Hi,

This is going to be big bubble bigger than Harshad Mehta & Ketan Parekh.

1) Minimum 2BHK between Goregoan - Borivali where middle & lower middle class can buy is between 40lacs to 60 lacs. lets suppose 40 lacs that means atleast a person should earn 80-90k per month to buy a flat. This is impossible if a middle class earns 8-10lacs a year then i should leave share market & take a job. 3BHK is out of question & nobody wants to buy 1BHK

2) the amount of land that has opened up is humungous. every area has 20-30 apartment blds coming up in next 3 yrs & also last 2 yrs atleast 20 blds has come up in each area.

3) I agree that real estate will be booming but not at this price. this price is 60% more than ppl income. nobody can afford at this rate.

4) the amount of black money (more than 50%) the builders are asking is good enough reason that nothing has changed dramatically for the cost to go up incase of raw material and land prices.

5) It’s simple they have huge amount of stock & they have to create a hype so that ppl can buy. Builders are forgetting the story of farmer who had a goose that lays one golden egg per day. One day, the farmer kills the goose in the mistaken belief that he’ll get all the eggs at once. they are thinking there will be never a boom like this & hence want to loot the money from public like never before.

6) last & not the least prices are increasing & apartment area is reducing

7) Goregoan - Borivali
1999 - 1050 sqft - carpet area 800 - 2000-2500 p/sqft
2004 - 1050 sqft - carpet area 800 - 2800-3200 p/sqft
2006 - 1100sqft - carpet area 750 - 5500 - 6000 p/sqft

Ridiculous?

8) Property is not a Fridge or T.V which ppl will buy easily. it their saving of no of yrs & in some cases life time saving hence we should be careful about views which has hidden agenda.

What propective buyers should understand that if you stop buying the property rates will go down within weeks. It’s upto you’ll. reject outright, don’t entertain brokers. tell point blank that these rates are unaffordable. will only buy after 30-40% correction.

It really sucks..i guess i am better off buying a property in singapore. I can afford a luxury condomonium with 4 bedrooms facing the kallang river and it still cost me as much as 3 BHK in worli.

Singapore is 1000% better than worli I mean mumbai sucks in everything today. The politicians dont care about people, neither builders do. What this will lead to is real estate price bubble and those who have brought properties at stargerring prices will sell it off to pay their debts. In the end today’s middle class will become poor.

There might be some correction in the short term. But only to a extent of 10-15% percent.Remember india is growing at 9% and majority of that is happening in mumbai.

Consider the following situation below. Lets assume that the morgage rate is at 10%. Then for a property thats worth Rs 50 lacs and some one paying 10% upfront and a loan of 45 lacs for a 15 year terms the payment per month is Rs 45000. Now if the banks start giving longer term loans say 35 years than that amount comes down to Rs 34000 per month.

The interest part of this loan is deductible for income tax pupose to the real payment is around Rs 25000 per month. For a 2 income
family earning around 6 to 8 lacs this is easily affordable. Also assuming that the current gowth rate in India is sustainable for next 5 years at 9% than the same couple earning 6 to 8 lacs today will earn 9 lacs to 12 lacs. Then the Rs 25000 permonth becomes
even more affordable. So the right advise is if you have the money buy your house now.