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Sid · 23-01-08

That is right. Some of the things I have learned...

Just do your own math and see what will really cause the prices to come down?

Property prices depend on -

Demand - Ever increasing especially in Tier I and II, there are people buying their first home and then investors buying multiple properties. Not everyone may think like this but other people from all over the world will continue to drive the property prices up whether one likes it or not.

Supply - Prime cities, where space is a problem, supply in hot pockets will shrink and shoot the prices up. This will make the prices in the subarban areas to go up in proportion and so on. The wise investors will look for opportunites where there is maximum return and subarban or developing cities are good choices.

Psychology - Look at all of us, why are we spending so much time on discussing the real estate news and events? Why there are more websites, advertisements, blogs, etc? Everyone is attracted to the real estate market nowadays. How will it bring the prices down? Our psychology depends a lot on our vigilance towards our friends, relatives or other people that we know. Ex. Let's say, there is a 2 bhk flat on sale in the market for 1 crore and actual price was 50 lacs before the boom. Buyers or Investors, who keep a constant eye on the prices will buy it right away if the prices drop to say 80 lacs because it seems like a good deal. Imagine, how many such buyers are out there. The seller realizes the demand and the as a result ptice will continue to rise.

Material Costs - No brainer.

Higher Standard of living - Always true. When the new houses come with all the ameneties, people would want to move into newer homes.

Mortgage Loans - first time buyers, property appreciation > interest rate or rental income = EMI for investors.

Safer than stocks, Population, Inflation, Economy and more jobs, higher pays, family with two income.....

So many reasons to drive the prices up.....

Can anyone think of a good reason why the Government or Market will do a correction? I have been looking for one...

23-01-08	#6
Sid New Member Join Date: Jan 2008 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	That is right. Some of the things I have learned... Just do your own math and see what will really cause the prices to come down? Property prices depend on - Demand - Ever increasing especially in Tier I and II, there are people buying their first home and then investors buying multiple properties. Not everyone may think like this but other people from all over the world will continue to drive the property prices up whether one likes it or not. Supply - Prime cities, where space is a problem, supply in hot pockets will shrink and shoot the prices up. This will make the prices in the subarban areas to go up in proportion and so on. The wise investors will look for opportunites where there is maximum return and subarban or developing cities are good choices. Psychology - Look at all of us, why are we spending so much time on discussing the real estate news and events? Why there are more websites, advertisements, blogs, etc? Everyone is attracted to the real estate market nowadays. How will it bring the prices down? Our psychology depends a lot on our vigilance towards our friends, relatives or other people that we know. Ex. Let's say, there is a 2 bhk flat on sale in the market for 1 crore and actual price was 50 lacs before the boom. Buyers or Investors, who keep a constant eye on the prices will buy it right away if the prices drop to say 80 lacs because it seems like a good deal. Imagine, how many such buyers are out there. The seller realizes the demand and the as a result ptice will continue to rise. Material Costs - No brainer. Higher Standard of living - Always true. When the new houses come with all the ameneties, people would want to move into newer homes. Mortgage Loans - first time buyers, property appreciation > interest rate or rental income = EMI for investors. Safer than stocks, Population, Inflation, Economy and more jobs, higher pays, family with two income..... So many reasons to drive the prices up..... Can anyone think of a good reason why the Government or Market will do a correction? I have been looking for one...