4 ms·
> Prices aren't completely crazy yet, but my house is worth 65% more than what I paid for it, and is increasing by the year at too large of a rate. Just an ane
by dingo_bat 8y ago
> Prices aren't completely crazy yet, but my house is worth 65% more than what I paid for it, and is increasing by the year at too large of a rate.
Just an anecdote, but in India this rate of growth is expected. People expect their property to fetch double returns in 3-5 years. My parents bought an apartment for ₹1.5M, we lived there for about 7 years and it sold for ~₹6M.
Me and my wife are planning to purchase our own now and we factor this growth expectation into our calculations.
- seanmcdirmid 8y agoIf prices are rising rapidly, speculation occurs distorting supply and demand needs. Then the bubble goes "pop" and the process starts again. So when prices stop being volatile, will you win or will you lose?
- dingo_bat 8y agoIt's not a bubble if the economy is growing at the same or faster rate, though.
- wyattpeak 8y agoTrue enough, but is your part of India experiencing much faster growth than the country at large? Because the Indian GDP growth rate seems to be hovering fairly stably around 7%.
- dingo_bat 8y agoI think you're right. My family doesn't stay in one place for more than 7-8 years. We always move to wherever there are better jobs, etc. So my "part" of India is wherever there is most growth.
- seanmcdirmid 8y agoIt's not a bubble until it is. Supply and demand must be considered besides money supply. For those who think "real estate" is a sure bet to high returns, we've been there and done that before, even for emerging economies. If you really want to know, look at home rents vs. home purchase prices, those will never lie.
- conanbatt 8y agoIf the economy is growing faster than 6% a year, you probably want to buy some stock!
- dingo_bat 8y agoFor sure!
- EliRivers 8y agoAre wages increasing at the same rate? Or is the new wealth just flowing to the already rich?
- dingo_bat 8y agohttps://m.economictimes.com/jobs/india-to-have-highest-salary-increase-in-asia-pacific-in-2017/articleshow/55941716.cms https://m.economictimes.com/jobs/india-to-have-highest-salar... Average salary increase of 10% sounds like it somewhat answers what you were asking. Here's another relevant tidbit: https://www.livemint.com/Money/5wpK2P8H02D3ujDFYHzfBI/Number-of-billionaires-in-India-to-rise-3-times-by-2027-Rep.html https://www.livemint.com/Money/5wpK2P8H02D3ujDFYHzfBI/Number... Anecdotally, in my company, an annual salary bump of just 10% is considered a punitive action. Edit: looks like the wealthy are getting more wealthy and the poor are getting more wealthy, but not as much.