is there any jstification for high rates. just because share market is high the rates are high ? What a logic ? Is there any regulatory body to have ceiling on it. Middle level income group people cannot think of buying a property in Mumbai now !!!! Coz everyone in minitry is corrupt as they get their share what builders give them.
RE:High Rates
by prasannakumar bhat on Dec 05, 2007 12:14 AM Permalink
by 'the renegade', the scenario now is that there is too much black money circulating in the economy eg. benamy properties of politicians, businessman and corrupt bureaucrats who turn to real estate as investors and hold property. the demand is from investors and not from end users. please wait for rates to drop. ultimately these people have to sell... till then stay on rented flats and payout from your FD interest savings!!!
RE:High Rates
by gopalakrishna sagar narayana on Jan 07, 2008 06:23 PM Permalink
This won't(fall in prices)happen. Because as you have pointed out this sector is basically investor-driven market. The investor will hold on to the property till he gets his expected appreciation in value. If it is not happening, the owner can let out his flat/house and thus he cab still get a reasonable return on his investment. And you know, there are so many homeless people these days looking for a rented accommodation and one can easily find a tenent.
RE:High Rates
by pravin pillai on Aug 07, 2008 02:05 AM Permalink
There are Builders also who take loans from bank for the construction and have to repay the loan amount. Those builders will have to sell the flat if they are not being purchased. Investors don't buy 100% flats in a newly constructed building. Those flats owned by investors can be rented as an alternate but big investors generally don't look at small margins and always try to sell property at good rates. It is only the buyers or say demand which had increased the price of property.
