Comments on: Bangalore Real Estate: Buy vs. Rent for Purva Sunshine http://www.galatime.com/2007/11/14/bangalore-real-estate-buy-vs-rent-for-purva-sunshine/ A blog about Indian Capital Markets, by Kaushik Gala Tue, 02 Dec 2008 14:40:37 +0000 http://wordpress.org/?v=2.6 By: snoopy http://www.galatime.com/2007/11/14/bangalore-real-estate-buy-vs-rent-for-purva-sunshine/#comment-1527 snoopy Fri, 16 Nov 2007 13:25:56 +0000 http://www.galatime.com/2007/11/14/bangalore-real-estate-buy-vs-rent-for-purva-sunshine/#comment-1527 raag - we're not talking about a stock doubling from $350 to $700 - we are talking about a 3 bedroom 1 crore apartment. Can you describe the financial profile of people who would be able to buy these houses ? And, is there any evidence to suggest that this profile of people have not already bought a house ? Unless you're going to make the case that thousands of people who are currently middle-class are suddenly going to be able to afford 1 crore houses, I dont see who's left to buy. Prices go up until they can't. raag - we’re not talking about a stock doubling from $350 to $700 - we are talking about a 3 bedroom 1 crore apartment.

Can you describe the financial profile of people who would be able to buy these houses ? And, is there any evidence to suggest that this profile of people have not already bought a house ?

Unless you’re going to make the case that thousands of people who are currently middle-class are suddenly going to be able to afford 1 crore houses, I dont see who’s left to buy.

Prices go up until they can’t.

]]> By: Kaushik http://www.galatime.com/2007/11/14/bangalore-real-estate-buy-vs-rent-for-purva-sunshine/#comment-1521 Kaushik Thu, 15 Nov 2007 14:01:51 +0000 http://www.galatime.com/2007/11/14/bangalore-real-estate-buy-vs-rent-for-purva-sunshine/#comment-1521 Raag: Not sure what you mean by the capital gains angle? I agree that everyone's betting on price appreciation - if they weren't, it would be a dumb investment. The question is: are prices going to double? I highly doubt it. Those who bought this year in these areas will be lucky to avoid double-digit losses. Raag: Not sure what you mean by the capital gains angle? I agree that everyone’s betting on price appreciation - if they weren’t, it would be a dumb investment. The question is: are prices going to double? I highly doubt it. Those who bought this year in these areas will be lucky to avoid double-digit losses.

]]> By: raag http://www.galatime.com/2007/11/14/bangalore-real-estate-buy-vs-rent-for-purva-sunshine/#comment-1520 raag Thu, 15 Nov 2007 07:46:01 +0000 http://www.galatime.com/2007/11/14/bangalore-real-estate-buy-vs-rent-for-purva-sunshine/#comment-1520 Have been a recent visitor to your site. Agree with your line of thinking on irrational real estate prices. However, have you considered the capital gains angle in the buy vs. rent argument. People are expecting their investments to double when they pay 54 lakhs for these apartments. In any case, real estate prices have remained out-of-whack for a long time now (since 2003 i believe). As Keynes said, markets can remain irrational longer than a lot of people can remain solvent! Have been a recent visitor to your site. Agree with your line of thinking on irrational real estate prices. However, have you considered the capital gains angle in the buy vs. rent argument. People are expecting their investments to double when they pay 54 lakhs for these apartments. In any case, real estate prices have remained out-of-whack for a long time now (since 2003 i believe). As Keynes said, markets can remain irrational longer than a lot of people can remain solvent!

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