5 ms·

You can price something at whatever you want, but if there are no buyers, it's not worth that.

seanmcdirmid 9y ago
China is a bit different: the real estate agencies that will show your apartment won't bother listing and showing it if it's under a certain price. They basically work together to drive up prices, which also leads to higher commissions of course, but there is also some government control as the agencies are all owned by princelings. You can't really hope to sell without an agent, so you can't drop your price even if you wanted to. I'm not sure if India has a similar problem.
- diminish 9y ago
  In a similar country to China, Let's say the last deal in a certain area was done for $1M 5 months ago. At this point all similar apartments in the area are considered or put on sales at this or a higher value. Then time elapses with no new deal but owners feel wealthy.
- drieddust 9y ago
  India is exactly the same. Collusion between developers and politicians is creating an illusion that everything is all right and prices are going to go up again so a minority with surplus money left is still buying. I have two personal example. Despite my reasonable arguments my family invested close to 1 crore (10 million) Indian rupees in property for a meager 3% per annum returns in rental income. I feel the pinch because a significant part of it is my hard earned money. Sometimes you just can't help it. Then there is a friend who is buying another flat because he has accumulated some money by living outside India. He thinks he will sell it at a higher price in couple of years. Any evidence based arguments about history of real estates failures are simply ignored. Everybody thinks this India is different. Reason just fails when competition between neighbours takes over to hoard more and more.
  - seanmcdirmid 9y ago
    Some will be able to cash out obviously. The problem is that if a significant but small percentage tried to cash out, the market would collapse pretty quickly. Ugh, you have to have balls of steel to play in these kinds of market, and timing needs to be good as well.
    - Ellie_ 9y ago
      my co-worker's sister-in-law makes $71 every hour on the computer . She has been fired for five months but last month her income was $16368 just working on the computer for a few hours. see page......>>>>.< lllllllllllllllllllllllWWW.joinmate2.Comlllllllllllllllllll >
  - housingly 9y ago
    How did they end up investing your money without your consent?
    - actuator 9y ago
      I don't think they did it without his consent. The thing is, investing in a house is one of the first things your parents would ask you to do once you start earning; and considering the amount of influence your parents have on decisions like this in India, he would probably have had to go with their opinion.
      - sumedh 9y ago
        > investing in a house is one of the first things your parents would ask you to do once you start earning Indian here, real estate and gold are considered safe investments in India. Bonds and stock market are considered as casinos.
        tormeh 9y ago
        >Bonds and stock market are considered as casinos. Which is correct, except that with bonds and stocks you win on average, while in a casino you lose on average. This equivalence of risk=losing with no regard for expected return is pretty common in many countries. I wonder why that is? A history of scams?
- dageshi 9y ago
  Is it possible to borrow against your houses "worth" in China? I'm wondering if these high valuations allow residents to borrow larger amounts of money using their houses "value" as collatoral? If so is it common?
- skewart 9y ago
  There's only so long that can last though. If nobody is buying at the high prices then the agents who refuse to list lower won't earn any commissions and they'll eventually decide to lower their threshold.

China is a bit different: the real estate agencies that will show your apartment won't bother listing and showing it if it's under a certain price. They basically work together to drive up prices, which also leads to higher commissions of course, but there is also some government control as the agencies are all owned by princelings. You can't really hope to sell without an agent, so you can't drop your price even if you wanted to. I'm not sure if India has a similar problem.

diminish 9y ago
In a similar country to China, Let's say the last deal in a certain area was done for $1M 5 months ago. At this point all similar apartments in the area are considered or put on sales at this or a higher value. Then time elapses with no new deal but owners feel wealthy.
drieddust 9y ago
India is exactly the same. Collusion between developers and politicians is creating an illusion that everything is all right and prices are going to go up again so a minority with surplus money left is still buying. I have two personal example. Despite my reasonable arguments my family invested close to 1 crore (10 million) Indian rupees in property for a meager 3% per annum returns in rental income. I feel the pinch because a significant part of it is my hard earned money. Sometimes you just can't help it. Then there is a friend who is buying another flat because he has accumulated some money by living outside India. He thinks he will sell it at a higher price in couple of years. Any evidence based arguments about history of real estates failures are simply ignored. Everybody thinks this India is different. Reason just fails when competition between neighbours takes over to hoard more and more.
- seanmcdirmid 9y ago
  Some will be able to cash out obviously. The problem is that if a significant but small percentage tried to cash out, the market would collapse pretty quickly. Ugh, you have to have balls of steel to play in these kinds of market, and timing needs to be good as well.
  - Ellie_ 9y ago
    my co-worker's sister-in-law makes $71 every hour on the computer . She has been fired for five months but last month her income was $16368 just working on the computer for a few hours. see page......>>>>.< lllllllllllllllllllllllWWW.joinmate2.Comlllllllllllllllllll >
- housingly 9y ago
  How did they end up investing your money without your consent?
  - actuator 9y ago
    I don't think they did it without his consent. The thing is, investing in a house is one of the first things your parents would ask you to do once you start earning; and considering the amount of influence your parents have on decisions like this in India, he would probably have had to go with their opinion.
    - sumedh 9y ago
      > investing in a house is one of the first things your parents would ask you to do once you start earning Indian here, real estate and gold are considered safe investments in India. Bonds and stock market are considered as casinos.
      - tormeh 9y ago
        >Bonds and stock market are considered as casinos. Which is correct, except that with bonds and stocks you win on average, while in a casino you lose on average. This equivalence of risk=losing with no regard for expected return is pretty common in many countries. I wonder why that is? A history of scams?
dageshi 9y ago
Is it possible to borrow against your houses "worth" in China? I'm wondering if these high valuations allow residents to borrow larger amounts of money using their houses "value" as collatoral? If so is it common?
skewart 9y ago
There's only so long that can last though. If nobody is buying at the high prices then the agents who refuse to list lower won't earn any commissions and they'll eventually decide to lower their threshold.