Srinidhi

Wiseman ,

I am reading your post since last two years and waiting on Cash hoping RE prices will come down.Your informations are very knowledgable and informative.But in reality I doubt how far RE prices will go down.It can happen only when US and global market crashes immediatly and the whole world enters in to a depression.I expect this RE crash Only when the following scenario happens.

1. US government go bankrupt or almost default level and social civil unrest in USA(Like what Greece is facing today) because of high unemployment and high inflation.
2.No H1bs can stay /work in USA because of US social unrest/high unemployment.
3.Huge lay off(40%+ of existing work force) / huge pay cut(40% plus) in indian IT industry.However I still think Indian 3rd tier cities are safer because of Govt employees.

So what is happening right now is the Governments are postponding the problem by giving huge bail ous /stimulus .thus to reduce the hard landing / impact of this global down turn.
RE prices will crash only if the above scenario occurs in one year time frame.even if the above scenario happens in one decade time frame , RE prices will stay flat or go little down and it won't crash dramatically(due to our people sentiment).

Though Chennai prices stay flat , 3rd tier towns are still showing positive signs because of Govt people(thanks to 6th pay commision).I don't think Govt can reduce their salaries for any reason.,instead Govt can devaluate our currency.So I don't expect any big crash in 3rd tier towns.

Coming to the point , I am a NRI and holding some good cash reserves and I really don't know what to do with that cash.My cashes are just sleeping in the FD.I am worried whether the coming expected currency crisis or high inflation will eat my savings.I personally feel everything in this world is overpriced except paper currency.

Thanks.