We know is that for investor a good market is when he can buy properties at their bottom price. Well, when is the bottom price? What, nobody knows? So, how you figure that?
Its is mind boggling when people say they are waiting for more stability in the real estate market. Are they waiting for higher prices? But this is what stability means. Ever since we've been around in real estate, which is good four-five years, the market has been influx. It's always influx, going through one phase or another of the real estate cycle. It may be more extreme depending on what happens during the cycle, but in that sense, we always have a 'normal' market. This is the best time to buy and invest in real estate - but the customers need expert advice from realtors who know the market conditions.
We love that sentiment that a few years ago the market was artificial. As if some MSG was added, and now it is without MSG, sort of normal. We do not really get it. For us, it is the same as ‘right’ price or ‘wrong’ price. And then, if the market is cyclical (that’s the latest we heard), then it is ‘normal’ only short periods of time. We think that this is all bunkum. So, is it location, location, location? Then why in the same location the price four years ago was 2.5 times higher than today? Was it nicer then? And if we add time, will it be location, location and time?
We doubt it. Because how would we be able to justify the existence of politicians and big or small government? So it is something like Location, Time and Situation (or circumstance). It is difficult to positively affect the economy (do not confuse with difficulty to screw it up - proven). Maybe as difficult as to change the trajectory of an asteroid aiming at our planet. The current team in power at the Centre is feverishly trying to achieve it. Will they really change the course? We doubt it. So, would it really affect the real estate market? Oh, big time. It is very difficult to make people richer, but it is so easy to make them poor, or less rich, or more poor.
No matter how you look at that, it may and will affect what people would be able to afford. 5-6 years ago we were betting on baby boomers, techies and the young generation with fat paychecks. We had all the reason on earth to bet on them. No more. They are still there, they are not decimated, but their ability to buy is…
They saw their money disappearing… But we digress. We are fine with any theory that declares this market normal, or abnormal. We do not care how you define it. All we know is that for investor a good market is when he can buy properties at their bottom price. Well, when is the bottom price? What, nobody knows? So, how you figure that?
Is it really that difficult? When the prices are at a little lower from where they were at the peak, or even lower, it is a great market to buy… When you can buy for less than you can build, it is an incredible market to buy.
It is simple, you have to ensure that there is nothing to be built, and only under those conditions there could be no increase in price. Are you that naïve to think that the last home in India has already been built?
And the last, we all hear that market never plunged so dramatically since The Great Depression. All other times it was better. It is 80 years since the last depression (give or take). Are you going to skip this market and wait another 80 years?
Don’t think you will be here in 80 years? Then contact us, and we will figure out something great today.
Courtesy: topfloor
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