Quote:
Originally Posted by balab1405
Is it worth to wait and watch ?. Or it has bottomed out and we can't expect any fall further ?. People who are in search or recently bought plz do give your comments, since I would like to know the real situation more ...
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Regarding current trend, We are in a very uncertain phase right now.
In most places the rates have risen back to peak levels of 2008-2009.
Since the fundamentals hasnt changed much, I personally feel we may not surpass the current levels.But the future is very hazy and one cant say for sure what surprise awaits us from which direction.
There are claims from builders of having sold out their projects even before launch.New projects within city are being launched with "already booked" status and new township projects is being sold as the new suburb 40km away from chennai.
The availability in ongoing projects seems to have suddenly dropped creating a supply crunch.I think its only the strategy of the builders to play on psyche of the buyers, but am not able to substantiate with facts.Who are the buyers?I dont know.
By taking the builders words, This strategy seems to be paying off better for them as it lures buyers sitting on the fence which didnt happen when they reduced the price by 10-15% earlier and buyers began waiting for further reduction.
Some facts you would want to consider before arriving at a decision
1.Interest rates have most likely bottomed out.We can see banks increasing minimum 100bps in coming month.
2.Construction cost likely to go up due to inflation and rise in cement/steel prices due to shortage in supply of raw materials from parts of India which is seeing local insurgency.
3.Sales tax being imposed resulting in more cost of ownership now for new projects.
4.Tax sops for Interest repayment most likely to stay as per new draft of direct tax code.
5.All Projects getting delayed and taking nearly 2 years to complete.
6.Rent to buy ratio still suggesting renting as a better option.
In my opinion, The RE market has not bottomed out yet and there is scope for another wave of correction within the year.But at the same time holding cash and waiting is not advisable and so is taking on huge debt as there is not going to be leverage advantage in short term.
Everyone should consider investing one major part in assets with inherent worth like RE/Bullion etc.But the decision should be taken individually considering one's personal and financial needs.
Requesting other members also to share their opinions on the current trend.