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Price of property is too high…. NOO..OOT

Posted by abyjain on January 20, 2008

The price of property is just never high enough. In my short adult life, I have always thought that the price of property is just too high whenever you find something that you actually want. The first (out of 1.5) apartment I have ever bought was bought at a price of INR 1750 psft. This was to change to 1900 psft the next day itself. Whew, so thankfully I went ahead and booked it and closed that transaction. WOW, I look back at that transaction and wonder why I did not buy 5 of them then. It is another matter that I could not sleep that night and wondered if I had made the right decision. Today, from that price of 1750 in April 2004, the price is roughly 5000 psft. Thats a return of 185% profit in 4 years. And trust me, its not too good if compared to the peak performers.

Looking for property in Dubai, it is impossible to believe that there is nothing to buy that you think is wirth living in for less than INR 20000000, or about AED 2M. And that would be a 1 bedroom. Not so long ago, this was maybe 1M and people thought it was a bubble then!!!

Old age wisdom says – Property seldom lets you down. Of course there can be bubbles, and of course there can be wars or bomb blasts… but in the long run, or on an average – if you can qualify for a loan – then buy a property.

At the same time, unwise and purely speculative positions are something that I would now stay away from. As noted in my post earlier, TDI Kingsbury at Kundli seems right now to be quite an unwise move, especially considering they DID charge quite an amount for the vision they showed. Now god only knows where they will take us, or more importantly – WHEN!!

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