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Survival tactics for the housing bubble

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Survival tactics for the housing bubble

Last updated: November 28 2012
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  • #11

    #11

    Re : Survival tactics for the housing bubble

    The best strategy is to invest in FD and PF when you see danger because you never see a govt go bust in economy crisis especially when the politicians running it are so corrupt.

    But yes, rent goes down with rates. So, one can rent instead of buying home. Still, I believe it is safe to invest in under construction projects in new planned SEZ. Because housing price increase where the jobs are are.

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    • #12

      #12

      Re : Survival tactics for the housing bubble

      Bubble

      Pune RE cannot be described as a bubble.There is some growth,a real asset-overvalued it may be. Builders build what the buyers want. One bhk flat in Dhanori is 30 lakhs + and still in some projects i went, most flats,if not all were booked. Regency Meadows Dhanori was sold at 1995 per sq ft(30 Lakhs) in 2009 and now it is 50 lakhs+ for a 2 bhk(resales) in a time frame of three years. That means money is still there and people do buy even at high rates,poor infrastructure and inadequate water supply. Hope that future will bring better infrastructure,facilities etc is the driver of higher prices.Wagholi has tanker water supply but investment is at a high.Schools colleges,and never ending list of new projects are seen coming up.Marvel flats are nearly 70 Lakhs for two bhk and many are booked.
      So far the buyers have got higher prices for resales and till that continues people will continue to take chances.
      Putting money in FD and paying 30% tax on interest brings down your growth to 6% which is actually negative growth in real terms.But safety of principal is there.
      Eventually it is all about human psychology.When you hear your friend has made a killing in RE you feel happy but bad that you have missed out.This also makes people invest and try to make a killing.
      Personally i believe the prices will stabilise There is a limit to price rise.
      Last edited November 28 2012, 07:12 PM.

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