Beware of real estate..specially Bangalore..gambling is dangerous

[Guest guest]

Every body has a dream to buy home on their own and i am writing this piece

only for those who carry this dream to fulfill in bangalore.

Before you buy flat/house think on the following angle and make your

decision

i) Increase in Property Cost , an APartment which was costing 25L last jul

(2005) same is now 40L

ii) Banks which used to fund ealrier almost 100% , Now are not willing to

fund more than 85% which means if you are buying a flat for 40L , you

atleast need to have 6L cash in Hand

iii) Spiralling interest Rates....from 7% to 10.5% Fixed.

iv) and Top of all these the so Called "IT people" who everybody belives

buys these apartments Still Cannot afford as Real Estate Prices have almost

doubled in last 18 month where as salary increase has been just 15-20% max

v) and finally , Earlier people used to buy flats for investment now , now

even investors aare scary in investing in real estate as Prices are

astronomical

Be cautious and invest safe your hard earned money . Prices will defintely

come down and boom is likely to go BUST .

People may try to get you into their nets. But please be cautious while

spending your hard earned money.

Sure there is demand for real estate. There may be more jobs created. But

they won't be enough for keeping the high cost RE balloon inflated. Imagine

a person taking a loan of 40L over 20 years. EMI he would have to pay is

35000. So, one should expect atleast 70 thousand as the salary which means

the CTC would be 1 L per month. There will be very few people that get 1 L

everymonth in MNCs and their number is not enough to cover thousands of apts

costing 50L and more.

This property agent may be a gentleman. But you know how other real estate

agents work in Bangalore. They are the biggest reason behind taking the

prices out of a real dweller's reach.

That message itself is an indication of downfall of RE in Bangalore.

Don't fill the pockets of few individuals with your hard-earned money. Just

be cautious in spending it wisely. RE prices are coming down and eventually

will have to reach to your level. Be patient until that time.

 

 

 

Mark my words and you will not repent.

Think logically and tell me which factor of the above is favouring the real

estate scenario and if you still think YES then go ahead with your plans.

 

If you cannot trust my words then read experts column at

http://economictimes.indiatimes.com/articleshow/1698764.cms

http://in.rediff.com/money/2006/may/24mkt4.htm

http://economictimes.indiatimes.com/articleshow/1629319.cms

http://economictimes.indiatimes.com/articleshow/1637010.cms

http://ia.rediff.com/money/2006/jun/05mum.htm?q=bp&file=.htm

http://www.thehindubusinessline.com/2006/06/16/stories/2006061602280600.htm

http://realestate.indiatimes.com/articleshow/1482449.cms

http://economictimes.indiatimes.com/articleshow/msid-1540297,curpg-2.cms

http://economictimes.indiatimes.com/articleshow/1677262.cms

http://news.moneycontrol.com/india/newsarticle/stocksnews.php?autono=214434

http://www.indianexpress.com/story/6823.html

http://www.thehindubusinessline.com/2006/06/16/stories/2006061602280600.htm

http://www.tribuneindia.com/2006/20060520/real.htm#4