Unbelievable !!!
This is a follow up of Jagan's post on real estate prices in India, particularly in bangalore and chennai. I'm really at loss of words here. agreed its a seller's market when demand rises. but I do feel there should be a limit. prices are going up by atleast 10% every month. thats an unbelievable and ofcourse unrealistic growth.
an apartment in the outskirts of bangalore city costs about 60 lakhs. people are still going for these apartments. I know IT companies offer interest free loans to some of their employees, but is everyone in bangalore/chennai offered the same? to rent these apartments also costs a fortune, thereby making the city virtually un-liveable.
astronomical growth in select areas could be very harmful for the economy. its more sustainable if it could be spread out.
4 Comments:
even if companies offer interest free loan, the notional interest will be treated as a salary / perk and will be taxed accordingly. With Fringe benefit tax and all now, the laws have been tightened and there are no free lunches. So I don't really a benefit out of the interest free loan.
well said kaps. I was really wondering as to how these companies can dole out such huge amounts just like that.
so the common man is really panicking and willing to invest his lifetime earnings in a small apartment 30 Kms away from the city. really sad.
hi saranyan,
real estate boom is something that is actually an alarming phenomenon. i do not know about bangalore, but as far as mumbai is concerned, the piece of land is costlier than heaps of diamonds and gold. especially after the mill land sale, it is more so.
Your right, realtors dont understand that they are digging their own grave, lands prices can fall whe there is a downturn, and all the investment of the working man turns to dust
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