Wednesday, January 03, 2007

Mumbai readers respond to a DNA poll

Its a wait and watch scenario with apartment buyers and not even a single resident polled can afford to buy an apartment at these ridiculous prices

Today, property in Mumbai is greatly overvalued. A correction is due, but I don't see it happening immediately. Maybe, the end of the year will see a fall in prices especially in areas beyond Andheri. Lack of space from Juhu to south Mumbai will restrict a correction in these areas. There is a growing ‘wait and watch’ trend among consumers as prices are unaffordable. Delhi is already witnessing a correction and even the Pune market has stagnated. So, logically Mumbai should be next in line. Mill lands opening up should ideally lead to a correction but even that property is being sold at exorbitant rates.

So, while some wait and watch, others have no option but to wait and hope that a correction makes things more affordable.”

— Bhagwan Bahirwani. Lavina Estates

Still waiting for the price dip

For the last two years, we have been trying to buy an apartment in the neighbourhood, but that hasn’t materialised. We were told that property prices would come down and we waited. But the prices have only gone up and I don't see them coming down at this juncture. So, it doesn’t make sense to buy property right now. Perhaps, in future when I have enough money or if I am lucky enough to win a lottery, I will go for it.

— Sushmita Chaterjee. Goregaon

No 1-BHKs available

I have been scouting for houses for quite some time. Earlier I couldn’t find anything to my liking, and now the prices have shot through the roof. I can only think of buying 1-BHK but the problem is that the builders have stopped constructing 1-BHK. I'm afraid, I'll have to wait a few more years to live in a house of my own.

— Dharmesh Chawla. Kandivali

Loans are unaffordable

I am being hunted by banks to take loan, but the property prices are so high that I can't even arrange for the initial payment. A loan, therefore is, out of question. I am praying that the prices come down but I don't see that happening in the near future. They are heading only one way — up.

— Rajiv Gopalan. Malad

Waiting for the next fiscal

I am planning to invest in property but I am in two minds. I have heard that home loans will no longer be exempted from tax and the banks have also increased the interest rates. So, I am putting my plans on hold for a while. Hopefully, the new financial year will see interest rates drop and more tax exemptions, making it easier to purchase property.

— Mitesh Panchal. Andheri

Not an auspicious time

From where I come, they don't make any valuable purchases during this time of the year. I will wait out this period. The property rates in our locality have largely remained stable. I hope things stay the same for the next few months so that I can buy it at the same rate.

— Adhvet Maitra. Jogeshwari

Loan rates went up

I had planned to book a house a short distance from my house. Everything was finalised but the bank where I had applied for loan suddenly came up with new interest rates. They refused to grant a loan at the old rate and I had no choice but to put my plan on hold. Now the rates have almost doubled and I can't afford to buy even half the area I had planned to buy before. I have dropped the idea of buying property.

— Kamlesh Chauhan. Goregaon

A few months later, maybe

Real estate has gone out of reach of the middle-class Mumbaikar. Only the affluent can afford to invest in property. Builders have fired property prices and banks have hiked interest rates. In such conditions, I can’t afford to invest in real estate. I’ll wait for a few months and hope that property rates go down or banks reduce interest rates.

— Jatin Shah. Kandivali

1 comment:

PowerMyLoan said...

In this era of increasing property prices and increasing home loan interest rates, home loan seekers will have to be extra cautious. They will have to compare different banks and only then decide. At the same time banks will have to compete harder for their business. Golden run of indiscriminate lending is over for some time.