Is it the right time to buy a property? May be….
This blog first appeared on http://www.digi-age.in and has been written by Mukul Bhartiya. He is inbound marketing consultant of Ethical Consulting Pvt. Ltd.
1) Reuters news: Qatar Fund in talks to invest $200 million in Indian properties
2) Financial Express News: Canadian pension funds bullish on India for real estate and infrastructure…..
These some of the news published in different news sites two days back. What is so special in them; these types of news keep coming. If you are an old hand in investment market, then you know the rule of money making; either buys when market is down and sale when market is up or sale when market is up and buy when market is down. Even if you are not an investor, you know that buying price plus margin should be your sales price.
Now, I am recounting some of the points from our earlier blog:
1) Except Bengaluru, all Tier-I real estate market of India is having good housing inventory; Delhi-NCR and Mumbai has inventory of more than 41 month.
2) Housing prices are down by 1.7% in January to June 2013 period.
3) GDP of India has grown 4.8% in the second quarter of 2013-14.
Now correlate all the points mentioned above. Do these points say something; of course yes. Another six month is right time make a buy decision in real estate. Why I am saying so; look at the following points:
1) A major political party backed out of forming the government in national capital, because it was four members short of majority.
2) 125 year old political party routed in recently help assembly elections of four states supporting the one year old party which was the major cause of its loss of power in election in national capital.
3) Main opposition party changes the chief ministerial candidate of one state during almost last phase of planning of candidates.
4) NOTA (None of the above) votes in all the states where assembly elections were held were between 1% to 18% in the different constituencies.
5) In an assumed attempt to wriggle out the responsibility of forming the government, one political party threw the ball in voter’s court once again and asked for their response via Facebook comments and SMS and voters forced them to honor their mandate and form the government.
6) Two top level politicians were jailed and striped off their respective parliamentary seats for frauds committed during their respective regimes.
7) People’s anger and agitation, which followed a barbaric incident of crime against 23 year old girl forced government of bring out legislation for better safety and security of women. This agitation was not engineered or led by any political party or any group; this was sudden anger and movement by common person of India.
8) A legislation to create a structure of anti-corruption ombudsman, which was pending since last forty-five years, was pushed to pass by political party which was delaying it two year back. A frail man on his early 80’s, supported by smartphone, Facebook and Twitter addicted generation forced government to pass this legislation in flat two and half year’s time.
These are just few of the points of changing social and political scenario of the country. Experts used to show the fear of hung house after 2014 elections and its pitfalls to bring about positive changes in Indian economy, but as a man who acts mostly on guts, I see nothing wrong happening after 2014 elections and things will move towards only for better from here. And for the property buyers; rising market may not be as fruitful as they think which will come after 2014 elections.
So, I think this is the right time to make a purchase decision of real estate. What is your opinion??? I am also eager to know your point of view….
Wishing you all happy new year 2014………..