The cause for the economic collapse in the US ws attributed to the realty sector alone by many. Rates shot up. So buyers backed off. To ease the situation, fin institutions eased the loan process - such a way that there existed no scrutiny. The result was debt , debt and more debt. And collapse.
What is displayed in bold letters in the carnival of foools as 'recession over' (like winter over) is actually the 'glazed paper on a rotting ulcer'. Instead of treating the ulcer by letting the bad blood out, we're concealing and painting a sunny pic.
The world economy is dependent on the US economy. Even Europe is dependent on the US exports and forex (May be except UK). So, when the US is ailing and getting bad by day, it is really fooolish to think that recession is over and 'India shining again'. The same was told several times by several economists. It is not recession but it's a depression which awaits the world and wise men at the helm know it.
When spending comes from your savings, it helps the economy. When you borrow and spend, it pulls the economy further.
So, while the pundits say the prices of realty will shoot up in the next few months, the ground reality is bitter and no one wants to look at it. Prices may rise, as usual , there will be no takers and it will start a new vicious circle or debt - compounding and snowballing debt. And then will trigger the foreclosures (we call auctions in India) of the properties.
1 ) Read the first anser given for samrthas question. Very Very Carefully. Then comapre this with the next few ansers. 2 ) Second Thing is that by just knoing the price and area one can not Garanty that its right price to buy BECAUSE.. Property rate depends on the Surroundig of the Property inside that area, Locality and the many other factors. In the same area there will be huge difference in prices. 3) If you are planning to buy then read the last answer...Negotiate.
Mr. Naik Has given many right answers. But he missed few . He is an advisor and giving the advice best of his knowledge. One Should also use ones Own Knowledg as the Decision makers is sole responsible for the outcome and not the advisor.
Pl note mr Naik is a builder and developer by profession. Therefore, whatever advise he doles out is biased. Friends pl wait until April 2010 for any house purchase. You are bound to get min 40% discounted rates. Waiting will be rewarding for sure.............
I wonder how Mr. Naik can claim 40-50% return in Lucknow and for every purchase question the answer is Yes. No hard feelings but my query is has the realty prices bottomed out. Recession receding is an illusion at this stage.Nobody can confirm that recession is over. Sensex is not an indicator of receding recession. I can only conclude that anyone going for purchase of property shud check the company/Builder his debts and the fine print at the bottom of their ads. Mr. Naik will not come to the rescue when the Builder will disappear with your hard earned money.
