101% agree with respect to correction. I see whatever correction/'s that have/'ll come are just illusions.
Not at all in a hurry . I can definitely wait not at all an issue. And my criteria's are not at all that stringent and are very much flexible. I just wrote the context in order to highlight the current scenario out here in comparison to the stash one can save and spend .
ok now i have a question ... which is bothering me ...
lets say the RE crashes and starts coming down .... firslt of all people will jump into the buying spree the moment prices come down to 15%.. they wont let it go down furthur ... cause if they can buy now ....they 15% less is always profitable .......
so will be ever see a price correction of 30-40% .....?????
From this post of April 2010, we are still waiting for the situation to occur. btw forget about 30% drop, we have 66% price rise instead .
I do remember, between 1996-2003 there was lull in Mumbai RE.
Rates either dropped or remained stagnant (for 7 years) . I feel we're in similar cycle.
Its time to hold-cash. I will buy later when have sufficient savings to lower EMI (no more than 50% Loan).
This original post of Apil 2010, incorrect judgement. Price were rising during this period. Anyway we know what is that cash worth now after 2 years from then.
Check comments and search for "1996" and "1997" in below link. It has comments with some real examples. Mumbai Property Rates
I am copying a few of them here......
"Example in 1995-1996 similar boom has come up and realestate prices have gone up like hell, my father-in-law booked a 2bhk flat in bhandup for 18 lakhs, he said in an year or so the price went up to 21-22 lakhs. i.e in 1997 the price went up to 21-22 lakhs, but later it started falling, it came down to even 13 lakhs in 2003, the rates were 15-16 lakhs even in 2004. i.e even after 8 years the price didnt increase, infact decreased. "
"real estate rate i remember where 2500. s.f. in mulund mumbai in 1996 it remain same for 8 years, Suddenly it jump to 5000 s.f with in 15-18 months, "
"And one more example, on property price trend is, in 1996 in nariman point per sft rate was Rs 34,000 even in 2006 they were no buyers to buy at that rate !!! "
From thsi post of April 2010, good post but we are seeing the reverse happening in recent past.
80 percent of those recruited will be freshers .. and 40 % will be BSC with two year bond and 12K salary.
less then one percent will be with salary 10+ lpa
and remaining 19 % in range 5 - 10 lpa.
so RE is left with 300 odd employees who can afford the houses being sold...
and 100 out of 300 odd will already be having their houses....
Apply this to most of the companies and see there .... what RE is left with ...
And many experienced people who have left infosys considering 15% attrition rate ????
7000 employees ?? Those high paying jobs being replaced by low paying freshers ....
From this original psot of April 2010, then what explains the rise in last two years ? Reason for asking is that I still see same kind of logic doled out to predict price reduction.
Rents in Pune are way high compared to other metros in south. One of my team member was renting 1R-K block in Viman Nager and the rent was 6500...he moved to Hyderabad last week and renting a 1B-H-K flat and he pays 5K rent... more space, less rent I think, Pune is going no where...
You are highly uninformed dude. Just check the rentals in Banglore and Chennai.
Hyderabad comes in a different category now
I was expecting an itchy reply here. And here we go . . Anyways , apart from the comments above , I admire the patience for digging the old posts and re-quoting them . I would love to see replies from members who had made these predictions / investments / theories etc etc mainly cause many times we make so many assumptions ( The rate will increase by 30% in say 5 years ) , most of us take numbers so easy ignoring whole lot of variables surrounding it. I would to love to compose a differential equation with these many variables in order to predict rates in near future , had I had the patience & knowledge. Let the war begin !