US Economy Hit on Real Estate

[kbaijuk]

I am agreeing with Pragyan. Big MNC's put a freeze on regular hiring already, only critical requirements are filling up. Some companies started firing employees after mid year /Q2 results. Economic slow down is visible in atmosphere. So I am holding back my plans for next year, i know that many of my Friends who were actively searching for plots/houses are stopped for now. Every one feels like why should take a huge financial commitment in a possible double dip recession time and welcoming sleepless nights. lets wait and see whats gonna happen.

[Sachin123]

There is no need to Panic. Right time to buy a property is when we have money. These situations are not permanent and will have no impact on long term gains. Ofcourse the impact for short time buyers (buying and selling) you may not get a buyer so quickly.

So dont expect to liquidate your assest during recession. And do no invest all the money you have. Keep some for self as during trouble you dont have to depend on liquidating the asset.

[MNRS]

Not a right time for short term investment of of Property. If you can wait for another couple of years, then only try to buy now.

[BengaluruBoy]

Regardless of what happens globally, local blr brokers won't let the prices to dop easily. I have been in constant touch with many brokers and they don't seem to understand the basic essence of economy. The re-sellers in BSK 6th are confident that they can find buyers even during recession with fancy rates. They also told me that more than 50% of the site holders in BSK 6th satge, SMV and ANjanapura layouts are from software companies. I don't know when these layouts are going to be devloped with houses.

I think in short term the transaction will dip and prices may not increase but for log term we can wait for couple months before making a big purchase as you may have better bargaining power than now.

[santosh_vp]

Which phase is good for layout developments? Is it bear market or bull market? In bull market the propoerties changes investors hands to gain the profits, increasing the prices and making unaffordable for genune buyers. The bear market is good time for genune buyers but market situation might not push them to go ahead with construction. As long as investors donot vanish from the layout the layout development does not happen.

[santoshnarla]

Wait for investment on real estates, as per NDTV and BBC reports we are going back to 2008 in comming 6 months, so rates will come down to less than half price..............

[rannem]

http://harshasagar.com/2011/08/08/10-points-to-consider-before-investing-in-real-estate-by-jayesh/

Chk this link which gives some more info.......

[mjothi]

Wait for investment on real estates, as per NDTV and BBC reports we are going back to 2008 in comming 6 months, so rates will come down to less than half price..............

You much be kidding. Half price in real-estate is very very remote. We are not in US, but in India. Here we always have sentimental attachments, and never sell assets if we are in lose. Ofcourse, desperate sales always happen irrespective of the market conditions.

Probably, property above 50Lacs may come down a little. Other below 50 or 40Lac is always in demand owing to people moments into the city.

For a property price to go that much law as you mentioned, we need to over come with the holding-threashold of the brokers / builders etc. Currently I see that they can hold on their property with artificial hype for atleast six months.

[hanumantharaju]

i agree recession might force only the desperate sellers to cut down the price upt 10 to 15% but not more than that . but even this would be picked up by someone who has black money for a future profit . recently (just 4 months back ) one of my freind brought a BDA plot at X Rs per sq feet (since the seller was desperate to sell he sold at 15 % discount from the market rate ) Now he has slod this plot to huge profit nearly around profit of 800 RS per sq feet .
if you get a plot at 10 to 15% discount from the market rate then u are very lucky .it is nothing to do with any recession . Recession will only bring the prices of apartments where the developer has to sell it due to loan obligation or some one who lost the job and is not in sound financial situtation to repay the EMI . just because recession no one will sell the property untill they get a fair value for their property

[MNRS]

Most of small/medium builders, developers are getting the bank funds to start/complete their projects. If there are no/less buyers, they may not be in a position to repay their loans and it will cause the troubles. This is what happened earlier in 2008 and lots of one time developers vanished.