When you try to caution your near and dear ones about the imminent slow down in Indian Economy they would stare you as if you are an unwanted insect.
At best we can give some clues and we cannot force feed anybody. I am trying my best because these kind of slow down would really hurt you. For example, consider one who buys an Apartment / Plot at this exorbitant price and surely we are going to see at least 30% correction. Assuming the price is 40 Lakh today, easily we can see a loss of 10-12 Lakh within 12-24 months. That is nothing but a loss.
Until last month (Even in Dec) we see fall in sales of 4 wheeler manufacturers. Don't be fooled by the biased reporting from some of the newspapers. See the sales report of Maruti and Hyundai who sell many more vehicles compared with other small players. Small players sell far less vehicles which cannot be compared. At that time many thought 2 wheeler segment is not affected. Alas, Yesterday we see that Bajaj Auto tanked 9% because of slow growth in sales. TVS Motors also slowing down. So this shows clearly slowdown is started.
Go to any small town in India as ask for RE activities. People say that all stopped. At least in Tamilnadu I have confirmed this myself and there is no activity of RE whatsoever. People who bought recently could not come to terms with this and are still maintaining it is nothing. But for the people who expects and waiting for correction this means a LOT.
The Real Estate Bubble has sucked the liquidity from many and now the second stage of Real Estate Crash
or to put it mildly Real Estate Correction is going to happen. If you are a so-called investor in real estate better sell whatever you have at some reasonable rate quoting now and get out or tighten your seat belts.
Mr.Singh has indicated the priority is to set right govt fiscal deficit. So freebies for Real Estate sharks is out of question. Moreover govt itself is begging now in the streets because of its mismanagement.
btw, do you know Indian Gold Imports falls 56% this quater? News to Think Guys
At best we can give some clues and we cannot force feed anybody. I am trying my best because these kind of slow down would really hurt you. For example, consider one who buys an Apartment / Plot at this exorbitant price and surely we are going to see at least 30% correction. Assuming the price is 40 Lakh today, easily we can see a loss of 10-12 Lakh within 12-24 months. That is nothing but a loss.
Until last month (Even in Dec) we see fall in sales of 4 wheeler manufacturers. Don't be fooled by the biased reporting from some of the newspapers. See the sales report of Maruti and Hyundai who sell many more vehicles compared with other small players. Small players sell far less vehicles which cannot be compared. At that time many thought 2 wheeler segment is not affected. Alas, Yesterday we see that Bajaj Auto tanked 9% because of slow growth in sales. TVS Motors also slowing down. So this shows clearly slowdown is started.
Go to any small town in India as ask for RE activities. People say that all stopped. At least in Tamilnadu I have confirmed this myself and there is no activity of RE whatsoever. People who bought recently could not come to terms with this and are still maintaining it is nothing. But for the people who expects and waiting for correction this means a LOT.
The Real Estate Bubble has sucked the liquidity from many and now the second stage of Real Estate Crash
or to put it mildly Real Estate Correction is going to happen. If you are a so-called investor in real estate better sell whatever you have at some reasonable rate quoting now and get out or tighten your seat belts.
Mr.Singh has indicated the priority is to set right govt fiscal deficit. So freebies for Real Estate sharks is out of question. Moreover govt itself is begging now in the streets because of its mismanagement.
btw, do you know Indian Gold Imports falls 56% this quater? News to Think Guys
There are so many people in denial about even the possibility of a real estate correction that it is depressing to even discuss this with them. I seem to find people who think like me only on blogs like yours.
ReplyDeleteThanks,