I have no skin in the game so far. As in Iam not invested in a property but would surely like to. As others, I too am worried if this is the right time or should I defer my decision.
Below is Knight Frank Chairman - Pranay Vakil's Analysis about why the market wont fall...
"Let me clarify that we are only talking about the residential market. So let us focus on that. Now the valuation that you talked about is at current market values, and not at cost. Therefore, it is not hurting the developer as much as you might think it will. Now all these developers -- at least 50% of them -- are in a joint venture with the landowner. And have the developers paid for the land? The answer is -- no or very partially. Now when you have not paid for the land -- and land constitutes almost 70% of the sale price -- your ability to hold on is infinite."
I have relatives/friends who work for some known builders and above is the common theme...either they bought land in past at throw away prices or redevelopment schemes where the above analysis holds true.
NOW - on the other hand when it comes to investors then every Tom, Dick and Harry and his Grand mum who had money to invest in real estate are already in. So for builders to 'consistently sell' at the typical 1CR plus price there should be a steady stream of folks (first time home buyers) who can afford close to 1L EMI.
Do you know of enough friends or relatives who earn as much and have not yet bought their first home?
Below is Knight Frank Chairman - Pranay Vakil's Analysis about why the market wont fall...
"Let me clarify that we are only talking about the residential market. So let us focus on that. Now the valuation that you talked about is at current market values, and not at cost. Therefore, it is not hurting the developer as much as you might think it will. Now all these developers -- at least 50% of them -- are in a joint venture with the landowner. And have the developers paid for the land? The answer is -- no or very partially. Now when you have not paid for the land -- and land constitutes almost 70% of the sale price -- your ability to hold on is infinite."
I have relatives/friends who work for some known builders and above is the common theme...either they bought land in past at throw away prices or redevelopment schemes where the above analysis holds true.
NOW - on the other hand when it comes to investors then every Tom, Dick and Harry and his Grand mum who had money to invest in real estate are already in. So for builders to 'consistently sell' at the typical 1CR plus price there should be a steady stream of folks (first time home buyers) who can afford close to 1L EMI.
Do you know of enough friends or relatives who earn as much and have not yet bought their first home?