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India Vs America

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India Vs America

Last updated: January 8 2010
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  • India Vs America

    Dear Friends,


    These days i started reading a book on Real estate investing and the author was quoting a few examples by taking the context of USA real estate. But When I started analyzing the same in the indian context there is a huge difference in Prices.

    Request all the experts to give a context of Indian Real estate and American Real estate.


    Regards,
    Ravi
  • #2

    #2

    Re : India Vs America

    Re

    Hi,


    So many views pls anser


    Regards,
    Ravi

    Comment

    • #3

      #3

      Re : India Vs America

      Hi,

      Any one pls anser my query.


      Regards,
      Ravi

      Comment

      • #4

        #4

        Re : India Vs America

        Here's a short reply and others will pitch in ...

        Originally posted by itsforyouravi View Post
        Dear Friends,


        These days i started reading a book on Real estate investing and the author was quoting a few examples by taking the context of USA real estate. But When I started analyzing the same in the indian context there is a huge difference in Prices.

        Request all the experts to give a context of Indian Real estate and American Real estate.

        Regards,
        Ravi
        Ravi,

        The short answer is, America's RE business is shot to hell for a long time to come. This includes both residential as well as commercial. Reasons are plenty ...

        Too much building. Too much borrowing. too much criminal activity in terms of lying to borrow and inability to pay. RE becoming an investment theme and more dangerously a speculative theme with flipping gone out of control.

        Then there is the question of overbuilding, building in suburbia which is becoming untenable due to rising transport costs. The last decade has been a flat one in income terms which means consumption has been and will continue to drop.

        Another major problem is, people borrowed against the home value (based on inflated prices) and then went on to spend it (converting a capital asset into income and then expenditure). Eventually, sh** hit the fan and the whole "house of cards" (pun intended), is starting to collapse. America's RE sector may take a decade or more to recover and come back to where they were in 2005/06.

        India is significantly different. Demand will always be higher than supply - but with the catch that when price-of-supply goes beyond capacity to pay (thus borrowing huge amounts is the only option), then risks start going up and demand starts falling as many people who might have bought get back onto the fence.

        When there is a "major global disruptive event", there will be a period when Indian RE will provide a bargain opportunity to buy at once in a lifetime prices. Till then there will either be a stagnation or gradual decline which is still under debate.Some views. Others will chip in.cheers
        Last edited January 8 2010, 09:43 AM.

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        • #5

          #5

          Re : India Vs America

          Originally posted by itsforyouravi View Post
          Dear Friends,


          These days i started reading a book on Real estate investing and the author was quoting a few examples by taking the context of USA real estate. But When I started analyzing the same in the indian context there is a huge difference in Prices.

          Request all the experts to give a context of Indian Real estate and American Real estate.


          Regards,
          Ravi
          In what context?

          And what would you do with that info.?

          Are you writing a RE book?

          Are you doing a PhD on 'Indian v/s US RE'?

          Comment

          • #6

            #6

            Re : India Vs America

            Agree with Enduser Even I was confused on the original message on the context and the factors he considered while telling the HUGE DIFF in price between india and US.

            Comment

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