5 ms·

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

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?
  - drieddust 9y ago
    Suggesting any other form of investment is just considered too risky.
chvid 9y ago
There is collusion between banking, real estate developers, agents and politicians in the western world too ... I actually I think we invented this stuff. PS: 3% return p.a. for a real estate investment? Amazing; around here real estate investments return zero or below and investors count on property price appreciation, tax deductables or maybe rent increase.
- nikanj 9y ago
  Real estate investment is the new Swiss bank account. It's acceptable to take some losses every year, if it means you get to keep your hoard.
- drieddust 9y ago
  In Indian context, it's below inflation. Cost of management and maintenance is also need to be added so effective it will be between 1 and 2 percent. Not great for developing country where inflation swings anywhere between 5 to 9 percent. Depositing same money in bank will give more than twice the return.
  - mnm2 9y ago
    The property (the house) is "inflation free/resistant": Money is subject to inflation, because houses (and other goods) rise in price / money is watered down. So: You may have no gain, but your savings are protected from dropping 5 to 9 percent each year, if "you have it invested in real estate". Sounds good to me.
    - drieddust 9y ago
      Well I may be wrong but you will be true only if I can't sell it at a price significantly higher than inflation. I do not not see that happening because price correction have already started if you are an individual seller. For politically connected developers, game is different.
- legolas2412 9y ago
  In India inflation is like 4% and growth rate is 7%. I think anything less than 15% p.a. return is not worth the risk at all.
danmaz74 9y ago
> Any evidence based arguments about history of real estates failures are simply ignored. Everybody thinks this India is different. This happened/happens so often, in so many places and markets. Just to mentions a few recent ones: dot-com "new economy", housing bubble in the noughties, cryptocoins right now... it's always, "this time is different".

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?
- drieddust 9y ago
  Suggesting any other form of investment is just considered too risky.

chvid 9y ago

There is collusion between banking, real estate developers, agents and politicians in the western world too ... I actually I think we invented this stuff. PS: 3% return p.a. for a real estate investment? Amazing; around here real estate investments return zero or below and investors count on property price appreciation, tax deductables or maybe rent increase.

nikanj 9y ago
Real estate investment is the new Swiss bank account. It's acceptable to take some losses every year, if it means you get to keep your hoard.
drieddust 9y ago
In Indian context, it's below inflation. Cost of management and maintenance is also need to be added so effective it will be between 1 and 2 percent. Not great for developing country where inflation swings anywhere between 5 to 9 percent. Depositing same money in bank will give more than twice the return.
- mnm2 9y ago
  The property (the house) is "inflation free/resistant": Money is subject to inflation, because houses (and other goods) rise in price / money is watered down. So: You may have no gain, but your savings are protected from dropping 5 to 9 percent each year, if "you have it invested in real estate". Sounds good to me.
  - drieddust 9y ago
    Well I may be wrong but you will be true only if I can't sell it at a price significantly higher than inflation. I do not not see that happening because price correction have already started if you are an individual seller. For politically connected developers, game is different.
legolas2412 9y ago
In India inflation is like 4% and growth rate is 7%. I think anything less than 15% p.a. return is not worth the risk at all.

danmaz74 9y ago

> Any evidence based arguments about history of real estates failures are simply ignored. Everybody thinks this India is different. This happened/happens so often, in so many places and markets. Just to mentions a few recent ones: dot-com "new economy", housing bubble in the noughties, cryptocoins right now... it's always, "this time is different".