis good time to invest in Pune depending upon your projects. If the budget is low then you can invest in Plots
Madhur asked,  Hi Which is a better investment: Buying a Plot in Vatika Township Gurgaon Sector 82 @ Rs 22000Per SQ yard or a plot in BPTP Nahar Paar Area @ Rs 14000 per sq yard
Santosh Naik answers, Wont be able to answer this question right now
Sandhya asked, I have heard that banks do not give loans for buying plots.. is this true? Why?
Santosh Naik answers, Banks do give loan on plots on certain conditions like you have to constructour house within 2yrs of buying the plot and they will give you finance to construct your house on that plot
harsh asked,  Sir, What is your suggestion about investment in Studio apartments(1BHK)(builder have poster their amount from 11 to 13 lacs) in greater noida. How much return we can expect on 1BHK in greater noida in a years time
Santosh Naik answers, It is a good option to invest in Studio apartment in Greater Noida. You can expect 10-15% return in one year's time
Aaditya asked, Will house prizes will go down more in the coming 8 months?
Santosh Naik answers, No. I think the prices will go up
Ameya asked, Do you think real estate is a better option investment wise than shares ?
Santosh Naik answers, Investment in stocks and real estate are 2 different options for investment. with thier own strengths and limitations. You can have exposure in both in terms of investment
Happy Singh asked, Don't u think by raising the prices of homes the builder lobby trying to exploit people in general...? Now days home is a fundamental need of person, and in our populated country builder lobby should strive to provide them budget home with minimum profit...whts ur opinion...
Santosh Naik answers, There is a huge demand of housing units in India and its a free economy where developers are entiled to charge the rate as per the market trends. I dont think there is any exploitation in doing this
amanoj asked, What is the basis for your prediction about housing prices going up?
Santosh Naik answers, There are many reasons for prices to go up. Some of them are - Strong Indian Economy, Demand - supply gap, Reduction in homeloan rates and reasonable prices as of now where lot of buyings are happening
chilla asked, Has the property boom bursted or is still awaited, property rates have come down but not considerably and its strongly felt that it should fall further by 15-25%...whats ur opinion on this
Santosh Naik answers, I have already answered this question. Phlease go through the answers
ITurn asked, Promised possession dates start staggering when a project nears completion. How can this complication be reduced?
Santosh Naik answers, The delay in possession are due to various factors and this factors are depends on developers, raw material supply, the government policies, payment from customers. The developers are always keen to complete their projects on time.
sahil asked, Dear Santosh, What should you keep in mind while buying a house? How can one get the best bargain?Dear Santosh, What should you keep in mind while buying a house? How can one get the best bargain?Dear Santosh, What should you keep in mind while buying a house? How can one get the best bargain?Dear Santosh, What should you keep in mind while buying a house? How can one get the best bargain?Dear Santosh, What should you keep in mind while buying a house? How can one get the best bargain?Dear Santosh, What should you keep in mind while buying a house? How can one get the best bargain?
Santosh Naik answers, According to me there are four parameters one should check before buying any real estate property, which are a)reliability of developer b)the legal documents and clearances for the property c)timely completion of the projects d)value for money you could check all these things and the developers background through his completed projects and some references through his existing customers plus with the financial institutions / banks who are providing home loans for the project. I suggest a thorough reference check on developer's back ground and documentation and clearances of the project is a must.
bhn asked, which is best Indian bank to get a home loan for a middle income family and what are attactive int. rates are going on ?
Santosh Naik answers, SBI, HDFC and LIC Housing
arpit asked, do you think the hype again created by builders after election will continue?
Santosh Naik answers, There is no hype because of elections. I see the hype because of renewed interest in property buying from actual buyers which i think will continue in near future
vv asked, how much property prices will appreaciate in thane in next 6 months
Santosh Naik answers, 10-15%
Santosh Naik asked, I would like to invest in real estate in Maharashtra around 30 lacs for 3 years. Which place should I invest for best returns
Santosh Naik answers, Pune, Nasik and Nagpur
goyalrahil asked, there is one project dev exotica in khardi of nagpal builder pune khardi .is it safe to invest money in this project?? builder is taking 120000 for society registration & share money for society. is this reasonable ??
Santosh Naik answers, Yes
jo asked, Is it worth to invest in cidco type building - Shirke Construction which is more than 15 years Old Is it worth to invest in cidco type building - Shirke Construction which is more than 15 years Old Is it worth to invest in cidco type building - Shirke Construction which is more than 15 years Old Is it worth to invest in cidco type building - Shirke Construction which is more than 15 years Old
Santosh Naik answers, It is a very individual decision. Shirke Constructions is one of the reputed developers.
Nitin asked, which one you suggest, fixed rate or floating rate..even when fixed is only fixed for 5years?
Santosh Naik answers, Floating
yadireddy asked, namaskar sir, I am trying to buy a residential plot, original document having plot partner in America, how can i trust the linked document seller,
Santosh Naik answers, Kindly get alll the documents verified from a good lawyer
vishal asked, As per RBI report Indian PSU banks have lended some Rs. 32321 crore to the builders during the period may 2008 - may 2009 , this fresh infusion of money to the builders have resulted in increase in prices....your opinion Mr. Santosh Naik ?
Santosh Naik answers, No increase in prices are because of various other factors(I answered it in my previous answers Plz refer)
mann asked, i am buying 1BHK(650 sq.ft. built up) at JB Nagar Andheri for 36lakhs is it a good buy.
Santosh Naik answers, You can still negotiate

Santosh Naik says, Thank You all for joining me on this Chat secssion. Wish you all a Very Happy Diwali.