Here is a good article I found on yahoo on buying value investments. Its a perfect article to illustrate why Chennai represents good value over Mumbai to live and make a career without take undue risk with housing investments. If Tata and Mahindra can find value, so can the middle class individual.
The other day a friend of mine approached me excitedly, saying, "I found the house of my dreams. It's in foreclosure and the bank will sell it to me for a great price."
"How good is the price?" I asked.
"Just before the real estate market crashed, the seller was asking $780,000 for the property. Today, I can buy it from the bank for $215,000. What do you think?" she asked.
"How would I know?" I replied. "All you've given me is the price."
"Yes!" she squealed. "Now my husband and I can afford it."
"Only cheap people buy on price," I replied. "Just because something is cheap doesn't mean it's worth the cost."
I then explained to her one of my most basic money principles: I buy value. I will pay more for value. If I don't like the price, I simply pass. If the seller wants to sell, he will come back with a better price. I let him tell me what he will accept. I know some people love to haggle; personally, I don't. If a person wants to sell, they will sell. If I feel what I am buying is of value, I'll pay the price. Value rather than price has made me rich.
Here is the Mahindra presentation on MWC. Land near this area is between 350-700 Rs for plots. In the next five years, one can easily expect this area to boom. the neighboring area of Singerperumail Coil is booming with houses, and so is Marmalai Nagar.
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