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How do People Invest So Much in Properties?

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How do People Invest So Much in Properties?

Last updated: January 5 2013
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  • #11

    #11

    Re : How do People Invest So Much in Properties?

    Originally posted by amit001 View Post
    One cant just buy so much gold and keep it in house/bank

    Fd realyy with currency depreciation and yield of 8 percent is not attrative

    Equity is too volatile nad tough to track. So bacha sirf real estate

    This thought process kinda makes it very clear that real estate is in midst of a bubble - it has to blow up, when is anyone's guess.

    A market without genuine buyers and with only nri's and bizmen with black money investing is not sustainable for way too long.

    Yes real estate has given insane returns, but this is what asset bubbles do - remember Dubai a decade back ?

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    • #12

      #12

      Re : How do People Invest So Much in Properties?

      Nothing gonnna happen except prolong stagnation or 10-20 percent correction

      Till then, its good to have a healthy debate

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      • #13

        #13

        Re : How do People Invest So Much in Properties?

        The indian metality of savings and considering a property a a store of value and safety is the reason for high property prices in india

        Westernrs live for today and we live for tomorrow.

        Majority of savings by indians go into real estate.

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        • #14

          #14

          Re : How do People Invest So Much in Properties?

          exactly well said and this mentality is going to cause the indian real estate bubble, where people will loose everything they had. It's sad but inevitable.

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          • #15

            #15

            Re : How do People Invest So Much in Properties?

            Originally posted by donkeykong View Post
            exactly well said and this mentality is going to cause the indian real estate bubble, where people will loose everything they had. It's sad but inevitable.
            This is what I am scared about and this is the very reason I started this thread to know what people are thinking ...

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            • #16

              #16

              Re : How do People Invest So Much in Properties?

              but honestly i thought the bubble will be 2 years ago and the prices shot up significantly, so it's anyones guess coz they dont release the inventory information like they do in the uk or US

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              • #17

                #17

                Re : How do People Invest So Much in Properties?

                Donkeykong the bubble can even come 5 years from now thats not the criteria, issue is if people are over leveraged and are buying 3-4 flats and paying emi and situation in property market becomes bad then what happens ?? im scared for such people .. if u can afford it then go ahead and buy it .. but i have seen people who want to speculate and thats what i am dead scared about .. i invest majorly in equities and thats super risky but i know the limitations .. i havent borrowed nor will i for equities ..

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                • #18

                  #18

                  Re : How do People Invest So Much in Properties?

                  yeah but i think indulging in real estate is better than equities, just my personal opinion no offense

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                  • #19

                    #19

                    Re : How do People Invest So Much in Properties?

                    Real estate keep giving good returns because of rising population in India. Also there is rise in number of people moving to cities every year for a job. Thanks to govt policies, there are no jobs in tier-2, tier-3 cities and villages. So there is constant demand for property in rental.
                    Black money is also main factor. Real estate is most easy way to absorb black money. So demand always thr and prices will be high too.

                    NRI are also looking to shift to india in future as global market is not good so they fear they may loose jobs, so better to create a property in india for future.

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                    • #20

                      #20

                      Re : How do People Invest So Much in Properties?

                      very well said sir..

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