I think the negetive outlook continues for some more time and atleast we can expect no RE appreciations. I donot expect the RE prices to go back to pre-2010 level, due to inflation impact. Major builders are not launching any projects and looking fwd to reduce the unsold inventory. Clearly a buyers market. Those who are sitting on good cash is the king and can make good bargains.
How long this can continue? Apart from negetive global sentiments, we are strugling with our own problems like inflation, fiscal deficit, bad policies, no reforms, non-functioning govt etc.. Irrespective of global economic status we will continue to do bad unless these problems are fixed. Unfortunatly there are no signs of resolving these in near term.
Is it a good time to buy houses/Plots - Uncertain economy
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santosh_vp
- Posts: 69
- Joined: June 30th, 2011, 3:59 pm
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amit_pearl2
- Posts: 220
- Joined: September 7th, 2009, 1:53 pm
Re: Is it a good time to buy houses/Plots - Uncertain econom
Completely agree with Santhosh,
Few Tips :
Buyers :
In case you are keen to buy property, make sure you buy in group. You end up getting good discount from developer.
he might get 100 enquiry calls, how many end up buying is important. Individual seller may not reduce the price
as he might wait tell he gets the pre-defined price.
If you like the property and have some decent amount in hand, go ahead and buy. tomorrow the same property
may or may not be available. Make sure you bargain hard but dont end up loosing the property as it was quoted
few thousands more.
For seller.
In case you wish to sell the site for 10 Lakh and you have have an offer for 9.5 lakh. It does make sense to sell it off
instead of waiting for another year to get a buyer at 10 Lakh. Time is money. You can invest this money else where
and enjoy decent retruns.
The gloabal senario looks week. USA claims that JOB Marekt over there is good. I dont understand how and the logic behind
this statement. This line may hold good till the elections. People in IT are the Potential buyers of R.E. I bet all IT guys
are now working to save every rather than get into some debt.
comments welcome-
P.S : As of today i am neither a buyer nor a seller. I wish to be on cash. My personal opinion. Stock market might give
good opportuntity to buy good stocks at fair price, waiting for the right time to enter in SIP way.
Few Tips :
Buyers :
In case you are keen to buy property, make sure you buy in group. You end up getting good discount from developer.
he might get 100 enquiry calls, how many end up buying is important. Individual seller may not reduce the price
as he might wait tell he gets the pre-defined price.
If you like the property and have some decent amount in hand, go ahead and buy. tomorrow the same property
may or may not be available. Make sure you bargain hard but dont end up loosing the property as it was quoted
few thousands more.
For seller.
In case you wish to sell the site for 10 Lakh and you have have an offer for 9.5 lakh. It does make sense to sell it off
instead of waiting for another year to get a buyer at 10 Lakh. Time is money. You can invest this money else where
and enjoy decent retruns.
The gloabal senario looks week. USA claims that JOB Marekt over there is good. I dont understand how and the logic behind
this statement. This line may hold good till the elections. People in IT are the Potential buyers of R.E. I bet all IT guys
are now working to save every rather than get into some debt.
comments welcome-
P.S : As of today i am neither a buyer nor a seller. I wish to be on cash. My personal opinion. Stock market might give
good opportuntity to buy good stocks at fair price, waiting for the right time to enter in SIP way.
Re: Is it a good time to buy houses/Plots - Uncertain econom
Well amit, i do agree with what you said, i am giving a link below just to give some more insights as to what is happening on the reality sector as of today.
It so happens that the prices you see in todays market is highly inflated by the so called re-sale agreement holders, if you hit on the owner direct you would be saving a lot of money, my personal experience is if you are looking to by a home and if you are not dealing with the owner direct and if you are dealing with a agreement holder, you will be paying in excess of 10 lakhs easily (this is for a constructed duplex house on 30x40).
These middlemen are the prime cause for the values getting blotted to their current levels in most part.
You are left thinking should you wait for a little more longer to see things stabilizing everywhere or should you close the deal with blotted values as you are not sure whether it would increase any further or go down, its always the confusion.
The economic times article is just a guide of whats happening outside today as we speak.
http://economictimes.indiatimes.com/markets/real-estate/news/home-sales-drop-as-property-prices-rise-faster-than-salaries/articleshow/14252779.cms
Regards,
omswarup
It so happens that the prices you see in todays market is highly inflated by the so called re-sale agreement holders, if you hit on the owner direct you would be saving a lot of money, my personal experience is if you are looking to by a home and if you are not dealing with the owner direct and if you are dealing with a agreement holder, you will be paying in excess of 10 lakhs easily (this is for a constructed duplex house on 30x40).
These middlemen are the prime cause for the values getting blotted to their current levels in most part.
You are left thinking should you wait for a little more longer to see things stabilizing everywhere or should you close the deal with blotted values as you are not sure whether it would increase any further or go down, its always the confusion.
The economic times article is just a guide of whats happening outside today as we speak.
http://economictimes.indiatimes.com/markets/real-estate/news/home-sales-drop-as-property-prices-rise-faster-than-salaries/articleshow/14252779.cms
Regards,
omswarup
Re: Is it a good time to buy houses/Plots - Uncertain econom
I personally experienced the middlemen jacking up prices phenomenon. It certainly is an unfortunate trend. But there is no 'correct price' in real estate as the market is not transparent. In areas where there is more demand than supply- prices tend to shoot up sharply during the inflection point. Experienced Middle men know when this is about to happen and join the party.
That said, here is an article that says that home are more affordable than ever. My observation is that it is true at least in my case - which may be specific to my age group/professional profile.
http://www.financialexpress.com/news/homes-most-affordable-in-30-yrs-hdfc/951626/0
That said, here is an article that says that home are more affordable than ever. My observation is that it is true at least in my case - which may be specific to my age group/professional profile.
http://www.financialexpress.com/news/homes-most-affordable-in-30-yrs-hdfc/951626/0