Saturday, October 10, 2015

Er Rational notations #26

Realty prices have skyrocketed, and even if the real estate market is down, there is no sign of rate reduction. Resulting in thousands of flats lying vacant n not being sold.
People living in 1 BHK flat want to move to 2 BHK and people living in 2 BHK want to move to 3 BHK. The beauty is that, for example, a new 2 BHK flat is available at Rs.1.5 Crore. So, 1 BHK flat owners reserve their selling price at @Rs,1 Crore, calculation being 1 Cr selling price, plus loan of say 40 Lac plus sundry savings @10-12 Lac to reach magic figure of 1.5 Crore!! And these people are not ready to sell it for let's say 85-90 Lac, as whole imaginary calculation goes phut!

This is having a cascading effect. Flats are NOT getting sold!
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मिलिंद काळे, 11th October 2015

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