Investing in flats, looking to the present price situation, is not at all advisible, for, the EMIs will eat away one's earning for 15 to 20 years (almost till retirement), which otherwise can be turned into savings by wisely investing in MFs etc. A realistic approach to one's future is more important than a flat at 30 or 40 lakhs. Better to live free of loans and save for future. The only problem is shifting from one rented house to another. But it is okay for me.
The message that real estate prices would not fall in future should be taken with a pinch of salt as it is coming from the vested interests. It is typical of any bull run with experts predicting only up-move. These so called experts would not be around when the downturn comes.
dont buy any property for the next 2/3 years.... all the real estate developers will be compelled to reduce the rate. they are the reason for the high rates....
I think its very simple, if your EMI is more than 30% of monthly in hand salary, you should better opt for rent. You buy a 20 Lack property for which you take loan and pay EMI approx 20,000/- per month for 20 years and you end up paying 48 Lakh finally after 20years when you claim that to be your own house. Now you try to sell that house, probably 20 year old flat in year 2026 would not fetch any buyer for handsome money. Better similar house you can have on rent for not more than 10, 000/- per month.
Think before you invest, time is changing very fast today.
In Bangalore most of the places builders are building without any good amenities. And the authorities are giving permission without any good verification. Most of them are illegal constructions. Not enough vacant place, approval for 3 floors and build 5 floors.. etc Also many places the sewage or corporation water are not there... Please dont encourage this builder mafia.
Take a city like Mysore. The official quoted figures of software exports are around 350 Crs for the year ending 2006. Yesterday, there was a inaguration of a software firm. During the inaguration a STP chief and gang mentioned the growth of Mysore. It was also mentioned that Mysore exports are expected around 1000 Crores. I just did a reality check. Guess what ? getting a list of 30 companies is hard. And, check out the websites of these companies. No great shakes. Recently started, Half done, not responding are the collection. For 1000 crores, there should be something more !
We should ask one simple question ? Are companies ganging up to participate in the milk their share in real estate. See deeper and you will find the Govt. also playing the game.
It is a pity- due to exchange rate difference, hard jobs are coming to India, and our youngsters are sacrificing their lives to serve the foreigners, and the Govt. and mericiless corporates are trying to get share in real estate pie.
In mysore, 60,000 official muda sites are empty (Star of Mysore). Private sites must be double this. 2,00,000 empty sites for city like mysore? We are heading for big trouble. Same everywhere.
