Skip to main content

Indian Real Estate Prices Crashing

The real state boom was empowered by too many positive factors during the year 2004 - 2008

1. Cash Inflow from foreign Investors
2. Home loan interest rates were quite low
3. Boom in IT Sector
4. People buying more than one house on loan just for investment purpose even if it was a costly affair.
5. Many NRI's buying houses in India for investment.

Now all of the above conditions have reversed

1. Foreign investors taking out money
2. Interest rates too high
3. IT Boom some what burst
4. People who brought more than one home are desperate to sell their 2nd home
5. NRI's selling their invested houses as they need the money there.

Now all the positive has become negative and one can see property rates are coming down by 25 - 50%

So the strategy for home buyers is wait and watch policy for the next 6 to 12 months, unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.
Labels:

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !
Read more

Mutual Funds - How to modify KYC or do rekyc?

Last year SEBI issued a circular effective April 1, 2024 regarding KYC norms for the securities market. This has created a lot of confusion among investors and intermediaries, whether who has to do rekyc and who need not? First check your KYC status from CVL KRA . If the 2nd column says KYC VALIDATED, then you are good to go - no action required. You can invest and redeem all the funds. If it says registered, you can invest in existing Fund houses. You have do rekyc to invest in new fund houses/ schemes. If it is on hold, you have to do rekyc.  You can do rekyc completely online from the AMC's websites, links of which are given below: Bandhan Mutual Fund - Bandhan Canara Robeco Mutual Fund - Canararobeco DSP AMC - Dsp Franklin Templeton Asset Management Franklintempletonindia HDFC Mutual Fund Hdfc ICICI Prudential Mutual Fund Icicipruamc Kotak Mahindra Mutual Fund  Kotak SBI Mutual Fund  Sbi Investors having KYC status of  'Registered' or 'On Hold' can complete thei...
Read more