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Old 28-08-10   #21
wiseman is offline wiseman
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Default An important assumption that could be wrong ...

Quote:
Originally Posted by VishalPrabhakar View Post
I agree with Jadah Ravi, I do not see any depreciation of property prices in Mumbai..

it goes something like this:
an boom of 3* "X" percent followed by a drop of X percent...
and then a boom of I * "X" and then a drop of X...

But, the value of "I always remains > 2 to 2.5.

Vishal,

Your argument is correct IF one bought BEFORE the 3X rise. But the volumes jumped in the market in 2007 mainly which was AFTER the 3X rise. So, the 1X decline has people holding property with some kind of loss or maybe at par.

To them, its still a loss, right?

cheers
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